At last the wait is over and the emergency budget, that has arguably put a metaphorical handbrake on the market, is over. With bated breath, we waited for the latter part of Mr Osborne's speech to halt our market's concern over the Capital Gains Tax change. With the thought of returning to 40% (or even more drastic, 50%) perhaps, with some reverse psychology, it turned out not to be quite as painful as predicted. The settlement from 18% to 28% and no taper relief off a higher percentage makes things straightforward and uncomplicated. With any tax rise, there will be losers but with the state of the economy and the Coalition Government making huge steps to make a dent in the debt, we have to feel that our market has got off quite lightly.
So where does this leave us? With the continuing benefit (for marketing purposes at least) of the HIP legislation removal and vendors and buyers now knowing where they stand post budget, we expect a good run up to the natural pause of late July. Lonres, the estate agents' intranet, shows a larger volume of flats and houses for sale but the availability of prime 2 - 3 bedroom flats up to, say, c.£3,000,000, where the demand continues, is desperate. At the higher level, we have just exchanged on a fabulous family flat in Kingston House North in excess of £4,750,000. After 35 plus viewings, we are left with 8 strong buyers who continue to find the dearth of property frustrating. Prices are holding up well but we continue to advise clients to market property at sensible levels. Good buyers are around but they haven't had their common sense glands removed, and with a trickle of properties coming on to the market, it appears agents think otherwise. With four weeks left before August, wrong advice to vendors will only leave their property awaiting a price reduction tag on the property portals in September.
Tim Des Forges
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