By PrimeResi Journal

Mayfair-based firm adds new recruits to cover Cornwall, Devon, Dorset & Somerset as part of regional expansion strategy.

Property buying agency Black Brick has set up a new arm covering locations across the West Country.

The Mayfair-based firm’s new country and coast department, launched to coincide with this year’s spring market, will be overseen by two new recruits – both of whom will be based out in the field.

Anna Sharp will be representing Cornwall, while Rupert Stephenson will be heading up Devon, Dorset and Somerset.

Sharp brings over a decade of experience in the prime Cornwall market, having started her career at Savills before moving over the buying side with Recoco. She is also currently working on her fourth renovation project in Falmouth.

Stephenson started out in property in Central London in the late 1990s, before going on to cover the markets of Surrey, Sussex, and Hampshire – and specialising in the prestigious St George’s Hill. After twenty years of running his own land and estate agency, he also started renovating properties and relocated to the Devon countryside, transforming a farm and outbuildings overlooking Dartmoor.

 

 

Founded by Camilla Dell in 2007, Black Brick is one of the best-known buying firms on the PCL property scene, and has advised on over £2bn worth of transactions to date. The coverage also includes the Home Counties and the South East, and there are plans afoot for an expansion into other regions over the coming year.

More traditional conditions have resumed in the South West market since the end of 2022, said the firm, with a higher proportion of properties being sold off-market due to a lack of demand, making it “hard to navigate” for new buyers.

Camilla Dell: “After an incredible start to the year, we are delighted to expand into the West Country with the addition of Anna and Rupert, who will be a tremendous asset to us. This is a pivotal moment for the firm as we expand outside of London and the South East for the first time.

“I’ve chosen these areas first, in an operation to rollout into other parts of the UK over the next 12 months, as I believe they will have a revival of popularity. With the need for buying agents growing, particularly in popular rural and coastal areas where stock is limited, we are now expertly placed to assist buyers looking to relocate or buy a second home in some of the UK’s most.

“As the world continues to get hotter with global warming, summers in Europe are becoming unbearable for many, and we believe staycations will become more appealing for those wanting a holiday without the extreme heat. Cornwall and Devon are areas of outstanding natural beauty and offer buyers the perfect blend of stunning natural landscapes, rich cultural heritage, an amazing food scene and a relaxed coastal lifestyle. Anna and Rupert are highly experienced and talented buying agents and I have no doubt will make a huge success of their roles as Regional Directors for Black Brick West Country.”

Anna Sharp: “Now is a fantastic time to buy in the South West. With demand in the prime, particularly coastal areas being fairly low, coupled with interest rates at a more reasonable level, we have a high number of off-market properties up our sleeves to offer buyers. On average, last year, Rupert and I sold 60% of properties off-market for clients.”

Rupert Stephenson: “The West Country has always attracted second homeowners and, despite recent adverse tax adjustments for holiday homeowners announced in the March budget, demand in the second home market remains strong with buyers still actively seeking holiday homes in the West Country this year. With the advent of working from home in recent years, this has offered much more freedom to buyers who, up until the pandemic, were mainly tied to their offices with the weekly commute into London and the big cities.

“We have acted for an array of clients recently who are looking for the perfect house. Interestingly these houses are often intended to be used initially as a second home, for family summer holidays and weekends away, and as ‘lock up and leave’ properties, but then with a view to moving full time to the West Country.”

Featuring insights from: Black Brick, Chestertons, Fine & Country, Harrods Estates, Heaton & Partners, Jackson-Stops, Janine Stone, Knight Frank, Lomond, London Central Portfolio, Propertymark, Robert Irving Burns, Savills, SPF Private Clients, Winkworth, Zoopla and more

By PrimeResi

The property industry seems underwhelmed by this year’s Spring Budget. Chancellor Jeremy Hunt set out a suite of tax tweaks and spending pledges, but stopped short of pulling any blockbuster moves.

Jackson-Stops boss Nick Leeming suggests Hunt took “a rabbit in headlights approach”, rather than the traditional rabbit-from-a-hat trick that Chancellors are won’t to perform on Budget day. Knight Frank’s research chief Tom Bill talks of “shrugged shoulders”; Zoopla, Propertymark and SPF Private Clients agree it was a “missed opportunity”, while “disappointment” in some form crops up in a large proportion of the comments below. More robustly, property consultancy Bidwells says “the absence of measures to address the national housing emergency is astonishing.”

Announcements that did garner some excitement include a widely-anticipated change to Non Dom status (replacing it with a four-year tax break on any overseas income), a reduction in Capital Gains Tax on residential property (which has been roundly welcomed by the sector), and the removal of tax breaks for holiday rentals and for portfolio acquisitions.

There’s widespread chagrin – but not surprise – that Stamp Duty was not changed in a meaningful way, while many lament a general lack of support for and innovation on housebuilding.

Talking Heads: Prime property industry reactions to Jeremy Hunt’s 2024 Budget statement

‘Anyone planning to get on the property ladder would have shrugged their shoulders following this Budget’ – 

Tom Bill, Head of UK Residential Research at Knight Frank

“Anyone planning to get on the property ladder would have shrugged their shoulders following this Budget. Demand-side incentives for first-time buyers such as stamp duty breaks or help for those with smaller deposits would have been welcome, particularly as mortgage rates and house prices are creeping back up. We may discover later this year if the government intends to offer more support to buyers, whose mobility around the UK is vital for an economy that is firing back up after Covid.”

 

‘The abolition of multiple dwellings relief is likely to temper investment among landlords’ – 

Lucian Cook, head of residential research at Savills

“Today’s budget has bigger implications for private landlords and second homeowners than current and aspiring homeowners. The abolition of multiple dwellings relief is likely to temper investment among landlords, while the targeted cut in capital gains tax on residential properties may tip the balance for a few landlords who have questioned their ongoing investment in the sector.

“That won’t do much for rental supply, in combination with changes in rental regulation. But neither will it necessarily make it substantially easier for people to get on the housing ladder.

