Will BoJo help the Property Market regain its Mojo?
There has been much speculation since 2016 on the likely impact of Brexit on the property market, but no-one could have predicted the endless delays and the eventual prospect of a possible no-deal Brexit. What we can report on now with greater certainty is the property market reaction to Boris Johnson’s appointment as Prime Minister. We are pleased to say there is reason for optimism and a definite ripple of buyer and seller activity starting to make waves here in Chichester.
Proposed changes to stamp duty threshold
Boris has talked about implementing a change in the threshold where stamp duty is payable, increasing it from £300k to £500k which would stimulate market activity in poorer areas where most buyers would be exempt from paying stamp duty at all. In addition, Boris proposed reducing the stamp duty payable at the top end of the market from 12% to 7% on properties valued at over £1.5m which would certainly help stimulate the top end of the market.
Both these changes to stamp duty at the top and bottom end of the property market would help buyers in Chichester where the average selling price is around £429k and also buyers of premium >£1.5m country and coastal property in the wider West Sussex market.
Private Rented Sector outlook
Boris’ stamp duty reform might also mean the scrapping of the 3% additional stamp duty liable on second homes which would be a welcome boost for landlords who have been targeted by a range of legislative tax changes in recent years. These changes have eroded the tax benefits landlords previously enjoyed and suppressed the availability of rental properties at a time when they are much needed by “Generation Rent”.
Will the BoJo effect be felt in Chichester?
We agree with the view expressed by Iain McKenzie, CEO of the Guild of Property Professionals: “I am in favour of anyone who is going to improve sentiment or confidence in the housing market. Current economic data is strong, but the uncertainty of Brexit has caused stagnation in the market. Mr. Johnson’s commitment to ‘deliver Brexit’ on 31st October with a new ‘can do’ spirit is therefore very much welcomed.”
Even now as we enter the traditional doldrums of the August holiday market, potential vendors are starting to put feelers out for valuations with a view to putting their properties on the market in time for a September bounce back. There is an awful lot happening under the radar according to Tod Anstee Hancock’s Residential Sales Director, John Anstee and we are excited to see Autumn instructions already coming through.
Property to Sell in Chichester
If you are considering selling your property in Chichester this Autumn in anticipation of stamp duty reform, now is a good time to get in touch with our experienced Residential Sales Team. September is only a matter of weeks away and we can advise how to make your property stand out in a busy Autumn market. Please call us on 01243 523723. Our team have years of experience in the local market and would be pleased to provide an accurate valuation.
Property to Rent in Chichester
If you are a landlord looking to take advantage of growing local rental demand, please speak to one of our experienced Residential Lettings team members on 01243 531111. We can provide speedy rental valuations, advise on rental yields and help you find the best tenants for your property.
Whatever Boris decides on stamp duty, changes are afoot and the teams at Tod Anstee Hancock are ready to help you take advantage of the new momentum boosting confidence in the property market.