Report a maintenance issue
The recent Autumn Labour budget announcement certainly gave us a lot to think about. For small businesses like ours in the property sector, the news came with some significant financial implications. Increased employer national insurance contributions and a hike in stamp duty are set to impact our costs, adding a burden that is hard to ignore. We are already hearing from clients and landlords who are reconsidering investments because of these changes, signalling a shift in the local property landscape.
But what exactly does this mean? What impact will the Labour government’s budget have on the UK property market?
Our Managing Director, Will Ravenhill, shares his thoughts:
“Well, what a budget that was!
As a small local business that deals in the property market, one could argue that it was fairly depressing! A rise in employer national insurance contributions will add thousands of pounds per year to our outgoings and the hike in stamp duty is yet another attempt to penalise property owners in the market in which we work! Indeed, I spoke with one landlord this morning who was contemplating purchasing another two properties to add to her portfolio and has now decided to hold back for the time being, as the new legislation will increase her costs of buying by around £10,000.
However, we should remember that the property market in the UK has been pretty resilient since the financial crash of 2008. Why is this? Probably because we are a small, overcrowded island with an increasing population and not enough places for people to live in! That means that simple supply and demand economics will mean that both the private rented sector and the sales market will continue to remain pretty resilient.
Time will only tell whether the present Government will live up to their promises of investing in and improving the UK’s fairly appalling infrastructure to the benefit of all of us. We should also remember of course that during the pandemic, the Government at that time spent a lot of money supporting the economy, businesses and keeping people in jobs. The bill for that has obviously got to be paid for. This is something our accountant sensibly reminded me of earlier this year when I baulked at the fact that our corporation tax bill had risen by 30% on similar year by year turnover!
So in essence, while there are going to be challenges ahead in the property market, particularly the private rented sector, we at Readings feel that property still provides a robust form of investment.
There’s lots of changes in legislation on the horizon and so it’s important that you use a reputable, well qualified agent. If you have any concerns or questions regarding the property market in general, please don’t hesitate to contact us and speak to one of our friendly knowledgeable members of staff!”
Advice for Property Investors and Landlords
While this budget presents new challenges for property businesses, we are confident that with strategic planning and support, we can navigate these changes successfully. The UK property market has shown resilience before, and we believe it will do so again. For landlords, property owners and investors, now is a critical time to stay informed and work with a qualified agent who understands the market and current regulations.
Based in Leicestershire? Contact Readings for Support
We operate locally throughout Leicestershire, so if you have questions or concerns, our team at Readings is ready to help and guide you through these changing times.
