Many property agents and consumers will be left scratching their heads that, after months of speculation and the expectation of large-scale changes to stamp duty, nothing has materialised.
All this speculation and uncertainty caused people to wait and see, which is not helpful for market activity and economic growth.
A High Value Council Tax Surcharge will disproportionally hit homeowners in London and the South East, which is already the most troubled part of our property market, and it will distort property valuations across the country.
Furthermore, placing further financial pressures on landlords through increasing additional rates of property income tax will simply increase rents, as costs are passed on to tenants.
REDUCE RENTAL SUPPLY
The Office of Budget Responsibility has said as much, noting in its impact statement that “this successive eroding of private landlord returns will likely reduce the supply of rental property over the longer run. This risks a steady long-term rise in rents if demand outstrips supply.”
Overall, with the UK Government’s ongoing target to build 1.5 million homes, and given their recent focus on home buying and selling, it is surprising that the UK Government’s Budget does not include a wide-ranging package of support for people to get onto or move up and down the property ladder.
MISSED OPPORTUNITY
With an average deposit for first-time buyers currently sitting around £60,000, ultimately, this feels like a missed opportunity to support renters, home buyers and sellers and promote greater economic activity through the housing market.
