This week’s Budget Statement was, perhaps mercifully, short on new measures for the UK housebuilding industry and property market.
However, some aspects will have an impact on property buyers and their incomes, and the industry has been quick to put forward their thoughts.
Founder and CEO of eMoov.co.uk, Russell Quirk, kicked things off:
“Zip. Nada. Zilch… Nothing…. A bitterly disappointing, lacklustre Budget by Mr Hammond in terms of addressing the current UK housing crisis. It is clear he is continuing the head in the sand approach of those before him in bypassing the issue, with a few headline-grabbing business initiatives and the usual proclamations about how great the economy is currently performing.”
James Davis, CEO and founder of online lettings agency, Upad, was equally disappointed:
“It must be a first that there was no mention of housing in today’s Budget. In particular, it was disappointing to not see a U-turn on the catastrophic decision the Chancellor made in the Autumn to ban lettings agent fees.”
Edward Heaton, founder and managing partner of property buying and search agent Heaton & Partners, wanted action for the top end of the market:
“I would have loved to see the Chancellor get rid of the 3 per cent surcharge for second homes and reduce the overall stamp duty rate for high end properties by making it a flat rate today, but sadly I think this is a pipe dream of those operating in the prime market, who are witnessing it continue to be stifled by stamp duty. What the Chancellor doesn’t seem to realise is the profound effect that it is having on the rest of the market.”
Lynda Clark, expert and CEO of First Time Buyer, lamented the lack of good news for first time buyers:
“What a shame that we didn’t hear anything in the Spring budget to help first time buyers who play a critical role in keeping the property market moving. Given increasing house prices, stamp duty is now paid by three quarters of first time buyers and so it raises the question who does the current stamp duty exemption actually help? Whilst it may help a few, it certainly doesn’t help the majority of first time buyers faced with the task of buying a property in a more expensive area, perhaps near their family or place of work.”
CEO of The Guild of Property Professionals, Iain McKenzie,shared his thoughts:
“It was disappointing that Chancellor Philip Hammond did not show an understanding of how crucial it is to support the housing market at this uncertain time. The lack of measures to support first-time buyers, investors, and homeowners could have a negative impact on the industry over the coming year. At the Guild, we hoped to see a clearer commitment from the government to ensure the success of the housing market both in 2017 and in years to come.”
Steven Way, Practice Principal at Collier Stevens Chartered Surveyors, commented on the VAT inequality:
“I would have liked to see the Chancellor address the inequality in VAT between new builds (0%) and renovations (rated at 20%) in today’s Budget, but to not even mention housing at all was totally bizarre. The VAT system as it stands, is a complete muddle, particularly from a building practitioners point of view.”
Financial professionals also had their views on the statement. Commenting on today’s Spring Budget Statement, Michelle Niziol, Director of IMS Independent Property Solutions, said:
“I wasn’t expecting many rabbits from the hat of today’s Budget announcement but it would have been great to see the Chancellor focus on helping Britain’s housing market. First time buyers and first time movers are struggling to get on or move up the housing ladder due to affordability and the need to save for large deposits. For many years earnings have not grown as quickly as house prices and for many millennials home ownership is but a pipe dream. I would also have liked to see the Chancellor scrap the planned cut in tax relief on mortgage interest payments for buy-to-let landlords. The implementation of which will see some landlords paying considerably more tax than they do now, and because of this we are seeing more landlords creating limited companies to avoid higher taxes on their rental incomes.”
