How Will The Property Market Be Affected By The March 2023 Budget?

Here are three ways the 2023 March budget aims to improve housing affordability:

  • Energy subsidy extended till end of June 2023, providing an additional £160 to help people afford their homes.
  • Duty freeze extended for a year, and some alcohol taxes in pubs lowered by 11p compared to supermarkets, reducing inflation by 0.75%.
  • UK economy expected to avoid recession, preventing homeowners and tenants from losing their homes.

 

For Landlords, here are three investments worth noting:

1.There will be 12 new investment zones expected to deliver successes similar to Canary Wharf and Liverpool Docks. These are likely to be in areas such as West and East Midlands, South and West Yorkshire, Greater Manchester, North East, Teeside, and one each for Scotland, Wales, and N. Ireland.

2.There is huge investment in nuclear power to deliver one quarter of our power supply by 2050. This will impact areas around Hinkley Point C in Somerset and negotiations are ongoing for a Sizewell C project in Suffolk. These initiatives offer two types of investment: new homes in relation to an increase in jobs and also properties to rent for those working on delivering these projects.

3.The government plans to make available a further £600 million which will provide 16 regeneration and 20 levelling up projects in England, including Tipton town centre, Redcar, Bassetlaw, and Mansfield.

Although there was no good news for anyone investing in property from a financial or taxation perspective, the additional infrastructure and regeneration investment may offer some future opportunities for above-average property returns.

We hope these updates will help you make informed decisions regarding future property investments.

 

    Written by First 4 Lettings

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    As well as paying the rent, you may also be required to make the following permitted payments:

    1) Holding Deposit: Up to one week’s rental

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