As the industry expected, the Chancellor revealed his plans to help the housing market and first-time buyers in this week’s budget. What were these policies, and how could they affect the property market? We discuss the effects of the autumn budget in this blog.
There were two main property announcements in this week’s budget that impact on our industry. Firstly, the Stamp Duty Land Tax (SDLT) changes for first-time buyers and secondly the pledge of funding for the building of new homes.
First-time buyers SDTL
Stamp duty has now been scrapped for first-time buyers on all property purchases up to £300,000. There is then a reduction in the rate of stamp duty for prices between £300,000 and £500,000. This move has been designed to stimulate property purchases, and indeed estate agents have already been reporting an increase in enquiries, even though it has only been a few days since the announcement. According to the Halifax house-buying report, this will save first-time buyers £1,653 on an “average” purchase.
There are mixed views as to what impact this will have on house prices, and indeed on property demand overall, however brokers should see an increase in business, at least in the short term.
Here at Crystal Specialist Finance, we specialise in the more unusual residential enquiries – self-employed, unusual properties, contract workers etc. Speak to our team today to see how we can help.
Funding for new-build homes
The government has pledged to increase the number of new homes built to 300,000 per year by 2020. This means an increase in funding for infrastructure, and land to be built, but also planning reforms to ensure more land is available for housing while protecting the green belt. The PDR changes saw an increase in development finance, meaning more opportunities are available to developers, and any move to encourage housebuilding should be welcomed as a boost to the beleaguered building industry.
We work tirelessly with our brokers to ensure they secure the best development funding for their clients. Some of our more successful brokers are working with developers on both the development finance and then the mortgages on the sales on exit too.
We support brokers to make the most of opportunities that may otherwise be missed – such as commercial, bridging, development, specialist mortgages, buy-to-lets and secured loans. This includes adverse credit, start-up businesses, specialist property types etc. Our team are always on hand to discuss your cases, and keep an eye out for our update emails with new products, terms and offers!