Tom Hayman-Joyce looks at the changing times and their impacts on the property market.
The presidential election result in America reminded us – if we needed any reminding - that we live in a time of massive immediate and fundamental change, a point not lost on us here after Brexit. In the property industry, even Budget tax changes can alter buying and selling habits overnight.
During 2016 there have been challenges for the Cotswold property market – with multiple events impacting the market to different degrees.
The first and the most significant impact to date was the change to Stamp Duty as announced in the Autumn Statement last year. Since the 1St April those buying a letting investment or second home have to pay an additional 3% Stamp duty. This quadruples the tax due when buying a £250,000.
The legislation has also caught out buyers who it was not intended to and created additional cost if buying and selling when the dates don’t coincide. Please contact us or your solicitor if you would like to confirm whether this change will impact your move.
Properties which are particularly suitable for letting investments and second homes have been effected the most by this change. For example, larger houses with smaller gardens which do not suit the family market and are better suited to second home buyers.
Brexit to date has had little, if any noticeable impact - we do not yet know the implications and will not for some time. People do not appear to be putting their life on hold to wait and see what happens, they are continuing with their day to day business and selling and buying property as they planned.
The announcement in the Autumn Statement to ban tenant fees when renting property “as soon as possible”. A spokesperson from The Department for Communities and Local Government (DCLG) at an industry conference said we will not see a change in legislation until 2018.
Despite the many changes and rapidly evolving world we live in, the Cotswold market has continued to perform incredibly well in 2016 considering the changes we are facing. The key drivers have not changed; The Cotswolds is a stunning part of the country, it has a romantic history, it has thriving communities, good transport links, brilliant schools and remains a very desirable and aspirational place to live. It will continue to thrive for many years to come.
If you would like any property related advice or to book a free valuation of your home please contact me on 01608 651188 or click her to book a free valuation.