Homeowners, landlords and first-time-buyers cynical about Autumn Budget

Homeowners, landlords and first-time-buyers cynical about Autumn Budget

A new poll, conducted by propertypriceadvice.co.uk, has shown that the majority of homeowners, landlords and first-time buyers are not confident that targets laid out in the Autumn Budget will be met, or that it will address the current housebuilding crisis.

The Autumn Budget announced an extensive housebuilding agenda that would see an extra 300,000 homes a year being built by the mid-2020s, a 100% increase in council tax for empty properties, and an exemption on stamp duty for first-time buyers buying homes for less than £500,000. Propertypriceadvice.co.uk polled more than 500 people for their comments and views immediately following these announcements to gain insight into how the housing element of the budget was received by the general public.

First-time buyers were split on the announcement that stamp duty would not apply to their first home (providing it was less than £300,000 or the first £300,000 of any property under £500,000). A property sold at £490,000 to a first-time buyer would therefore pay stamp duty of £9,500 under this scheme, whereas a property sold at £510,000 would pay £15,500 in stamp duty regardless of who bought it. Around 53% were encouraged by the news and felt they would be able to buy their first home sooner as a result, whereas 26% stated it wouldn't affect their purchasing decision. A further 21% felt it actually discouraged them, with one noting that flats in London are often substantially above the £500,000 cap.

In addition, 44% of first-time buyers stated that the government wasn't doing enough to help them buy, with one noting that much of the problem lay with the issue of salary multiples, particularly for those working in critical services.

Empty properties have been the target of substantial criticism, yet landlords were broadly confident. The majority would factor any additional council tax costs into the rent if this affected them, with around 29% stating that it wouldn't affect them anyway. One noted that there should be a mechanism to evaluate why properties are empty, stating that there could be reasons other than just a lack of will to let it out.


Targets are unlikely to be met

A huge 71% of respondents believed that targets were unlikely to be met with respect to housebuilding. Respondents commented that a greater volume of cheaper homes were needed, but they were unlikely to be built because of the need for higher margins, with land values and land banks being perceived as a problem. One of the solutions announced in the budget was to remove the cap on Housing Revenue Accounts for certain local councils, which may go some way to solving this issue.

Another area of concern was in planning laws, with 61% stating that planning laws do affect the number of houses being built. A similar percentage stated that greenbelt planning permissions should not be relaxed, with many commenting that brownfield sites should be used instead. Brownfield sites proved to be a popular solution, primarily because there was a perception that derelict sites were an eyesore and that they were underutilised.

The propertypriceadvice.co.uk poll suggests that the housing aspect of this budget has not been met with approval from the general public, with a large number questioning its aims and claims. Many felt that the priority should be focused on planning reform, prioritising social housing and utilising brownfield sites, and a large proportion felt that the stamp duty aspects would not affect them.

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Latest Comments

Tony Gimple
Tony Gimple 09 Dec 2017

Linking professionalism to limited company borrowing is a flawed concept. Despite S24 etc., limited companies are the most tax inefficient way of running a property business and leave borrowers seriously...

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Evelyn Attwood
Evelyn Attwood 01 Dec 2017

It's normal. If you plan to buy a house in one of the most beautiful spots in the country you should pay a high price.

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Evelyn Attwood
Evelyn Attwood 01 Dec 2017

I think that the situation will be the same at December.

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Scott Garnet
Scott Garnet 06 Nov 2017

If you have a patio or a porch it is important to make sure that any connecting doors are secured. Good advice for sliding glass doors is replacing the panels with storm resistant glass and getting heavier...

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richardrawlings
richardrawlings 01 Nov 2017

What has not been mentioned here is the effect of not only higher interest payments, but also that these payments are less likely to be offsettable as a business cost due to the scaling back of mortgage...

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Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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