reallymoving comments ahead of the Autumn Statement 2023

reallymoving comments on some of the speculation ahead of the Autumn Statement 2023 by the Chancellor on 22 November.

Rumour: Scrapping Stamp Duty for downsizers

During 2023 so far, downsizers have been less impacted by the market slowdown than other buyer groups, such as First Time Buyers and Upsizers. They have accounted for 31% of all home mover activity this year – the highest proportion since 2015.

The proportion of home movers who are value downsizers (defined as buying a cheaper property than the one they’re selling) has increased by almost a fifth (19%) in the last six months from 27% of all home movers in April 2023 to 32% in October.

On average during 2023, downsizers released £137,000 of equity by moving to a cheaper home. In London, it’s £180,000.

Rob Houghton, founder and CEO of reallymoving, said:

“Scrapping Stamp Duty for downsizers would target help at equity-rich homeowners, when right now support is more urgently needed at the other end of the market.

“Our data shows downsizers are already a very active group this year, motivated by the desire to reduce energy bills by switching to a smaller home that’s cheaper to run, which is helping free up larger family homes.

“Any bandwidth in the budget for housing market support would be better targeted at First-Time Buyers, who face unprecedented challenges raising deposits in the midst of a cost-of-living crisis and affording higher mortgage rates.”

Rumour: Another Stamp Duty Holiday

Based on the median purchase price of £380,000, buyers paid on average £6,500 in Stamp Duty in 2023 – which is 26% less than they did in 2022 (£8,750) – due to increases in the thresholds announced last autumn.

According to reallymoving’s 2023 Cost of Moving, the majority of First-Time Buyers (FTB) no longer pay Stamp Duty in any region of the UK, as the median FTB purchase price is within the nil-tax threshold (up to £425,000).

Rob Houghton, founder and CEO of reallymoving, said:

“Scrapping Stamp Duty altogether would free up the market and encourage people at every level to move.

“But tinkering yet again with the thresholds would only inflate prices in the short-term, as buyers rush to move sooner than they otherwise would have, pushing home ownership further out of reach for First-Time Buyers.

“With the pandemic housing market boom closely followed by a period of high inflation and interest rates, the market needs to be given a chance to settle into a new normal.”

Rumour: Relaxing restrictions on the Lifetime ISA

FTBs accounted for 55% of all home movers in October 2023.

Rob Houghton, founder and CEO of reallymoving, said:

“Raising the £4,000 annual contribution limit for those saving through the Lifetime ISA is a no-brainer.

“The Government would need to stump up more to fund the 25% state bonus, but considering they announced £2 billion profits on Help to Buy equity loans earlier this year, there should be money in the pot.

“Helping people buy their first home, put down roots and begin to benefit from capital growth over the longer term brings far-reaching and long-term social, well-being and economic benefits.”

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