Home Property Autumn Budget reaction from finance and property sector

Autumn Budget reaction from finance and property sector

by LLP Reporter
17th Nov 22 2:02 pm

CEO of RIFT Tax Refunds, Bradley Post, commented, “A substantial hike in taxes in an attempt to plug the fiscal ‘black hole’ that is supposedly threatening to swallow the nation. While the average person has escaped relatively unscathed with respect to their day to day earnings, changes to capital gains tax allowances will certainly hurt those due to benefit from longer term, strategic investments, perhaps most notably the nation’s landlords.

We’ve never been squeezed harder where tax contributions are concerned and the chancellor needs to be cautious here, as he risks pushing our economy from inflation mitigation into a long and deep recession.”

CEO of Alliance Fund, Iain Crawford, commented, “Today’s budget can very much be viewed as an attempt to restore stability and get a handle on record inflation levels following the previously disastrous attempts by Truss and Kwarteng.

Short term pain for long term gain is no bad thing and while we’ve seen a huge hike in taxation costs to some, it can be argued that those due to be hit hardest are in the best position to stomach these increases.

Where initiatives directly concerning the residential property market are concerned, it’s unfortunately a case of nothing to see here, other than the rub being pulled from beneath homebuyers with the removal of the stamp duty reprieve come April 2025.”

Director of Benham and Reeves, Marc von Grundherr, said, “Homebuyers have been stretched to breaking point in recent weeks, not only by the rising cost of living, but also due to increasing mortgage costs.

So they may well feel that they’ve been shown the cold shoulder today with the absence of any meaningful initiative designed to help stimulate the UK property market. Even more so given that the previous reprieve offered in the way of a stamp duty cut will now only run until the end of March 2025.

At the same time, Jeremy Hunt’s raid on middle England and landlords, in particular, by slashing the amount exempt in capital gains tax is likely to disconnect this government even further from their traditional electoral base.

It’s a risky strategy and one that confirms that the Conservative’s are no longer the party of the UK homeowner, which is sure to lose them votes further down the line.”

Managing Director of Barrows and Forrester, James Forrester, commented, “The property market has remained largely defiant despite the turbulence of recent weeks and so it’s no surprise that the nation’s homebuyers and sellers have been ignored this time around, although today can be viewed as a golden opportunity missed to push growth within the sector.

That said, the government seems intent on taxing until the pip squeaks and this is only going to add to the woes of many ordinary folk, as they continue to struggle in keeping their heads above water where their household finances are concerned. The only silver lining is that many of today’s announcements don’t kick in for a while and this lot may not still be in government by then.

We can expect the nation’s tenants to feel the brunt, as yet another government initiative designed to deter landlords, this time in the form of a capital gains tax raid, reduces the level of stock available and drives up rental values.”

Managing Director of House Buyer Bureau, Chris Hodgkinson, commented, “A bleak budget for the nation, as the government ramps up taxes while we stare down the barrel of a 41 year high in inflation.

As a result, we can expect the Bank of England to act with a further hike to interest rates in the immediate future and this will put even greater strain on our household finances.

As it does, we can expect the property market to suffer as buyers can no longer afford to purchase at previous price thresholds, bringing house prices down in the process.

With changes to capital gains tax we can also expect an influx of stock from hard pressed landlords, who have grown weary of the government’s consistent attacks on their profit margins and are looking to off load their buy to let portfolios.

In doing so, this additional stock will also help balance the scale of supply and demand, contributing further to a muted housing market.”

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