The UK government is due to unveil its next budgetary statement in November, with many rumours circulating on how it’ll affect the property market.
While many rumours are circulating among thought leaders and economists, Mitchell Martyn, property expert from Pure Property Finance, a property finance specialist based in the UK, says that this next budget could “make or break” the financial outlook of the property market for the coming few years.
They explain:
“Since the last budget, there’s been a lot of political development throughout the UK. If this next one is to be a success, it is paramount that the outlook of the property market is considered.
Housing is an incredibly influential financial tool that can be manipulated in order to meet government goals, but all changes have drastic implications on the economic outlook of the nation and the pockets of those who live in it.
There are a lot of possibilities being thrown around. Wealth taxes, adjustments to capital gains tax, and even changes to the way in which council tax is calculated – no matter what we see, I urge the government to strike a balance between what’s fair and what’s economically viable.
With so much political news coming out of the UK, the nation is on the world’s radar, and likely any changes made here will be reflected elsewhere.
As such, this next budget will prove to be a pivotal moment in not just the UK’s financial trajectory, but the viability of property investment within the nation as a whole.
Interest rates on mortgages are slowly coming down, which signals somewhat of a conclusion to the turmoil witnessed throughout ‘the COVID years’. But, one policy too far and the UK is at risk of being right back at square one.”
Since the last financial budget, the Bank of England’s base rate has fallen one whole percentage point – likely saving hundreds of pounds per month for those renewing their mortgages.
Mitchell argues that:
“The drop in base rate is good news for the population. It has enabled those on the fence around buying a house or taking out a loan to take the plunge and put their financial plans into action.
If this budget lands correctly, we shouldn’t see much disturbance in the base rate. But if not, things could start going in the opposite direction. A lack of confidence from investors may spook them and weaken the pound.”