As you may know, the stock market is heavily based on the level of confidence investors have in their specific stocks of choice. In the past few months, investor confidence has been on the floor, but Chancellor of the Exchequer Rishi Sunak’s announcements on Wednesday will have a significant impact on a few sectors, namely hospitality and real estate. Here are what exactly the changes were, and what they could mean for the market.
Housing
One of the flagship announcements made was the elimination of stamp duty for all properties worth less than half a million pounds.
The policy was designed to get people buying houses again after prices and demand collapsed at the beginning of lockdown. With one of the major costs of house buying gone, many will seek out their next house gleefully, and the market will return to normal.
In stock terms, this could be a coup for your portfolio if you’re invested in real estate.
Many real estate companies struggled through lockdown, and this policy should see a great return to form. As profits come back, so will investors, and hopping on to a real estate company at the right time could be a big win.
Hospitality
The government’s “Eat out to help out” scheme was also launched. Companies can sign up to half their prices, in exchange for government support to cover their losses.
The government’s goal in this is to increase demand in the hospitality sector, but it also benefits the restaurants.