As the UK gears up for the upcoming budget announcement on March 6th, experts across various sectors share their insights and hopes for measures that could address some of the pressing issues facing the nation, particularly in the realms of housing and taxation.
John Jones, the head of conveyancing at Jackson Lees, emphasises the urgent need for support for first-time homebuyers amidst the current economic challenges. He said:
“The abrupt end of the ‘Help to Buy’ scheme, coupled with rising interest rates and a cost-of-living crisis, has left many potential first-time buyers in a precarious position.”
He advocates for the reinstatement of a similar scheme and suggests an extension of the current Stamp Duty Land Tax relief for first-time buyers to properties over £425,000, up from the £300,000 threshold, to reflect the current housing market realities.
Echoing the sentiment on housing, Charlotte Sallabank, a tax partner at Katten Muchin Rosenman LLP, anticipates the budget could serve as a critical platform for the Conservative government to introduce bold measures aimed at bolstering their support ahead of the next election. She said:
“With the backdrop of slow economic growth, it remains to be seen how ambitious the government can be in implementing substantial fiscal changes.”
Sallabank outlines several potential announcements that could have significant implications for taxpayers and the environment. Among these are adjustments to the income tax personal allowance threshold, which has been frozen since 2021, and potential reductions in National Insurance Contributions (NIC) rates.
What’s more, Sallabank highlights the potential for environmental taxes and incentives to feature prominently in the budget, reflecting the growing urgency to tackle climate change. The government’s consultation on taxation frameworks for cryptoassets also suggests that we might see new measures targeting the digital economy.
The housing market, a critical issue for many, could see further interventions to address the challenges faced by first-time buyers and those looking to downsize. Sallabank added:
“A targeted reduction in Stamp Duty Land Tax could be a boon for those struggling to get onto or move within the property ladder, potentially easing some of the market inequalities.”
Adrian Anderson of Anderson Harris commented:
“We are experiencing strong demand from clients at all stages of the homebuying journey right now, from first-time buyers all the way through to downsizers. Ultimately, the UK needs to build more homes, faster. These homes need to suit a range of needs and stop supply constraints from pushing prices ever upward. That’s what homebuyers want and need.”
Matt Smith, Rightmove’s mortgage expert said:
“The relative stability of the mortgage market at the start of this year appears to have helped give more movers confidence. However, ahead of the Spring Budget tomorrow, demand has been slowest to pick up in the typical first-time buyer homes sector. After demonstrating resilience and determination last year, the early signs are that first-time buyers are most in need of some additional support, as mortgage rates have fluctuated over the last few weeks, and prices remain near record levels.
Whilst we felt the 99% mortgage scheme idea would have only been able to help a very limited number of future first-time buyers, it could have played a role as part of a broader set of considered measures. Even if there is limited news in the Budget tomorrow, we hope that government listen to the growing number of voices calling for a broader review of current regulation, in the context of broader innovation in the market that are all intended to help support First-Time Buyers get on to the ladder.”
