Welcome Jeremy Hunt - will he last long enough to do anything?

The new Chancellor, Jeremy Hunt, has been welcomed by the agency establishment - even though some may be wondering how long he will last in a government that appears to be faltering.

Timothy Douglas, head of policy and campaigns, commented over the weekend saying: “Reflecting on the recent announcement that Jeremy Hunt has now entered his new position as Chancellor, we would firstly like to welcome him into his role but secondly ask that he works with us to tackle issues faced across the housing sector.

“The ex-Chancellor, Kwarteng’s introduction of the recent review to Stamp Duty was welcomed and will help to bring people's budgets in line with rising house prices. It is disappointing however to see a U-turn on keeping Corporation Tax low announced today which will mean that next year’s rises will see agencies and company landlords tighten their belts whilst facing other growing costs."

PropTech entrepreneur and market observer Antony Codling was more overtly sceptical, commenting: The departure of Kwasi Kwarteng, the U-turn on corporation tax and the appointment of Jeremy Hunt as Chancellor of the Exchequer has so far done little to settle the nerves of residential investors. Some asked if these attempts to rearrange the chairs in the cabinet were akin to rearranging deckchairs on the Titanic.”  

Simon Clarke - the Housing Secretary and a close colleague of Prime Minister Liz Truss - was ebullient about Kwasi Kwarteng as Chancellor until Friday, at which point Clarke swiftly jumped horses to tweet: “Anyone who knows Jeremy Hunt knows he is hugely capable and experienced - I look forward to working with him.”

And on the latest tax U-turn, Savills research director Lawrence Bowles states: “Already we have seen long-term gilt yields fall on the back of rumours that the government will be backing down on some of Kwarteng’s unfunded tax cuts – and confirmation, as well as news of his dismissal as Chancellor, should help to push yields down further, allowing the Bank of England to slow its pace of monetary tightening and easing pressure on mortgage costs. And with more breathing room, lenders should feel the confidence to put more products back out to the market.

“As a result, we believe that some of the existing downward pressure on house prices and transactions will be tempered. That said, the market will still need to adjust to the current higher interest rate environment, though perhaps not at such an amplified level.”

Meanwhile on Twitter, an anonymous wag tweeted: “Just three more Chancellors to go before Christmas…”