The late budget this year has no doubt had an effect on many buyers and sellers who wanted to wait to see what yesterday’s news might mean for them. We should now see the market below 2m start to pick up, although with it being December next week, this might not kick in until the new year. On speaking to several contacts in London who deal mostly with the upper end of the market, they actually don’t feel the mansion tax will make much difference. Below is Nony Kerr Smiley’s thoughts on the impact it might have on the local market – she always has her finger on the pulse!
One thing I have learnt over my 30 years working in property, people will always need to move – no matter what.
“It is a difficult one. To some extent it is a relief that there isn’t any significant change to the lower to mid range housing market. Whilst the exact breakdown of council tax increases has not yet been clarified, we understand that Bands currently at F, G & H will be re-evaluated, and additional increased levies to be between £2500 – £7500 pa, depending on the house valuations above £2m. We believe therefore that houses being marketed at c£2m will no doubt be affected, at least in the short term, whilst buyers and sellers get used to the changes. We can foresee a concern whereby buyers who might be considering offering on (or currently buying) a house at c£2m which might need some modernisation work to be done, may now be reticent to pay this amount as they would be almost immediately adversely affected by the impact in council tax levy on the finite value of the house once the work is finished. The concern is that buyers might now offer under £2m to take account of the work they wish to do, to keep the final value under, or at £2m. Another concern is that people might be reticent to undertake extensions or significant upgrading to their existing properties in case it takes the value beyond the £2m threshold. Our final concern is the impact on those, possibly older generations, who may be retired and relying on their pensions, and already struggling to afford the cost of living. This extra council levy could make their homes, which they may have lived in for decades, or even generations, no longer affordable.“
We are here to find properties that accomodate these changes if needs be, and to ensure there is enough wriggle room for any alterations that you would need to make to keep them affordable.