Summer 2010

Anything which could have been used as an excuse to hold up the property market this year has now passed: elections, budgets and world cup hopes! Having said that with summer holidays just around the corner activity may not pick up until the Autumn.

The changes announced in the budget are unlikely to have a dramatic effect on the housing market. Stamp duty for purchases under £250k is under review but a new 5% stamp duty for purchases above £1m  comes into effect in April 2011. It will be interesting to see if this prompts a flurry of activity. The rise in VAT will be softened by the probable continuing of low interest rates keeping mortgage payments down.  The much hyped raise in CGT was set at a more realistic level.

In this part of the world there is never enough quality stock, particularly good family homes in the £700k to £1m price bracket. So far this year there has been less than usual. This tends to keep prices steady. Even rental levels are low making it more difficult for people to sell and then rent while waiting to make their next purchase. Off market selling continues to be popular; easier now with HIP’s gone.