“Without any specific measures to help first-time buyers, it may well accelerate the restructuring of the buy-to-let sector to bigger, less mortgage-dependent landlords, as much as opening up stock to those looking to get a foot on the housing ladder.”

 

‘The reduction in CGT is helpful and a step in the right direction to get the market moving’ –

Camilla Dell, Founder and Managing Partner at Black Brick

“The reduction in CGT is helpful and a step in the right direction to get the market moving. Many property owners have seen significant gains on their property investments/second homes (bear in mind there is no CGT when selling your primary residence). So, the benefit will be restricted to sellers who have made gains on properties such as investments, second homes/holiday homes. I’m not sure the change really addresses the bigger issue; namely people downsizing and weighing up the costs of moving, with stamp duty being the biggest deterrent. Someone downsizing from their primary home will see no benefit from this change. So, I think the effects will be limited and mainly benefit investors and foreign owners of property.

“The abolishment of SDLT relief on multiple dwellings is also shortsighted. Many of our buy to let clients purchase 6 or more properties and benefit from lower rates of SDLT as a result. They are providing much needed rental supply into the market and without this tax break it is yet another deterrent towards investment into the private rental sector. Not good news for tenants as fewer Landlords results in higher rents.”

 

‘Is there going to be a flurry of sales from landlords because they will make a saving on capital gains tax?  No.’ – 

Mark Harris, chief executive of mortgage broker SPF Private Clients

“More stimulus for the housing market is desperately needed to boost transactions and social mobility, so this Budget was a missed opportunity. While there has been some recovery in the housing market since the start of the year, it is still quite subdued and getting on the housing ladder is so difficult, particularly in higher-value areas such as London and the southeast, unless you have access to a significant deposit.

“Is there going to be a flurry of sales from landlords because they will make a saving on capital gains tax? No, they are in it for long-term gain, capital appreciation combined with income yield. Of course, that yield has been hit hard with higher interest rates and more regulation, as well as the inability to offset mortgage interest but professional landlords are committed and not going to start selling because of a slight reduction in CGT. Perhaps with rents so high the last thing we need is a reduction in homes to rent anyway?

“The abolition of the furnished holiday lettings regime was expected – it levels the playing field with other landlords and is better for local communities.

“The cut in National Insurance could benefit mortgage borrowers. Someone earning £30,000 a year would see a net gain of £610 per annum; if they used that money to overpay their mortgage by £50 per month, the mortgage would be paid off nearly three years early, saving more than £10,000 in interest [based on a £130,000 mortgage over 25 years at a rate of 4.5 per cent paid back two years and nine months early, saving £10,980 in interest].”

 

‘Another missed opportunity’ – 

Richard Donnell, Executive Director at Zoopla

“The budget marks another missed opportunity to take action on boosting supply and mortgage availability in the housing market.

“The consensus is that the country needs more new homes. Supply has increased but this has stalled. There is a need for widespread reform of the planning system to encourage supply. More funding is needed for social and affordable homes, and housing infrastructure investment to unlock supply.

“The Government should also look to support the emergence of a long-term fixed rate mortgage market as a matter of urgency. This will help more young people with smaller deposits access home ownership – particularly in southern England where deposit size is the biggest barrier to getting on the housing ladder.”

“Another missed opportunity is the decision not to make the £625,000 threshold for first-time buyer relief permanent. This means 30% more first-time buyers will be liable to pay full stamp duty from March next year.”

 

‘We would have liked to have seen the Chancellor make adjustments to stamp duty’ – 

Richard Davies, Director of UK Operations at Chestertons

“For the past two decades, the government has declined to align the Inheritance Tax threshold with rising property values, which has made it a highly outdated levy. Despite speculations that the Chancellor might announce raising the IHT threshold, it is a tax that only affects 4% of the population so was probably considered too much of a gamble ahead of the general election.

“Stamp duty is a major financial burden on buyers that has seriously restricted the freedom with which people can trade up and down to fit their personal circumstances. To make it more economically viable for people to move home as and when their circumstances require, we would have liked to have seen the Chancellor make an adjustment to the current stamp duty thresholds or at least introduce an exemption for downsizers and first-time buyers, which could have boosted the number of larger family homes that are being put up for sale and helped more people get onto the property ladder.

“Despite mortgage rates coming down a bit from their highs last year, rates are creeping up again and first-time buyers need all the help they can get. The Chancellor’s decision to not extend the SDLT relief for first-time buyers is disappointing news. Whilst this could lead to more first-time buyers rushing to buy a property before the relief ends in 2025, it will eventually make it that much harder for future first-time buyers to get on the property ladder.”

 

‘There was a certain inevitability about the abolition of multiple dwellings relief’ – 

Edward Heaton, founder of buying agency Heaton & Partners

“There was a certain inevitability about the abolition of multiple dwellings relief which will certainly come as a disappointment to many buyers of high value homes. Whilst disappointing, being pragmatic it is also not unfair.

“The reduction in capital gains tax upon the sale of property is certainly to be welcomed and is likely to release more stock to the market in the coming months and years.”

 

‘A rabbit in headlights approach on housing with major changes to property taxation avoided’ – 

Nick Leeming, Chairman of Jackson-Stops

“As Conservative support hits its lowest level for more than 40 years according to Ipsos polling, and with property transaction volumes at an 11 year low, many of us were rightly hopeful of a clear priority plan on property from the Chancellor today. Yet with nothing to lose, and a statement of over an hour, it seems Hunt has gone for a rabbit in headlights approach on housing with major changes to property taxation avoided. For many voters ready to hit the polls in a matter of months, the decision to not address supply issues that have been slowing down homeownership for huge swathes of the country for a number of years, could be a defining moment for the current government. If the property market is looking for a small win to be taken from today, the cut to property capital gains tax from 28% to 24% should, to some extent, increase the number of transactions particularly within the prime market.”

 

‘This Budget should improve demand although we are not sure that the Chancellor has done enough to encourage an increase in the supply of affordable homes’  –

Jeremy Leaf, north London estate agent and a former RICS residential chairman 

“Overall, this Budget should improve demand although we are not sure that the Chancellor has done enough to encourage an increase in the supply of affordable homes in particular, which is so badly needed.

