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Property Industry Reacts to Sunak’s 2022 Spring Statement

Property industry leaders generally welcomed measures announced by chancellor Rishi Sunak in his recent Spring Statement, which was designed to help reduce the increasing cost of living amid reports that inflation could average at 7.4% or higher this year.

With house prices increasing and high demand from buyers remaining steady, Sunak steered clear of focusing too much on housing, but there was a reduction in VAT on the installation of energy-saving materials in residential properties from 5% to 0% for the next five years, while £500m was put into the Household Support Fund.

He also reduced fuel duty by 5p but did not abandon plans to increase National Insurance by 1.25%, from next month. The chancellor raised the threshold at which workers start paying National Insurance from £9,600 to £12,570.

Other measures in the chancellor’s announcement included VAT on solar panels, heat pumps, roof insulation and other energy saving measures being reduced from 5% to 0% for five years.

The employment allowance will increase from £4,000 to £5,000, allowing small businesses to reduce their National Insurance payments, while green technology will be exempt from business rates from April, saving firms £35m in 2022-23.

Market reaction
Iain McKenzie, CEO at The Guild of Property Professionals, said: “The country is grappling with a cost-of-living crisis and the Spring Statement aims to give some breathing space to consumers. The financial challenges that people face will always trickle down to homeowners, those looking to get on the property ladder and those seeking affordable properties to rent.

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