On Wednesday 22nd November, Chancellor Philip Hammond will be delivering the second budget of his career, offering greater insight into how the Government plans to manage the long-term growth of the UK economy. For property investors, this Budget presents an ideal opportunity for the Conservative Party to put into motion its plans to address mounting market demand for UK property. As a result of limited supply, the average price of a house has risen 5% in the 12 months to August 2017, taking the average value of a house in the UK to £225,956.
In advance of the Autumn Budget, industry bodies have been calling on the Government to review and reform existing tax legislation to ensure seasoned and prospective property investors are not deterred to act on their investment intentions. Stamp duty has therefore been thrust into the spotlight once again over recent weeks as it is criticised for the pressure it has placed on the housing market and the negative impact it has had on completion rates. A recent study has found that stamp duty is preventing 45,000 house purchases a year, with the Government collecting £15.48 million of stamp duty in the 2016/2017 tax year – an increase of 17% on the previous tax year.
Reforms to stamp duty would provide welcomed relief to the market, underpinned by creative new measures to address housing demand. As part of our efforts to support property investors this year, MFS launched FlipFinance2017 – an industry-first funding drive offering targeted financial support to property investors and landlords undertaking refurbishment and restorations projects. Featured in the likes of the Financial Times, Property Reporter and 24Housing, FlipFinance2017 ensures first and second-time property investors are able to complete refurbishment and restoration projects that will form the foundations of tomorrow’s property portfolios.
Alternatively, in the immediate aftermath of the Chancellor’s announcement, we will be producing a blog and factsheet summarising the key policies within his speech and how they could impact the UK property market. However, if you wish to find out more about our market-leading bridging solutions and how we can support your property investment strategy, speak to a member of the MFS team today.