Given the condition of the property market, it was likely that the Budget would introduce some measures aimed at stimulating movement with respect to house sales. As you would expect given the current political and economic landscape, there was a lot for the Budget to focus on, and some people have said that not enough has been done to positively impact on the property market.
One area where there has been a change is with respect to stamp duty. In the Budget of 2017, there was a change in this area, with stamp duty being removed for first-time buyers purchasing a property up to a value of £300,000. In the latest budget, Chancellor Philip Hammond stated that 121,500 households managed to benefit from this change to stamp duty.
The Chancellor also announced that the number of first-time buyers in the UK was the highest it had been for over a decade.
Shared ownership is at the heart of Budget 2018 changes
The 2018 change in stamp duty focuses on first-time buyers who are purchasing a shared ownership of a home, up to a price of £500,000. A shared ownership may not be for everyone, but it provides buyers with the chance to obtain a 25% to 75% holding of a property while they rent the remainder of the home.
With more than 200,000 shared ownership households in the UK, this is clearly a scheme that has helped many people get on to the property ladder. Anything which makes the process more affordable and manageable for people must be considered a positive step, and this move may make it easier for more people to buy a home.
Not everyone believes this style of ownership is ideal, citing problems in buying out the rest of the property and coming to an agreement about changes which must be made to the property. However, there is a need to make the buying process simpler and more affordable, and this change will hopefully have a role to play in creating movement in the property market.
There is a need for more homes to be developed
Of course, while a lot is being done to assist buyers, there are many people who feel that the largest issue in the British property market relates to the lack of supply of homes to the market. The 2018 Budget has also introduced measures that will hopefully lead to more homes being developed and supplied to the market.
Support is being given to the local High Streets with the hope that commercial properties and premise can be converted to living quarters. There is also more support being provided to local authorities to ensure more properties are developed across the country.
There will always be people who say that the proposed steps don’t go far enough in supporting the property market, but it always takes times to properly evaluate the outcome of a Budget with respect to property decisions.
If you are keen to ensure you remain fully informed as to the latest developments in the market, stay in contact with Bond Oxborough Philips and we will ensure you receive all the support and guidance you need.