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Stamp Duty cuts or Help to Buy boost could be on way – Berenberg

  • 25/07/2016
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Stamp Duty cuts or Help to Buy boost could be on way – Berenberg
A Stamp Duty cut or a further boost to housing schemes like Help to Buy could be in government plans to drive on a post-Brexit economy, said Berenberg Bank.

The bank’s UK economist Kallum Pickering said new chancellor Philip Hammond is likely to address the demand side of the housing market on top of a raft of other measures to be announced in the November Autumn statement.

‘Near-term risks to the housing market could also prompt the government to reduce stamp duty or bulk up existing policies such as Help to Buy to support the demand side of the market,’ said Berenberg’s Pickering.

Tax cuts or raising the tax-free threshold could also be on the cards to raise consumers’ disposable income and a capital spending boost to offset falling private sector investment in the already badly-hit construction sector are under discussion.

UK growth looked stable in the second quarter at 0.4% from Q1 although Berenberg said Q2 will ‘probably be the last decent reading for UK growth until late next year following a sharp negative shock to confidence caused by the Brexit vote.’

The rate of Q2 growth in the Eurozone slowed to 0.2% after 0.6% in Q1, although this mostly reflects a deterioration in underlying fundamentals with growth expected back at trend rate in 2017.

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