A leading property search agency says Chancellor Rachel Reeves must introduce balanced solutions to tackle the so-called £22 billion ‘black hole’ in the Autumn budget or risk market turmoil.
Since Labour took office earlier this year the Conservatives have been blamed for leaving a ‘£22 billion black hole’ in the public finances.
Government ministers have repeatedly used the figure to justify the decision to cut the winter fuel payment, while Prime Minister Sir Keir Starmer has also warned that October’s Budget will be ‘painful’.
DRASTIC MEASURES
Nigel Bishop, Recoco Property SearchNigel Bishop, Director of Recoco Property Search, says: “It has been made clear that Rachel Reeves will announce some drastic measures to fill the £22 billion ‘black hole’ in the nation’s finances.
“We are hoping for the Chancellor of the Exchequer to introduce balanced solutions that won’t target one specific demographic.
“The elderly, in particular, have already been hard hit with the abolition of the winter fuel allowance.”
Bishop adds: “The UK has a vast number of property owners aged 65 and over who would like to downsize but, due to the current level of SDLT, are reluctant to do so.
“Property values have ballooned over the past decades which means the SDLT rate of 5% to 12% can present a substantial expense that stops many people from selling up and pursuing buying a different property.
“We believe that a freeze of SDLT for downsizers would encourage this market demographic to finally make that step which will inevitably boost the number of family homes being put up for sale.”
INHERITANCE TAX
And he says: “The Inheritance Tax threshold hasn’t been updated in over two decades whilst property values have increased dramatically during this time.
“It is therefore outdated and raising the threshold from £325,000 to £500,000 per person or £1m for couples seems long overdue.”
