“Previous incentives have all had an end date and certain caveats, and it’s questionable how helpful they’ve been in the long term - what we really need is something which gives certainty and is heater up to be an integral part of the market,” he explained.
“Helping first time buyers with their home should mean helping first time buyers with any home - buyers shouldn’t be restricted to certain property types to get support.
“It’s up to the chancellor to decide what that support looks like, but let’s hope he’s learned from past mistakes and delivers something the whole of the property market can stand firm on.”
Meanwhile, HW Fisher tax partner, Tim Walford-Fitzgerald, indicated he would like to see some support for the rental sector: “What we would like to see is some more longer term plans in order to help the rental sector.”
However, he acknowledged that with the election coming next year, it will be difficult for the government to make any long term commitments.
Explaining recent issues with the sector, Walford-Fitzgerald said recent changes have meant that landlords are dropping out of the market and a lot of that, but not all, is driven by the tax changes over the recent years coupled with increases in interest rates.
To address this, he indicated he would like to see an end to the mortgage interest relief restriction brought in by George Osborne.
"With the increases in interest rates, that has been rather punitive, and, for more heavily geared landlords, the tax rates can be in excess of the profits they are making in real terms," he said.
Tax
Taxation was another topic under consideration with Aegon pensions director, Steven Cameron, suggesting that rumoured improved fiscal headroom and the achievement of the Government’s inflation target will raise hopes of immediate tax cuts.
However, Cameron additionally stated that he would expect the chancellor to “hold back” on these until his Spring Budget next year.
“While a cut in rates would be the most eye-catching, lower earners could actually benefit more from thresholds being unfrozen,” he explained.
“Any cuts in taxes are likely to be limited to those which won’t risk recreating inflationary pressure, for example extending business reliefs.”
tom.dunstan@ft.com
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