The fallout from last Friday’s mini-budget continues apace with one leading South West London agent warning of more chaos to come with the implementation of ‘Toy Town’ economic policies a ‘huge gamble’.
Allan Fuller of Putney-based Allan Fuller Estate Agents says that the one thing that you cannot say is that Truss has not stuck to the policies that she espoused when on the hustings circuit with rival Rishi Sunak.
Allan Fuller, Allan Fuller Estate Agents
Fuller told The Neg: “The fact that her ‘Toy Town’ economics would be a disaster was completely lost on the majority of the members of the Tory Party, who have managed to bring abject chaos to an already fragile economy.
“For property – she giveth with one hand and taketh with the other.”
GAMBLE
Fuller says it was a massive gamble to reduce stamp duty while at the same time oversee an introduction of policies that would inevitably lead to a large rise in interest rates and higher mortgage payments.
Already this week Halifax, Virgin Money, Skipton Building Society, Clydesdale Bank, Scottish Building Society, Leek United, the Nottingham, the Bank of Ireland and Paragon have all pulled mortgage fixed rates as uncertainty over Bank of England Base Rate continues to grow. The base rate is currently at 2.25% but some City pundits predict it could soar to 6% by spring next year.
I fear a lot of people may well put off moving plans until next year.”
Fuller says: “It is likely that, in London and the South East at least, the strong demand for property will sustain values and we will not see a slump, but it will be no thanks to her dangerous gamble.”
He adds: “I fear a lot of people may well put off moving plans until next year. So far with the deals that we have in progress nobody is reconsidering their options at the moment.
“However, all the headlines in the media are negative and carry a worrying inference. Until the dust settles it’s going to be a worrying time for many wannabe homemovers.”
https://thenegotiator.co.uk/london-agent-truss-toy-town-economics-are-huge-gamble/
