Later today, Chancellor of the Exchequer, Philip Hammond, will announce this year’s spring budget. Here’s what property investors may be hoping for.
The upcoming spring budget is a vital influencer on some decision future property investors may face. Considering the challenges ahead of the country weeks before the Brexit negotiations may kick off and the constantly rising house prices, experts feel like it’s time for the Government to interfere.
With its Housing White Paper, the Government did already acknowledge some of the difficulties Britain’s property market is facing, what it however didn’t do too much, is expand on the solutions.
Many are hoping for the Chancellor to take on this role and clear up some of the unknowns.
What about Stamp Duty?
Some experts have made the brave step forward and suggested a rather drastic change in how stamp duty is being charged. Whilst the industry takes it for granted that buyers have to pay the fee, some believe we would be better off charging the seller.
Considering that, for those who are selling their property to then either up- or downgrade, it wouldn’t make a huge difference whether they were charged stamp duty as a seller or buyer. For first-time buyers, however, it’d be a very different story.
If the seller was charged stamp duty instead of the buyer, first-time buyers would experience a small relief when it comes to making the first step onto the property ladder.
Possibly, a rather radical suggestion, but not completely out of the question.
Can we have more new builds?
It’s no secret that the UK is running far behind what they need when it comes to new built property. Which is why a range of experts are now calling for more schemes that help to buy and an expansion to the shared ownership programme as both have been successful in the past.
The issue of new builds is particularly interesting as there are hundreds of thousands of homes across the country that are currently vacant or in desperate need of an update.
A plan to combine support for new built homes with incentives to update older houses would be the perfect way to continue the breakdown of Britain’s housing shortage.
In reality, it might be pretty unrealistic to see any changes happening to stamp duty any time soon. The Government will probably push forward more promises to support new builds, we are, however, yet to see those actually come to fruition.