Talk of the Chancellor replacing stamp duty and taxing homes over \u00a3500,000 is likely to result in a slower market over the next few months, Zoopla has warned.<\/p>\n
Zoopla said: \u201cThe risk is that this creates uncertainty for home buyers in the coming weeks ahead of the Autumn Budget. History shows that tax changes can impact market activity and buyer expectations.<\/p>\n
\u201cSpeculation over the removal of stamp duty replaced by a new annual property tax for homes over \u00a3500,000 may make some buyers consider a \u2018wait and see\u2019 strategy.<\/p>\n
\u201cThis covers those who may possibly save money on purchases under \u00a3500,000 and concern those buying over this level as well.\u201d<\/p>\n
A wait and see approach would hurt London and the South East the most, where a third of homes cost over \u00a3500,000.<\/p>\n
It\u2019s also speculated the government will require sellers of homes over \u00a31.5 million to pay capital gains tax.<\/p>\n
Capital gains are not taxed on main residence sales but do apply to second home owners and landlords.<\/p>\n
Just 4% per cent of homes for sale are over \u00a31.5m but speculation about possible taxation of capital gains may impact buyer decisions at this end of the market in the short term.<\/p>\n
\t <\/p>\n
Jeremy Leaf, north London estate agent and a former RICS chairman, says: \u201cThe market inevitably lost a little steam over the summer period with so many decision makers away and listings continuing to pile up.<\/p>\n
\u201cNevertheless, quality replaced quantity as we noticed agreed sales holding up well with little or no renegotiation although did take a little longer.<\/p>\n
\u201cUnfortunately perhaps the government do not appreciate that even rumours of a new property tax can have a detrimental impact on housing market confidence and activity which we certainly witnessed \u2018on the ground\u2019 since the story broke last week.\u201d<\/p>\n
Tomer Aboody, director of specialist lender MT Finance, said: \u201cSince we have possibly seen the final base rate cut of the year, buyers may need to get used to the new \u2018norm\u2019 for mortgage rates for the foreseeable future.<\/p>\n
\u201cTherefore, anyone waiting to buy either takes the plunge or might have to wait until 2026 and the possibility of further rate cuts.<\/p>\n
\u201cWith little assistance from the Government in the form it of helping the market, with stamp duty changes and further taxes on homes in the pipeline, a slowdown in transactional volumes can be anticipated.<\/p>\n
\u201cSurely any government would know that an active property market fuels the economy, so any help is always welcomed.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Talk of the Chancellor replacing stamp duty and taxing homes over \u00a3500,000 is likely to result in a slower market over the next few months, Zoopla has warned. Zoopla said: \u201cThe risk is that this creates uncertainty for home buyers in the coming weeks ahead of the Autumn Budget. History shows that tax changes can […]<\/p>\n","protected":false},"author":1,"featured_media":3034,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-3033","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-second-home"],"yoast_head":"\n