As the Autumn Budget approaches, mortgage brokers express concerns over its potential consequences for the housing market.
- Research indicates that 60% of mortgage advisers believe the Budget will have a negative impact on the housing market.
- Opinions are mixed as 54% of brokers think the Government could still support first-time buyers.
- A vast majority, 96%, foresee the Budget adversely affecting the buy-to-let sector.
- Potential changes in Inheritance Tax are expected to boost equity release product demand.
The forthcoming Autumn Budget has sparked apprehension among mortgage brokers, with a significant 60% predicting negative repercussions for the housing market. This sentiment is rooted in research conducted by PRIMIS, which surveyed 223 appointed representatives across England during mid-October. Many advisers foresee challenging months ahead as they anticipate the Budget’s impact on the sector.
Despite the overall pessimism, a slight majority—54%—of brokers hold a silver lining belief that the Government might extend support to first-time buyers. This expectation could partly offset broader concerns within the market, especially as the sector braces for substantial changes.
The buy-to-let market appears particularly vulnerable, with an overwhelming 96% of respondents agreeing on a negative impact. This concern is likely driven by the Budget’s potential introduction of measures affecting landlords and rental investments, creating an air of uncertainty in this sector.
Additionally, brokers are looking at possible Inheritance Tax reforms and anticipate an increased demand for equity release products. As estates seek to manage and reduce liabilities, this sector could see substantial interest in the coming months.
Regionally, variations exist in brokers’ outlooks. In the North of England, 52% anticipate a negative impact on the housing market, whereas 64% in other regions share similar concerns. Emma Hollingworth from LSL noted the broad anxiety ranging from the Stamp Duty withdrawal to potential changes in Capital Gains Tax, which leave home-buyers and investors jittery.
The impending Budget presents a complex scenario for the housing market, leaving stakeholders to prepare for diverse challenges.
