Marlborough News March 2015 Budget 2015 – An Editor’s Perspective From a Smiths Gore point of view, the Budget appeared optimistic and gives a confident tone for business in the UK. The announced underlying trends and forecasts for economic growth are positive and steady, which is a good platform for industry, not only in property, but across the spectrum of service, manufacturing and retail. With specific reference to the housing market, the Help to Buy ISA stimulus we see as an encouraging move for savers, but at Smiths Gore, we do not expect that to
have an influence on house prices. Even the stamp duty changes announced in December have not resulted in a boost to levels of sales. The key to increased house prices tends to be increased liquidity in the market. Previously, this resulted from high equity levels in property and generous mortgage lending schemes. Such sources are now more difficult to release, so some financial analysts have considered that the release of Pension annuity funds might spark a ‘property rush’ in the buy-to-let field. Indeed, anecdotally, a number of potential buyers have indicated that they would prefer to see their funds in property rather than an annuity. Whether that translates to more properties coming to the market than at present is difficult to predict – but we certainly hope so!
Budget Insight: Inheritance Tax
Sign Of The Times? Hundreds of new homes could be built at a historic university campus in the west end of Glasgow after the 31 acre site was put up for sale. The Jordanhill campus has been placed on the market three years after the University of Strathclyde moved out. Planning officials have approved the site, which includes the B-listed David Stow building, for up to 364 new homes.
Smiths Gore & Comic Relief
The Conservatives have reportedly drawn up plans to allow some parents to leave homes worth up to £1m to their children without paying inheritance tax. According to the Guardian, the plans involve a new tax-free band worth £175,000 per person applying specifically to family homes or main residences passed on to a direct descendant of the deceased. This, it claimed, would be transferrable between married couples making it worth a maximum of £350,000.
The team did our bit for Comic Relief this month with red being the colour of the day. Rosanna baked a chocolate cake, which raised nearly £40 for the cause. (The dogs didn’t get the cake!)
Celebrity Move
Foxtons Recently both the RICS and London estate agents Foxtons indicated they think the London property market is likely remain subdued. The RICs is actually suggesting that London house prices are now falling and Foxtons are blaming the General Election for uncertainty in political policy that might affect the property market. Foxtons chief executive, Nic Budden, said: “Whilst we expect property sales activity to remain subdued at levels comparable to those seen in late 2012 and early 2013 until greater political and economic certainty returns, the long term fundamentals of the London market remain sound and attractive.” Mr Budden is presumably alluding to Labour’s proposed mansion tax and the general pressure to find new ways to tax property because rich people cannot move their houses to avoid the taxman. With the polls tight and another coalition government a possibility, Foxtons thinks it may take longer for buyers and sellers to feel confident about government policy.
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Liz Hurley has put her countryside pile on the market for £6million, which comes complete with nine bedrooms, acres upon acres of beautiful gardens and woodlands, and numerous outbuildings including a ‘party barn’. The period property, Ampney Knowle, is situated in Cirencester and naturally is made from Cotswold stone. The farmhouse boasts six bathrooms, four reception rooms and two cottages, one of which is a converted stable block. The house demonstrates an eclectic taste with a stuffed alligator, an open-mouthed tiger skin draped on a grand piano and topless statues. Sadly Smiths Gore is not the agent for this interesting property.