Pre-Budget Commentary

23 October 2024

Adrian Moloney, Group Intermediary Director, OSB Group, comments: "As we approach the Budget announcement, it’s crucial to acknowledge the potential unintended consequences of any tax decisions - especially around Capital Gains Tax and National Insurance for businesses and employees. It has been suggested that the rate of capital gains tax on the sales of second homes and buy to let properties will remain untouched, but we won’t know until 30 October, whether this is based on fact or speculation.

"As one of the largest specialist lenders, we’re remaining positive in our outlook as we know that the housing market is extremely resilient. From what I am hearing from brokers, they are busy especially on the ‘business as usual’ side of the market. While there will be some who have stalled their decisions until there is more clarity around the budget, there are plenty of positive signs that the industry is once again adapting to market fluctuations. The need for flexible products, such as one-year fixes, alongside solid advice from brokers, is more crucial than ever.

"So, will a more favourable budget stimulate activity? Ultimately, time will tell, but the signs suggest the market is on track for a stronger finish to the year and into 2025. As rates have become more competitive and lenders compete for the best deals, borrowers should benefit from increased choices. We will be keeping a close eye on the Chancellor’s announcements the day before Halloween."