Commenting ahead of the end of the stamp duty holiday, Jan Crosby, head of infrastructure, building and construction at KPMG UK, said.
Commenting ahead of the end of the stamp duty holiday, Jan Crosby, head of infrastructure.
“The stamp duty holiday has transferred directly into house prices – driving rates of increase to circa 10 percent over the last year. It wasn’t needed at the time as demand was already visibly strong, reflected by the rates of sale, and this continued to be the case when the holiday was extended.
“While the holiday was welcomed by the sector and house buyers, its benefits have passed to those already on the housing ladder rather than those wanting to get on the first rung. Unfortunately, seeing such high house price inflation further encourages those renting to get on the market for fear of missing out on growth and it becoming even more unaffordable. Inflation breeds further inflation, until of course the music stops.
“What is needed is more affordable housing; placemaking rather than urban sprawl and beautiful houses that future generations can be proud of. Involving local communities is critical and linking housing to new infrastructure that makes a difference to them. Transport, health, education, employment and green parks will all help with local buy-in.”
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