“Whether changes in holiday letting arrangements and the reduction in Capital Gains Tax will prove beneficial remain to be seen.

“The government’s widely forecast cut in national insurance contributions and early realisation of its aim for lower inflation should mean mortgage costs can fall more rapidly and buyer confidence improve, which will certainly benefit the housing market.

“The reduction in CGT could encourage even more buy-to-let investors who were thinking of selling up to leave the market in case a Labour Government increases CGT again in the future. This could further reduce the availability of rental property and push up rents, making it more difficult for tenants and young people in particular.”

 

‘Disappointing that inheritance tax wasn’t a topic’ –

Liam Monaghan, of buying and investment agency London Central Portfolio

“Holiday-let tax breaks: Aligning the market for owners who benefit from holiday-let tax breaks will act as a positive for the long-let market, as currently, tenants are effectively losing out on homes to tourists. It is currently more tax efficient for an owner to rent out their properties on short-let platforms such as Airbnb. In areas with a high level of tourism, like London, it has meant that more properties have been made available for these types of lets and therefore removing them from the general long-let market.  The proposed changed should encourage these investors to return to the long-let market, therefore increasing the supply which is desperately needed. There is clearly a huge demand for long let rental properties from tenants, as rents are rising well in advance of inflation. Tenants are also offering landlords rents a year in advance in order to secure a property over somebody else.

“Abolishing multiple dwelling relief: By removing multiple dwelling relief, buyers will purely pass on increased tax to the sellers, whether it is a new developer or a home vendor.

“Non Dom and CGT: We need to stimulate the market in terms of transactions and we hope the abolishment of the Capital Gains Tax and Non-Dom will hopefully encourage this much-needed movement. International buyers coming to London and buying a second/holiday home are likely to have a strong presence around the other key global cities and may not be adversely affected by this.

“Disappointments: Although we realistically did not expect there to be any changes to SDLT for downsizers, it is something the industry needs. Whether a reduction or freeze, this would have been a great initiative to free up much needed stock at the top end of the market, which would lead to a healthy trickledown effect within the market. Especially as there has been numerous press attention highlighting how high stamp duty costs is one of the main reasons stopping them from moving. It is not just a demand problem, it is a supply issue too. Downsizers are sitting on a number of much-needed family homes. The Government could have made a real difference here, so it’s such a shame that they haven’t.

“It’s also disappointing that inheritance tax wasn’t a topic. It was something we were hoping for in the Autumn Statement and again for the Spring Budget. This would not only have been a wise and popular move for the Conservatives this close to a general election, but it would have helped the UK be more competitive on a global platform for overseas investment, helping to boost the general UK economy. It would also help build momentum in transaction volumes and price growth for the domestic market.”

 

‘Hunt’s decision to scrap the non-dom tax regime threatens to snuff out Prime Central London’s recovery’ –

Gideon Stone, co-founder of interior design agency Janine Stone & Co

“The UK prime and super-prime residential sector is one of the few points of light amid a very difficult housing market. The sector has a strong appeal, seeing a more than 5% increase in listings over the past 12 months, with particularly pronounced growth in prime London neighbourhoods, such as Highgate, Holland Park, and Belgravia. Overall, the sector’s economic contribution is significant, generating over £36 billion across some 16,000 transactions last year.

“Overseas buyers are vital to this market, accounting for 45% of purchases in Prime Central London in 2023, an increase of 6% on the previous year. As a result, Chancellor Hunt’s decision to scrap the non-dom tax regime threatens to snuff out the sector’s recovery. Too sudden or too dramatic a change in the tax system for high net wealth individuals risks transactions to grind to a halt, depriving the Exchequer of much needed revenues and the housing market of an upturn in one of its most important sectors.

“Britain is blessed with a large endowment of extremely desirable luxury properties that overseas buyers wish to purchase and the Government should think carefully before jeopardizing the future of this important sector.”

 

‘Non-domiciled UK residents face decisions about what to do’ – 

Antony Antoniou, CEO of Robert Irving Burns (RIB)

“Non-domiciled UK residents face decisions about what to do now that the non-domiciled tax status is set to end in April 2025. What those nearly 70,000 non-doms decide could have wide repercussions for the UK’s tax revenue and international competitiveness.

“It is not only super-rich business owners and heirs that benefit from the status, non-doms also include City of London bankers, lawyers and consultants. Those living off unearned income are far outnumbered by non-doms who work.”

 

‘Disappointing that the Chancellor didn’t choose to raise SDLT thresholds’ – 

Geoff Wilford, Founder of Wilfords

“It’s disappointing that the Chancellor didn’t choose to raise SDLT thresholds at a time when buyer’s general finances are stretched and mortgage rates remain high. Stamp Duty represents a considerable lump of money for many and any help would have been welcomed as it would motivate people to move.

“For downsizers, an increase to thresholds would have been particularly welcomed as Stamp Duty disincentivises this group of buyers from moving because of the cost, which in turn means many family homes are being under-occupied. Cutting the tax would make more people want to relocate to a smaller home, freeing up vital family housing stock for those looking to upsize.”

 

‘Will not ultimately make much of an impact at the upper-end of the property market’

Jamie Freeman​​​​, Director at Haringtons UK

“As with previous budgets, I don’t think that the announcements made by the Chancellor will ultimately make much of an impact at the upper-end of the property market.

“Abolishing non-dom status, over time, might make some UHNW international buyers think twice about living and investing in the UK, but ultimately, I can’t see this stopping much activity because the country is still seen as extremely desirable by many across the globe.

“Despite recent economic and political change, London and the UK will always remain an attractive place for international buyers and investors given its geographical position between Europe and the US, cultural capital and relative stability.”

 

‘We welcome the gradual phasing out non-dom tax status, rather than the sharp shock of abolishing it overnight’

Shaun Drummond, Director at Harrods Estates

“Given that a major section of our sales and lettings market is based on international buyers and landlords purchasing and investing in Prime Central London, we welcome the news that there will be a gradual phasing out non-dom tax status, rather than the chancellor inflicting the sharp shock of abolishing it overnight.

