Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Stamp Duty Incentives Most Appealing to New-Build Buyers, Survey Finds

A recent survey by LRG has found that incentives covering stamp duty costs are the most attractive to new-build homebuyers. Of 700 people polled, 31% said they would be influenced by a buyer incentive that covered the stamp duty bill.

The study, reported by Mortgage Solutions, compared various incentives offered to new-build buyers. Only one in 20 respondents said they would prefer a subsidised mortgage or a lower rate. The next most appealing incentive was the payment of estate agent and solicitor fees, cited by 12% of those surveyed. A part-exchange of a current property was attractive to 9% of respondents.

Lifestyle-related incentives were less popular. Only 4% of those surveyed said they would be tempted by energy-efficient appliances, 2% by a gardening or landscaping package, and 1% by an interior design voucher.

LRG noted that the results are significant in light of the Prime Minister's clear message that there would be no change to stamp duty at the Autumn Budget. The research also highlighted that different incentives appeal to different groups of buyers, and that matching the right incentive to the right buyer can be more effective than offering a broad range of options.

LRG also pointed out that lender criteria often cap the overall incentive package at 5% of the purchase price. This means that any contribution towards stamp duty uses part of the same allowance that might otherwise be used for furniture packs, legal fees, or other extras. Developers are therefore required to make deliberate choices about which incentives will have the greatest impact within these limits.

For letting agents and inventory clerks, these findings underline the importance of understanding which incentives are most likely to influence buyer decisions in the current market, particularly as developers respond to ongoing stamp duty policies.