What Does the Mini Budget Mean for The Property Market?
Last week, Liz Truss - the new Prime Minister of the United Kingdom - announced the new mini budget. Unless you are completely off the grid, you'll have seen that a lot of people have criticised the new PM and her government.
The new Conservative government have targeted the property market in order to stimulate economic growth and, in this article, we're looking to assess the impact of the mini budget.
Stamp Duty Cuts
What Will Change?
- The Duty-Free Threshold has now been increased from £125,000 to £250,000.
- The First-Time Buyer Threshold has now been increased from £300,000 to £425,000.
- First-Time Buyer Stamp Duty Relief will be available for properties up to £625,000 from £500,000.
To understand more about what Stamp Duty Land Tax is, click this link here and read our article on the topic.
What Will This Mean?
By cutting these threshold requirements, the Conservative government hopes to stimulate more movement within the UK property market by lowering the barrier to entry for first-time buyers and lowering the cost for those wanting to move. Although this allows more buyers to enter the market and free up under-occupied stock, the UK government needs to focus on increasing the supply of suitable housing.
Investment Zones
What Are Investment Zones?
- Sites included in this policy would benefit from:
- Time-limited tax relief for investors.
- Lower planning requirements and faster application processes.
- Grants for host councils in the next Spending Review period.
What Will This Mean?
The Government's behind this new policy is to, as Kwasi Kwarteng said, "get Britain building" by removing the red tape involved in the planning process. This should make it easier for developers to supply much needed housing stock to the market to satisfy the extremely high demand.
Where Are The Investment Zones?
- Blackpool Council
- Bedford Borough Council
- Central Bedfordshire Council
- Cheshire West and Chester Council
- Cornwall Council
- Cumbria County Council
- Derbyshire County Council
- Dorset Council
- East Riding of Yorkshire Council
- Essex County Council
- Greater London Authority
- Gloucestershire County Council
- Greater Manchester Combined Authority
- Hull City Council
- Kent County Council
- Lancashire County Council
- Leicestershire County Council
- Liverpool City Region
- North East Lincolnshire Council
- North Lincolnshire Council
- Norfolk County Council
- North of Tyne Combined Authority
- North Yorkshire County Council
- Nottinghamshire County Council
- Plymouth City Council
- Somerset County Council
- Southampton City Council
- Southend-on-Sea City Council
- Staffordshire County Council
- Stoke-on-Trent City Council
- Suffolk County Council
- Sunderland City Council
- South Yorkshire Combined Authority
- Tees Valley Combined Authority
- Warwickshire County Council
- West of England Combined Authority
- West Midlands Combined Authority
- West Yorkshire Combined Authority
If you’d like to explore what can be achieved through investing in property,
get in touch!
