OSBORNE UNVEILS BUDGET
Osborne’s most radical reforms of the week may have slipped under the radar as the media focused on the living wage. The chancellor has clearly heeded the warnings of the BoE’s Mark Carney – who he hired in the first place – that the UK property market needed attention. Moves to limit tax relief for buy to let investors will have a significant effect on supply in the booming South East, freeing up houses for young people rather than speculators. It also represents preparation for a rise in interest rates. The BoE is concerned about the number of high LTV buy to let mortgages being taken out which are increasing the sensitivity of the economy to a rise in rates. Over 70 per cent of UK mortgages are on variable rates so consumer spending may be hit when the bank pulls the trigger. Read More…..