Property buyers waiting for Budget, major housebuilder warns

Major housebuilder Berkeley warns that property buyers are waiting to see what next month’s Budget contains before taking the plunge.

Berkeley said it was receiving “good and stable levels of enquiries”, but customers “without an immediate need to move” were more cautious, The Times reports.

“Some buyers may defer transactions until after the Budget at the end of October and any election uncertainty dissipates”, the company said.

It called on the Government to introduce some “targeted intervention” to give the housing market a boost.

Speculation

There is speculation that new Chancellor John Healey (pictured) will introduce more punitive rates of Mansion Tax, and is considering aligning Income Tax and Capital Gains Tax, which would hit landlords.

Propertymark has already warned that the housing market is facing a crunch time in the next few weeks, with the Bank of England’s interest rate decision this week and the looming Budget.

First Budget

Healey will deliver his first Budget on 28th October, which lies between two Bank Rate announcements, this month and in November. There is also a third opportunity for the Bank to change the interest rate just before Christmas.

Prime Minister Andy Burnham has been warned by former PM Gordon Brown not to increase property taxes.

Brown said that property is “taxed quite heavily” already, and suggested Stamp Duty may need reform.