60% of brokers predict the Budget will negatively impact the housing market

60% of mortgage advisers believe the Budget will negatively impact the housing market, according to a new survey from Primis mortgage network. 

However, they did also see differing fortunes for key markets in the upcoming Budget.

54% thought that the government may yet help first-time buyers but were united (96%) in their assessment that the Budget would negatively impact the buy-to-let market.

Two thirds expect the touted Inheritance Tax changes to improve demand for equity release products as home-owners seek to mitigate changes to the tax thresholds.

Brokers in the North were the least pessimistic about the impact of the Budget on the housing market with 52% expecting a negative impact on the market compared to 64% in the other two regions. But elsewhere, the results were consistent across the three regions.

Emma Hollingworth, chief distribution officer at LSL, said: “Our advisers report a very consistent picture. The withdrawal of stamp duty next March, and the likely changes to Capital Gains Tax, mean our brokers responses reflect nervousness among home-buyers and investors.

“Only equity release appears to have surfaced as a market which may benefit from the Budget, as many more estates are caught up in the likely Inheritance Tax reforms and seek to mitigate their liabilities. 

“No-one can really know the impact of hikes on employer National Insurance contributions or any changes to employer pension contributions, but a softer labour market will undoubtedly affect lenders’ risk appetites.

“Whatever the outcome of this Budget, we believe brokers will be busy as customers reassess their financial positions. That’s where being part of a network, which can support its brokers while they get on with the business of advising, is so important.”