A lot has happened in a short space of time. The global marketplace has reeled from one shock to another. We could not have predicted as we entered a global pandemic that we would go on to see, the sad passing of a monarch, a war in the Ukraine, a global energy crisis, ravaging inflation and a change of prime minister.
As we enter the Autumn season and prepare for Winter, recent data continues to show the market is rebalancing after a period of dramatic supply demand imbalance with more properties coming to the market and demand from buyers remaining strong (up 18% on pre pandemic figures).
With the proposed capping of energy bills, we do see one of the headwinds in the housing market being tackled. So, the simplicity of demand and supply is overruling other concerns about interest rates, inflation and the cost of living, for the time being. Needless to say, there will be testing times ahead where we will all have to reassess how we live and use energy in the most effective way we can.
The new Chancellor Kwasi Kwarteng announced a mini-Budget on the Government’s economic plan to drive down inflation and cut taxes to boost growth. The Chancellor hailed “a new era” and stated he wanted to “get Britain building.. unleash the power of the private sector… and encourage a nation of entrepreneurs.”
There was positive news for the property market, with the immediate cut in stamp duty on the first £250,000 of a property purchase, instead of £125,000. First time buyers will be pay stamp duty on homes over £425,000, up from £300,000. Relief for first time buyers has been raised to properties up to £625,000, up from £500,000.
The Chancellor announced reforms to the planning system with a new Bill to be introduced to simplify planning processes. There will also be a sell-off of surplus government-owned land to help boost the supply of homes. Investment Zones will be introduced, with relaxed planning and tax incentives for commercial and businesses creating new jobs. These are thought to be planned for the West Midlands, Thames Estuary, Tees Valley, West Yorkshire and Norfolk.
There were several initiatives to encourage business growth. Next year’s planned increase in corporation tax has been cancelled and will remain at 19 per cent. The bonus cap for City bankers has been removed to help “reaffirm the City’s role as a world centre for finance.” There will be an extension of the Enterprise Investment Scheme and pension fund investments will be unlocked to allow investment into targeted growth projects.
Landstones has a very positive outlook for the market and for landlords. If you are thinking about selling of letting your property please do get in touch as our team would love to help with any of your property needs.