Autumn Budget: Should You Put Your Move on Hold?

Chancellor John Healey will deliver his first Budget on Wednesday 28 October. After a summer of speculation about property taxes, many buyers and sellers have been wondering whether to put their plans on hold until then.

Earlier this year, there were reports that the government could replace stamp duty and council tax with a new annual property tax. However, the prime minister has since ruled out any changes to stamp duty in this Budget, and a wider overhaul of property taxes is not expected.

For buyers, that means the current stamp duty rules are expected to stay in place. In England and Northern Ireland, first-time buyers pay no stamp duty on properties up to £300,000, with a reduced rate on the portion between £300,001 and £500,000. Different rules apply in Scotland and Wales.

That doesn’t mean the Budget won’t matter. Announcements on areas such as income tax, savings or pensions could still affect household finances. Because lenders look closely at income and outgoings, any changes that affect your take-home pay could also influence how much you’re able to borrow.

Waiting for the Budget also has its own cost to consider. Mortgage rates have risen in recent weeks and lenders continue to adjust their pricing, so holding off doesn’t guarantee a better deal later.

Whatever is announced on 28 October, the fundamentals of a move stay the same: understanding what you can afford, how much you could borrow and what your monthly payments would look like. Getting a clear picture now means you’ll be ready to act, whatever the Budget brings.

If you’d like to discuss the options available to you, contact your adviser.