“However, this announcement comes at a time when international buyers are already paying a 2% surcharge on Stamp Duty, with those at the upper end of the market effectively taxed 17%,  so without any new relief for international buyers the impact of increased Stamp Duty in the prime central property market will continue to be felt, especially in the current high interest rate environment.

“With PCL prices are still below the peak of 2014/ 2015 and central London property now offering relative value compared to other major world cities especially when you take into consideration the current relative weakness of sterling against the dollar and the euro, any additional increases or withdrawal of relief could impact the appetite for purchasing among international buyers and drive them to consider renting, especially at the upper-end of the market.’’

 

‘Reducing the higher rate of Capital Gains Tax should inject some extra energy into the housing market’

Nicky Stevenson, Managing Director at Fine & Country

“Reducing the higher rate of Capital Gains Tax should inject some extra energy into the housing market by increasing the number of properties for sale.

“Teetering landlords unsure about whether to take the plunge and sell their property will be encouraged by this announcement.

“This should offer hope for first-time buyers who are the foundation of the property market, but have been hit particularly hard by high interest rates.”

 

‘Abolishing Multiple Dwellings Relief feels like a sledgehammer to crack a nut’ –

Matt Spencer, tax partner at Kingsley Napley LLP

“It’s clearly true Multiple Dwellings Relief has been abused, but abolishing it feels like a sledgehammer to crack a nut. While this will end the abuse of spurious “granny flat” claims, it will also prevent some legitimate investors from investing. It will now be much harder to find an investor willing to buy those four flats above a parade of shops. The negative impact of this change, however, is greatly mitigated by the ability to claim commercial SDLT rates on purchases of 6 or more dwellings, and so bearing that in mind, the measures, on balance, seem a good thing.”

 

‘The Chancellor has missed the opportunity to bring in Stamp Duty reliefs’ –

Timothy Douglas, Head of Policy and Campaigns at Propertymark

“It is pleasing to see property taxation under the spotlight in the Spring Budget and the introduction of measures to level the playing field and support more homes for people to rent.

“However, overall, the Spring Budget stops short in addressing the key issue of lack of supply in the private rented sector which is higher rates of Stamp Duty when purchasing a buy to let property. Furthermore, whilst additional funding is welcome for housebuilding, the Chancellor has missed the opportunity to bring in Stamp Duty reliefs and wider reforms to support more people to buy and sell their dream home which comes with a guaranteed boost to the economy.”

 

‘The absence of measures to address the national housing emergency is astonishing’ – 

Mark Buddle, Head of Residential Development at property consultancy Bidwells

“The absence of measures to address the national housing emergency is astonishing.

“Financing pressures and an antiquated system have squeezed badly-needed housing delivery, with rents soaring across the country due to the chronically undersupplied market.

“Whether or not we provide solutions to this problem could be the defining political question of this generation.

“Without support for housing delivery, the UK will be unable to attract workers in areas of high productivity, which will only serve to entrench stagflation, low economic growth and increase the tax burden in the long-term.”

 

‘Disappointing to see the UK property market receive the Budget cold shoulder yet again’ – 

 Ed Phillips, CEO of Lomond

“Disappointing to see the UK property market receive the Budget cold shoulder yet again following what was a lacklustre Autumn Statement.

“However, the property market has weathered a tough few months and has held firm despite many predictions of an impending collapse. We’ve also seen early signs that buyers are returning despite interest rates remaining at their highest since 2008 and this has also caused house prices to start to creep up.

“This resilient performance is no doubt why the Government has chosen to refrain from any property focussed initiative in the Spring Budget and it’s very much a case of no news is good news in this respect.”

 

‘Investment in Canary Wharf and Barking Riverside housing looks very promising’ – 

Adam Stackhouse, managing director, developments and commercial investments at Winkworth

“The Government has identified the astonishing decline in Canary Wharf as a viable property investment for the future. This substantial ‘levelling up’ fund of almost a quarter of a billion pounds is vital in re-purposing many half-empty office buildings and providing p to 8,000 homes in this area and Barking Riverside also. This looks very promising and we hope it will serve as a successful template to re-purpose increasingly redundant business districts across the UK into much needed residential homes. However, it seems clear to me that these are short term attempts to fix the problem of housing supply rather than making use of the Housing Committee to galvanise the UK into a country that builds homes to suit the needs of its population. National Insurance reduction is indeed encouraging by putting more money into the pockets of the population, but this is unlikely to be enough to get the economy moving at the right pace when housing supply is in such dire need. We continue our calls for a National Planning Team to be parachuted into local government to solve this damaging issue.”

 

‘A budget with little fanfare’ – 

Will Matthews, Head of Commercial Research at Knight Frank

“Overall, a budget with little fanfare, suggesting a gamble on more excitement this Autumn, and limited direct impact for the UK’s commercial real estate markets.

“The headline cut in national insurance was couched as an incentive to work, but as acknowledged in the reference to almost 1m current job vacancies, there isn’t all that much labour market slack left to take up.  Helpful, yes – but of itself, unlikely to have firms dusting off expansion plans.

“There were plenty of nods to growth sectors – innovation, life sciences, film studios, to name a few.  Again, helpful, but the sums and measures involved were not game-changing.

“Perhaps of greater immediate interest to the commercial real estate sector are the OBR’s revised forecasts.  These now point to significantly lower inflation and somewhat higher growth over the coming years, and although largely just playing catch-up with City views, this new outlook is more supportive of much-anticipated interest rate cuts.

“Big questions over the level of public sector funding remain.  What is clear, however, is that the private sector will be called upon to make up some of the shortfall in UK infrastructure investment – in the broadest sense.”

