Preparing for the year ahead
As we begin to reflect on the year that was 2016, it is important to take note of the upcoming events that lie on the horizon for 2017. Perhaps the defining of these will be Theresa May’s decision to enact Article 50 and formally commence negotiations for Britain’s withdrawal from the European Union.
Speaking to the House of Commons Brexit committee earlier in the week, Prime Minister May confirmed that she would be making a speech early in 2017 to set our her strategy for Brexit. This will be a significant speech, providing an ideal opportunity to clarify exactly what Britain’s relationship will be with the EU once its members is officially revoked.
While the Prime Minster was addressing the Brexit committee, Chancellor Philip Hammond announced that the Government will be publishing its next Spring Budget on Wednesday 8 March 2017. As noted during the 2016 Autumn Statement, this will be the last Budget to take place in the spring before they are permanently moved to autumn.
Whether the Government will take this opportunity to revise Stamp Duty laws – as had been predicted for the 2016 Autumn Statement – or the focus stays on housebuilding and the rental market, remains to be seen. Reducing Stamp Duty has the potential to incentivise further investment into the UK’s already vibrant and in-demand property market, and MFS believes that the Chancellor must strongly consider this in 2017.
Looking to what the New Year has in store for the UK’s buoyant property market, a new report by Royal Institute of Chartered Surveyors (RICS) forecasts that house prices will rise by an average of 3% across the UK next year. The rise in residential real estate prices was attributed to high buyer demand and a limited supply of available properties. Chancellor Hammond’s commitment of an extra £1.4 billion for the construction of 40,000 new build homes between now and 2020 will help alleviate some of the market pressure.
In light of the announcements this week, MFS will continue to enable property buyers across the UK to pursue their investment strategies without having to rely on a traditional lending system that can sometimes turn its back on even the nation’s wealthiest individuals. 2017 can offer an exciting series of opportunities within the British property market if investors and consumers are able to access loans in a fast and effective manner.
We look forward to the opportunities on offer over the next 12 months.