The Grove Residence: Budget Reaction
Wed 01 May 2013
Property professionals breathe sigh of relief as mansion tax slips out of sight, while the 'help to buy' scheme is welcomed as a tool to inject life into the market.
In some quarters, response to the recent Budget has consisted mainly of relief that certain proposals weren't introduced, namely mansion tax and increased high end council tax bands. The help to buy scheme was widely welcomed as an initative to help those buying a property of up to 600,000 in value, and also to inject momentum into the market as a whiole. Robert Barlett, CEO of Chesterton Humberts, was relieved the Chancellor did not introduce a wide ranging mansion tax, saying: 'This would have been a blunt instrument which would not redistribute money from the wealthy to the poor as many owners of 1m+ homes do not fall into the 'wealthy' category- they have merely seen the value of their homes rise above threshold over time.
He added that he was 'similarly pleased' there would be no 'new punitive high-end council tax bands on an alreadyincreasingly tax burdened property sector'. Commenting on the Help to Buy Scheme, Peter rollings, CEO of Marsh & Parsons said: 'This is a great shot in the arms of the property market at all levels. It will have the effect of enabling 'second steppers' to move up the ladder, thereby making many more first-time buyer suitable properties available'.
On prime property, Charlie Bubear of Savills noted that there weren't any specific changes which will directly affect this end of London's property market. Business will continue as usual as cash rich buyers make the most of the weak pound and low interest rates on offer'. He added that 'one potential benefit will be the reduction of the coporation tax to 20%. Whilst London is already very attractive, this change will make it an even more appealing place to do business, and could help set London even further apart from competing global cities and in turn attract more international buyers to the capital'.