Stuart Law, CEO of the Assetz Group of alternative property lending companies, said:
“Balancing the books further stabilises the mortgage market, meaning we will now likely avoid the most severe scenarios for house price depreciation, while some buyers may be able to revive their hunt for a new home with relative security that mortgage rates won’t keep ratcheting up. That being said, with inflation still high, a package of tax rises will further eat into household budgets, and this will take its toll, putting homeownership out of reach for more people and bringing house prices down from the historic highs we’ve see over recent years.
“Housebuilders will have their heads in their hands as Jeremy Hunt failed to afford any time to planning reform, while the retention of the SDLT cut will protect demand over coming years at a time when a huge imbalance in market forces sits at the heart of our national housing crisis. Until we stop kicking the can down the road, we will never build enough homes, or take steps to make housing more accessible and affordable for more people.
“Housebuilders and other housing providers will also be deeply concerned that the imperative for government departments to find efficiency savings will mean less public sector investment in the housing sector, as well as planning delays at already under-funded local authorities. Private sector investment in the housing sector will be absolutely essential in the years ahead if we are to fund the new homes that are desperately needed across the country.
“In the rental market, the Truss Government already delivered the knock-out blow to the buy to let sector in the form of interest rate rises, compounding issues caused by tightening regulation and the impacts of inflation on running costs. This statement will squeeze landlord’s personal finances even more while the profitability of their investment properties continues to decline. More landlords will leave the sector, reducing rental stock and driving rents up.
“Now is the moment for us to adopt a new model for private investment in the rental sector which enables investors to fund the delivery of more high quality properties and make them available for fairer rents, while at the same time achieving a far better return, avoiding the expense of property maintenance or a buy to let mortgage and cutting out the stress of managing bricks and mortar.”