The UK Government’s next Budget, expected in November, could “make or break” the financial outlook of the property market, according to Mitchell Martyn, property expert at Pure Property Finance.
With widespread speculation over possible tax and housing policy changes, Martyn warned that decisions made in this Budget will have far-reaching implications for the market, investors and homeowners alike.
“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,” Martyn said.
Among the potential policy changes being discussed are wealth taxes, adjustments to capital gains tax and reforms to council tax.
Martyn urged the Government to “strike a balance between what’s fair and what’s economically viable,” warning that the UK’s decisions are being closely watched internationally.
“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,” he added.
Since the last financial statement, the Bank of England’s base rate has fallen by one percentage point, easing pressure on borrowers and saving some homeowners hundreds of pounds per month.
“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,” Martyn said.
