The Autumn Budget is an important moment for the UK Government to deliver upon current housing needs.
A sustainable and attentive housing strategy is fundamental for wider economic development, especially as we continue to see an ever-expanding population.
With a housing sector that is under more pressure than ever before, targeted policies to support both homeowners and renters needs to bring measurable results.
With a population expected to hit 70m people in less than five years, there is vast pressure on the UK Government to deliver on its promise of building 1.5m new homes. With the Planning and Infrastructure Bill currently making its way through Westminster, it will prove essential to see investment in the correct skillset and supply chains to enable this objective to become a reality.
MARKET HESITATION
Many consumers may have been left confused after months of speculation and the expectation of large-scale changes to stamp duty, that nothing materialised on this subject. Such uncertainty can cause market hesitation, which is not helpful for economic momentum and stability.
With an average deposit for first-time buyers currently sitting around £60,000, the prospect of homeownership continues to prove difficult for many first-time buyers.
It is disheartening not to see wide-ranging support for people intending to step onto the property ladder and this factor might prove a missed opportunity for the UK Government to promote greater economic stability down the line.
COUNCIL TAX SURCHARGE
The concept of a High Value Council Tax Surcharge has the potential to create a lasting impact on the housing market across many regions in an irregular manner from April 2028.
Due to regional house price variations, the proposals have the potential to add around £2,500 for properties worth more than £2m each year and around £7,500 for properties worth more than £5m annually.
For those who rent their homes, many landlords are already feeling the pressure regarding taxation and demands surrounding the implementation of new legislation.
In many cases, this combination has been proving unfeasible for significant numbers of landlords who have already opted to leave the sector rather than continue providing high-quality long-term homes for tenants.
Ultimately, additional tax liabilities could place further pressure on current rental stock levels and any new tax burden introduced on rental revenue may well get passed directly to renters, thereby worsening an already stressful situation.
