The Woolbro Group comments on the selection of Rishi Sunak as Prime Minister

The Woolbro Group, a property developer that specialises in delivering housing for first-time buyers in London and the South-East, comments on the selection of Rishi Sunak as Prime Minister and the implications on the housing market.

Ben Woolman, Director at Woolbro Group, says:

“Rishi Sunak must now work at pace to undo the damage that Kwasi Kwarteng’s mini-Budget inflicted on the housing market.

 “The scale of the challenge ahead of him in tackling Britain’s housing crisis is enormous, however, things are already looking up for the new PM.

“Firstly, mortgage rates fell for the first time since the start of September on Friday, though they are still uncomfortably high at 6.55% for an average two-year fixed rate deal.

“And following Jeremy Hunt’s scrapping of most of the tax breaks announced in the mini-Budget, Mr. Sunak’s background in finance could serve as an additional calming influence on markets. This, subsequently, should eventually bring mortgage rates closer down to earth again. 

“However, the former chancellor must still exercise caution when planning his next move to tackle Britain’s housing crisis.

“While his pledges to scrap the Government’s 300,000 homes-a-year target and block greenbelt development would have resonated with Tory voters during his leadership bid this summer, they would have done little to help struggling first-time buyers in reality.

“Mr. Sunak should therefore be mindful that 2024’s general election will come around quickly – and many voters still struggling to get a foot onto the property ladder will be unlikely to show their support at the polls.

“First and foremost, Mr. Sunak must get long-overdue reforms of Britain’s planning system over the line once and for all. It is unquestionably the greatest barrier to delivering the new homes this country needs and, therefore, tackling our housing crisis.”

Kindly shared by Woolbro Group

Main article photo courtesy of Pixabay