Since the announcement of the Budget on 30 October, I’ve been thinking about what it means for the Bromley housing market. One of the most direct effects will come from the changes to stamp duty. This is the tax that buyers have to pay when purchasing a new home, and is charged in bands, with rates based on existing property ownership.
The average price of a home in Bromley is £468,600. Assuming a buyer only owns one home, they will pay £2,500 more in tax on this house from March 2025 (when the bands change) compared with what they’d pay before the budget. When you consider that the value of an average home here increases by £8,435 each year, it’s unlikely to deter home movers in attractive markets like ours.
While there was nothing announced in the Chancellor’s Budget likely to stimulate the housing market directly, we must look at the wider economic context. UK mortgage approvals reached a two-year high in September, driven by anticipated interest rate cuts from the Bank of England. Approvals rose to 65,647, surpassing forecasts and marking the third consecutive monthly increase as lenders preemptively reduced mortgage rates.
The big decision to increase the rate of National Insurance paid by employers should have a deflationary effect and make more interest rate reductions likely. However inflation could rise as a result of the fiscal loosening caused by extra spending. It remains to be seen which will have the greater sway.
In the coming months, the implications of the Budget will become clear, but it is very likely that new opportunities will open up for buyers, sellers and landlords. At such a time, partnering with knowledgeable local experts has never been more important. Our understanding of Bromley’s market dynamics can provide you with the edge you need to make the best decisions when it comes to your property move. We’re offering free valuations and are always ready to discuss what opportunities might be out there. Please don’t hesitate to contact us today, and let’s explore how you can make the most of the current market, armed with insights from those who know it best.