The upcoming Autumn Budget raises concerns for the housing market, with 60% of brokers foreseeing negative impacts.
- A significant proportion of mortgage advisers worry about potential changes affecting buy-to-let properties and overall market stability.
- Regionally, the North seems less apprehensive, while other areas anticipate more severe repercussions.
- Brokers indicate a possible silver lining through increased equity release due to Inheritance Tax adjustments.
- Nervousness heightens as the Stamp Duty withdrawal looms on the horizon, potentially complicating matters for first-time buyers and investors.
As the Autumn Budget approaches, a survey conducted by PRIMIS reveals growing concerns among mortgage advisers regarding its impact on the housing market. 60% of the 223 mortgage advisers surveyed express apprehension about the budget’s implications, particularly with a negative outlook for the market in the coming months. This sentiment is amplified by a striking 96% of respondents who fear adverse effects on the buy-to-let sector, highlighting a pronounced anxiety across different housing segments.
Notably, regional differences in broker sentiment emerge, with brokers in the North exhibiting somewhat less pessimism compared to their counterparts in other regions. 52% of Northern brokers anticipate a negative impact from the Budget, whereas 64% of brokers in other regions express similar concerns. This geographical variance underscores the diverse challenges anticipated by industry professionals across the country.
Amidst these concerns, a potential upturn emerges in the form of equity release products. The survey suggests that Inheritance Tax changes might boost demand in this area, providing a glimmer of hope for some sectors. Two-thirds of brokers expect increased interest in equity release as individuals seek to manage tax liabilities more effectively. This trend could provide some relief amidst the broader apprehensions about the upcoming fiscal policies.
Emma Hollingworth, chief distribution officer at LSL, provides insight into the prevailing unease among brokers. According to her, the impending withdrawal of Stamp Duty next March and expected changes to Capital Gains Tax contribute significantly to the current nervousness among home-buyers and investors. She underscores the unpredictable impact of potential hikes in Employer National Insurance and changes to employer pension contributions on lenders’ willingness to assume risk. Her insights add depth to the understanding of broker concerns as financial landscapes shift.
Despite the myriad challenges posed by the anticipated budgetary shifts, there remains a consensus that brokers will be busier than ever, assisting clients in reassessing their financial situations. The importance of strong network support for brokers is highlighted as crucial during this period of uncertainty.
The Autumn Budget poses numerous challenges, but brokers are poised to navigate the complexities ahead, ensuring clients remain informed and prepared.
