Thus far we have had the re-styling of Stamp Duty as well as a new Capital Gains Tax for overseas owners from April 2015. The entry level for Annual Enveloped Dwellings Tax has been shifted dramatically downwards and we have the potential for mansion tax looming over the market. On top of this, the council tax banding of properties will most likely come up to scrutiny. The new stamp duty regime makes it cheaper to buy at or below about £1m and progressively more expensive as you head north of £1.5m. As a one off cost of purchase I suspect that it will be absorbed by the market and transaction prices will reflect these new costs in the majority of cases. The election is just visible on the horizon which has the potential to make huge changes to the property market, it is likely that a left leaning coalition will draw attention to property taxes and that a right leaning coalition will draw the world’s attention to our EU membership. Either result will have its own implications on the central London property market. As a result, both domestic and international buyers are understandably looking forward with caution. Sellers are rethinking their plans as all property taxes affect prices to an extent. Until after the election, the only thing we can be certain of is that we are uncertain. We are still doing deals here, but only where buyers and sellers areon the same page. These sorts of markets can suit and benefit the counter-intuitive thinker. Correct pricing is absolutely critical to get buyers through the door, as is a level of understanding from all parties about what the other side is hoping to achieve. In these circumstances it’s important to think carefully about who you choose to advise you. In any event it should be an interesting few months.
Thus far we have had the re-styling of Stamp Duty as well as a new Capital Gains Tax for overseas owners from April 2015.