UK Chancellor George Osborne has set out six issues of relevance to existing and future property investors
\nin London in his Budget delivered this afternoon.<\/p>\n
1. No bubble risk: Osborne says that at the current rate of price growth it will be 2018 before average UK\u00a0house prices reach their pre-downturn peak, suggesting he believes there is little risk of a current or future\u00a0bubble. In any case the Bank of England\u2019s Monetary Policy Committee will be \u201cvigilant\u201d in its monitoring of\u00a0future price rises.<\/p>\n
2. Stamp Duty: The existing 15 per cent stamp duty currently applied to homes costing over \u00a32m and\u00a0purchased through off-shore companies or corporate \u2018envelopes\u2019 will from midnight tonight apply to a\u00a0wider group of properties – all those priced above \u00a3500,000. Osborne says this is part of a wider\u00a0government attack on tax avoidance.<\/p>\n
3. Right To Build: \u00a3150m of funding for the existing Community Right To Build initiative, which encourages
\nsmall community-led construction projects, including homes.<\/p>\n
4. House-building: A pledge to create an additional 200,000 new homes across the UK by 2020 (how this is\u00a0to be achieved, or whether this is in addition to existing building levels, has not been specified.) This is\u00a0widely considered to be far below the number of new homes requires to meet the growth in households in
\nLondon and elsewhere.<\/p>\n
5. Help To Buy: Osborne has confirmed that Help To Buy Equity Loan (the first part of the HTB scheme – the
\npart applying to purchasing new homes) will be extended until 2020.<\/p>\n
6. New Garden City: The Chancellor has also confirmed the creation of 15,000 new homes at a new Garden
\nCity at Ebbsfleet in Kent, as well as smaller infrastructure improvements elsewhere.<\/p>\n
These measures have been set out against a context of what the Chancellor describes as an improving
\neconomy, which will create 1.5 million new jobs within five years and which will see a budget surplus – not
\ndeficit – by the end of 2018-19 financial year.<\/p>\n
Comment from Vidhur Mehra, Finance Director, Benham & Reeves Residential Lettings<\/strong><\/p>\n “Continued economic growth in the UK, as announced by George Osborne, will see the economy grow by “We are relieved to hear that the 15% stamp duty rate on properties above \u00a3500,000 purchased through “The chancellor also re-confirmed that capital gains tax would be introduced for non-residents for future -ENDS-<\/p>\n Contact details:<\/strong> UK Chancellor George Osborne has set out six issues of relevance to existing and future property investors in London in his Budget delivered this afternoon.<\/p>\n","protected":false},"author":1,"featured_media":12658,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-12779","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-benham-reeves"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/posts\/12779","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/comments?post=12779"}],"version-history":[{"count":3,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/posts\/12779\/revisions"}],"predecessor-version":[{"id":16482,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/posts\/12779\/revisions\/16482"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/media\/12658"}],"wp:attachment":[{"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/media?parent=12779"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/categories?post=12779"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/tags?post=12779"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\n2.7%, up 1.8% a year ago. This will create 1.5 million new jobs across the country over the next year,\u00a0fuelling tenant demand. However, we do not feel that the 200,000 new homes to be created by 2020 goes\u00a0far enough as previous government estimates have said that this many new homes need to be created\u00a0annually to meet demand. It is a start, but is not nearly enough. We therefore, expect further growth in the\u00a0private rental sector although the entry point for many investors will grow ever higher.<\/p>\n
\ncorporate envelopes continue to not affect landlords. When this punitive rate of tax was first announced on
\nproperties valued at over \u00a32 million, this important fact was not made clear, causing much concern within the\u00a0industry until the treasury later qualified the issue.<\/p>\n
\ngains on the sale of UK residential property from April 2015. This was widely anticipated and simply brings\u00a0foreign investors in line with British ones. It is not punitive but simply fair.”<\/p>\n
\nVidhur Mehra, Finance Director, Benham & Reeves, Tel: 020 7319 9730
\nEmail: info@benhams.com, Web:\u00a0www.benhams.com<\/p>\n","protected":false},"excerpt":{"rendered":"