Newsroom
James Hyman, partner for residential sales, comments on the Budget
Date posted: 23/06/10
"The fact that the expected hike in capital gains tax comes into force from midnight tonight means that there is no opportunity for investors and second homeowners to avoid the tax increase, thus underpinning prices.
"Had there been any form of cooling-off period, we could have seen a flurry of activity as this part of the market rushed to sell, leading to a surplus of stock. The immediate application of the tax has prevented it going from a seller's market to a buyer's market and could actually help to strengthen house prices further.
"It is likely that many investors and second homeowners will now hold on to their property even longer to allow further capital growth to offset the extra ten per cent tax they will now have to pay when they come to sell, which could lead to a further reduction in supply of available properties.
"For those who are currently in the process of buying, this will help to increase confidence as prices remain steady, and could in fact lead to a surge in demand from those who have been waiting to look for property until after the outcome of the budget."
James Hyman
020 7407 3669
james.hyman@cluttons.com
