There wasn’t much to get excited about in the Spring Statement of March 2022. From a property perspective, there will be very little to make people sit up and take notice.
The key measures of the Spring Statement were:
- £50m for further crackdown on fraud, including a new Public Sector Fraud Authority
- Fuel duty will be cut by 5p a litre from 6pm, runs until March 2023
- National Insurance increased to go ahead but thresholds increased by £3,000, rising from £9,600 to £12,570
- Property owners with energy-saving materials like solar panels, heat pumps or insulation will pay zero VAT for the next five years
- The basic rate of income tax to be cut to 19% in 2024
- The current £500m Household Support Fund is to be doubled, giving additional assistance for the poorest facing escalating energy bills
As you can see, there was nothing directly related to the property market. The zero VAT for energy-saving materials will positively impact some property owners, but it isn’t going to help everyone across the board.
While it would have been nice to see some help for the industry, many observers are of the opinion that no news is good news for the housing sector.
Money man doesn’t think there’s a lot of help
Martin Lewis tweeted: “If that's all he's doing on energy - it is limited and won't impact the majority of households who will see a likely £1,300 average increase in year-on-year bills by October. My head has sunk. I just hope there's a rabbit to come out of the hat.”
Property organisation looks to energy efficiency changes
Timothy Douglas, head of policy and campaigns for Propertymark, commented: "We welcome today's announcement that VAT will be cut on the installation of energy-saving materials in residential properties. With rising energy costs as well as looming energy efficiency targets for the property sector, financial incentives are well needed. We will be scrutinising the details of this scheme as they are released to ensure they have the maximum impact for all homeowners, including investors in the private rented sector and that landlords and letting agents can take full advantage of the change.”
Not much for mortgage holders or would be property buyers
John Phillips, national operations director at Just Mortgages. said: “As expected, there wasn’t anything directly related to the mortgage sector in the Spring Statement. The housing market has shown its resilience recently, and although the stamp duty holiday certainly kick-started a frenzy in the last few years, another SDLT break isn’t necessary to keep the market moving. It is encouraging that measures have been put in place to ease the cost-of-living crisis, and although the inflation and rising energy prices may impact some, there are still people looking to move to keep the market buoyant and brokers busy.”
Not much for property builders or developers
Matthew Pratt, Redrow’s Group CEO, comments: “We welcome the Chancellor’s focus on boosting growth and supporting consumers with the rising cost of living. As the UK moves toward net-zero, it is positive to see tax breaks to help consumers install energy-efficient technology to reduce their bills and energy usage in the long term. As a responsible housebuilder, we are undertaking a range of research projects and pilots across our business and on our developments in order to build better, more sustainable communities for our homeowners and local stakeholders.”
So, it is unlikely the Spring Statement has changed many people’s opinions on what they were, or weren’t, going to do in the market. If you are looking to make a move, get in touch, and we will be happy to help you.
Contact Stones Residential for all your Belsize Park property needs in 2022
If you would like to arrange an appointment to help you negotiate the local housing market, please contact Stones Residential today by calling us on 020 7483 0685 or emailing belsizepark@stonesresidential.co.uk.
