The recent Budget is an example of no matter how many people predict things, it is impossible to know how things will pan out. Given the importance placed on housing by the Conservative Government in the run-up to the General Election, it was not unreasonable for many industry experts to predict the March 2020 Budget would be a housing-focused budget.
Of course, the need to deal with the Coronavirus has taken centre-stage, and housing wasn’t as prominent as many people would have liked or expected. However, there were some housing measures introduced, and as you would expect, opinion is split on these steps.
Non-UK buyers face paying more for property
From April 2021, there will be an additional 2% surcharge for non-UK residents buying property in the country. Some quarters have welcomed this move, believing it will help local people get on the property ladder. However, there has been some criticism that this is a move focused on assisting the London and South East of England property market, as opposed to a measure which aids the country.
There is no denying the Greater Manchester property market has welcomed many international buyers. The strong presence of Manchester Airport, the high volume of international students, and the array of businesses setting up in Manchester means many international buyers have bought in Manchester and surrounding towns.
Buyer behaviour may change this year in Greater Manchester
It will be interesting to see if this group of buyers are affected by this measure. Of course, with this step coming into effect in April of next year, there is an opportunity for international buyers to invest this year at a more affordable price. This could be a factor which drives the Greater Manchester property market in the next 12 months.
Mark Hayward is the Chief Executive of NAEA Propertymark and he released a statement on the stamp duty surcharge, saying; “If introduced, this policy allows those in the UK to have a better chance at purchasing a home. However, overseas buyers tend to purchase properties in prime central London which are completely unaffordable to most homebuyers anyway. Therefore, this move will not help those that need it most. Ultimately, by energising surcharges, it is likely that purchasers will factor this additional cost into any offers they make on a property so prices may be pushed down in areas where overseas buyers are purchasing.”
With respect to the Budget’s impact on the local community, Andy Burnham has welcomed some of the announcements but has criticised the failure to adhere to promises made about transport. Burnham said; “The Chancellor has made a start on levelling up in the North but it’s only a start and it’s a pretty modest one at that. Of course, its’s a Budget in the shadow of the coronavirus, I understand that, and yet it would have made sense to get the funding into transport to get the change happening now, really. They came here in the election, tram-trains we were promised in the last year, that hasn’t been represented in this Budget.”
With convenient transport links to the centre of Manchester, and significant developments taking place, Stockport is the ideal place to buy, live or invest. As Stockport property specialists, we want to ensure you stay in touch with the latest property news. If you are looking for assistance in this area, give Spencer Harvey a call on 0161 480 8888 or send us an email at info@spencerharvey.co.uk. For a free valuation please visit: https://www.spencerharvey.co.uk/valuation-enquiry.html