What Does the Spring 2023 Budget Mean For Property Investment?

Chancellor Jeremy Hunt took the stage on Wednesday 15th March to announce the Spring 2023 Budget.

Covering everything from artificial intelligence to childcare and corporation tax, this budget was jampacked with predictions and promises for the future of the country.

But how will this announcement affect the UK property investment market?

The previously announced rise in the average energy bill has been scrapped, with the existing Energy Price Guarantee being extended for a further three months.

This means the average yearly energy bill is expected to remain at £2500, instead of the anticipated hike to £3000.

This extension should save the average family an additional £160, alongside the existing support measures for energy bills.

This will, of course, be a huge relief to homeowners and tenants alike and assist in helping reduce the pressure of growing energy costs.

The UK’s inflation rate is predicted to drop to 2.9% by the end of this year, down from 10.7% in the last three months of 2022.

The primary purpose of this goal is to ensure that everyone will benefit from a more robust and stable economy by the end of the year.

The Office for Budget Responsibility (OBR) suggests that the UK will avoid a technical recession, experiencing a consistent growth for every year of the forecast period from 2024 to 2027.

This is welcome news for anybody looking to invest in the UK property market who may have been put off by the uncertainty and economic instability of recent months.

Chancellor Hunt also revealed the government would deliver 12 “investment zones” across the UK – with the intention of creating new “potential Canary Wharfs.”

Regions like the West Midlands, Greater Manchester, and Liverpool were highlighted as potential candidates. The Chancellor stated that successful applicants must be able to identify a specific location where a partnership between local government and local universities/research institutes could provide valuable innovation.

Successful candidates will receive £80m in funding each over the next 5 years, further encouraging investment in these critical areas and strengthening their local economies. If all goes well, this could encourage many investors and homeowners to go beyond London property investment for their next purchase.

Additionally, the Chancellor promised to put further investment towards UK regeneration schemes.

From this year, the government will provide over £200m in funding to 16 high-quality local regeneration projects across the UK.

The report added the “left-behind places” cited in the government’s Levelling Up campaign and projects with costs under £10m would be specifically targeted to ensure a fast turnaround.

Again, this is excellent news for the property market.

Regeneration is a magnet for future growth and demand: resulting in amenities that improve the local area, which attract new residents and boost property prices even further.

With over 18 years of experience in property investment, RWInvest is one of the nation’s top property investment companies, helping newcomers and experienced investors find the best buy-to-let properties on the market.

Our dedicated teams have vast knowledge about the property market and how it has changed over time.

If you’d like to learn more about the current state of the housing market, get in touch with our sales team today.

With specialists able to help you every step along your property investment journey, we have some of the best investment opportunities available in the best buy-to-let hotspots like Liverpool, Manchester and London.