Is Truss Going to Gain our Trust?

22 September 2022


In September, we’ve experienced some unexpected challenges, mixed emotions, and political change…. it’s been a busy month!

Let’s start by taking a moment to reflect on the life of our late Queen, Her Royal Highness Elizabeth II. This remarkable lady led our country with honesty, integrity, and loyalty. A few months ago, we all rejoiced celebrating the platinum jubilee, and last Monday, we came together to pay our respects and remember the legacy of a great monarch.  She showed us resilience in our country's most difficult times, and we are forever grateful for her lifelong contribution to the nation.

The arrival of our new prime minister, Liz Truss, has ruffled a few feathers and she is set to shake things up and hopefully the housing market will get the attention it needs to help spearhead economic growth.

Revealed in The Times, Liz Truss is set to cut stamp duty, encouraging economic growth, and allowing more people to move, enabling first-time buyers to join the property ladder.

The last time we saw a cut for stamp duty was during the peak of Covid-19. The direct result being a positive impact on the property market, with 1.3 million buyers not having to pay a penny on the first £500,000 of their new home, though, it must be said that times have drastically changed, and many are speculating that the cut of stamp duty may not be enough.

At the same time, this must be considered in the context of the withdrawal of the government's Help to Buy scheme, which first-time buyers benefitted from the most. It is a shame to see this scheme leave with no replacement and the anticipated benefits of any stamp duty cut will be dampened down by its removal. The Help to Buy scheme has been a massive contributor to the success of new homes over the past few years.

It’s widely accepted the economic state of the UK is at an incredibly precarious level, and for the housing market, many buyers are questioning whether right now is really the best time to buy, despite the government’s short-term assisting with utility costs to combat the ever-growing cost-of-living crisis.

Covid is still with us but has regressed into a manageable state, and house prices are steadying back to pre-covid levels, but will the cut of stamp duty be the best thing for the housing market? We could potentially see a short-term spike or we may be faced with negative long-term repercussions.  

Alongside the move to cut stamp duty, once again, interest rates have seen a consistent rise over the past few months. This rise and the predicted future of interest rates only set to rise further, the impact that this can have of borrowing could be catastrophic. It’s been speculated that potentially 25% of all UK mortgage borrowers will not be able to afford their mortgage if interest rates hit 5%.

The threat of further rate rises should push movers to get in early before the rates become unattainable, because you don’t want to be in a position where you could potentially lose your biggest asset. Some would argue going for a long-term fixed rate is a safer bet.

The cost of living is a growing concern for all of us, and that’s why we want to get our customers in the best position possible with help from our expert mortgage advisors in Mortgage Matters Direct.

And onto something amazing- our newest charity campaign! We are working closely with an esteemed non-profit organisation to raise £1million for vulnerable children across the Southeast by donating £100 for every property we value.  No catches, no obligations, just plain and simple property valuations, so why not book your own property valuation and we’ll donate £100 on your behalf.

I have a feeling the housing market will continue to surprise us. Its resilience is remarkable and property ownership is so embedded in our Britishness, I’m sure the future is positive.

We wait patiently for the dust to settle from the past few weeks and are ready to move when you are, and don’t forget there are a £million reasons to give us a call!

Until next month, 

Aldo Sotgiu 

Group Managing Director