The ‘reasons’ underpinning the former Chancellor’s draconian hikes on Stamp Duty in the autumn Budget of 2014 are widely known. Now, we can see that the full devastating and distorting effects on the Residential Property Market have come to pass, particularly in London. Quelle surprise!
Pour yourself a strong fortifying beverage before reading on
You’d better pour yourself a strong fortifying beverage before reading on. With prices down by 25% and activity deflated by a disastrous 70%, certain sectors of the market are practically gridlocked. Frustratingly, this DIY recession is self-imposed, costing the Treasury and UK taxpayer £1billion per annum and rising.
This has been an interesting year for residential property. While certain value ranges have experienced reasonable activity, others have been dormant.
The reality is that Brexit has not had the cataclysmic effect on sentiments that was presumed and predicted. The main influence has been on mortgage interest rates; these have been reasonably stable to date and by the look of things, will continue in this vein. That is, of course, apart from any tweaks that Mr. Carney, Governor of the Bank of England, may be forced to impose during 2019 if inflation continues to rise. Read more
There were few Tax changes in today’s Budget, in respect of SDLT, for the Residential Property Market.
Of the few measures put forward, was the £500million for the Housing Infrastructure Fund, which according to Mr. Hammond will allow another 650,000 homes to be built. Although this sounds dramatic, if it is spread across many fiscal years, it won’t make much of a difference in order to help fix the ‘broken housing market’. Read more