How the 2016 Autumn Statement affects the housing market

December 1, 2016 by Brendan

Property Market

Philip Hammond recently delivered the 2016 Autumn Statement, his first as Chancellor. Here are three of the measures which could impact on the property market:

Tenants will soon be able to rent a property without having to pay lettings agency fees. The measure will be implemented as soon as possible, with support from the Prime Minister who has pledged to support families who are ‘just about managing’. Currently, agents can charge what they like as fees, which may include credit checks and administration. However, the Managing Director of the Association of Residential Lettings Agents, David Cox, has warned that the costs may be passed onto landlords who may react by increasing rents.

The government has pledged to invest £2.3 billion into the building of new homes. The 100,000 new properties will be built in areas which have a high demand. Around 40,000 affordable homes will also be built, with £1.4 billion being invested. The Help to Buy ISA will also be continued to help first time buyers. Although the mortgage guarantee element of the previous Help to Buy scheme will end shortly, the equity loan element will continue.

First time buyers saving for a deposit will be helped as a new NS&I savings bond has been launched. The plan is for a maximum investment of £3,000 which will earn 2.2% gross over three years, although the final figures will be announced in the 2017 Budget.

Buying a home is a huge deal for most people, which is why mortgage advisers study for a CeMAP qualification, so that they are able to offer sound financial advice.