Budget week could have helped to mobilise the markets we operate in by offering some concessions on stamp duty at the higher price bands. In fact The Budget delivered nothing for those who see the significantly higher stamp duty liability since December 2014 as a hindrance to mobility and many trades associated with this sector and beyond. All parts of the market need to turn over to prevent locking up and the top has all but seized up. There has never been any question about how important it is to help the first time buyer and lower priced sectors but this policy of increasing stamp duty for house purchases over £937,500 and second time purchases, has been assessed as having lost The Exchequer around £500m in potential tax receipts because people aren’t moving as the tax costs are so high ….an own goal. Some nod to this issue in order to stimulate more transactions was overlooked.
Bricks and Mortar today featured an article where the demand for London homes from downsizers was mentioned. The number of over 50’s moving to London from another part of the country has risen by 9% and has started to outpace the younger generation. Most of these over 50’s are moving to The City for the first time and it is expected to increase.
Patrick Glynn-Jones