The Impact of the Spring Budget 2024 on Property and Mortgages for Homeowners:

The Impact of the Spring Budget 2024 on Property and Mortgages for Homeowners:

As the dust settles on Jeremy Hunt’s potentially final Spring Budget as Chancellor, the housing market is left to ponder the implications for homeowners and mortgage borrowers. In this analysis, we delve into the key announcements and their repercussions for the UK housing sector.

The Missed Opportunities

Overall the latest Spring Budget 2024 has been labelled a ‘missed opportunity’ for home buyers and homeowners. Despite expectations for measures to stabilise the housing market and assist first-time buyers, the budget failed to deliver on these fronts. The absence of new schemes such as the revival of the Help-to-Buy initiative or a potential 99% mortgage scheme left many disappointed.

Stamp Duty Reforms

Anticipated reforms to Stamp Duty, particularly relief for first-time buyers and downsizers, failed to materialise. The decision not to reduce Stamp Duty impedes the mobility of homeowners, hindering both upward and downward movements on the property ladder.

Lack of Affordable Housing

Amidst escalating property prices and dwindling supply, the budget’s scant attention to affordable housing exacerbates existing challenges. The failure to address fundamental issues in planning and construction perpetuates the housing crisis, leaving many aspiring homeowners disillusioned.

Inflation Forecast and Economic Stability

While the forecast for inflation dropping below 2% in the coming months offers a glimmer of hope, economic stability remains precarious.

Lower inflation could potentially prompt reductions in mortgage rates, albeit contingent on global economic developments and the Bank of England's monetary policy decisions. The BofE base rate is currently at 5.25%. If they start reducing the rate in the summer of 2024 it may reach 4% by the end of the year.

Does The Budget Help With The Cost of Living Crisis?

Although energy prices are dropping for homeowners, the cost of living crisis is not over. By April, almost all councils will increase the amount of council tax paid by residents. Most councils will increase their tax by 5%, whilst four have received dispensation from the government to increase their rates further.

Council tax is a priority debt and homeowners need to pay their council tax, otherwise, they risk serious consequences. Read our article on what happens if you don’t pay council tax and what you can do to help you pay if you are in dire need of help.

Nothing Lost, Nothing Gained

The Spring Budget 2024, characterised by missed opportunities and superficial reforms, leaves the housing market in a state of uncertainty. It provides a lack of substantive measures to alleviate housing affordability issues that underscores the disconnect between government rhetoric and tangible action.

As homeowners grapple with soaring property prices and limited options, the need for comprehensive housing reform becomes increasingly urgent.

The next Budget might be the last for this government. With a looming election, they may suggest more radical measures for the homeowning British public.

Get Help Keeping Your Home

The cost of living crisis has put a strain on homeowners over the past year with repossessions steadily increasing since the pandemic. If the government continues to avoid helping homeowners more and more people will seek to stop repossession and get help.

At Homekeep Solutions we are here to help you keep your home. We offer help and advice to homeowners who are in arrears with their mortgage payments.

If you need help call us now!