The Race For Number 10 Is On
published on 15/06/2019
It’s now a race for number 10 with Theresa May’s resignation sparking much debate over who will be next in power at Downing Street. Depending on which party gets in to power could have a huge impact on the UK housing market over the course of the next few years, so who and what are the implications?
Boris Johnson, the favourite candidate to become the next Prime Minister has pledged to abolish the property tax on homes under £500,000 and reverse the rise on prime and super prime homes that was introduced in 2014 by the then Chancellor George Osborne. This would be a huge boost for not just the first time buyer market but also for new built sales across the country.
If he were to get into office, these new legislation changes on Stamp duty could revive prime property prices, helping the top end of the housing market to recover from the current slump which is attributed to the high level of tax and Brexit uncertainty.
Prime and super prime markets have remained a very attractive investment especially for the super-rich, especially from buyers outside the EU looking to invest in the London property market. A reduction in these taxes could really entice prospective buyers away from other locations stimulating the property market. While buyers investing in London property from across Europe and Australasia has reduced in the last 12 months, there has been significant growth from the American and Asia markets.
First time buyers are a huge part of the UK housing market and cutting stamp duty could affect London hugely as many more properties would fall into the bracket of being eligible for the cut on stamp duty. Having said all this it is worth being cautious, these are only election promises at this stage.