Post-Budget comment for The Intermediary

I was disappointed not to see any positive changes to corporation tax, dividend allownces and dividend tax rates. This would have really helped smaller businesses and encouraged innovation and reversed some of the increased tax burden felt, particularly by smaller owner-managed businesses like many mortgage brokers and IFAs.

I've email you my piece as even 300 words doesnt fit here :)

The CGT reduction from 28% to 24% is a complete red herring as the chancellor hinted this was designed to bring more stock to the market however more stock will be coming to the market anyway, just not for this reason.

If an investor owns a second home or holiday home and have a mortgage, they will need to review their investment and consider whether the numbers still work when they roll of their old fixed rate onto a new higher rate.

With the average BTL mortgage interest rate hovering around 5% and the average BTL income around the same, most investors are likely to conclude it would be more financially savvy to sell and put the profits in the bank.

With a budget that was about as strong as a water bomb, there was nothing of any real note, that would help fuel homemovers, first-time buyers or existing mortgage holders. Also nothing to help a dwindling New Build market, and yet again no support for affordable housing developments. This is now two consecutive budgets where these areas have been overlooked. As a consequence, NEW business enquiries leading into March 2024, has been largely muted, with the exception of existing borrowers now frantically trying to obtain lower mortgage rates.
A dull and safe budget, has largely reflected well in the SWAP markets, with reductions on rates, however, notably many lenders have not reflected these trends, instead in majortity of cases, repricing mortgage products, with increases, which is madness. These should be passed onto the consumer as soon as SWAP markets react, and the regulators should be keeping a close eye on these proceedings if this is not the case.

A week after the Spring Budget announcement, it's clear that the impact on my business has been minimal. The Budget appears to have overlooked the long-standing housing crisis, a situation that hasn't seen significant improvement in over 20 years. The measures introduced don't seem to offer the substantial change needed to address the core issues plaguing the UK housing market effectively. It highlights a missed opportunity for meaningful action that could have made a difference in alleviating some of the current challenges faced by the mortgage industry. Further government support and targeted policies could play a crucial role in steering the market towards a more positive future.