The autumn Budget will be a “pivotal moment” for the property market, according to Pure Protection Finance property expert, Mitchell Martyn.
Ahead of the autumn Budget, which will be delivered on November 26, Martyn said it is “paramount” that the outlook of the property market is considered in order for it to be successful.
“Housing is an incredibly influential financial tool which can be manipulated in order to meet government goals, but all changes have drastic implications on the economic outlook of the nation,” he said.
Despite the rumoured changes, which includes wealth taxes, adjustments to capital gains tax, and changes to how council tax is calculated, Martyn emphasised the importance of balancing what’s fair and what’s economically viable.
“With so much political news coming out of the UK, the nation is on the world’s radar, and likely any changes made here will be reflected elsewhere,” he stated.
“As such, this next budget will prove to be a pivotal moment in not just the UK’s financial trajectory, but the viability of property investment within the nation as a whole.
“Interest rates on mortgages are slowly coming down, which signals somewhat of a conclusion to the turmoil witnessed throughout the ‘Covid years’.
“But one policy too far and the UK is at risk of being right back at square one.”
Martyn pointed out that, since the last financial Budget, the base rate has fallen by 1 percentage point.
“The drop in base rate is good news for the population,” he said.
“It has enabled those on the fence around buying a house or taking out a loan to take the plunge and put their financial plans into action.”
Therefore, Mitchell said that, if the Budget lands correctly, there should not be much disturbance in the base rate but, if not, “things could start going in the opposite direction”.
tom.dunstan@ft.com
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