The budget has been one of the biggest talking points of the coalition governments first hundred or so days. With the new government taking the reins amidst a recession, it was always going to be an incredibly important part of their job. The Institute for Fiscal Studies (IFS) has recent announced that the budget was somewhat ‘regressive’ in nature and that the acts of changing tax and benefits structures have resulted in the poorest people in the country being hit the hardest. The Treasury responded by pointing out the pro growth and pro employment effects, aspects of the budget have achieved.

So what affect has the budget had on homeowners?

VAT Increase

The VAT increase from 17.5% to 20% due next year will affect every home owner looking to do home improvements. The cost of work and materials will increase as will the cost of new developments up and down the country. This means it is more important than ever that you opt for a home improvement company like Ideal Windows and conservatories which always offers the best possible value to its customers.

Possible Council Tax Freeze April 2011

Every homeowner will be looking forward to Council Tax being frozen in April 2011. Council Tax has been increasing steadily for a while, so any reduction in outgoings is a bonus.

Mortgage Approvals

Not so much as a result of the budget but an interesting improvement recently is in the number of mortgage applications being approved, possibly due to the Government offering banks insurance guarantees. Month on month between February and March approvals went up, although this was (understandably) from an already low level.

Stamp Duty

Holidays on stamp duty were frozen for an extra 3 months, meaning that people buying a home worth less than £175,000 this year won’t have to pay up.

While these are positive things for homeowners and those making home improvements like adding conservatories and Garage Conversions, the response from industry experts remains muted for now. The worry is that with unemployment still on a downward trend and with the threat of a double dip recession on the cards, the positives may be short lived or not be potent enough to provide a lasting swell.

While there is still concern over the housing market, those without an inescapable reason for moving or buying have the opportunity to make the most of their investment in the mean time. Extending, improving and upgrading in order to ride out the storm is recommended.