Every year there is a lot of talk in the build-up to the Budget about changes that will impact on the property market. With a considerable number of people and market specialists calling out for change and improvements in the market, there is a prominent level of interest in the Autumn Budget.
Many people were looking to the Autumn Budget of 2018 for insight into Brexit, but the property market was a key component of the announcement. Not everyone has the time, interest or inclination to review the Budget, so the following points are the most pertinent with respect to the housing market:
- The removal of stamp duty for first-time buyers purchasing a shared property ownership to a price of £500,000
- The extension of the Help To Buy scheme to 2023, with the period between 2021 and 2023 being solely for first-time buyers
- Foreign property buyers having to pay an additional tax when purchasing property in the UK
- Funding to council authorities to build 650,000 homes
While there has been support for these measures in the media, we are unsure that these changes will have much of an impact on West Midlands and surrounding areas.
Can vendors expect much to change in the wake of the Autumn Budget?
We know that the statistics indicate that there is 200,000 shared property ownerships across the country but at Innovate, it is not something that is relevant to us. We haven’t helped many, if any, buyers purchase a home of this nature, so the new stamp duty set-up for this style of property deal is unlikely to make a difference. If it does create more interest in the property market or prospective buyers want to find out more about how this scheme can help, we are here to assist, but we don’t believe local vendors should expect an influx of buyers on the back of this change.
Also, while the additional tax on foreign property buyers purchasing a home may impact the London property market, it is not something we expect to have too much impact on the West Midlands.
Anything which assists first-time buyers should be supported
With respect to the Help To Buy extension and a renewed focus on supporting first-time buyers, if it is implemented correctly, it could be of benefit. There has rightly been a criticism of the scheme for the fact that it was helping existing homeowners as much as, if not more than, first-time buyers; so, if it assists people to step onto the property ladder, it could be of benefit.
As for the support provided to council authorities, until figures are provided as to how many homes this will create the development of in the local area, it would be impossible to gauge the impact that it will have. Therefore, while the Government has carried out a range of measures with respect to the housing market at the Autumn Budget, it is unlikely that there will be too much of an impact in West Midlands and surrounding areas. There are many challenges in the housing market, but it is still possible to sell your home.
If you are looking for guidance or support in making your next move, contact Innovate, and we will be happy to share our expertise and local knowledge to make the process easier for you.