DBPR asked property experts Charles Curran, Mark Parkinson, Alex Newall, Marlon Lloyd Malcolm, David Lee and Sacha Moussaieff what they would like (and what they actually expect) from the Chancellor in this Wednesday’s Budget…
Charles Curran, Data Analyst & Principal at Maskells
It is unlikely that we will see reductions to SDLT
The sceptre of the budget on the 22nd November has raised the usual false hope of a reduction in SDLT. This is slowing the prime market sales in the run up to Budget Day. Unfortunately, it is unlikely that we will see reductions:
- The Government needs the money
- Amending the higher rate means spending political capital that the Government does not have or needs to spend – those voters whom this affects will be steadfast in their political views
- The additional tax is seen as a disincentive to foreign buyers whom voters feel have been pricing them out of the property market.
We continue to take on properties and sell them although we do wish there was a bit more depth to this market and a general lack of applicants does continue to suggest little capital growth in the market in the coming 18-24 months. Forecasts of 20% capital growth over the next five years is overly optimistic in our humble opinion. That said, if your life is in London and the UK and you need a home, waiting will not make things cheaper and with inflation eroding your savings, in real terms the wait may make your new home more expensive.
Mark Parkinson, Director at Middleton Advisors
There is room for maybe ten more Council Tax bands
Very simple- the market has been in the doldrums for a few years now and it is very clear to see the correlation between Stamp Duty and price levels/market activity.
It is generally accepted that the top rate of council tax for houses over £2m/ £3m looks very cheap so it needs the government to have a sensible look at extrapolating the council tax bands from say £2m upwards – there is room for maybe 10 more bands, the tax could equate to roughly 0.75% of the mid- point of the value band and the proceeds split between local authority and central government. Only the government would have accurate figures but it is probably the only solution to moving the SDLT rates downwards- even if this was only a slight movement it would have a very positive impact on the market.
Alex Newall, Managing Director at Barnes Private Office
Introduce CGT on home sales
Introduce capital gains tax when people sell their homes for a profit and in return scrap stamp duty to buy into the market. Tax profits, not inward investment.
Marlon Lloyd Malcolm, Lurot Brand
Scrap the additional homes SDLT surcharge
Please scrap the 3% surcharge on SDLT for second homes.
Please introduce that first time buyers irrespective of value to pay no SDLT – ie. if Mum and Dad are buying little Johnny’s first house in his name then no stamp duty
These are pipe dreams, obviously.
David Lee, Head of Sales at Pastor Real Estate
Reform stamp duty.
- No 3.0% for second homes, reverse the new higher ratio for more expensive houses
- Cancel the proposed IHT changes
- Reverse the Non-Dom changes (ie. 15 year rule
- Scrap SDLT for older homeowners freeing up stock and encouraging downsizing
Sacha Moussaieff, Director, at Milton Stone
A 20% cut to SDLT across the board would rejuvenate the market & benefit both buyers & sellers
We are hoping for a reduction in stamp duty, around 20% across the board would rejuvenate the market and benefit both buyers and sellers. This year we have found that the majority of sales have seen the seller effectively paying this tax, which is intended for the purchaser, by reducing their prices in order to accommodate it.
The number of rental investors has reduced hugely since the introduction of an extra 3% in stamp duty on second properties. Coupled with the new restrictions on tax relief it is no surprise that individuals are far less likely to invest their savings in property. We would like to see both of these reversed, this would see buy-to-let investors returning to the market in their numbers.