9 JULY 2015
By far the biggest move in the Budget, as far as the property market is concerned, is the change to the inheritance tax threshold. If you own a property worth up to £1m you will be able to leave it to children or grandchildren completely free of inheritance tax from April 2017. While this will be welcomed by many, it will take the pressure off people having to downsize, which will only exacerbate the significant shortage in housing stock that we are currently seeing. In that respect, it is rather shortsighted.
With the drastic stamp duty changes at the end of last year still being absorbed by the upper end of the property market, it is right that the Chancellor has decided to mostly leave property well alone in this emergency Budget. It is a pretty vanilla Budget for property but even so, I still think any recovery in the market will be slow.
The market is still unsettled in London and the country, and despite the Conservative election victory, uncertainty remains.
Everyone you speak to at every level of agency is saying the same thing: it is tough. There is a huge gulf between sellers’ and buyers’ expectations.