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.