Overall, the Autumn Statement offered an interesting proposal, with a strong focus on encouraging business investment, driving planning reform, and recognising the important work that self-employed workers do to keep the wheels of the UK economy turning.
And while housing was largely absent from the chancellor’s plans, there were a handful of interesting takeaways for the mortgage market.
Firstly, planning reform – at last we seem to have the much-needed support for planning applications that many developers, and self- and custom-builders have been calling for.
The speed of planning application decisions has long been a roadblock for housing development, so it is brilliant to see extensive support offered in this area.
I am an avid supporter of the self- and custom-builder, and would love to see the UK catch up with its European neighbours who rely on this route to homeownership much more heavily.
It was also encouraging to see strong support for and recognition of self-employed workers.
This cohort often struggle to meet affordability requirements for the majority of lenders, and at Saffron for Intermediaries, we are working hard to innovate to fill this gap.
Additionally, tax changes – particularly cutting the main national insurance rate from 12 per cent to 10 per cent from January 6 – will hopefully help address affordability concerns, and provide an uplift in the mortgage market.
The mortgage industry seems to be settling into a more stable period – in terms of swap rates, interest rates, and house prices – and any form of stimulus announced today held the potential to rock this boat significantly.
Many people are waiting for the ‘unicorn’ of super-low rates to return, but ultimately, it is very unlikely to do so.
Buyers should make their decisions based on their personal circumstances – guided by a professional adviser, of course – and not by what may or may not be around the corner.
Tony Hall is head of business development at Saffron for Intermediaries
