March Budget Preview - Will Housing Market Be Affected?

With the 2020 March Budget looming, many industry experts are looking ahead to see what changes will be made. Housing has been a topic that is said to be a priority for the Government. This Budget represents the first chance for significant movement to be made, but the build-up to the Budget hasn't run smoothly.

While Brexit looms over everything, the resignation of the former Chancellor of the Exchequer, Sajid Javid, has created further uncertainty for the Budget. New Chancellor, Rishi Sunak, has been thrust into the deep-end, but there is no time to lose in improving the property market.

In the Queen's Speech, it was announced the Government would "take steps to support homeownership, including by making homes available at a discount for local first-time buyers."

A discount for local first-time buyers

The Conservative party has stated they will provide at least a 30% discount to this collection of likely buyers. However, as we approach the Budget, no further details have been provided, so this is an issue that many people expect to be expanded upon during the Budget.

The Housing Secretary, Robert Jenrick, has said; "First Homes will be life-changing for people all over the country looking to buy their first home. I know that many who are seeking to buy their own home in their local areas have been forced out due to rising prices. A proportion of new homes will be made available at a 30% market discount rate - turning the dial on the dream of homeownership."

There is a need for clarification on what defines "local" concerning a buyer. This is likely to be relevant to the West Midlands property market. If a considerable number of possible buyers are provided with a discount for buying a property in the area, there should be a definite spike in the number of people willing to buy a property.

How will this discount be implemented?

Clarification is also required as to whether the plans apply to the private housing market, to properties held by housing associations or council homes. There is also a need for something to replace Help To Buy, which is scheduled to end in 2023. This scheme, which is being referred to as the First Homes Scheme, could be a suitable replacement if it goes far enough in supporting people step on the property ladder.

Fleet Mortgages' Bob Young has cited some rumours regarding the Budget in the Financial Reporter, and these rumours include:

Moving responsibility for stamp duty payments from the buyer to the vendor Significant changes to stamp duty threshold levels Changes to stamp duty when the property is purchased from abroad

Any of these changes could change the nature of the property market, so there is a lot of expectation going into the Budget.

If you are looking to make a move in the West Midlands property market, call on the services of a local agent who is here to help. At Innovate Estate Agents, we have helped many buyers find their ideal home, and we are pleased to welcome new buyers for 2020. If you believe this is the year you can step on the property ladder, or move upwards, please get in touch, and we will be more than happy to assist you.