The Spring Statement: What it means to buyers
The Chancellor used the Spring Statement to reiterate the importance of the housing market. How will his announcement affect you and your search for a London property?
If you are thinking of buying property in London then you may have been waiting to hear if there was any good news for you in Chancellor Philip Hammond’s recent Spring Statement. (Yes, a ‘statement’, not a budget).
Last year, in an attempt to simplify matters, Philip Hammond decided that the autumn Budget should become the main occasion for communicating economic policy changes while the Spring Statement would be reduced to a simple mechanism for responding to forecasts from the Office for Budget Responsibility (OBR).
Is there good news for London property buyers?
The only detail directly relevant to buyers was Mr Hammond’s announcement that London is to receive an additional £1.7bn to deliver 26,000 more affordable homes (including homes for social rent) by the end of 2021/22. There is, however, more reason for optimism, as economic forecasts have improved over the last year. Growth is predicted to rise by 1.4% this year, which is better than expected. The Chancellor added that from 2018-19 debt will fall as a share of GDP, and this will be the start of "the first sustained fall in debt for 17 years, a turning point in the nation's recovery from the financial crisis of a decade ago".
What does that mean for me?
The OBR’s positive predictions are likely to improve economic confidence and this will, in turn, help the London property market. As confidence returns, prices will respond accordingly, so if you are looking for Westminster property or considering a property for sale in London Bridge or Kennington (areas covered by Daniel Cobb) then this may be the best time to buy.
We have a portfolio of fantastic London properties ready to view, so, if the Chancellor’s Tigger-ish optimism has rubbed off on you and you’re hoping to buy soon, why not give us a call?