Chancellor Jeremy Hunt all but ditched last month’s Mini-budget this morning – but saved Stamp Duty from undergoing any more changes, for now.

Speaking to the House of Commons this afternoon he confirmed again that the basic rate of income tax will remain at 20p indefinitely – instead of being reduced to 19p.

The cap on energy prices charged to households is now only guaranteed until April next year, but will then be reviewed

STAMP DUTY

But the cuts to Stamp Duty and National Insurance remain in place.

Prime Minister Liz Truss (right) at first decided not to attend the House of Commons and sent Commons leader Penny Mordaunt instead.

She had earlier tweeted that the announcement from Hunt – which brings forward measures from an economic plan on 31 October – would “chart a new course for growth”.

Sir Keir Starmer mocked Liz Truss for ducking an urgent question on the economy in the Commons, saying “the lady is not for turning… up!”

Responding to Penny Mordaunt, the Labour leader thanked her for answering the question, adding: “I guess under this Tory government, everybody gets to be prime minister for 15 minutes.”

Truss has been meeting cabinet ministers as she attempts to shore up her premiership, following calls from some Tory MPs for her to go.

Truss did eventually arrive at the Commons a little after 16:30, sitting alongside Chancellor Jeremy Hunt for 20 minutes, before leaving again in between questions, without addressing the House.

REACTION

The industry was quick to react to this mornings video statement.

The commitment to the Stamp Duty thresholds will certainly help to restore some market stability.”

Nathan Emerson (pictured), Chief Executive of Propertymark, says: “The Chancellor’s commitment to the Stamp Duty thresholds that better represent house prices will certainly help to restore some market stability and confidence which has taken a hit.

“Mortgage rates were already rising and we hope the wider announcements made today will translate into a settling down of that trajectory so buyers can proceed with more confidence that some of those additional lending costs will still be offset by Stamp Duty savings.”

Iain Crawford (pictured left), chief executive of Alliance Fund, says: “Although today’s U-turn is an attempt to calm the waters, it’s fair to say that the government’s shambolic behaviour is unlikely to distil much confidence in the UK economy.

“However, as it stands, the UK public will embrace any shred of stability afforded to them in what are currently very uncertain times and the one silver lining of this latest government backtrack should be a boost to property market confidence.

We’re already seeing a strengthening of the pound with gilt yields also dropping.”

“We’re already seeing a strengthening of the pound with gilt yields also dropping and this easing pressure on the markets should reduce the likelihood of higher interest rates.

“This will help settle what has been a turbulent mortgage market in recent weeks, rejuvenating buyer demand levels, which will also help to stabilise house prices and investment into the UK property market.”

EXTRAORDINARY

Marc von Grundherr (pictured right), director of Benham and Reeves, says: “An extraordinary turn of events, quite literally, but one that should help strengthen a property market that was starting to wobble under the pressure of increasing mortgage rates and dwindling buyer sentiment.

“While maintaining a cut to Stamp Duty will help stimulate buyer demand within the market, overall market health will be far better maintained by stabilising the mortgage sector and our ability to fund a property purchase in the first place.

“We should now see this with pressure easing, making the threat of further mortgage rate increases over the coming months less likely.”

James Forrester (pictured left), managing director of Barrows and Forrester, says: “It’s impossible to tell just what direction the economy will head following the latest government spectacle, but today will bring an air of positivity to what was quickly becoming a beleaguered property market.

“Stability in the gilt markets will bring positive movement for those looking to borrow. But it’s important to understand that we aren’t going to return to a sub one per cent base rate and homebuyers must be prepared to pay more in mortgage costs when climbing the ladder.

“However, the Government’s choice to maintain the cut to Stamp Duty tax signals their intent to keep the property market buoyant and this should help boost buyer confidence in itself.”

TOO LITTLE, TOO LATE

Chris Hodgkinson, managing director of HBB Solutions, says: “A case of too little, too late, where the UK property market is concerned as the damage has already been done to homebuyer sentiment, as well as their ability to borrow in order to fund their purchase.

“Even if we do now see mortgage rates level out, many will be far too worried to proceed with a purchase in fear of another government U-turn further down the road, leaving them unable to afford the cost of their mortgage.

“As a result, we can expect market activity to remain muted over the coming months, causing house prices to drop as a result.”

MARKETS PREVAIL

Moubin Faizullah Khan (right), chief executive of buy-to-let administration company GetGround, says: “Events of the past fortnight have proven that what industry and the markets want often will prevail. If government policy doesn’t make sense to economists and businesses, it’s hard to make it stick.

“While market turbulence and financial downturns are nothing new, the domino effect of Brexit, the pandemic, geo-political turmoil, fast-rising inflation and now contentious fiscal policy making were creating a uniquely unpredictable set of market conditions.

“Landlords and investors don’t need any more uncertainty and so we welcome the new Chancellor’s pronouncements today to steady the ship. We must wait and see, but it doesn’t feel too optimistic to hope that today’s clarity will create some stability. That in turn will enable landlords and investors to get on with business, providing quality homes to people to live in and protecting and supporting their tenants as the cost of living crisis continues.”