{"id":8889,"date":"2022-10-27T13:01:02","date_gmt":"2022-10-27T12:01:02","guid":{"rendered":"https:\/\/new.contentdeployment.co.uk\/tomd\/?p=8889"},"modified":"2022-10-28T14:26:11","modified_gmt":"2022-10-28T13:26:11","slug":"residential-property-market-review-october-2022","status":"publish","type":"post","link":"https:\/\/new.contentdeployment.co.uk\/tomd\/2022\/10\/27\/residential-property-market-review-october-2022\/","title":{"rendered":"Residential Market Review \u2013 October 2022"},"content":{"rendered":"
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Mortgage turmoil shakes housing market<\/strong><\/strong><\/p>\n<\/div>\n\n

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A turbulent economic and political month has dramatically\naltered the outlook for the UK housing market.<\/strong><\/p>\n<\/div>\n\n

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The government\u2019s \u2018mini-budget\u2019, announced on 23rd<\/sup>\nSeptember, caused interest rate expectations to soar, which led to lenders\nrapidly withdrawing products. A third of mortgage deals disappeared overnight\non 27th<\/sup> September; within a fortnight, 43% fewer products were\navailable, according to MoneyFacts.<\/p>\n<\/div>\n\n

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With the majority of the \u2018mini-budget\u2019 measures now shelved,\nanalysts expect some buyers will delay their purchase in the hope of falling\ninterest rates. If rates do hit the current expected levels, however, the\nbudgets of those looking to buy could be significantly impacted.<\/p>\n<\/div>\n\n

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Prior to the market turmoil, data released for sales\nactivity in August had been positive, with 114,000 transactions recorded,\naccording to HM Revenue and Customs. This is roughly in line with the 2017\u20132019\naverage; indeed, forward indicators for September had suggested sales agreed (12%)\nand mortgage approvals (14%) would also be above pre-pandemic levels.<\/p>\n<\/div>\n\n

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Analysts agree that activity is likely to fall sharply in\nOctober. Buyer caution could quickly shift the balance of supply and demand over\nthe next few weeks if uncertainty in the mortgage market endures.<\/p>\n<\/div>\n\n

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Stamp Duty changes <\/strong><\/p>\n<\/div>\n\n

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Home movers in the lower price brackets in England and\nNorthern Ireland look set to save up to \u00a32,500 following the Stamp Duty changes\nannounced in the government\u2019s \u2018mini-budget\u2019.<\/strong><\/p>\n<\/div>\n\n

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The measure, one of the few to have survived the new\nChancellor\u2019s statement on 17th<\/sup> October, increases the residential\nnil-rate threshold from \u00a3125,000 to \u00a3250,000.<\/p>\n<\/div>\n\n

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For First-Time Buyers (FTBs), the nil-rate threshold has\nrisen from \u00a3300,000 to \u00a3425,000. The maximum property price to be eligible for\nFirst Time Buyers\u2019 Relief is now \u00a3625,000.<\/p>\n<\/div>\n\n

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The government describes the measure as part of its\ncommitment to support homeownership and promote mobility in the housing market.\nAnnouncing the measure, former Chancellor Kwasi Kwarteng noted, \u201cCuts to Stamp\nDuty will get the housing market moving and support first-time buyers to put\ndown roots.\u201d<\/em><\/p>\n<\/div>\n\n

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Scottish tenants protected by rent freeze<\/strong><\/p>\n<\/div>\n\n

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New legislation passed by the Scottish Parliament has\nfrozen most rents until April 2023 in response to soaring housing costs and\ncost-of-living concerns. <\/strong><\/p>\n<\/div>\n\n

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The Cost of Living (Tenant Protection) (Scotland) Bill, which\nwas fast-tracked through the Scottish parliament’s scrutiny process, gives\nministers temporary powers to cap private and social rents. Almost four in ten\nhouseholds currently rent their home in Scotland.<\/p>\n<\/div>\n\n

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First minister, Nicola Sturgeon, has described the\ncost-of-living crisis as a \u201chumanitarian emergency\u201d <\/em>that \u201cposes a\ndanger not just to livelihoods but to lives\u201d.<\/em><\/p>\n<\/div>\n\n

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Exceptions to the rent freeze are allowed where a landlord\nfaces increased property costs, mortgage interest payments and some insurance\ncosts. Evictions too will only be allowed under certain circumstances.<\/p>\n<\/div>\n\n

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All details are correct at the time of writing (20 September 2022)<\/strong><\/p>\n<\/div>\n\n

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It is important to take professional advice before making any\ndecision relating to your personal finances. Information within this document\nis based on our current understanding and can be subject to change without\nnotice and the accuracy and completeness of the information cannot be\nguaranteed. It does not provide individual tailored investment advice and is\nfor guidance only. Some rules may vary in different parts of the UK. We cannot\nassume legal liability for any errors or omissions it might contain. Levels and\nbases of, and reliefs from, taxation are those currently applying or proposed\nand are subject to change; their value depends on the individual circumstances\nof the investor. No part of this document may be reproduced in any manner\nwithout prior permission.<\/em><\/strong><\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

Mortgage turmoil shakes housing market A turbulent economic and political month has dramatically altered the outlook for the UK housing market. The government\u2019s \u2018mini-budget\u2019, announced on 23rd September, caused interest rate expectations to soar, which led to lenders rapidly withdrawing products. A third of mortgage deals disappeared overnight on 27th September; within a fortnight, 43% […]<\/p>\n","protected":false},"author":12,"featured_media":8874,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[32,37],"tags":[],"hd_content_source":[],"_links":{"self":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/8889"}],"collection":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/comments?post=8889"}],"version-history":[{"count":4,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/8889\/revisions"}],"predecessor-version":[{"id":8991,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/8889\/revisions\/8991"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media\/8874"}],"wp:attachment":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media?parent=8889"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/categories?post=8889"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/tags?post=8889"},{"taxonomy":"hd_content_source","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/hd_content_source?post=8889"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}