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How will the budget affect the property market?

06.03.23
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The UK budget announcement took place on the 15th of March 2023, setting out how the UK plans to stimulate the economy through new taxation and spending decisions. Some of the key takeaways and data released from this year’s budget announcement were:

  • Increased tax thresholds on pensions, and tax increases on alcohol and tobacco 
  • An extension of the Government’s energy bill support 
  • An extension of the criteria to qualify for free childcare for working parents 
  • A prediction that the UK will avoid a recession 
  • A prediction that Inflation will drop significantly to 2.9% by the end of 2023 
  • Corporation tax increased from 19% up to 25% in some cases 
  • Relaxed immigration rules in the construction sector

What about the property market?

The budget had very little to say about the property market with no major shakeups or schemes on the cards. There were no changes to stamp duty or anything else related to the market.

We believe this to be a positive outcome because it enables the property market to find its own level, rather than being artificially fuelled. The market has somewhat been influenced by different factors of late, not least the pandemic. So, we should now finally see where the market is really at.

Some of the predictions will have some influence on the market, especially that inflation could drop to 2.9% by the end of the year which would also see interest rates stabilise and possibly decrease.

A word on house prices

Data released by Rightmove indicates that house prices increased by 1.3% last month, which contradicts what we may expect regarding the current situation. As interest rates have increased exponentially, we expected house prices to decrease as competition for property lessened.

However, if you look into the specifics of the data, you’ll notice that the increase of 1.3% has been largely influenced by the upper end of the market, so it may not be a reliable data sto track average house price changes.

Is now a good time to buy?

We believe now is a good time to buy, and we’re not just saying this because we’re estate agents. The Office for Budget and Responsibility (OBR) predicts a 10% house price decrease from the peak of prices to the current trough. Based on research carried out within our estate agency, we believe these estimations to be accurate and the current situation is the extent of the trough.

We now expect prices to level out and start rising again fairly soon as interest rates come down. Interest rates tend to go up like a rocket and come down like a feather, so we will need to get used to the “new normal” rates in the meantime.

In summary, research and history indicate that property prices will bounce back steadily after the current trough, making now a good time to move up the property ladder or buy your first home.  

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View our current listings. Alternatively, get in touch if you don’t see any listings that match your criteria. We provide expert guidance to support your property search.

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What's your property worth?

What's your property worth?

Don’t hesitate to contact Hearnes for more information on how we will accurately value your property. Our team are on hand to fully explain our property valuation service so you know exactly what to expect.

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Marketing your property

Marketing your property

Have a question about how we’ll market and sell your property? Read on for answers to all your queries about our comprehensive service for sellers today. We guarantee 100% clarity from the outset.

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Latest info

Latest info

We write regular posts to share information on the world of property. Many of our posts provide real-time insights into local property markets. Take a look to find out more.

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Our reviews

Our reviews

Here at Hearnes, we have many happy clients. Read some of our reviews to see how we have helped buyers and sellers just like you.

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View our branches

View our branches

We have 5 branches in total, each dedicated to helping buyers and sellers in their local area. Find information, including contact details, for each of our branches here.

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Meet our team

Meet our team

Each of our branches has a dedicated and professional team ready to help buyers and sellers in their local area. Find out more about each of our team members here.

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Where service counts

Where service counts

Here at Hearnes, we are a people business operating within the property sector. We are all about service and going the extra mile to make sure our clients get the home that they want as smoothly as possible.

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Contact us

Contact us

We're always happy to help. Whether you are looking to sell your home, buy a new one or you just want to chat to someone about how we can help with a stage in the process, get in touch and we'll see what we can do!

Aerial photo of Wimborne Minister

Search for your next property

Search for your next property

View our current listings. Alternatively, get in touch if you don’t see any listings that match your criteria. We provide expert guidance to support your property search.

Photo of a river

What's your property worth?

What's your property worth?

Don’t hesitate to contact Hearnes for more information on how we will accurately value your property. Our team are on hand to fully explain our property valuation service so you know exactly what to expect.

Aerial photo of Badbury Rings

Marketing your property

Marketing your property

Have a question about how we’ll market and sell your property? Read on for answers to all your queries about our comprehensive service for sellers today. We guarantee 100% clarity from the outset.

Photo of a bench overlooking a river

Latest info

Latest info

We write regular posts to share information on the world of property. Many of our posts provide real-time insights into local property markets. Take a look to find out more.

Photo of Poole beach huts

Our reviews

Our reviews

Here at Hearnes, we have many happy clients. Read some of our reviews to see how we have helped buyers and sellers just like you.

Photo of a woodland walk

View our branches

View our branches

We have 5 branches in total, each dedicated to helping buyers and sellers in their local area. Find information, including contact details, for each of our branches here.

Photo of a country walk

Meet our team

Meet our team

Each of our branches has a dedicated and professional team ready to help buyers and sellers in their local area. Find out more about each of our team members here.

Aerial photo of Blue Lagoon, Lilliput, Poole

Where service counts

Where service counts

Here at Hearnes, we are a people business operating within the property sector. We are all about service and going the extra mile to make sure our clients get the home that they want as smoothly as possible.

Photo showing an anchor in front of a building

Contact us

Contact us

We're always happy to help. Whether you are looking to sell your home, buy a new one or you just want to chat to someone about how we can help with a stage in the process, get in touch and we'll see what we can do!