The CEO of Andrews Property Group analyses and dissects what most people use as a broad-brush slogan, explaining in his view, what is behind the housing market's biggest problem.
4th Feb 20260 418 2 minutes read David Powell, CEO, Andrews Property Group
David Powell, CEO, Andrews Property Group
The issue isn’t just high house prices. It’s the stacking of costs:
Entry costs for first‑time buyers- High deposit requirements
- High mortgage rates
- Limited supply in affordable areas
- Stamp duty still biting at certain thresholds
Even when prices soften, the monthly cost of borrowing keeps people locked out.
Mobility costs for existing homeownersThis is the part policymakers often overlook. Moving isn’t just “sell one, buy one” — it’s a cascade of fees:
- Stamp duty
- Estate agency fees
- Legal fees
- Surveys
- Mortgage arrangement fees
- Removal costs
- Renovation/repairs to make the property sale‑ready
For many, the equity they’ve built is swallowed by transaction friction. So they stay put and improve instead.
Downsizers face a paradoxOlder homeowners want to move — smaller homes, lower bills, better accessibility — but:
- Stamp duty penalises them
- Suitable downsizer stock is scarce
- Moving costs feel disproportionate to the benefit
This traps housing supply at the top end and blocks the chain all the way down.
The Industry’s dilemmaCosts need to fall, but talent and innovation need investment. Reducing moving costs cannot simply mean squeezing estate agents, conveyancers, surveyors, or brokers. If anything, the industry needs:
- Better pay to retain skilled professionals
- Investment in digital infrastructure
- Modernisation of conveyancing
- More integrated customer journeys
- Stronger fraud prevention
- Better data sharing between stakeholders
Cutting fees at the industry level would hollow out the very people and systems needed to fix the process. So the only logical place for cost relief is government intervention.
Where government support could make a real differenceA few targeted interventions could unlock mobility without distorting the market:
- Stamp duty reform Not a holiday – those just inflate short term prices – but structural reform:
- Reduced rates for downsizers
- Lower bands for first‑time movers
- Incentives for energy‑efficient homes
- A tapered system that doesn’t create cliff edges
- Tax credits or grants for moving costs Especially for:
- First‑time buyers
- Downsizers
- Key workers
- People relocating for work
- Support for digital transformation Government‑backed investment in:
- Digital ID
- Upfront property information
- Faster local authority searches
- Standardised data formats
- AI‑assisted conveyancing tools
This would reduce transaction times, fall‑through rates, and operational costs — without undermining salaries.
- Protection against offshoring UK firms face pressure from cheaper overseas services. Government could:
- Set minimum professional standards
- Offer tax incentives for UK‑based training
- Support apprenticeships in property, legal, and surveying roles
This keeps talent onshore and maintains service quality.
The core mssageThe housing market isn’t frozen because people don’t want to move. It’s frozen because the transactional friction has become too high — and the private sector can’t reduce those costs without undermining itself.
If the Government wants a functioning housing market, it needs to treat moving costs the same way it treats infrastructure: as an investment in economic mobility, labour flexibility, and national productivity.
Pic: Andrews Property Group
Tagsaffordability Andrews Property Group David Powell 4th Feb 20260 418 2 minutes read David Powell, CEO, Andrews Property Group Share Facebook X LinkedIn Share via Email
