Book a Property Valuation
logo

Budget 2016: What are the implications for the property market?

Posted on: Thursday, March 17, 2016

The Guild's CEO, Marcus Whewell, offers insights on the Budget 2016 and what the announcements could mean for the UK property market.

George Osborne’s budget was forecast to be relatively predictable – and so it proved (apart from the so-called Sugar Tax).

Given his limited room for financial manoeuvre, very few commentators expected any significant giveaways. In reality, the summary was more so-called ‘sin taxes’ and proposed reductions in public sector spending (though a little short on specifics), balanced by help for small businesses and moderate gains for individual savers (via higher ISA allowances and a raising of personal tax thresholds).

With regard to the housing market, any (small) benefits will be felt indirectly. The small encouragement to savers (see above) will help buyers with regard to accumulating deposits. Also, the commitment to big transport projects such as HS3 and Crossrail may help to alleviate the severe housing congestion in certain locations by improving commuter times – all assuming the projects survive until completion.

The Chancellor confirmed his intention to raise Stamp Duty rates for the buy-to-let market, and also focused on UK taxation on domestic projects for overseas property developers – but this will have little, if any, impact on ‘middle England’. Indeed, these actions may actually drive up rents and reduce the supply of private sector rental properties, which is currently filling the gap left by the dramatic reduction in public sector housing over recent decades, and also the challenged position of housing associations.

But perhaps the most significant aspect of the budget for home movers is ‘general sentiment’ – which is an important factor in determining timing and volumes for the residential market. His ‘steady the ship in the face of growing headwinds’ approach reflects expectations of a reduction in UK growth rates, a marked slowdown in China, and uncertainty around the forthcoming European referendum. This should lead to a slight slowdown in house price rises (probably a good thing) - but will do little to encourage increased housebuilding, which is fast becoming a priority for the UK economy and its growing population.

It is, perhaps, surprising that such a key component of the economy is effectively left to the vagaries of ‘speculative market forces’. The property market represents an important source of tax revenue - it helps people move to secure new employment, it can determine allocation of school places, and also feeds other important secondary markets and businesses such as solicitors, estate agencies, and DIY / home improvement (buyers and sellers).

So, perhaps like the Sugar Tax, there were not too many sweeteners for current and aspirational homeowners!

What Our
Clients Say

"

I would highly recommend Hardings. Their knowledge of the local area is outstanding, and they give honest and reliable advice. They have always been my partner of choice when buying and selling.

Rhiannon Prothero

"

Have used Hardings for many year on both personal and commercial property deals. Have always found them to be transparent, honest, authentic, and a pleasure to work with. Will continue to use in the future.

TB

"

I would highly recommend Hardings Estate Agents. They have excellent knowledge of Windsor and the surrounding areas, and are extremely professional, responsive and courteous. I would not hesitate to using them again the future. I recently dealt with Milica who was instrumental in securing us our new home in Windsor as well as the sale of our existing property. She was a fab negotiator and a real pleasure to work with from beginning to end. Thank you!

Jonathon Beresford

"

Hardings of Windsor managed our purchase with complete professionalism and went over and above in my opinion to manage the transaction and chain, resulting in a really smooth purchase. Milica at Hardings constantly provided timely updates and managed respective solicitors and the chain effectively, always responding quickly to queries. The whole transaction would not have happened without Milicas' focus on making all parties comfortable and satisfying all queries, not only professional but a delightful and welcoming personal approach that was a constant throughout. Thanks Hardings! Thanks Milica!

Stuart Blatch

"

I would recommend using Hardings estate agents when buying or selling your property. Dominic (Scully) was always available, helpful and genuinely interested in my purchase and always calm and compassionate. If I ever move again my first choice will be Hardings.

Cath Powell

"

Dom and the team at Hardings were so helpful and efficient when I purchased my flat - friendly and professional service and kept us up-to-date the whole way through the process. It was my first time buying and so was very nervous but they helped me feel at ease.

Freppell

"

We bought and sold through Hardings and can't recommend their professional service enough. The whole Team are really lovely, we were kept informed throughout the process and never had to chase anything.

Natalie Quint

"

I used Hardings when I bought my property as well as when I sold it and the service has been fantastic both times. I very much recommend Hardings!

Therese Jouini

"

We recently purchased our new home with Hardings Estate Agents. The whole team there were very helpful and flexible with us, arranging viewings quickly on the same day. They were always quick to respond and if ever our point of contact was not there, the service did not change as they work well together as a team. We received a personalised service, which allowed the sale to proceed quickly. Thank you all and we recommend Hardings Estate Agents without hesitation.

Mike B

"

What a pleasure it was to deal with Milica from Hardings. She sourced the perfect property for me and my family (while we were still abroad) and worked endlessly to put the deal together. I would give more than 5 stars if at all possible!

C D

"

Fantastic customer service and made what could have been stressful a total breeze. Dominic and Louisa were brilliant in helping me and my parents buy and sell our houses - reliable, helpful and thoughtful. Thank you!

Eloise Harris

"

Thank you, Dominic and Louisa - having not moved for over 30 years you helped me all the way, step by step. You were always polite, communicative, reassuring and very supportive. Would recommend Hardings wholeheartedly.

Anna Bowen
How Much is Your Property Worth?

How Much is Your Property Worth?

A senior member of our sales team will visit your property to discuss current market trends and how your home; based on size, condition and location should be pitched to achieve the best possible price and buyer. Coupled with an excellent understanding of the local market we do a detailed analysis of what else has sold and what is coming onto the market so we can give you the best chance to capitalise on your biggest asset.

Book a Valuation