After the first full year under the new stamp duty system it would seem that HMRC has had a small gain in revenue. However these figures are somewhat deceiving, and if one extrapolates the increase in transaction in March 2016 to beat the extra 3% stamp duty on secondary homes, then the net SDLT receipts will show a loss. We believe that next quarter’s figures will paint a bleaker picture as the pronounced slow-down in transactions in the South East starts to trickle down through the rest of the country which up until now had still been seeing continued price growth. Impacted by onerous transaction taxes, and further compounded by economic uncertainty, the UK’s super-prime market has been under downward pressure since SDLT.
Due to the fall in prices in PCL over this year, coupled with the sharp, post Brexit fall in sterling against the dollar and the euro, we are beginning to see more buyers stepping into the market and beginning to make offers. As we mentioned recently, we are finding that vendors who are pricing their properties correctly in line with current market conditions are achieving offers at asking or very close to it. There are, of course, other types of buyers out there: those who want to buy but who feel that prices and sterling will continue to fall, and then those who are trying it on and putting forward ridiculous offers. For those buyers waiting for a further fall in prices and.
Following yesterday’s conservative conference, and Theresa May’s speech confirming that Article 50 of the Lisbon Treaty will be invoked no later than March 2017, we have seen sterling reach a 3 year low against the euro (£1 =€1.1460) and a 31 year low against the $ (£1 = $1.2796). The devaluation of sterling, as well as further vulnerability in the weeks ahead, bodes well for foreign buyers looking to take advantage and step into the PCL market this autumn. However, if the government wants to see inward investment to help prop up the market in PCL to bring transaction levels back in line with figures seen over the past couple of years then the chancellor is also going to have.
Generation Rent is no longer simply theoretical. It’s here to stay for another decade, according to PWC, who say that by 2025 only 40% of Londoners will own their own home. That marks a U-turn on the situation in 2000, when 60% of Londoners were homeowners. By 2025, say PWC, the majority of 20-39 year olds will be renters. This is standard practice in the rest of Europe and tenants will be looking to get greater security of tenure with rental contracts often lasting 5-10 years. Besides the security that offers to the tenant, landlords will have the benefit of tenants they know and can trust over a long period; no void periods to worry about; none of the expense and.
It would seem that after a slow summer the autumn market is off to a good start with a substantial increase in viewings from prospective buyers. Vendors who are pricing their properties more realistically are attracting offers close to their asking prices. Here at Nicolas Van Patrick we are relieved by this but not entirely surprised, as domestic buyers who are willing to step into the market now are getting 10-15% of capital values, from the peak of the market back in 2014, and international buyers whose currency is pegged to the US dollar or Euro buyers are getting another 10-15% on the currency conversion. Bearing these significant discounts in mind, we’d say this is an excellent time to buy in London.