Published by: Alex Maile
Autumn is here, the trees are starting to turn orange and gold and the days are getting shorter. It is a time of transition as we move from summer to winter. But it feels like Groundhog Day, because, once again, we are waiting on Rachel Reeves and her Autumn Budget.This time, though, she seems to have been taking a closer look at property as a possible source of extra revenue, and the press has been full of horror stories about Capital Gains Tax, Mansion Taxes and annual property taxes replacing Stamp Duty.
As before, there is no real substance to most of it and some even suspect the ideas are being leaked to test the public’s reaction. What is certain, though, is that the whole thing has been incredibly clumsily handled, as it was last time. The market data shows that, as a result, people are acting more cautiously, and not just in the property market.
Fortunately, it has only caused a slight slowdown in house prices, which were up last month (+ 0.3% according to Rightmove), just not quite as much as they usually do at this time of the year. She could easily have caused considerably more damage, but as we get closer to the Budget, it is becoming clearer that Reeves is edging towards breaking her budget pledges on income tax and VAT rather than the housing market.
The rental market, in contrast, has escaped relatively unscathed. Supply levels are continuing to improve, albeit slowly, and rent rises have settled into a more sustainable pattern. With the renters’ Rights Bill on its way and concerns over landlords selling up, the news that supply levels are improving is especially welcome.
Well, that’s it from me for this month. The budget won’t take place until after the next edition, but we’ll probably have a better idea by then of what might be in it, so I’ll give you an update.