RICS and NFB Request Stamp Duty Free Period

Due to the great damage that the Coronavirus has caused to the UK economy, the Royal Institute of Chartered Surveyors (RICS) and the National Federation of Builders (FNB) have proposed to request the government for a duty stamp free-period once the pandemic is over.

According to the members of the RICS, the forecasts are quite negative. It is expected that house prices will fall during the next 12 months. However, they believe that a stamp duty holiday can help markets re-activate faster.

“The real estate market needs this”

RICS Head of Government Relations, Hew Edgar, said: “RICS is not an organization that would ask for something like this, but we sincerely believe that it is a viable option and that it will help the real estate market to stabilize more quickly.”

“We know that once we get out of this crisis, potential buyers still feel uncertain and their finances will be limited; the stamp duty tax can discourage buyers, this would be quite negative for the real estate market. We are trying to avoid that at all costs.”

“Those people who can still afford to buy a property will surely not trust the market yet; This will cause the market to go into recession for several months, but if we can get the government to approve our petition we can counter that.”

“The stamp duty holiday will be a way to revive the market and offer potential buyers some incentive. COVID-19 has seriously impacted the property market, and while we believe the government has taken the right steps to counter the negative impact, they still need to take more actions to help the population recover.”

“Stamp Duty Holiday is a necessary action.”

Not only the RICS but also the NFB gave important statements on this request. NFB Executive Director, Richard Beresford said: “By approving a temporary stamp duty holiday you can increase sales once the pandemic has ended. Also, this would generate more cash flow for our construction companies; it is something everyone needs.”

“Temporary stamp duty holiday would also help other vital sectors such as surveyors and conveyancers to reactivate the offer of their services. We want them to be able to continue operating during these difficult times, and we offer them our support.”

During their statements, the National Federation of Builders (NFB) also supported the campaigns to delay the payment of planning contributions and municipal taxes on new empty buildings. They also agreed to the request to extend the planning permissions for 12 months.