New Chancellor is a landlord, but can he sort out the mess left by Kwasi?
The new Chancellor and former Health Secretary Jeremy Hunt has been tasked with sorting out the ‘Kwamiikaze’ mini budget introduced by his predecessor, who holds the dubious gong of having the 2nd shortest tenure in the job ever.
Hunt, who has made two weak bids to become Prime Minister in the past, was a Sunak supporter during the recent Truss Conservative party leadership bid but now has the unenviable job of calming the political storm brewed by up Truss and Kwartang over the past week or so.
He told the BBC’s Today programme this morning that he faces ‘difficult decisions’ over the next two weeks, revealing that although 2008/9 style austerity is not on the cards, he will have to significantly slash Whitehall spending.
Hunt comes to the job with considerable experience and knowledge of the private rented sector.
Buy-to-let investment
In 2018 it was revealed that he had an interest in a landlord company that bought seven flats on the seafront at Southampton within an 82-flat block, called Alexandra Wharf, although at the time he said any profits from the properties would be donated to charity.
But Hunt got into trouble with the parliamentary watchdog for not declaring his interest in the business within the 28 days required by parliamentary probity rules.
The properties, which are owned via a company called Mare Pond Properties Ltd, are estimated to be worth £3.75 million within its accounts.
He also has a part-share in an office building in central London, his members’ interests filing reveals.
Pro-tenant
Hunt is also a supporter of the Government’s pro-Shelter line that tenants require more protection via longer and more secure tenancies, and was a supporter of the now enacted Tenant Fees Bill.
Commentary on his appointment has concentrated on his ability to calm City gilt markets and help persuade the Bank of England to temper its base rate rises, which have already increased mortgage rates for many landlords.
Settle nerves
Founder and former City analyst Anthony Codling (pictured) of Twindig, says: “The departure of Kwasi Kwarteng, the u-turn on corporation tax and the appointment of Jeremy Hunt did 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
“The first challenge for Mr Hunt is to explain in detail how he will balance the books until he has done that the markets will remain unsettled, and the more markets are unsettled, the higher mortgage rates will rise.
“The second challenge he faces is to put the housing market back on an even keel. Whilst much of the recent economic turbulence can be traced back to the contents of the mini-budget, unfortunately for Hunt, the housing market started to drift south as living costs and mortgage rates started to head north”
