Housing Unpacked: A Budget of Open and Bolted Doors

Forty-eight hours after Wednesday’s Budget, the good news is that no unexpected revelations have emerged from the small print that directly affect the property market.

A mansion tax and a two-percentage point increase in rental income tax are the two big announcements.

For a full analysis, see our piece here.

However, one question being asked is whether financial markets will ultimately swallow a Budget where so much of the spending is front-loaded and the tax rises are pencilled in for later in the Parliament.

There is unpredictability surrounding the revenue raised in response to a range of small tax rises so close to the next election.

It’s a theme we will come back to and one I discussed on the latest episode of Housing Unpacked, with Nimesh Shah, the chief executive of tax advisory firm Blick Rothenberg.

He described the Budget as “once-in-a-generation” (not in an especially positive way) and if you listen to the episode, you can hear where he thinks it leaves the UK economy.

Nimesh also talks about what was not announced in the Budget, how the squeezed middle may react and, of course, the mansion tax.

What are the hurdles it faces before its introduction? Why does he describe it as a “door opening” in the tax system and are those thresholds likely to drop?

He also talks about how his landlord clients have reacted to the various obstacles faced over the last decade, including this week’s income tax announcement.

We also discuss the push for a UK Investor Visa, which the government appears open to discussing.

Listen for more post-Budget reaction from Nimesh, including which emoji he would use to summarise the Budget.

I’ll give you a clue – it’s red and not a heart.