We asked a panel of past speakers from our annual “Boom or Bust” Property Event what they expected from today’s Budget speech in relation to the UK property market. The most common theme was Stamp Duty: the general expectation seems to be that the changes are here to stay, but there is hope that it might be clarified somewhat. We’ve included a selection of their comments below.
Early Bird tickets are currently available for this year’s event, due to be held on 8th June. For more information and to book your place, please click here.
James Wyatt, Parthenia (Spoke 2013 & 2014)
“The Chancellor has shown the Laffer curve works on Stamp Duty, as his recent tax increases have led to a fall in revenue, due to a collapse in transactional volume. Whilst it may be politically difficult to reverse this punitive tax it would benefit the public finances. If we are all in this together, as the Chancellor suggests, it is odd commercial property has escaped thus far relatively unscathed with far lower Stamp Duty.”
Grainne Gilmore, Knight Frank (Spoke 2014)
“We expect and hope the Budget will be one of detail in terms of property tax, particularly on how the 3% stamp duty surcharge on additional homes will work. The Chancellor announced this move last November, and there has since been a short consultation. There are hopes that the Chancellor will confirm exactly how the levy will be implemented, especially in relation to small developers and large-scale investors, providing more clarity for the market before the rules come into law in April.”
James Ferguson, MacroStrategy Partnership (Spoke 2013)
“Despite George Osborne’s love of tinkering and desperate need for more tax revenue to fund the out-of-control in-work welfare spend, I don’t expect any major changes to property. The crack down on tax breaks for buy-to-let landlords need time now to bed in, which should help level the playing field for first time buyers. Meanwhile, the collapse of the oil and Chinese markets seems to be taking the gloss off London house prices without any help from the Chancellor.”
Charlie Ellingworth, Property Vision (Spoke 2015)
“We’d be surprised if the Chancellor can do any more to damage the top end of the property market – but no doubt he’ll try. Despite the almost universal condemnation of the egregious and unfair ‘right to buy’ legislation – don’t expect any U-turns. There will probably be more attempts to stoke demand at the lower end of the market with extra finance for first time buyers, and there will be confirmation that the new Stamp Duty regime is here to stay.”