We now have a new Prime Minister, Liz Truss, and as with any change within government, we have to think about how her tenure might affect the property market in England.
Of course, making any predictions at the moment isn’t easy – we’re coming out of a pandemic and Russia’s war on Ukraine still rages on – but we do have some ideas based on Truss’ own words.
What our new PM has said about England’s property market
Although nothing is ever set in stone, Liz Truss has made several statements in media interviews; the PM has also commented upon England’s housing and property market in the past. Here are some of the things she’s said:
- Truss has suggested that the government scraps national housing targets and allows local councils to influence and decide upon the number of new homes in the area
- The PM would like to help more renters to take their first steps on the property ladder by asking lenders to take rental payments into consideration during affordability assessments
- She has also said that a reduction in red tape, such as planning restrictions, alongside various tax cuts, will help to improve the pace of housebuilding
Economic growth is a priority
On top of this, she has stated that economic growth across the UK will be a top priority and to kick this off, she is planning:-
The new PM has also said that economic growth all across the UK, not just England, is a big priority and to facilitate this, she plans to:
- Make £30 billion worth of tax cuts, including reversing the planned 1.25% increase in National Insurance and the planned corporate tax rise (from 19% to 25%) and cutting taxes for lots of UK workers
- Look at more investment in UK infrastructure
- Temporarily suspend the green levy on utility bills
Potentially good news
Our new PM might have a good impact on the economy with tax cuts, energy bill reductions and more investment in infrastructure. Her moves may well allow for the building of more homes, which are very much needed.
However, the same economic growth that could drive the property market could also increase inflation and interest rates, which might serve to wipe out any growth.
What next for buyers, sellers and tenants?
We’ll start to see the impact of our new PM on the financial markets and on the property market over the next few months, with definite effects coming in by early 2023.
If you’re thinking about a move in the near future, whether as a homeowner or a tenant, here’s how you can make the most of the coming changes.
If you’re a tenant
It may be best to move sooner rather than later so you can lock into a contract before big energy price hikes start to bite. If you can find a property with an EPC rating of A, B or C, that’s even better.
If you’re a seller
Autumn is one of the best times to sell as people have returned from their summer holidays and are looking to be in a new home before Christmas. Everyone will be in a hurry to secure a mortgage before potential interest rate rises, too, so you might find lots of eager buyers.
If you’re a buyer
You’re no doubt reading about the planned interest rate rises and so this autumn might be the best time to find your dream (or at least your “It’ll do”) property and bag a decent fixed rate mortgage deal before interest rates start to fee uncomfortable. There’s also talk of stamp duty relief in the next few months, so strike while the iron’s hot.
