The announcement of Boris Johnson as the Prime Minister is still relatively new and the upcoming plan by Johnson suggests new opportunities for the country.
Johnson’s overall plan is to finalize Brexit by October 31 and continue facing domestic agendas. One of the pillars of these domestic agendas includes the UK property market. The market continues to fall with the reports on Brexit. There has been an ongoing need for stimulus in this market for some time and there are rumors of new duties including a stamp duty overhaul that could reinforce the property market for the future of the UK economy.
Property owners are looking for a Prime Minister that can end some of the uncertainty. Having final negotiations for Brexit in its closing stages and final promises for closing Brexit by Oct 31 could end some of the uncertainty and instability in the property market.
Borrowers and lenders are continuing to face this uncertainty until Brexit is finalised. When the deal is finally made it could be possible that there will be real influence on the purchase and investments that people have been holding off in the wake of the deal.
Stamp duties can hamper the overall mobility of a household. With higher taxes it gets more difficult for the average homeowner to move in the property market and this leads to a rather stagnant market apart from foreign investment.
It estimated that the stamp duty system would get a drastic raise in threshold. Rather than paying stamp duty on homes valued at over £925,000 it’s estimated that there could be a top rate spike of another £500,000 at maximum. It also estimated that the current stamp duty will be lowered from 12% down to 7% to stimulate a large degree of investment.
When stamp duty on homes valued at over £925,000 occurred in 2014 there was a spike in investors that were buying into homes before the stamp duty changes came into effect. We could be seeing the exact same trend depending on the nature stamp duty changes.
With a reduction in stamp duty changes reported, it's very likely that we could see a reinvigoration of the top end of the property market. An overall transactions increase is likely to occur if these changes are made and this represents a positive change for the UK economy.
Another change that we may see as a result of Boris Johnson in power includes changes over rent controls. Boris Johnson and his leadership is going to attempt to boost the supply of homes to rent by not over regulating the rental market. New policy should boost the number of rentals that are available in the market and make sure that there are still resources for rooting out unlawful rentals or landlords that are simply interested in taking advantage of their tenants.
If these three factors are able to come together with Brexit closing, stamp duty changes and more rentals in the area we should see a continued rise in UK real estate investment. Under the new leadership of Boris Johnson we should see some formidable changes in the real estate market and a much more accepting space for investment.
What we have currently is hope for stabilization of the UK property market with the likely turn of an uptick as soon as there is more certainty in the markets for investment.
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