Following today’s Spring Budget delivered by Jeremy Hunt, Mark Harris comments:

“More stimulus for the housing market is desperately needed to boost transactions and social mobility, so this Budget was a missed opportunity. While there has been some recovery in the housing market since the start of the year, it is still quite subdued and getting on the housing ladder is so difficult, particularly in higher-value areas such as London and the southeast, unless you have access to a significant deposit.

“Is there going to be a flurry of sales from landlords because they will make a saving on capital gains tax? No, they are in it for long-term gain, capital appreciation combined with income yield. Of course, that yield has been hit hard with higher interest rates and more regulation, as well as the inability to offset mortgage interest but professional landlords are committed and not going to start selling because of a slight reduction in CGT. Perhaps with rents so high the last thing we need is a reduction in homes to rent anyway?

“The abolition of the furnished holiday lettings regime was expected – it levels the playing field with other landlords and is better for local communities.”