Kwasi Kwarteng's disastrous and short-lived mini-budget has left its mark on Liverpool's property market, according to research.
In City Residential's latest quarterly report, covering the three months to September 2022, the firm outlined the positives and negatives of Kwasi Kwarteng's announcement last month, which included a swathe of tax cuts reportedly set to cost £150bn .
The so-called mini-budget sent the mortgage market into a tailspin, with interest rates rocketing and some banks even pulling their products.
READ MORE: Warning to homeowners as energy bills help cut in Jeremy Hunt's mini-budget U-turn
City Residential's report said: "Over the two weeks since the announcement we have seen some buyers pull out of existing sales through fear of higher interest rates and potentially falling prices."
However, the company said there was some "positive news", including changes to stamp duty and the fact there is still "good interest" in the market, despite uncertainty.
It added: "Although rising interest rates are bound to have a negative effect on those buyers using mortgage finance it does not appear to be putting off cash buyers. The percentage of cash buyers versus mortgage buyers in the city continues to rise and we expect this trend to continue over the coming months."
Kwasi Kwarteng was sacked as chancellor last week with his successor Jeremy Hunt delivering a U-turn earlier today (Monday, October 17 2022).
In the emergency statement, Hunt confirmed he is ditching many of the measures in the mini-budget, including the planned cut to income tax. He also announced the energy support package will only last until April 2023 , not two years as planned.
Alan Bevan, managing director of City Residential, said the mini-budget announcement will "go down in political and economic history as a day a certain Liz Truss and Kwasi Kwarteng single handedly unravelled both the political and economic standing in the UK in little over 30 minutes".
He added: "Their strong willed, brazen mini-budget went down like a lead balloon. The reaction of buyers, sellers, funders, developers, landlords, tenants, and funds says it all."
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