 

‘We can’t help but feel disappointed at a lack of considered focus on the property sector’ – 

Jon Byers, Founder of Anderson Rose

“Each time a new budget is revealed we can’t help but feel disappointed at a lack of considered focus on the property sector. It could be pie in the sky thinking but incentives to encourage buy to let investment need to be reintroduced. Landlords and tenants are suffering from a lose-lose situation where despite significant rent rises landlords are still making a loss and leaving the market, which is then reducing the amount of stock available to rent and putting upward pressure on rents. The net result for tenants is that they are paying higher rents for properties that they have to fight over when they become available and landlords are having to top up their income each month in order to break even.

“On top of this, Stamp Duty is in need of urgent reform as it is keeping people from moving more regularly which stifles supply and keeps house prices high. There was a time for the government to cash in when the market was at its height and booming but it’s now in urgent need of support or we could see irreversible damage that could hinder a generation.”

 

‘I would like to have seen some further announcements related to the housebuilding and construction    sectors’ – 

Rutu Buddhdev, Founder of Amara Property

“The Chancellor’s Spring Budget revealed a large amount of tax giveaways. I believe the 2% personal tax cut is a very good thing as fast-growing economies, such as the USA, tend to have low taxes and this allows them to recover from financial crises faster. I would like to have seen some further announcements related to the housebuilding and construction sectors. Those within the industry have been imploring the government to improve their focus on the industry to support the delivery of new homes that will not only provide places for people to live but also create numerous jobs and support the economy in the process.

“I would also like to have seen more support for first time buyers and older buyers, looking to downsize. Some reduction or incentive on stamp duty would be appreciated by the sector as a whole, as this would provide a boost to the market and incentivise buyers to move now. This lack of focus could prove costly for the Government, especially given the current state of the economy, which could risk the party’s chances in the upcoming election.”

 

‘We’re not at all surprised that there’s been no adjustment to the SDLT rates’ –

Paul Cosgrove, Director at Finlay Brewer

“It was clear that the Chancellor was determined to reduce National Insurance by a further 2p which equates to apx £450 per annum for the average worker.  We’re not at all surprised that there’s been no adjustment to the SDLT rates to increase property transactions and to encourage the full spectrum of buyers to consider their options whether that be to upsize or downsize. There are some clever ways in which both the Exchequer and buyers who need and want to move could have gained and this would inevitably increase transactions.

“We also feel that there had to be policies included to provide relief for Buy-to-Let landlords who have become an endangered species following years of increased taxes and red tape. The returns currently on offer for landlords make it more of a loss leader than profit generator that is seeing many sell up and move on, which in turn is putting upwards pressure on rents as there is less available stock and an ever-growing pool of tenants. Perhaps this was the ideal time to remove or reduce the additional 3% SDLT rate for buy-to-let purchasers to incentivise landlords and attract new ones. Ultimately, we won’t know but we can’t help but feel it was an opportunity missed.”

 

‘Very little for home-movers’ – 

Tim Bannister, Rightmove’s property expert

“We had hoped the government would seize the opportunity to help first-time buyers and reform the outdated stamp duty system today, instead, home-movers are left with very little. There is a chance that the reduction in the higher rate of capital gains tax will mean some landlords to sell properties which could, in turn, increase choice for first-time buyers. Whilst any increase in supply for first-time buyers is welcome, we will have to wait to see how substantial it is, and it may also result in a further reduction in already-tight rental stock levels in the short term.”

 

‘A missed opportunity to support the rental sector’ – 

Christian Balshen, Rightmove’s lettings expert

“Anything that makes homes more affordable to local residents in staycation hotspots, through either the lettings or owner occupier market, is welcome. The removal of tax reliefs for landlords of holiday homes in conjunction with lowering capital gains tax when they sell, may see more of these properties come to the sales market. However, it has become clear in the last few years that penalising landlords does not work to promote a functioning Private Rented Sector. This is another example of a missed opportunity to support the rental sector for the benefit of both tenants and landlords.”

 

‘Not one mention of the word ‘mortgage’’ – 

Matt Smith, Rightmove’s mortgage expert

“Despite mortgages being one of the defining topics of 2023, there is not one mention of the word in the 98-page Spring Budget. Whilst a 99% mortgage scheme was reportedly considered, it appears to have been scrapped and then no replacement found. More innovation is needed to help first-time buyers with smaller deposits, and those who are struggling to borrow enough to get onto the ladder.”

All we hope for is a reduction in SDLT,’ says one London estate agency chief – ‘however in reality I suspect there is more chance of stumbling across a unicorn in Regent’s Park!

By PrimeResi Journal

Jeremy Hunt is preparing the next big outing for HM Treasury’s red box, limbering-up to make a suite of tax and fiscal policy announcements next week. His speech on 6th March will very likely be the last big Budget address before the next General Election – which means the Chancellor is more likely to pedal vote-garnering tax-cutting policies than in a less politically-charged year.

We asked leaders in the prime resi sector to weigh-in on what new tax policies they expect to be announced next week, as well as what they would like to see happen… These are the key talking points:

Inflation & interest rates

It’s already a government priority, but most of our panel of property industry leaders believe that reducing inflation should remain top of the Treasury’s agenda. This would enable interest rates to stabilise further or even fall, which, as Will Scoular of Investec points out, would provide “a significant catalyst for a recovery of the residential market.”

Stamp Duty

Traditional and widespread calls for a cut to Stamp Duty are tempered with realistic expectations this year – as summarised by Camilla Dell of buying agency Black Brick: “I think we were all secretly hoping for some good news in this budget as a last-ditch attempt for the Tories to win back some support, but I just don’t see what they can give away tax wise.” Mark Parkinson of Middleton Advisors agrees, explaining that “the perennial cry for a reduction in stamp duty is just never going to be politically acceptable for prime properties.”

“All we hope for is a reduction in SDLT,” declares Marc Schneiderman of North London agency Arlington Residential. “However in reality I suspect there is more chance of stumbling across a unicorn in Regent’s Park!”

Nigel Bishop of buying agency Recoco thinks, however, that a targeted approach could work. He is pitching “a freeze of SDLT for downsizers” that would encourage over-65s to move on and “boost the number of family homes being put up for sale.” Easing the burden on downsizers has a lot of support on the Conservative backbenches, with over 100 “One Nation” MPs backing the cause.

