Budget 2017 - How will this affect our local property market

Budget Boost for South Somerset’s Property Market

The Chancellor Philip Hammond saved the best bit in his Autumn Budget to last when it came to the property market in South Somerset, including, Yeovil, Martock, South Petherton, Crewkerne, Ilminister and surrounding villages

Following more than an hour of outlining his financial vision for the country he grabbed the headlines by finishing with the announcement that Stamp Duty is to be abolished for first time buyers purchasing homes up to the value of £300,000.

In more expensive areas, such as London, the first £300,000 of any purchase up to £500,000 will not be subject to Stamp Duty.

It’s worth pointing out it’s not a temporary measure as the Chancellor made it clear this was a permanent move which came into effect at 12.01am today (Wednesday 22 November).

At Orchards Estates we see this as fantastic news and welcome the move with open arms. Why?

First time buyers are essential to keep the property market moving.

Many property chains have first time buyers in them and without them the market slows down and can stagnate.

Any measure to help people get onto the property ladder is to be applauded and this Stamp Duty decision will certainly help people, especially young people, buy their own homes and will energise the local market.

The decision to abolish Stamp Duty for first time buyers will save them between £6000 to £15000.

We’re in no doubt this will benefit the local property market as we’ve seen on plenty of occasions Stamp Duty hindering first time buyers’ efforts to pull together a deposit and purchase a home of their own.

We’ve plenty of first time buyers who have registered their interest in properties recently but, it now seems very wisely, held off on pursuing purchases any further until the budget because of talk around a possible abolishing of Stamp Duty for first time buyers.

These people are now motivated to move with extra money in their pockets.

Housing was the hot topic of Mr Hammond’s speech and he also announced a raft of plans including:

Concentrating new homes in city centres and around transport hubs.

Five new garden towns developed by public and private partnerships.

Commissioning an urgent review to be ready by next Spring to look at the gap between planning permissions and the number of homes built.

An extra £44 billion capital funding, towards guarantees and loans for extra homes.

More help to develop new homes on smaller plots to help small and medium sized property developers.

A consultation looking at longer tenancies in the private rental sector.

A stated aim to see the end of rough sleeping in the UK by 2027, with three new pilot schemes muted.

And giving powers to local authorities to charge 100 per council tax on empty properties.

It’s not often, especially in recent years that we’ve been excited about something announced in a budget by the Stamp Duty news will really boost the market in and around our area

If you’re a first-time buyer keen to learn what’s now available to you locally, or a property owner interested in learning more about how this announcement can benefit you, please give us a call on 01935 277977 or 01460 477977 or send us an email: info@orchardsestates.com

Thanks for reading

Mathew Wood

Managing Director