The OBR expects the economy to grow by 0.8% this year and 1.9% next year, which is 0.5% higher than the autumn forecast. They also believe that the economy will continue on this trend until 2027.
In a surprise move from the Chancellor, the higher rate of capital gains tax on residential property will be reduced from 28% to 24%. This is intended to increase revenues as more transactions occur in the property market.
Stamp duty relief has been abolished for people buying more than one dwelling. Hunt cites regular abuse of this system as the reason for doing away with it.
He also announced that the government would scrap tax breaks that make short-letting more profitable than finding long-term tenants. This will have a negative effect on the holiday letting sector and possibly encourage more long-term letting instead.
In terms of regeneration, Canary Wharf has been announced as a recipient of Levelling Up funds. The Chancellor also stated that he has allocated £188 million for projects in Sheffield, Blackpool, and Liverpool. He claimed that the government is on track to deliver over one million homes by the end of this parliament.
However, according to Richard Donnell, Executive Director at Zoopla, the supply of UK housing has increased but has now stalled, stating: “The budget marks another missed opportunity to take action on boosting supply and mortgage availability in the housing market.
“The consensus is that the country needs more new homes. Supply has increased, but this has stalled. More funding is needed for social and affordable homes and housing infrastructure investment to unlock supply.”
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