Liquid error: wrong number of arguments (2 for 1) Property industry reacts to Autumn Statement 2013 | Marsh & Parsons Sales and Lettings Estate Agents London

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Property industry reacts to Autumn Statement 2013

Thu 05 Dec 2013

Property industry reacts to Autumn Statement 2013Autumn Statement 2013

The property industry reaction to the Autumn Statement has started to trickle in to our press box here at team.

We give you the reaction to the measure on property here.

Read our article 'How the Autumn Statement 2013 affects property' on our home and news page, or by clicking

the link in the title and below this article (or by copy and pasting this URL)

... On business rates

Jerry Schurder, head of rating at property consultancy Gerald Eve said:

"It should also be noted that retailers will face a 2% rise in rates liabilities before the discount is applied and as

such its impact will be lessened, especially for stores at the top end of the scale.

"The singling-out of retail for this discount, while welcome on the high street, fails to take into account the hard

times being faced by many other business sectors and is sure to spark some resentment among firms operating

in lower profile but similarly struggling industries."

"Moreover, the move does not address the need for a comprehensive review of the business rates system and

the retail sector will not thrive until there is fundamental reform... The cacophony of complaint will not relent

without a commitment to such a review."

CBRE's Tim Attridge said the 2% cap and extension of rate relief to small businesses 'might not improve the high

street's health'.

Paul Matthews, Partner at Bruton Knowles in Bristol, said:

The whole rating system is in need of a shake up and proposals have been discussed to reform the whole

system. Ratepayers are currently paying rates based upon peak rental levels set in 2008, yet we are still in a

recession. "

... On new Capital Gains tax for foreigners:

Liam Bailey, Global Head of Residential Research at Knight Frank, comments: Tax is not the primary driver for

the majority of international buyers of residential property in London. We anticipate that the removal of the CGT

exemption for non-resident purchasers will have only a marginal impact on demand and pricing.

It is important to note that the change to CGT rules brings the UK in line with other key investor markets, such as

New York and Paris where equivalent taxes can approach 35% 50% depending on the owners residency


As we noted in our recent report on International Buyers in London, while non-resident purchasers account for

28% of central London property purchases, their share of the wider Greater London market is far smaller at

around 12% of all new-build property purchases in Greater London at the current time."

Nilesh Shah, senior tax partner at London Chartered Accountants Blick Rothenberg LLP, said: "London property

prices may fall if non-UK residents take advantage of their 15 month window to sell their UK property before

having to pay Capital Gains Tax."

But Fiona Smith, Head of Private Client at Forsters LLP disagrees:

Todays announcement that foreign investors will be hit with capital gains tax on residential property is likely to

be a popular move with the electorate, but will cause alarm from some who believe London will see a dramatic

drop in offshore wealth entering the market.

Many investors may well pause to assess the impact of todays announcement, but on balance, London is likely

to remain an attractive option for offshore investors. As we have seen with previous tax changes, these

amendments help to clarify and tighten existing laws, bringing London more in line with its major competitors on

the world stage in terms of tax. London remains a reliable and stable market.

CBRE said that Capital Gains Tax most likely to reduce the number of investors speculating on price growth and

'flipping' residential property. But it also added that making an investment over 10 yr period, the impact of 28%

tax over a decade remains low, annualised at under 3% pa.

Peter Rollings, Head of Marsh and Parsons, said "UK buyers already pay the highest property taxes in the

developed world."

... And finally, as the Tories heralded this a budget of 'Fixing the roof whilst the sun is shining', Anne Ashworth

joked on twitter 'Should we expect tax concessions for home improvement or something?'

More to follow... this page is continually updated.

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