Jess Bishop of super-prime brokerage DDRE Global has bigger ideas. She suggests more full-throated reform, away from an up-front transaction tax towards an annual levy. “It would be refreshing to see us look to other global locations that do it differently (and sometimes better!),” she says, adding: “A yearly paid tax, as is the case in the US, has a lot of merit.”

International buyers

The prospect of increased tax rates for non-British buyers of UK property has been floated by the Treasury, potentially raising the current 2% surcharge. This “could definitely impact the prime central property market,” warns Shaun Drummond of Harrods Estates, who suspects any further increase to the transaction tax could push “many more” would-be overseas buyers to rent instead.

“We must continue to encourage a global London to attract international buyers to invest and/or live here,” says Dominic Agace, boss of estate agency network Winkworth “– avoiding punitive moves that will affect the delicate balance of the market and all the suppliers and services which benefit from high net worth buyers.”

Beyond this, Agace says “the Chancellor needs to introduce tax incentives through inheritance tax or stamp duty concessions to encourage downsizers and stimulate a healthy flow through the property market.”

Inheritance & Capital Gains tax

Suggestions of a cut to Inheritance Tax have been circulating in advance of the Budget. This “could be a game changer,” says Jon Johnson, Managing Director of London estate agency Johns&Co, “providing new avenues for efficient wealth management and estate planning.”

But “calls for Inheritance Tax to be abolished are wishful thinking,” laments Antony Antoniou, CEO of Robert Irving Burns – although “simplification of the regime and unfreezing the nil rate band would certainly help to make residential buy-to-let a more attractive asset class.”

Buying agent Nigel Bishop agrees that IHT rates should be updated, arguing that raising the threshold for property values “seems long overdue.”

There is potential for the Chancellor to make changes to both IHT and Capital Gains Tax, notes Mark Harris of mortgage broker SPF Private Clients – but “we are not holding our breath.” He adds that “investors are unlikely to see much relief in the Budget.”

Similar thoughts come from Vic Chhabria of London Real Estate Office, who expects only “minor, if any” changes to IHT and Stamp Duty next week, as the government seeks to deliver “the broadest possible people pleaser ahead of the polls.”

VAT on building works

The current VAT regime provides an incentive for property developers to build new homes rather than refurbish existing buildings. “We would urge the Government to reconsider the current VAT thresholds,” says Will Scoular of Investec, noting that the existing policy “ignores the inherent carbon capture advantages of repurposing over building new.”

Buy-to-let

There’s a chronic shortage of rental properties, particularly in London. Richard Davies, Director of UK Operations at Chestertons, suggests this could be addressed by easing the tax burden on landlords. “We would like the government to consider reintroducing mortgage interest relief and other tax breaks for landlords,” he says, explaining: “This would encourage more buy-to-let investors and smaller landlords to acquire property to rent again which will help meet the ongoing demand from tenants and stabilise rental increases in the capital.”

Antony Antoniou, CEO of Robert Irving Burns, agrees that “the Government should be considering how to incentivise greater investment in buy-to-let.”

Prime property industry hopes & expectations for the Budget 2024

‘Reform the SDLT system to free the property market’ – Alex Michelin, Founder and CEO of property developer Valouran

“In the budget, we would like to see a reform to the SDLT system in the UK. It is now abundantly clear that the present system is not working. It is gumming up the housing market, preventing people from moving, stopping first time buyers getting on the housing ladder, affecting older generations because they cannot afford to move from their big old houses and is therefore reducing social mobility – the very bedrock of how society improves, and how the population moves forward. It is a massive problem and the government needs to act to free the market and allow transactions to proceed without so much friction and tax burden.”

 

‘I just don’t see what the Conservatives can give away tax wise’ – Camilla Dell, Managing Partner at buying agency Black Brick

“As far as other tax changes go, I don’t see the Conservatives being able to change much considering the recent data that the UK went into recession in the final quarter of last year. I think we were all secretly hoping for some good news in this budget as a last-ditch attempt for the Tories to win back some support, but I just don’t see what they can give away tax wise.

“The property market has taken a beating in terms of tax rises and red tape for Landlords since the Tories came into power. I would like to see a simpler tax system, and one which doesn’t prevent people moving up and down the housing ladder due to prohibitive levels of stamp duty. Current stamp duty levels are in my opinion too high and have created a huge drag on the volume of transactions taking place in the UK. In addition, the red tape on buy to let landlords have created unfavourable conditions for tenants (an unintended consequence I’m sure) with rents rocketing double digits over the last couple of years in London due to reduced supply as many private Landlords have left the market.”

 

‘The top end of the property market is already ‘well-taxed’’ – Mark Parkinson, MD of Middleton Advisors

“The perennial cry for a reduction in stamp duty is just never going to be politically acceptable for prime properties, it is also a signal that the top end of the property market is already ‘well-taxed’.

“In the current environment it is probably better to focus on what we don’t want to see, namely increased taxes on international buyers – we want to avoid more restrictions or penalties for non-doms as they continue to form an integral part of the landscape in the prime property market.”

 

‘Further tax increases for international buyers could definitely impact the PCL market’ – Shaun Drummond, Director of Residential Sales at Harrods Estates

“Given that a big section of our market is based on international buyers in Prime Central London, one of the big things we will be looking at is whether there are any changes for these pools of buyers when it comes to Stamp Duty. With there already being a 2% surcharge for international buyers, at the upper end of the market with most of them paying 17% stamp duty land tax – so any further increases could definitely impact the prime central property market.

“While PCL prices are still below the peak of 2014/ 2015 and property here still offering relative value compared to other major world cities, especially with the dollar/pound currency play, any additional increases could impact appetite for international buyers. Instead, many more may choose to rent at the upper-end of the market rather than pay yet more Stamp Duty.”

 

‘Reconsider VAT thresholds to encourage property refurbishment’ – Will Scoular, Head of Private Client RE at Investec

“First and foremost, the Government should prioritise setting out a prudent monetary policy to reduce inflation. This would in turn enable interest rates to be reduced – providing a significant catalyst for a recovery of the residential market. It would also help first-time buyers to get on the housing ladder.

