18 November 2022
Chancellor of the exchequer, Jeremy Hunt, took to the House of Commons to announce the 2022 autumn budget statement, with three priorities in mind: stability, growth, and public services.
2022 alone has seen drastic changes to the leaders of the UK, with the death of our longest-reigning monarch, the expulsion of Prime Minister, Boris Johnson, the short-lived ministry of Liz Truss, and the baton for the housing minister being passed across a relay of conservative members.
Hunt is the fourth Chancellor to make his mark on the economy with new and reversed plans.
The biggest takeaway for those in the housing market is the plan to reverse Stamp Duty. In September, we saw former Chancellor Kwasi Kwarteng increase the point at which Stamp Duty is charged on property purchases from £125,000 to £250,000 for home-movers.
First-time buyers got an even better cut, with the threshold increased from £300,000 to £425,000.
However, Hunt’s Autumn Statement document said that the September changes are temporary. Remaining in place until 31st March 2025 to support the housing market, the Stamp Duty cut was set to help thousands of home-movers across the UK.
After March 31st, 2025, the cut to Stamp Duty will be reversed, with no future plans for this to change again.
The Chancellor also announced the cancellation of the exemption of electric vehicles from vehicle excise duty from April 2025, a rise in state pension to 10.1%, and a rise in the National Living Wage from £9.50 an hour to £10.42 an hour.
With the cost-of-living crisis affecting us all, Hunt’s attempts at combing over the current economic disaster fall into the hands of the public and a rise in their taxes. We know that at present you may be wanting to rethink your current outgoings, and that’s why our expert team of mortgage brokers are always ready to take your call and help you make an informed decision on your next steps.