A guide to Chancellor Kwasi Kwarteng’s ‘mini-budget’ and what it could mean for you

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She continued, “The threshold before stamp duty for first-time buyers is being raised to £425,000. Before the announcement, stamp duty relief was unavailable for any first-time buyer with a home priced over £500,000; this threshold will now be raised to £625,000. This will be encouraging for those based in London and the south.

 “This will offer some relief to those entering the housing market for the first time, as according to Rightmove, raising the threshold to £250,000 means that a third of all homes currently for sale (33%) are completely exempt from stamp duty in the UK. For people considering buying property, this might give them the encouragement to take the leap, despite mortgage rates skyrocketing. Buyers therefore, will need to be mindful they can afford to keep up with their future payments as mortgage rates continue to rise.”

However, Sarah also noted that “Those wanting to buy should also be aware of the significant and ongoing supply/demand imbalance. The new stamp duty cuts, designed to stimulate demand, could lead to even more buyers chasing the same homes, pushing up property prices even higher.”

How will the budget affect women who already own property?

Sarah tells GLAMOUR, “For women that own a property, it may encourage many to sell as demand may increase and open up the housing market. For those that are thinking of downsizing, today’s news will be welcome as demand for homes will immediately increase. 

“However, following the Bank of England’s announcement of the rising interest rates, those women on variable mortgages are left vulnerable to increased mortgage repayments, and the budget has done little to prevent this. 

“If your repayments are going to increase, you need to assess whether you can afford the increase. Creating a budget for all expenses will allow you to see where money can be saved to go towards the rising mortgage payments.”

How will it affect women with a family to take care of?

Lauren Pomfret points out that the budget didn’t “directly tackle the cost of living crisis outside of the energy price freeze, which had already been announced.” However, she notes that one of the more concerning announcements was “the tackling of part-time workers in receipt of Universal Credit to work more,” which “doesn’t account for the 38% of mothers that work part-time, usually due to caring responsibilities and the extortionate cost of childcare.”

She adds, “For many parents, this is a reluctant economic decision, and they may soon be penalised further with the removal of some benefits.” 

However, Sarah Brill notes that the energy price freeze will benefit families, saying, “The price cap and £400 government energy bill contribution will provide parents with some support to see their families through the winter months.”

“However, arguably, this does not go far enough, with many families having to cut back on daily expenditure to make ends meet as the cost-of-living crisis deepens. With inflation currently at 10.10%, household costs are becoming unmanageable for many families. More needs to be done to support women with families through this period of financial instability. 

“Employers can take a responsibility for supporting women with children by improving childcare benefits and offering them access to sound financial guidance through workshops and coaching sessions from professionals.

How will it affect students?

Sarah Brill explains that “The biggest impact on students will be the effect on the rental market. Stamp duty relief means the property is likely to be snapped up by buy-to-let investors meaning less property will be available for student renters on low or no incomes. It will then be offered back to renters at higher rates. 

 “Additionally, whilst the income tax cuts will be welcomed by the majority of UK workers, it will have minimal impact on students in part-time jobs. Whilst some may earn enough to appreciate the cut, the majority won’t be seeing the small increase in their monthly pay packet as they are unlikely to be earning enough to qualify for income tax.”

For more from Glamour UK’s Lucy Morgan, follow her on Instagram @lucyalexxandra.

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