uk stamp duty cut

Stamp Duty Cut Remains

UK stamp duty cut

Sticking to what seems like a never-ending pattern over 2022’s financial landscape, the new Chancellor Jeremy Hunt has reversed nearly all of the tax cuts established only 3 weeks ago in the disastrous mini-budget, raising an extra £32 billion per year.

Movement on Reversal

In a recorded speech aimed at reassuring markets, Hunt declared movement on reversing almost all tax measures highlighted in the growth plan that had not already started the parliamentary process. Out of all of the elements involved, only two survived the cut. The first was National Insurance and the second is the cut to stamp duty in England and Northern Ireland.

Following both the corporation tax cut scrapping and removal of Kwasi Kwarteng last weekend, both of which failed to reassure the markets, Hunt brought forward the death of Trussonomics mere weeks after the tax-cutting agenda was put into effect. Pundits are now questioning her future as speculation is mounting that Conservative MPs look to oust the PM.

Reassuring the Market

Hunt had only been in his new position for 72 hours and had spent the time attempting to reassure the markets, Tory MPs and the general public with his actions to scrap dividend tax rates, the IR35 tax changes, VAT-free shopping to tourists and alcohol duty changes.

Following up on his plans, Hunt has remained steadfast that the 20% basic rate of tax will remain indefinitely, and that the energy price guarantee will only last until April 2023 – with both he and the Prime Minister agreeing that long-term spending commitments would be wrong in the face of such uncertainty around the future of energy prices.

A more target system is due to be in place by April 2023 and a full review will be in operation by that point.

Positives for Buyers

This does remain a satisfying result for those on the ladder to buy property in Stockport, with the UK stamp duty cut still enabling people to achieve their plans of following through on buying a property advice provided by their estate agents Stockport. The property industry currently feels that Jeremy Hunt could play the difference maker in limiting the extent of a housing market downturn, restoring confidence and calming volatile markets.

Hunt’s reversal of the proposed tax cuts could take the edge of inflation and help slow down pressures on rates for fixed mortgages. With more breathing room, lenders will feel the confidence to put more products back into circulation and temper house prices and transactions.

That being said, the market still requires adjusting to the current higher interest rate environment, however perhaps not at such a heightened level.

For more information on where to buy a property in Stockport or how to sell a house in the area, contact the team at Joules estate agents today.

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will housing prices continue to rise

Could House Prices Still Rise in 2023?

Will housing prices continue to rise? If there is one thing that we are certain of at this time, it is that everyone is uncertain of what is around the corner. Everything is speculation and no one is truly prepared for what can come.

Look at the past two years as an example – nobody thought as soon as the clocks turned midnight on December 31st 2019 that our lives would see a global pandemic, a war, political upheaval, a recession and the changing of the monarchy in just two years among every other upheaval we have faced. No one could have predicted the dramatic ups and downs in the housing market either – and we continue to be uncertain about what is truly in store.

Optimistic Viewpoint

Jonathan Rolande, director of the National Association of Property Buyers, has however pointed to signs that many parts of the UK could still record increases up to 5% up through next year, despite concerns over the economic downturn and forecasts of 10% house price falls in 2023.

Rising interest rates, inflation, a cost of living crisis and drastic mortgage cuts may amount to the perfect storm which typically leads to a house price crash, but in the face of such factors prices are continuing to hold firm.

Areas in the north and regions of the Midlands are showing signs of prices still going up, with the ongoing lack of supply driving it, as well as the rental sector crisis. With people not able to afford rental contracts, many are continuing to save and put attention on buying, continuing to put sellers in a strong position.

5% Rises

Rolande estimates that rises of around 5% will be present over the next 6 months, although there are clear differences between this and the 1990s crash that left many with negative equity.

As of right now, there is still money to borrow whereas 2008 didn’t have any. Rates at 6% are more expensive yet nowhere near the 10% and more highs of the 1990s. Also of note is that commentators discussing slowdowns are not looking at the entire picture, where the past few years have seen double-digit rises every month in the market. This is not sustainable and destined to have ended at some point.

Smaller rises in property prices will help to boost chances for those wanting to get on the housing ladder, especially matched with government policy to support first-time buyers.

