Editor's note: This brief was summarised by The Property AI Newsroom from a report by The Negotiator. Read the original article for full details.
Nearly half of would-be buyers pause property plans ahead of Budget
Almost half of potential property buyers have paused or are considering pausing their plans ahead of next month's Budget, according to new research from House Buyer Bureau. Some 27% have put their plans on hold, and a further 21% are considering doing the same.
Buyers were already active
Many of those now waiting had already engaged with the market. Around 54% had been browsing properties online, 19% had contacted estate agents and 12% had attended viewings before deciding to wait. Just 15% had yet to start searching at all.
Mortgage rates top the list of concerns
The potential impact on mortgage rates was the most common reason for waiting, cited by 23% of those holding back. There is also speculation that Chancellor John Healey could introduce more punitive rates of Mansion Tax in the Budget on 28 October, and is considering aligning Income Tax and Capital Gains Tax, a move which would hit landlords.
What House Buyer Bureau says
Chris Hodgkinson, managing director of House Buyer Bureau, said Autumn Statement speculation has become an almost annual headache for the property market, and uncertainty over what might be announced can cause buyers to think twice before making such a significant financial commitment. He added that once the Government has shown its hand, some of this uncertainty should lift and buyers may well return to the market. Until then, sellers could face an even tougher battle to secure a buyer, and for those who cannot afford to wait, the speed and certainty of a guaranteed sale may become increasingly important.
Housebuilder warning
Earlier this month, major housebuilder Berkeley also warned that property buyers are waiting to see what next month's Budget contains before taking the plunge.
Source: The Negotiator