Just 24 hours before Chancellor Rachel Reeves delivers the Autumn Budget 2025London, Aldermore Bank PLC has thrown down a gauntlet: slash stamp duty on new homes under £500,000 for 18 months, and bring back the Help to Build scheme. It’s not just a policy wish list—it’s a plea from a lender watching the housing market stall. Danielle Soto, managing director for savings and business finance at Aldermore Bank PLC, made the call on Wednesday, November 26, 2025, at 2:28 PM UTC, arguing that without urgent intervention, the dream of homeownership is slipping further out of reach for ordinary Britons.
Why This Matters Now
The UK’s housing market is stuck in neutral. After years of soaring prices and tightening lending, the government’s target of building 300,000 homes a year feels more like a fantasy than a forecast. In 2024, only 221,000 homes were completed. The Help to Buy scheme, which ran from 2013 to 2023 and helped 387,195 households buy homes—328,346 of them first-time buyers—was quietly retired. Then, on April 1, 2025, the first-time buyer stamp duty relief threshold was slashed from £425,000 to £300,000. That’s not a tweak. That’s a wall.
"It’s like asking someone to climb a mountain with one leg," said Soto. "People aren’t just struggling with mortgage rates—they’re being hit with tax hikes just as they’re trying to get on the ladder."
The Two-Pronged Proposal
Aldermore’s proposal has two clear pillars. First, an 18-month stamp duty holiday for all new homes under £500,000. Not resale homes. Not luxury flats. Just new builds—those that actually add to the housing stock. The idea? Get buyers moving again. Give small developers breathing room. And stop the vicious cycle where builders can’t sell, so they can’t pay subcontractors, so projects stall.
Second, revive the Help to Build scheme, which was axed on April 1, 2025. Originally launched in 2021 with £150 million in funding, it offered a 20% government equity loan to people building their own homes, with buyers putting down just 5%. It wasn’t a handout—it was a partnership. And it worked for regional builders who couldn’t compete with national giants. Now, those smaller developers are vanishing.
What the Buyers Say
Aldermore’s First-Time Buyer Index, surveying 2,000 prospective buyers across the UK, tells a stark story. Sixty-nine percent want Help to Buy back. Sixty-eight percent believe the government and lenders need to be "more creative" with incentives. Twenty-four percent specifically called for stamp duty relief. And 35% want more affordable housing supply—plain and simple.
"It’s not just about money," said one 28-year-old teacher from Stoke-on-Trent who took part in the survey. "It’s about dignity. If I can’t get a deposit together because I’m paying 40% of my salary in rent, and then I get hit with £15,000 in stamp duty on a £450,000 new build, what’s the point?"
The Ghost of 2020
There’s precedent. In July 2020, during the pandemic, the government suspended stamp duty on homes up to £500,000. Sales surged. The market roared back. By December 2020, the number of transactions hit a 14-year high. Critics called it a bubble. But the data showed something else: when you remove a major friction point, people move. They invest. They build.
"We’re not asking for a bubble," Soto emphasized. "We’re asking for a spark. The market isn’t broken—it’s frozen."
Who’s Left Behind?
The biggest casualties? SME housebuilders. These are the local firms, often family-run, building 10 to 50 homes a year. They don’t have the balance sheets of Barratt or Persimmon. When sales slow, they can’t wait out the downturn. They fold. And when they go, so does diversity in housing design, local employment, and regional development.
"Major developers focus on London and the Southeast," Soto noted. "But the real need is in places like Barnsley, Crewe, or Middlesbrough. That’s where Help to Build made a difference. That’s where we need it most."
What Comes Next?
The Autumn Budget 2025 is scheduled for Thursday, November 27, 2025. The market will be watching. Will Chancellor Rachel Reeves offer a partial stamp duty cut? Will she revive Help to Build—or quietly ignore it? The Office for Budget Responsibility’s latest forecast shows housing investment down 11% year-on-year. The Treasury knows the numbers. The question is: will it act?
One thing’s clear: without targeted support, the UK’s housing crisis won’t fix itself. The government has talked about reforming planning rules and boosting infrastructure. Those are vital. But right now, the immediate need is liquidity—for buyers, for builders, for the whole chain.
Why This Isn’t Just About Tax
Stamp duty isn’t just a tax—it’s a psychological barrier. It’s the final hurdle before you hand over your keys. For many, it’s the difference between "I can afford this" and "I’ll have to wait another five years." And for SME builders, it’s the difference between staying open and shutting down.
"We’re not asking for a free lunch," Soto said. "We’re asking for a fair shot."
Frequently Asked Questions
How would an 18-month stamp duty holiday help first-time buyers?
An 18-month stamp duty holiday on new homes under £500,000 would save first-time buyers an average of £12,000 to £15,000 on a typical purchase. With the threshold recently cut to £300,000, many buyers now pay stamp duty on homes they previously qualified to buy tax-free. Removing this barrier would make entry into the market significantly more achievable, especially in regions where average new build prices hover around £400,000.
Why focus on new builds instead of all homes?
Focusing on new builds ensures the policy directly increases housing supply, rather than just shifting demand between existing properties. The UK needs more homes—not just more transactions. By tying the relief to new construction, Aldermore aims to incentivize developers to start projects and hire workers, directly addressing the 79,000-home shortfall against the 300,000 annual target.
What happened to the Help to Build scheme after it was withdrawn?
After the Help to Build scheme ended on April 1, 2025, applications were frozen, and no new equity loans were issued. Around 8,000 households had received support since its 2021 launch. Many SME builders who relied on the scheme for cash flow have since scaled back or closed. The £150 million in initial funding was fully allocated, but the lack of renewal has left a gap in self-build and custom-build markets, especially outside major cities.
How does this compare to Help to Buy?
Help to Buy (2013–2023) supported home purchases through equity loans, while Help to Build (2021–2025) targeted self-builders and custom builders, offering 20% equity toward land and construction costs. Help to Buy helped 387,000 buyers, mostly through larger developers. Help to Build was smaller but more targeted—helping those who wanted to design their own homes, often in areas ignored by big builders. Reinstating Help to Build could unlock housing in regions where traditional development is scarce.
Could this cost the Treasury too much?
A 12-month stamp duty holiday on homes under £500,000 cost the Treasury an estimated £10 billion in 2020–2021. An 18-month version might cost £13–15 billion. But Aldermore argues that the economic multiplier—jobs created, materials purchased, local taxes generated—could offset up to 40% of that. Plus, the alternative—continued stagnation—risks deeper long-term costs in welfare, homelessness, and productivity loss.
What’s the likelihood these proposals will be adopted?
The likelihood is uncertain. While Labour has signaled support for housing reform, the Treasury remains cautious about revenue loss. However, with public pressure rising and housing associations lobbying heavily, a scaled-down version—perhaps a 12-month holiday on homes under £400,000 or a partial Help to Build revival—is plausible. The real test will be whether the government chooses short-term pain for long-term gain.
Caden Sinclair
Hi, I'm Caden Sinclair, a sports enthusiast with a passion for motorsports. I've spent years honing my expertise in various racing disciplines and have gained a deep understanding of the technical aspects involved. My love for writing led me to combine these interests, and now I spend my days crafting engaging articles and analyses on the world of motorsports. From Formula 1 to MotoGP, I cover all aspects of the sport, delivering insightful content for fellow enthusiasts to enjoy.
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