Keep Up to Date

Will housing prices continue to rise? No matter how things pan out in the next six months, estate agents Stockport still have their work cut out for them as much as those looking to buy property in Stockport. Contact the team at Joules Estate Agents today for all enquiries on how to sell a house and buying a property advice.

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Housing Market Remains Strong as Lenders Remove Deals

Whilst mortgage products took a bit of a dip ahead of the mini-budget, optimism for the housing market is still strong as it continues to hold healthy.

Harder for Providers

Following the Chancellor’s problematic mini-budget, mortgage lenders started withdrawing rates amid the rising cost of wholesale funding and economic uncertainty, which made it harder for providers to price their products.

This initially fueled further fears that the market was on a downturn, concerned about first-time buyers not being able to pass affordability assessments or interest rate stress tests. Homeowners remortgaging or moving home with new deals were also deemed destined to struggle in paying comparatively higher rates than they currently do.

This pointed to several attractive mortgage deals tumbling being a bitter taste to swallow for intended movers and those with ending fixed-terms, destined to impact buyer budgets that are already stretching themselves thin.

Still Healthy Market

However, the data points to the housing market still moving along very healthily, with the number of sales agreed last week being the highest number in a single day since August.

Demand from buyers sending leads to agents and developers was only down 3 per cent compared with other weeks in the month, while 1.6% of all properties were reduced each day. It is the same level of reductions as earlier in the month with fall-throughs remaining in line with all of September.

On a longer-term look, buyer demand over September was 20% higher than the pre-pandemic five-year average. New sellers are up 8% on 2019 levels and asking prices are currently 15% higher than two years ago. The number of sales agreed last week reaching its highest number in a day could be attributed to people rushing to get their mortgage before rates rose even further.

Surprisingly Relient

September’s activity highlights that the market has been surprisingly resilient against the rising rates, with those who can move to be able to go ahead as it stands. Whilst buyer demand has softened in the last few months, buyer demand remains 20% higher than the five-year average, with the number of homes going through conveyancing being 40% higher than in 2019.

The demand for housing is not due to fall off of a cliff anytime soon, but its stability is still good news for those deciding on how to sell a house against those looking to buy property in Stockport.

The current circumstances will no doubt impact some intentional buyers in a big way, and much hinges on the extent to which interest rates rise and how new and far-reaching unemployment levels begin to climb. This may mean that first-time buyers can begin to get a good foothold helped by the recent stamp duty adjustment.

Contact the team at Joules estate agents Stockport today for more information on buying property advice.

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Green Properties are the High Market

It is hard to fathom, but here we are now living in a whole new England. With the loss of Queen Elizabeth II and the appointment of a King for the first time in our lives, the landscape of the UK has completely changed.

Dramatic Shift

Over the past two years, we have seen so many dramatic changes to the country – none higher in volume than the housing market shift, from record sales to low supply. We saw people who could never afford a home able to get their first property and people upscale to homes with more space.

With promises of more stock coming to market in the future, the other area that is seeing a spike in interest is in the green property sector – with some hunters willing to pay 25% more to secure one. Forget the race for space – this is the keener for greener.

Willing to Pay

According to research conducted by Admiral Money, buyers are currently willing to pay up to a quarter more for properties that have a decent energy performance certificate rating. Influenced by energy-saving features within a home, buyers are actively seeking homes with an EPC rating of C or higher.

The EPC concerns are at the forefront of buyer’s minds, with 67% wanting to see the EPC tasting of a property before purchasing and a further 35% feeling off put on older properties that are not energy efficient,

Environmentally friendly and greener features are boosting property value in the majority of cases, mostly up to 25%,

Green Keywords

Agreed sales prices on properties across 13 cities featuring homes that featured green keywords such as solar, heat pumps, insulation, triple glazing, low carbon, and hive have been viewed as the best investments for sellers against similar homes that don’t have these features.

Solar panels have been the leading interest for buyers willing to shell out the additional 25% rise, with insulation being the second most valued keyword. Heat pumps also have been revealed to increase property value by up to 10%. The green appeal is due to increase in homes as the years progress, with many sellers now looking into areas which will make their properties more appealing and worth much more than the asking price to buyers.

It is encouraging to see the plans for homes being taken so seriously with eco-friendly options, with this specific area of demand providing an increase in the property market whilst stock is still in desperate need.

To buy property in Stockport or get advice on how to sell a house, contact the team at Joules estate agents Stockport today.

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