- The Budget 2017 and the UK housing and property market
The Budget 2017 and the UK housing and property market
The UK Chancellor Philip Hammond has abolished Stamp Duty for first-time buyers purchasing properties in the UK up to the value of £300,000.
The move is sure to bring some more heat to the UK’s regional towns and cities where a huge range of high-quality property can be purchased for under £300,000. Buy-to-let investors will still be subject to stamp duty rates starting at 3% but the lower entry prices in the North and Midlands are still much more favourable to purchasing property in London where prices are expected to fall by 2% next year. In the North West of England though, Savills predicts that homes will rise at twice the London rate in the next two years.
The Northern Powerhouse
The Northern Powerhouse and Midlands Engine programmes were part of a government acknowledgement that the economic focus on the capital had left the northern cities neglected. Back in February 2017, a £400 million investment fund aimed to help businesses realise their growth potential but the latest budget explicitly backs the Northern and Midlands regions with half of a £1.7 billion budget given to Combined Authorities with mayors from the Transforming Cities Fund.
New building programme
The government is finally aiming to tackle the housing undersupply which has played its part in driving up house prices. It has pledged to build 300,000 new homes a year. It will add £15.3 billion to the total spent on buying land and new infrastructure and it will also give £1.5 billion to help smaller firms build more houses. The government has repeated it’s ambition to make changes to the planning system which will hopefully speed up delays in making land available to developers.
Speak to our team about property investment in 2018.