Property Market Update - Prime Ministers and Pledges

We’re summarising everything you need to know about the most recent changes in the property market over the past few weeks in our handy property market update so you can stay in-the-loop and understand how these changes could impact you.

Rishi Sunak’s First Weeks As Prime Minister

Perhaps the most significant of all property market updates over the last month has been the resignation of Liz Truss and subsequent rise to power of incumbent Prime Minister, Rishi Sunak. This has been a welcome change for many after the havoc of Truss’ government caused a surge in economic instability that resulted in jeopardised pensions and soaring mortgage costs, with Labour predicting an increase in the average mortgage repayments of over £12,000 over 24 months. Sunak’s appointment spells much more positivity for the economy and, as a result, the property market as he vowed to prioritise national fiscal stability. It seems as if the markets are responding well to his take-over, as the value of the pound has returned to its pre-Truss level and remains stable in December, spelling a much more stable period for property owners, investors, tenants and purchasers alike.

Gove Returns As Housing Secretary

Alongside the appointment of Sunak came the reconfiguration of his cabinet, which has ushered in the return of Michael Gove as Housing Secretary. His first pledge is to continue with his work on abolishing Section 21 on no-fault evictions, which has been outlined in his Renters Reform White Paper, whilst also vowing to provide financial assistance to struggling tenants. Such reforms are set to be put into action in 2023, according to Gove’s latest statement at the end of November. Gove has also vowed to build 300,000 new homes every year, which is in-line with soaring renter and purchaser demand that currently is currently far outweighing supply. This forms part of the government’s ‘Levelling Up’ plan which aims to enhance the opportunities for Brits across all sectors.

Electric Vehicle Charging Grants Still Available

Landlords and tenants across the UK can still apply for 75%of the cost of charging points up to £350 where they own parking areas. The installation of these charging points is based on three conditions:

They own a qualifying electric vehicle
Their home has its own private off-street parking space
The owner-occupier or tenant has sole, undisputed access to the space

Stamp Duty Cuts To Continue

New Chancellor Jeremy Hunt has chosen to adhere to the Stamp Duty Land Tax cuts put forward by his predecessor, Kwasi Kwarteng, in the last mini budget. This will ensure that over 200,000 purchasers will be exempt from paying stamp duty altogether, and the majority of purchasers will be able to save thousands of pounds on the tax thanks to the increase in payment thresholds. This will impact both first time and experienced buyers, meaning that even buy-to-let purchasers will incur far less tax, thereby boosting the rental sector. However, prospective purchasers will have to start planning their next move soon, as the scheme is set to end in March 2025.

End Of Help To Buy Scheme

The beloved Help To Buy scheme concluded in October, leaving many first time purchasers concerned about their ability to buy their first home. However, with the re-introduction of Stamp Duty cuts and the abundance of alternative schemes available to first time buyers, there still remains plenty of opportunity for Brits to secure their new home. From shared ownership, to the First Homes Scheme and the Right to Buy Scheme – first-time buyers will certainly not be stuck for options to help them achieve their first purchase.

Zoopla and JLL make their predictions

As the year comes to a close, property giants Zoopla and JLL have released their forecasts for the months ahead, and their predictions seem resoundingly positive. We’ve summarised the key take aways from their reports below:

Richard Donnell, Executive Director of Research at Zoopla, claims that “the number of
sales going through will remain buoyant”
The number of homes on the market is increasing, which bodes well for home movers, but the market remains competitive, which bodes well for investors
There is no evidence that we are anywhere close to experiencing a housing market crash, says Zoopla. JLL agree, claiming that the market will undergo a “correction” as opposed to a crash
“Rental growth is expected to be particularly strong” according to JLL, with rental demand remaining high, which will be welcomed by investors
Almost half of UK residential real estate investment is in relation to Build To Rent properties, which is on track for a record-breaking year for the growing BTR sector as investment is set to double year-on-year. This looks promising for a growing tenant base

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