Movera's comment on today’s Budget announcement

30 October 2024

Please find below, comment from Nick Hale at Movera, a leading home moving group with brands including ONP, CLG and CAL.

Nick Hale, CEO of Movera commented:

“The Chancellor clearly focused on themes like stability and growth, aiming to steady the nation’s finances while still leaving room for economic opportunity. Yet, this balancing act also meant tough choices, and nowhere is this more apparent than in the handling of support measures for the spluttering housing market.

“The decision not to extend the increased nil-rate threshold for First Time Buyers’ Relief, which was temporarily increased from £300,000 to £425,000 by the previous government, has introduced uncertainty into an already strained housing sector. With the average house price in England hovering around £310,000, many first-time buyers relied on this temporary relief to offset rising costs. Now, the impending April 2025 deadline creates a "cliff edge" effect that could push prospective homeowners into a buying frenzy to avoid higher Stamp Duty Land Tax (SDLT) costs after the threshold reverts. This rush may inflate prices further in the short term, driving demand up temporarily, only to see a sharp dip post-deadline.

“Additionally, with no replacement schemes like Help to Buy on the horizon, affordability remains a significant barrier. The emphasis on boosting housing supply is beneficial in theory, but without mechanisms to make these new homes accessible to average buyers, there is a risk of oversupply in the wrong market segments, deepening the affordability crisis. Ultimately, a more balanced policy addressing both supply and affordability is essential to foster a sustainable path to homeownership in today’s economic climate.”