Budget Roundup

Budget Roundup for LandlordsChancellor George Osborne delivered his last budget before the general election yesterday, but what did it hold for the property industry?

Savings was the key here. Following years of low-interest rate misery George Osborne finally offered savers some respite as he offered tax-saving concessions. Basic rate taxpayers won’t pay a penny tax on their savings until they hit £1000, reducing to a £500 threshold for higher-rate taxpayers. Addressing the Commons, the Chancellor said “…at a stroke we create tax free banking for almost the entire population. And build the economy on savings not debt.” A sigh of relief for many.

Great news too for first-time house buyers. The government has pledged to top up savings by £50 for every £200 saved (capped at £3000 per individual) as part of a new Help-to-Buy ISA. The new Help to Buy Isa will help people to save for a deposit for their first home and it is estimated that around 285,000 first-time buyers will use the scheme a year.

Commenting on the Help to Buy: ISA announced in today’s Budget, Mark Hayward, managing director, National Association of Estate Agents (NAEA) said: “This initiative will provide a significant boost to the ability of a first time buyer to save speedily and effectively. This is exactly what is needed to engage the first time buyer market, particularly as we have seen the current criteria under the MMR constraining aspirations to buy a home. It especially benefits couples who are buying for the first time as both are eligible to open a Help to Buy: ISA which potentially means £6000 from the Government bonus towards a new home. It is also timely, considering house price inflation out paces wage inflation, so this additional boost to first time buyers savings pots will help them at least keep apace rather than fall behind the inflationary curve.”

Maybe you think the sense of optimism could be misguided? Looking at the wider picture, could the budget announcements contribute to rising house prices yet again and become a catch 22 situation, especially bearing in mind the deficit in term of numbers of new homes being built?

Add to this heady mix, a potentially greater number of canny pensioners investing in the buy-to-let market come April when pension changes take effect and it’s difficult to predict the outcome.

Source: The National Association of Estate Agents www.naea.co.uk

lettings agent southend on sea - crystal horwood

Crystal joined Pace in 2007 and was appointed to her current role of Managing Director in 2010, heading up the company founded by her father in 1994.

She is responsible for the daily operations of the business, whilst also ensuring the company is financially sound, has strategic direction and is planning for future growth.

Crystal takes a thoughtful and considered approach to all that she does, transferring her determination to deliver implicit care, attention and professionalism to every member of her team.

Pace employ 20 full time staff. Meet the key team members here.