“We would also urge the Government to reconsider the current VAT thresholds which encourage new-build residential development and discourage property companies who are considering refurbishing/repurposing existing buildings. The current policy ignores the inherent carbon capture advantages of repurposing over building new. Refurbishment can in some cases be more costly than redevelopment and, with reduced demand for shopping centres and office real estate, there is a clear opportunity to provide much-needed housing within existing developed sites.”

 

‘Reintroduce tax breaks for landlords’ – Richard Davies, Director of UK Operations at Chestertons

“Tax changes and legislations have forced a number of Buy to Let investors to sell up which has inevitably decreased the number of available rental properties and over time will create an even more competitive environment for tenants. To ease pressure on the current supply and demand deficiency, we would like the government to consider reintroducing mortgage interest relief and other tax breaks for landlords. This would encourage more Buy to Let investors and smaller landlords to acquire property to rent again which will help meet the ongoing demand from tenants and stabilise rental increases in the capital.”

 

‘Calls for Inheritance Tax to be abolished are wishful thinking’ – Antony Antoniou, CEO of Robert Irving Burns

“London’s prime property market is beginning to pick up, as greater demand from occupiers translates into higher sales volumes. However, with the economy still on unsure footing and political uncertainty in the run-up to the General Election, investors are having to be more savvy.

“Commercial property, falling outside of the scope of Inheritance Tax for overseas investors, has become a more popular asset class, particularly amongst Asian investors.

“Calls for Inheritance Tax to be abolished are wishful thinking but simplification of the regime and unfreezing the nil rate band would certainly help to make residential buy to let a more attractive asset class. With supply of good-quality rental stock low, the Government should be considering how to incentivise greater investment in buy-to-let.”

‘Freeze SDLT for downsizers – Nigel Bishop of buying agency Recoco Property Search

“For decades, our nation’s desire to own a property and the associated taxes have been a major revenue stream for the UK government. Today’s housing market, however, suffers from an evident imbalance between supply and demand which prevents many people from buying a home and we would like the Chancellor to introduce steps that will help get the housing market moving again.

“The UK has a vast number of property owners aged 65 and over who would like to downsize but, due to the current level of SDLT, are reluctant to do so. Property values have ballooned over the past decades which means the SDLT rate of 5% to 12% can present a substantial expense that stops many people from selling up and pursuing buying a different property. We believe that a freeze of SDLT for downsizers would encourage this market demographic to finally make that step which will inevitably boost the number of family homes being put up for sale.

“Although Jeremy Hunt initially announced that the Inheritance Tax threshold will be locked in until 2028, we would welcome the government to rethink this move. The IHT threshold hasn’t been updated in over two decades whilst property values have increased dramatically during this time. It is therefore outdated and raising the threshold from £325,000 to £500,000 per person or £1mn for couples seems long overdue.”

 

‘Look to the US for SDLT reform ideas’ – Jess Bishop, advisor at DDRE Global

“Reform of Stamp Duty Land Tax has significant potential to address several challenges in the market. Not least in unlocking larger family homes where empty nesters have little incentive to move with such a financial hit waiting for them. But I hope the Chancellor takes a broader view than this, as it’s not only this end of the market that the current ‘upfront charge’ model stifles.

“In terms of reform, it would be refreshing to see us look to other global locations that do it differently (and sometimes better!). A yearly paid tax, as is the case in the US, has a lot of merit. Paid out annually alongside other utilities, it removes the strong disincentive to moving – up or down – that the current system imposes while still maintaining an income for the government. Rather than vote-seeking tweaks ahead of the General Election, this is an opportunity for real, meaningful change that could unlock a lot of supply and stagnation in the market.”

 

‘All we hope for is a reduction in SDLT’ – Marc Schneiderman, Director at Arlington Residential

“All we hope for is a reduction in SDLT.  However, in reality, I suspect there is more chance of stumbling across a unicorn in Regent’s Park!

“If the Chancellor really wanted to invigorate the property market, that’s what he should be doing. Even a nominal reduction what have an impact.

“Consider the following:

“As recently as 20 years ago the highest rate of Stamp Duty was 2%.

“Now it is 12% plus an extra 2% if you are an overseas buyer and an additional 3% if you own a property anywhere else in the world.  In my view this is plainly unfair and unjust.

“The Government has benefitted from huge increases in revenue from SDLT as property values have soared in the last 20 years.

“So not only are they now taxing up to 8 times what they were 20 years ago, they are also levying this tax on values that have quadrupled; as an example, a house in 1998 that sold for £2m would have paid £40,000 in SDLT. That same house today which is selling for £8m is paying 15% (assuming the buyer owns a second property) at £1.2m.

“The  SDLT ‘holiday’ during the Covid 19 Pandemic generated noticeable increases in levels of activity and property sales.  This demonstrated that even in the worst period of time for business since 1939,  a SDLT reduction was able to contribute to a  higher volume of sales and as a consequence, helped to maintain the employment of surveyors, architects, designers as well as hundreds of thousands of people in the building trade.”

‘The Chancellor will do whatever he can to make the budget as enticing as possible’ – Nick Loweth, Regional Director at The Country House Department

“I suspect that the Chancellor will do whatever he can to make the budget as enticing as possible prior to the forthcoming general election. A strong property market has always given a boost to the economy, so it is very possible that he will make some changes to inject some pace into the market, which has somewhat stalled after the pandemic peak. One area that has had a strong effect in the past has been an adjustment to stamp duty, which is punitively high at the middle / top end of the market currently. This could be in the form of a simple percentage reduction or even a stamp duty holiday (although I think this is unlikely). There could also be more help to buy at the lower end of the market, again through a lowering of stamp duty or a change of thresholds.”

