The mini-budget has been introduced by Chancellor Kwasi Kwarteng to help promote growth during the cost of living crisis.

What is essential in the mini-budget?

1.  Stamp Duty: No stamp duty on the first £250,000, and for first-time buyers, that rises to £425,000 – this comes into operation from 23rd September. However, for property investors, the 3% second home surcharge remains. 3% will be payable on any property up to the value of £250,000, and 8% on the next £675,000 (the portion from £250,001 to £925,000). Therefore, the stamp duty cut will still prove beneficial for most buyers.
2.  Cooperation Tax: Cancel the UK-wide rise in cooperation tax which was due to increase from 19% to 25% in April 2023.
3.  National insurance:1.25% rise to be reversed from November 2022. 
4.  Income Tax: Basic rate cut by 1p to 19p from April 2023.                              

   45% higher rate of income tax abolished for England, Wales, and Northern Ireland taxpayers.

What mini-budget means for the housing market?

All of this will undoubtedly produce a short-term increase in activity in the housing market. Demand for one-bedroom flats and two-bedroom houses may pick up more notably due to the more significant incentives on offer to first-time buyers.

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