On Wednesday, 15th March, Chancellor Jeremy Hunt presented the Spring 2023 Budget, which discussed various topics, including artificial intelligence, childcare, and corporation tax. The budget was filled with projections and commitments for the nation's future.
While few policies will directly impact the UK property market, some announcements will indirectly affect the sector, including areas such as the economy, cost of living, tax obligations and levelling up.
So what exactly does the Spring 2023 Budget mean for the property investment market in the UK?
Inflation Rate expected to Fall
In January, inflation dipped for the third consecutive month to 10.1%. The Office for Budget Responsibility has predicted that the UK's inflation rate will fall from 10.7% to 2.9% by the end of this year; this is good news for investors opting for mortgage options as borrowing will be more affordable.
This is welcome news for anybody looking to invest in the UK property market who may have been put off by recent months' uncertainty and economic instability.
Energy Price Cap Extended
Support relating to the cost of living and energy costs see the Energy Price Guarantee kept at £2,500 for a further three months from April to June, as this was expected to rise to £3,000.
This extension should save the average family an additional £160, alongside the existing support measures for energy bills. With this support, there could be fewer rent arrears across the privately rented sector.
Levelling up with new investment zones
The Chancellor also announced that the government would deliver 12 new 'investment zones'. Regions, including Liverpool, Greater Manchester and other areas across the North of England and Midlands, were described as "12 potential Canary Wharfs".
The government will provide access to £80m of support to successful applicants for raising skills and infrastructure and providing valuable innovation. Over £200m will also be invested into 16 quality local regeneration projects across the UK; this will assumably impact the local and regional property markets where the new investment zones are.
Investment zones will further elevate city regions as top business areas, attracting more companies and young professionals to each region.