"We are sure to see the housing shortage addressed. According to predictions the chancellor will announce financial support for smaller housebuilders."
There will be three issues that the mortgage market hopes to see addressed - two of which I think are more likely that the third.
It’s possible we could see an overhaul to the Stamp Duty system (yes, again). The government must recognise the fragility of the market following the UK’s decision to exit the EU. Buyers don’t know what to do for the best and a cut to Stamp Duty, particularly for first time buyers, may be the incentive needed to encourage nervous buyers to take the plunge.
We are sure to see the housing shortage addressed. According to predictions the chancellor will announce financial support for smaller housebuilders. This will, according to reports, including the creation of a £3bn house building fund offering cheap loans to developers in order to boost the building sector.
This is obviously necessary. It was necessary even before Brexit. I often think the government (and others) are far too quick to blame buy to let investors for the problems in the housing market in a bid to cover up the very real problem of a housing shortage - particularly affordable housing. Paint the landlords as the bad guys and it’ll cover up their own failings.
And this brings me onto the third point which many hope will be a feature in the statement - a U turn on plans to cut landlord tax relief next Spring. This would certainly be a bold move - and would be welcomed wholeheartedly by the buy to let sector - but alas I don’t think it’s going to happen. Hammond is himself a landlord and, while it could be argued that this will make him more sympathetic to the sector, making a radical u turn on a key government policy that will benefit him is not likely to go down to well with critics. I’m sure the chancellor will want to avoid any more controversy this year.
