The UK property market is facing uncertain times. With the impending Brexit changes creating instability and the 2018 budget changes pouring more fuel on the fire by creating up to a £1billion deficit. Do the changes spell opportunity or disaster?
Is it time to sell up? Or possibly get investing in more UK properties?
At first glance, the changes look positive. There certainly does seem to be a great deal of hope resulting from the recent UK Budget announcement on the 29th October 2018.
We are currently experiencing a serious shortage of UK housing and for this reason, Chancellor Phillip Hammond has put measures in place to help increase the number of council houses built in the UK. “The Housing Infrastructure Fund” will finance the building of some 650,000 additional homes. Additionally, the help to buy scheme has been extended to 2023.
In the Autumn 2018 budget, there were other changes that are going to change the property market terrain. These changes include the canceling of stamp duty for some shared ownership properties.
First-time buyers can now access the help to buy scheme for an additional 2 years, until 2023 thanks to the extension of the scheme. Currently, the help to buy scheme gives you a loan of 20% of the market value of your new build property. There are price caps on the scheme, meaning that you can only buy a property with a specific maximum market value.
The help to buy scheme is capped at around £250,000 throughout the country. However, this is increased to a whopping £600,0000 in London. Prior to the Autumn 2018, the upper limit was £450,000. This means that eligible first-time buyers can get 20% off their first home.
The prices vary greatly throughout the UK so that it is now much fairer and the fund is more accessible to first-time buyers in less fortunate areas.
The good news is that there will be a lot of work for property developers and contractors throughout England and Northern Ireland. First-time buyers will be able to access funding for their new build homes and also there will be a mammoth amount of property development being funded by the “The Housing Infrastructure Fund”.
Will it be bad news for Landlords?
Since Margaret Thatcher was in parliament in the 80’s, local councils have not been able to access funding. This has now been scrapped and councils are encouraged to apply for the funding for construction of new build properties. This could prove to be troublesome for landlords because there will be so many council properties becoming available.