The 2018 Autumn Budget may be taking place on 29 October, but there are already concerns this could be a missed opportunity by the Government to address some of the key challenges currently facing UK property investors. Brexit negotiations have dominated the political agenda, and investors are still none the wiser when it comes to understanding how the UK’s withdrawal from the EU will be managed.
During the Conservative Part Conference, Prime Minister Theresa May reaffirmed the Government’s commitment to fix the broken housing market and encourage more people onto the housing ladder. Such statements are reminiscent of similar speeches made at the beginning of the year about the housing market, and while there have been some movements in the right direction, they have fallen well-short of addressing the problems still being faced by homebuyers, renters and investors.
CEO of Market Financial Solutions, Paresh Raja, has been featured in a number of property trade publications offering his initial thoughts on the 2018 Autumn Budgets, including a review of what is known so far and the fundamental issues that need to be addressed by the Government when it comes to the property market. You can read his thoughts in Bridging & Commercial.
The UK boasts some of the world’s leading real estate opportunities and remains a popular asset class amongst investors due to its offering of strong return in times of economic and political transition. International and domestic investment alike should be encouraged, incentivising people to participate in the property market.
Meanwhile, improving the market’s knowledge of alternative finance options available to them is also required to support prospective homebuyers. According to recent research by Market Financial Solutions, nearly one in five (19%) UK property buyers have used a form of alternative finance like bridging loans to fund their property investment. Under half (46%), however, did not have enough knowledge or confidence in finance options other than mortgages to consider using them.
As the last major fiscal statement before Brexit, it will be interesting to see what proposals will be revealed in the Chancellor’s speech in addressing the challenges facing the UK’s real estate sector. This is a timely opportunity to announce new reforms that improve people’s ability to access property, while at the same time, encouraging more investment and introducing creative new measures to increase the housing supply.