On Monday, we saw the new Chancellor, Jeremy Hunt, unveil dramatic changes to his predecessor Kwasi Kwarteng’s mini-budget. The new Chancellor delivered a strong message of stability and eradicating nearly all the previously announced tax cuts from the former mini-budget.
Scrapped measures include:
- The rise in corporation tax from 19% to 25%
- The removal of the 45% top-rate income tax for the highest earners
- Cutting basic income tax rate by 1p
- Tax-free shopping for non-UK visitors
- Freezing alcohol duty rates
The Chancellor did retain the Stamp Duty Land Tax changes. Keeping the amends to the Tax is a welcome relief to the property market, which may encourage some stability.
The UK property market has been impacted by rising interest rates over the past few months, with industry insiders up until last week expecting the Base Rate to peak at 5.75pc in May 2023. The changes to the budget has positively changed sentiment with market expectations now envisioning rates between 5pc and 5.25pc.
How will these changes impact the housing market and property owners?
Although there’s no denying that mortgage rates will continue to rise over the coming months. As the money markets continue to settle, we will likely see more and more lenders return to the market, having sorted their new pricing and product ranges.
Some analysts now expect to see mortgage rates peak lower and fall faster once we pass peak inflation.
New predictions for Base Rate rises indicate that mortgage interest rates will climb slower than anticipated and this gives landlords and property owners the time to shop around for the most competitive deals.
How we can help
With many lenders beginning to return to the market, we recommend you arrange to speak to one of our award-winning mortgage brokers. They’ll be able to review your circumstances and you might be surprised at the solutions they’re able to offer you.
If you would like to discuss your current mortgage or have a large portfolio that you’d like us to review, speak to a member of the team or our senior broker, Danny O’Keeffe on 0208 364 3444 alternatively schedule a call back by clicking on the button below.
Positive buyer and seller sentiment continued in September:
Sentiment remained robust in September as reduced buying power made local agent advice invaluable, according to the latest OnTheMarket property sentiment index. The data found that 75% of active buyers in the UK in September were confident that they would purchase a property within the next three months, up from 73% in August. Meanwhile, 79% of sellers were confident they’d sell within the next three months, consistent with August’s figure.
Liz Truss confirms plans to abolish Section 21 no fault evictions:
Following a whirlwind of rumours earlier this week, many landlords will be disappointed to hear that Liz Truss has now confirmed she plans to abolish Section 21 ‘no fault’ evictions.
The only alternative that landlords are currently left with is Section 8 evictions. These can involve drawn-out and expensive court hearings that are difficult to navigate and take a lot of time to work through.