Wednesday 23 August 2017

Queen’s Speech 2017 – What it means for your money and mortgage

Author: Editorial Team

Parliament

Following the recent general election, the Queen gave a speech in which she outlined the Government’s plans for the country during the coming Parliament. With a number of big changes expected in the next few years, many experts were watching the Queen’s speech closely for clues on how the Government’s policies will affect people across the UK.

This is especially true when it comes to issues that will impact on housing and mortgages. Though the speech didn’t hold a lot of surprises for homeowners, it is still likely to influence property prices, mortgages and household income in the coming years. So how exactly will the Government’s policies affect your mortgage and will the current Parliament be good or bad for property owners?

Main housing policies

Many of the housing policies announced in the Queen’s speech relate to the rental market. The Government has promised to make fees fairer for tenants and increase competition in the private rental sector. They aim to reduce costs for renters and make it easier for tenants to recover unfair fees. These policies should make life easier and more affordable for people in long term rented accommodation.

Property owners watching the speech wouldn’t have been too surprised by the Government’s policies. As @Moneywiseonline reported, the Queen announced that, “The Government has pledged to fix the dysfunctional housing market by building more homes, highlighting the need to bring more properties on the market and to tackle the increasing lack of affordability so that ordinary working families can buy an affordable home.”

An increase in the number of homes on the market should help to drive the housing market in the UK. Whether this will impact on the availability and affordability of mortgages is yet to be seen.

Brexit

One thing that’s likely to have a significant influence on household finances is Brexit. The Queen’s speech laid the foundations for the UK’s exit from the EU. Already, we’ve seen inflation begin to increase and it’s likely that the economic fallout from Brexit will have a big impact on interest rates, living costs, and household finances. Exactly how Brexit will affect housing, money and affordability in the UK is yet to be seen, however we’re likely to begin to feel the impact in the coming months as negotiations finally get underway.

If you’re thinking about investing in property and want advice on applying for a mortgage, we can help. Contact a member of our team today to find out more.

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Written by: Editorial Team