 

‘I would expect an uncontroversial budget given the looming election’ – Katrina Graham, Director at property developer Residence One

“The spring budget will be designed with the election in mind and the objective of appealing to the majority voter. Expected announced measures are likely to be more meaningful in terms of sentiment creation rather than beneficial policy/tax strategy. Current suggestions focus on potential tax reductions delivered through basic tax bands or personal allowances. However, I would imagine the Chancellor would err on the side of caution given inflation has not reduced to target levels. A small upward movement to inflation would have a meaningful effect on interest rates and a negative effect on the property market, a market that is expected to regain traction in 2024.

“As always, a Stamp Duty reduction or freeze would have the double benefit of appealing to mainstream voters whilst consequently creating positive sentiment which the property market would benefit from.

“The Government is receiving increasing pressure to fund local councils and government departments. Although I would imagine this is unlikely, consideration for planning resources and framework is one that property industries would welcome. Developer planning continues to be one of our greatest challenges. A less burdensome system would unlock so many potential developments.

“In summary, I would expect an uncontroversial budget given the looming election and pressure around inflation and interest rates. Our Chancellor has been reported discussing the benefits of tax cuts for business, following suit with countries which have benefited from demonstrable economic growth. However, given the conservative’s current political agenda, it’s unlikely this will be delivered.”

 

‘Investors are unlikely to see much relief in the Budget’ – Mark Harris, chief executive of mortgage broker SPF Private Clients

“Reports suggest that the Chancellor has first-time buyers in his sights with plans to introduce a 99% mortgage, backed by the government and aimed at those who can’t raise a deposit. While not directly targeted at high-net-worth individuals, anything that gets the market moving at the bottom end will have a positive impact further up the ladder and enable other transactions to happen. In other words, it is good for the housing market as a whole although critics will warn that unless supply is also addressed, such a scheme will only push up property prices. Another version of Help to Buy (as it was or improved) would also boost demand and help supply by getting the construction market going again.

“Many within the property industry are calling for stamp duty reform, perhaps incentives for downsizers and another holiday for first-time buyers. Some are going as far as calling for a total recalibration. Last time there was a stamp duty holiday it led to a significant increase in activity and transactions, which is better for the overall health of the market than rising property prices.

“Investors are unlikely to see much relief in the Budget. Landlords have become a dirty word yet few dispute the need for a fully-functioning private rented sector. Reviewing or reversing some of the heavy tax burden that has been imposed over the past decade would be a welcome first step towards addressing the balance a little.

“The government could pause, review or reverse changes to capital gains tax thresholds and/or review changes to inheritance tax, which would be welcome but we aren’t holding our breath.”

 

‘A revision to stamp duty thresholds is vital’ – Dominic Agace, Chief Executive of Winkworth

“We expect to see support for first time buyers with a help to buy update or mortgage guarantee scheme, allowing those that can afford mortgages but can’t raise the deposit to get on the ladder.  This will also support demands to ensure housebuilders deliver homes for first time buyers.

“The lifetime ISA and 25% bonus on £4k invested per year limited to £450k properties needs to be tweaked and simplified to allow for price growth.

“A cut to income tax appears heavily flagged which will support the UK recovery in 2024.

“The Chancellor needs to introduce tax incentives through inheritance tax or stamp duty concessions to encourage downsizers and stimulate a healthy flow through the property market.

“The return of mortgage interest relief will ensure there remains enough supply in the private rental sector for demand and a healthy mix in the housing market in our cities, to enable young professionals to start their careers, bringing vibrancy and international appeal to London and other major cities.

“A revision to stamp duty thresholds is vital to reflect the fact  that a £1mn property is very different in different parts of the country. Due to the cost of property in London,  young families  are being affected because they need space for growing families. The capital should not be a city just for the very wealthy.

“We must continue to encourage a global London to attract international buyers to invest and/or live here – avoiding punitive moves that will affect the delicate balance of the market and all the suppliers and services which benefit from high net worth buyers.

“Many house builders rely on international investors buying at an earlier stage to ensure the viability of a scheme. The investors also contribute to the homes available for private renters.”

 

‘Inheritance Tax reforms could be a game changer for HNWIs’ – Jon Johnson, Managing Director, Johns&Co

“The Spring Budget is a key moment for our clients navigating London’s property market. The rumoured reduction in the income tax rate to 18% would be more than just a policy change – it would be an opportunity for our clients to increase their investment power in the property sector. For our high-net-worth clients, the anticipated inheritance tax reforms could be a game changer, providing new avenues for efficient wealth management and estate planning.

“We’re particularly hopeful for any new or refreshed initiatives that could benefit first-time buyers, like enhancements to the Help-to-Buy scheme. These changes are not just policy shifts, they represent crucial support for our clients looking to enter London’s high-value property market. We’re also keen to see new incentives for sustainable development, aligning with our commitment to future-proof our clients’ investments and contributing to London’s growth.

“The Spring Budget isn’t just about tax reforms and housing policies, it’s about creating real benefits for our clients, helping them to navigate and succeed in London’s dynamic property market. At Johns&Co, our focus is always on how these changes will unlock new possibilities for our clients, enhancing their experience and opportunities in the property sector.”

 

‘I expect minor, if any, changes to SDLT and IHT’ – Vic Chhabria, founder and CEO, London Real Estate Office

“Stamp Duty and Inheritance Tax are unsurprisingly on the potential agenda for next week’s Budget, with a General Election round the next corner and the incumbent party seeking to maintain, if not, gain favour among their voter set.

“On that basis, any decision is going to be politically tactical and short term in view. Which is a risky business right now. We need a longer term and economically driven view that seeks to ensure London and the UK remains an attractive place in which to live, invest and spend in what is an increasingly competitive global market.

“We have long relied on the sentiment that ‘London is London’ and it is certainly a unique and enduringly appealing draw. Yet we cannot ignore the wider context of rising taxes, interest rates and levies alongside complicated bureaucratic systems on which other leading cities are closing the gap.

“As with most of my industry, I’d like to see meaningful reform in the likes of SDLT and IHT in particular: one that nurtures the prosperity of existing citizens without inadvertently indicating wealth is unwelcome. However, I’d expect next week’s changes to be minor, if any, in these areas in an attempt to be the broadest possible people pleaser ahead of the polls.”