The upcoming Autumn Statement is causing concern among estate agents about potential market impacts.
- Many believe the Government overly focuses on rental reforms, overshadowing sales sector needs.
- Agents are anxious about limited stimulus for the housing market in the Autumn Statement.
- Proposals for Stamp Duty relief and tax reforms top agents’ wish lists.
- Agents fear negative outcomes could undermine recent market momentum.
As anticipation builds for the upcoming Autumn Statement, many within the estate agency community are expressing apprehensions about its potential ramifications on the housing market. A significant portion of estate agents are concerned that the Government’s focus is disproportionately skewed towards rental sector reform, thereby neglecting necessary stimulus for the sales sector.
The prevailing sentiment among these professionals is that the Government’s agenda lacks adequate attention towards advancing the sales segment, an opinion shared by 68% of surveyed agents who argue that rental reforms have been excessively prioritised. This concern is expected to persist through the Autumn Statement, with only a mere 9% of the surveyed anticipating substantial support for the sales market.
Despite a strengthening in mortgage approval levels and a rise in house prices, the surveyed agents overwhelmingly agree that governmental intervention is crucial for fostering a sustainable recovery. Notably, 69% of these agents advocate for mechanisms within the Autumn Statement to bolster the market, with Stamp Duty relief and the extension of thresholds for first-time buyers being preferred measures.
There is also a considerable demand for policy revisions such as the abolition of certain changes to Capital Gains Tax and Inheritance Tax, alongside the revival of programmes like Help to Buy. These initiatives, agents argue, could restore equilibrium between the rental and sales markets, thus promoting healthier growth dynamics.
Nevertheless, an overarching sentiment of caution prevails, with 81% of the participants cautioning that the forthcoming Autumn Statement holds the potential to dampen the current positive trends observed within the property market. Such trepidation stems from past experiences, particularly in light of the downturn following the previous Government’s mini-Budget.
Colby Short, co-founder and CEO of GetAgent.co.uk, encapsulates this sentiment, criticising the Labour Government for its rapid yet arguably misdirected policy executions since assuming power. Short highlights the paramount importance of avoiding policies that could reverse the hard-won momentum accrued in recent months. He suggests that while policies like the Rental Reform Bill and increased Capital Gains Tax might not directly uplift house prices, they could incentivize transactions from landlords and second-home proprietors, thereby indirectly benefiting market dynamics.
The outcome of the Autumn Statement remains pivotal, capable of shaping the trajectory of the housing market significantly.
