"Movers have been acting with a degree of caution over the past couple of months as they wait for the Bank of England to lower the base rate and for the dust to settle following the new Government’s first Budget."
- Nick Maud, director of research at Savills
Two-thirds (61%) of homeowners feel strongly that changes to the additional stamp duty surcharge would decrease their chance of moving or purchasing a new property in the next 12 months, according to the latest research from Savills.
This compares with 37% and 17% who felt strongly that changes to the non-doms tax status and inheritance tax would hinder them moving.
The research shows that buyer sentiment has softened in the wake of the General Election and the first Labour government Budget, compared with earlier this year. However, buyers remain more positive about their budgets compared with the previous two years.
First time buyers most committed to move
The survey of just under 1,000 prime home movers, which took place over the first two weeks of November, revealed that the net balance of those who are more committed to moving has fallen since the question was last asked in March.
However, some cohorts are feeling more encouraged than others. When asked about the impact of the Budget on their commitment to move, those who are looking to get their first foot on the property ladder (+39%), and those who are looking at property valued between £250,000 - £500,000 (+23%) were the most incentivised to move.
Buyers remain positive about budgets
With further rate cuts in sight, buyer budgets remain robust. 12% agree that they’ll be looking to increase their budgets – while the majority (69%) will be keeping budgets the same.
Upsizers, who are typically leveraged buyers, were most likely to increase budgets in the coming months, while 1 in 5 investors stated that they’d most likely decrease budgets.
Nick Maud, director of research at Savills, commented: “Movers have been acting with a degree of caution over the past couple of months as they wait for the Bank of England to lower the base rate and for the dust to settle following the new Government’s first Budget.
“However, the announcement that the nil rate stamp duty threshold will be lowered is expected to result in a flurry of first-time buyer activity, and our research revealed that younger buyers in their 20s and 30s were the most likely to be active in the market in the short term."
