“Once again the housing market defies expectations, even in this volatile economic environment the non-seasonally adjusted figures remain the same as in August. That said, these transactions have been in the pipeline for months so any effects that may have been caused by the recent upheavals in Westminster are yet to be seen. While the £20bn increase in government borrowing in September sets a new and worrying high, the Chancellor may now look to SDLT receipts, which have continued to increase with the buoyancy of the market. We have to wait a while longer for an updated fiscal statement, but we do have to wonder whether the changes to SDLT announced in the mini-budget will survive if it means less money going into the exchequer’s purse.
“Going forward we’ve already seen average SVR and fixed mortgage rates reach new heights, which will be causing concern for many. The Bank of England is sure to put the base rate up again at the beginning of November, but no matter what they do to try to bring inflation down it seems to be having little effect. The only result is that it is adding to the financial worries of millions of borrowers.”
Richard Pike, chief sales and marketing director at Phoebus Software