Budget 2018: Prime resi industry reactions’ says Hannah Aykroyd, MD, Aykroyd & Co.
October 2018 - Prime Resi
“Overall, the 2018 budget is better than was expected for the property sector. There was no sign of the higher 3% stamp duty for foreign buyers, which was a huge relief, and discussion of the proposed 1% increase is set back to 2019, giving our foreign buyers yet another incentive to buy sooner rather than later.
“But is that good enough? The number of transactions in Prime Central London have been declining for some time now, and there is a real issue with limited stock for ‘best in class’ properties as potential vendors are sensibly preferring to hold.
“The residential market has slowed down mainly as a result of the government. High levels of SDLT now make the cost of transacting so prohibitive that buyers are extra cautious. We are also seeing transactions taking longer, and families are reluctant to make even urgent housing changes due to these costs, which in turn is having a dire effect on supply chains.
“Meanwhile, the Brexit referendum and poor handling of the negotiations since have resulted in a degree of uncertainty which has, again, further restricted the market.”