He told Mortgage Introducer: “I think the government’s done what needed to be done to protect the UK’s credit rating and reactions in the broader markets seem to suggest they agree with that. Certainly the market’s view of sterling against the euro and the dollar has improved, which can only be positive for the mortgage market.
“The steps the government has taken will also help to drive inflation out of the market which means the Bank base rate in all likelihood will stay lower for longer. That’s got to help everyone in the mortgage industry.”
Sinclair was measured on the changes to Capital Gains Tax announced yesterday which mean that higher rate earners will pay a flat rate of 28% CGT while low and middle rate earners will continue to pay 18%.
“It’s yet to be seen whether the CGT changes cause any issues in the buy-to-let market, but generally I think the changes seem relatively sensible,” he added.
Meanwhile sister trade body AIFA, the Association of Independent Financial Advisers, said that cuts to corporation tax will benefit IFAs.
Andrew Strange, director of policy, AIFA said: “This is a tough budget for tough times. The cuts to spending and benefits will be felt by all and impact across the economy.
“The reduction in the headline rate of corporation tax is good news for IFA businesses. The further reductions over the next three years, in addition to the lower tax rate for smaller firms, will also provide a timely boost as the advisory profession seeks to recover and grow.”
