On Wednesday, the Chancellor Philip Hammond delivered his Autumn Budget, abolishing stamp duty for first-time buyers on properties up to £300,000. This is a strong move towards stimulating the property market. However, as recognised by the Chancellor, this won’t help first-time buyers in London, so removing it from the first £300,000 of a £500,000 purchase will be a huge help.
For example, previously a first-time buyer would have paid £15,000, whereas now they will only pay £10,000. This will mean first-time buyers are left needing to find a lot less on top of the deposit up front, in order for them to get on to the ladder.
Reducing the amount of stamp duty should mean demand returns from first time buyers, which will encourage couples and families to upsize. This will also be positive for the older generation who wish to downsize, but are finding a lack of suitable supply.
The promise of 300,000 homes is no surprise; housing has for the longest time been high on the agenda of the Chancellors of recent years. It’s not only about having homes for the growing population, but has the aim of keeping house prices in line with wages. This is particularly important in the big cities, where talent should be retained, and not encouraged to look elsewhere for more affordable prices.
Overseas investment in the UK
The overarching consensus of the Autumn Budget is that investors around the world still want to come to the UK, weakened sterling means it’s still an attractive option, despite Brexit. This is particularly true elsewhere in the country other than London.
The UK has a very strong, skilled workforce, with a high standard of education, so people still want to invest in it, and maximise on these qualities.
To discuss the Budget and what it means for you and your money, do give us a call and we’d be happy to have a chat.