Latest news: The budget breakdown

The latest UK property news

In the wake of the Spring 2023 budget, we're bringing you all the latest headlines from the UK property world.

Martin Lewis' call for changing property regulations is disregarded in the Spring Budget

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After Jeremy Hunt announced the Spring Budget, some property experts claim the government has "turned their back" on homeowners.

One of the major announcements was that the energy price guarantee would remain at £2,500 until July, rather than increasing to £3,000 starting next month.

Also, it was announced that a £63 million fund will maintain public swimming pools and recreation centres, as well as a new investment that will enable up to 30 hours per week of free daycare to be extended to children older than nine months.

A free 25% bonus on top of their savings each tax year is available to those using a Lifetime ISA to save money for their first home. However the creator of Money Saving Expert recently cautioned that one of the requirements is "outdated" and requested Jeremy Hunt for assistance in updating it.

Martin recently tweeted: "Lifetime ISAs are no longer fit for purpose for some 1st time buyers & some risk losing money. Today we ask @Jeremy_Hunt to either -Stop withdrawal penalty for those buying homes that no longer qualify or increase value of qualifying house."

"It's time the outdated rules were updated. A £450,00 home limit hasn't moved since launch at 2017 even though house prices have risen 35%. Either up that or drop the penalty."

But after the Spring Budget was announced, the money-saving guru addressed that no change will be made despite his calls to the government 😔

The Spring 2023 budget: a summary, and how it affects the UK household

Chancellor Jeremy Hunt stated in his Spring Budget that inflation has peaked and will drop to 2.9% by the end of 2023 as he outlined initiatives for assistance with gasoline prices, childcare expenses, and pensions.

The main takeaways:

• Energy Price Guarantee extended for 3 months
• Fuel duty frozen for 12 months
• 30 hours of free childcare a week from September 2025
• Pensions: annual tax-free allowance increased by 50% from £40K to £60K and the lifetime allowance to be abolished

Chancellor Jeremy Hunt stated in his Spring Budget speech that the UK would not experience a recession this year.

The UK economy is predicted to shrink by 0.2% in 2023 before expanding by 1.8% in 2024, and this year, it's anticipated that the unemployment rate would be less severe, increasing by less than 1% to 4.4%.

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Electricity price assurance will continue for another three months.

‍Prior to an anticipated drop in energy rates in July, the energy price guarantee will continue at £2.5K for the next three months, saving the typical family £160.

Also, for the 4 million households with pre-payment metres, fees will be aligned with comparable direct debit fees and apparently the energy premium paid by our most underprivileged homes will soon vanish.

Hunt added that the UK should concentrate on "local sources of energy that are not under the control of Putin or any other despot."

The amount of electricity produced by renewable sources has climbed from 10% to 40%, he continued, but nuclear energy is still a crucial source of affordable and dependable energy.

Will the Spring Budget impact the housing market?

This theme of this budget was centred on boosting the economy and creating jobs, as a result of household budgets are being drained by rising mortgage rates and cost of living challenges.
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The housing market was not significantly impacted by this week's budget. The only specific adjustment for landlords is a reduced threshold of tax-free income before incurring capital gains tax, while stamp duty remains intact.

The Chancellor has concentrated the Budget on encouraging as many people to continue working as possible and aiding in the filling of the "1 million job openings".

While the health of the housing market is intimately correlated with the health of the economy, focusing on economic growth and job creation eventually promotes the housing market.

When the economy is struggling and unemployment is on the rise, housing sales and prices tend to stall and decline; the opposite is true when the labour market is robust and post-tax household incomes are rising.

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Foxton's CEO offers his 2023 housing advice

Next up in the latest property news, the CEO of Foxton's has published his property advice for 2023. or changes in price from year to year become meaningless.

When asked what his three pieces of advice for sellers are at the moment, he responded:
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1. Proper pricing is crucial. Consider your agent's pricing advice, as they have the inside scoop and firsthand knowledge of the market.

2. Effective presentation is essential when listing a property

3. And consider your next buy. So it's highly recommended to conduct both searches simultaneously if you're selling in order to buy.

In particular, if you're looking for a lifetime home, you don't want to be delaying the process once you're under offer. Trying to find your dream home in a four week window is the last thing you should be doing because it simply cannot be done in that manner.

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