Tim Hyatt, Head of Residential at Knight Frank, commented:

Tim Hyatt

“Moving house has a clear multiplier effect for the wider economy, different sized businesses in all areas feel the knock-on benefit. Today’s announcement to temporarily cut stamp duty will act as a shot in the arm for UK housing and further bolster a market which has come out of a state of suspension. However, in order for a fully functioning market to return, the availability of higher loan to value mortgages must also be improved to support first time buyers across the country.”

Oliver Knight, Head of Residential Development Research at Knight Frank, commented:

“Today’s announcement will provide a welcome boost to property transactions across the market and comes at a time when activity levels and interest have already started to recover following the two-month market shut down. Clearly, the Chancellor recognises the multiplier effect that moving house can have on the UK economy with more money spent on DIY projects and renovations. However, while a temporary holiday will bring forward housing market and economic activity, as well as helping to address affordability concerns surrounding the up-front cost of moving, a wider re-think of property taxes is still needed to reduce the distortive effect SDLT has on property markets and maximise any stimulus the government plans to provide to the UK economy.”

For more information, go on-line at: www.knightfrank.co.uk