The firm’s report ‘Addressing challenges in the housing market’ outlines several measures including lending targets, to an overhaul of the planning laws to finding ways to damp down housing volatility.
Countrywide’s CEO, Grenville Turner (pictured) told Mortgage Solutions: “There isn’t a great deal of merit in shouting “score more goals” from the side lines. We need to engage more on funding strategy and address more of the significant issues.”
Countrywide suggested aligning UK tax receipts from the housing sector with long-term investment and incentives, reviewing the slab tax Stamp Duty Land Tax system and more constructive engagement with the industry.
“The industry is well-placed to talk, but there is no sense the government is ready to bring this dialogue together as shown by its salami-sliced policies. If you were CEO of UK housing market PLC, surely you’d sit down with your key partners, from the consumer groups, to firms to regulators. I just haven’t seen that happen,” said Turner.
He added the total tax proceeds foregone due to the current shortage of housing supply and low transaction levels is in excess of £7bn a year. By the end of 2012, there will be 400,000 more households in the UK than there has been housing built.
Turner said the current tax take from Stamp Duty is almost four times as much as the annual spend by the Homes and Communities Agency on building affordable housing.
Turner said just 13% of Stamp Duty revenue comes from sub-£250,000 properties, so should be removed to boost housing market activity.
“House prices must be aligned with wage inflation and deflation, as excessive levels of house price volatility only benefits a small proportion of homeowners and undermines the confidence of lenders,” he said.
