Alex Mackay, Managing Director of Mishon Mackay, reflects on today’s Budget from Chancellor Rishi Sunak
With the Stamp Duty holiday generating 140,000 extra transactions since it began in July last year, many are disappointed that further long-term measures weren’t put in place. However, despite it coming to an end this hasn’t put a dent in house prices.
UK house prices continue to rise 10% year on year, especially in the South East, due to the South coast becoming an increasingly popular location. There have been multiple enquiries from people who are looking to sell their homes in the city and move to rural areas. As home buyers look to relocate, and flexible working becomes the new norm, there is a huge demand for properties both near the sea and with larger garden space. Furthermore, with local Sussex vineyards set to benefit from lower duties for sparkling wine, there has never been a better time to move to the South coast.
First time, and investment buyers will also be positively affected by the new cladding policy. The Chancellor has announced £5 billion to remove dangerous cladding from high rise buildings, which could potentially free up homes for this market.
Many first-time leaseholders on the government’s ‘Help to Buy’ scheme felt trapped living in accommodation that had dangerous cladding, and multiple other homeowners were also left with huge bills after discovering their homes were covered in flammable material. The new cladding policy will reassure current homeowners and first-time buyers that their property is safe and for those currently living in properties with cladding, the removal may also boost the price of their property.
With a rise in demand but few properties on the market, house prices will continue to remain high and remain a seller’s market moving into 2022.