There weren’t too many surprises when Jeremy Hunt stood up at the dispatch box announcing the Spring Budget earlier this month. Today we have a quick insight from Rob Ash to get an understanding of whether the budget has changed anything for local homeowners.
There were many whispers and rumours of 99% mortgage guarantees and changes to the stamp duty brackets, which would have given a massive boost to the property market, but neither of these were mentioned in this years Spring budget and some will say it was a missed opportunity to really help those trying to get on the property ladder.
Landlords fared better though with some changes that will affect the rental market, especially with landlords that are considering selling their property investments this year.
The chancellor announced that capital gains tax is to be reduced from 28% to 24%, with a view to boosting revenues and increasing property transactions which will be welcomed by many bearing in mind the shortage of stock at the moment.
Although there was nothing dramatic announced it could easily be argued that that was a good thing. The property market at the moment is tickling along nicely and generally doesn't react well long-term to government intervention. We've had too many boom and bust scenarios as a consequence that and the saying, “if it ain't broke, don't fix it” would certainly apply to the current situation as property markets generally don't like surprises.
However, something not many people saw coming was the announcement that the government is scrapping stamp duty relief for people buying more than one dwelling.
The chancellor also states that he will scrap tax breaks, which make it more profitable for second home owners to let out their properties to holiday makers rather than to long-term tenants to rent and he will abolish the furnished holiday lettings regime.
So to answer the question was it a good budget, or a bad budget, the answer is probably neither, but if we remind ourselves of the fact that property markets don't like surprises you probably come down in favour of “moderately good”.
For further advice if you are looking to sell, buy or let a property, get in touch with one of our experts who have extensive knowledge of the current property market.