What effect will the Chancellor’s Spring Budget have on the housing market?

Looking at the effect of the Spring Budget on the housing market

Local estate agent Horton and Garton consider the Spring Budget together with the wider economic and political landscape and how these factors might impact the West London property market and those planning to move.

If not now, when?

Guest blog by west London estate agents Horton & Garton

Whilst the Capital Gains Tax (CGT) change announced by the Chancellor of the Exchequer in his Spring Budget on 6 March has sparked discussion among property sellers, particularly within the investment and buy-to-let sectors, this change is expected to have a limited effect on activity in the market. Despite the notable 4% reduction, feedback from our discussions with landlord clients indicates that this adjustment is not sufficient to significantly alter their selling intentions.

The latest budget announcements have clarified several uncertainties for potential buyers who may have been on the fence, awaiting any news that might influence their purchasing decisions. The general consensus among buyers now is that mortgage rates are expected to remain relatively stable in the near future. With no unexpected changes to Stamp Duty Land Tax (SDLT) or other impactful measures arising from the budget, the path has been cleared for those contemplating a move this year.

Time to spring into action

As we welcome back the indicators of spring, the daffodils and cherry blossom, and longer, lighter evenings there is a sense of renewal, which often serves as an ideal moment to act upon previous reflections – it’s a time many people choose to move home.

The right price

The process of buying and selling in 2024, despite positive indicators, may have additional considerations given that the market is re-entering a more stable setting. Recent discussions and industry reports have highlighted a diversity of experiences regarding property sale values. It’s important to acknowledge that while some properties may not fetch prices comparable to their purchase values over the last decade, this is not a universal trend.

In this type of market it is prudent to read the small print on your estate agent’s contract before signing to avoid being tied into a lengthy term at an unrealistic price. Or simply have a clear strategy on pricing from the outset and ask for a fair and honest valuation from agents, it’s far better to have this conversation at the beginning of a relationship than suffer frustration and disappointment down the line. Read our blog on estate agents’ contracts.

Strategy is key in 2024

The attractiveness of a property, and consequently its value, is influenced by a multitude of factors. These can range from the desirability of a specific location, or certain road, the potential for extensions or renovations, proximity to sought-after school catchments, down to more granular details such as the orientation of a garden or terrace.

In such a nuanced market, possessing hyper-local knowledge is invaluable. It is this deep understanding that enables us to devise bespoke strategies for each property we bring to the market. Our expertise not only encompasses a comprehensive grasp of the broader market trends but also an intimate familiarity with the unique attributes and potential of individual properties within West London.

For those considering planning to move this year, whether you are contemplating selling or buying, the current climate presents a spectrum of opportunities.

To talk to us about your property plans, get in touch.

Horton & Garton are based in Chiswick and Hammersmith and are sponsors of The Chiswick Calendar.

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