Autumn Budget 2017

Autumn Budget 2017

On Wednesday the 22nd of November the Chancellor will publish the first budget since the Conservative Government lost ground in the snap General Election earlier this year. His aim will be to increase revenue and at the same time increase the Tory party's popularity.

One very popular move with younger voters would be to cut stamp duty for first time buyers. Price growth in the UK housing market has slowed dramatically and any help from the Government for first time buyers to get on the housing ladder can only be a vote winner.

There have also been rumours of the stamp duty liability being removed from buyers and passed on to sellers however this could result in higher asking prices and a reluctance to sell from older homeowners who would ordinarily be looking to downsize, freeing up homes that have become too large for them and would suit a younger growing family.

Stamp duty is however a huge revenue raiser for HMRC and drew in nearly £12bn in the 2016-17 tax year so whether Philip Hammond can afford a drop in this income is a question he'll need to give great consideration. His predecessor, George Osborne, introduced a 3% surcharge for property buyers making second and additional property purchases which was understandably very unpopular with landlords as it increased the stamp duty liability on a £250,000 home from £2,500 to £10,000. Some have suggested that he may look to remove the 3% surcharge which should attract more landlords to purchase further properties and increase movement in the housing market but it will most likely have a negative impact on revenues and party popularity with anyone who is not a landlord or aspiring to become one.

Will the Chancellor look to raise the National Insurance or Income Tax personal allowance? This could also help the young working population who aspire to become homeowners in the future.

The only real certainty is that in the weeks leading up to the 22nd there will be much more speculation regarding the Chancellor's announcements and we look forward to hearing more of it.

Should you wish to discuss purchasing a property either as your own home or a buy to let investment feel free to contact our office.