’The Conservatives have presented themselves as the party of the homeowner and in line with this, the anticipated introduction of a £175k per person tax free allowance for a main property on top of existing £325k allowance, meaning a couple’s combined allowance will reach the £1m mark and leaving the vast majority of British homes out of IHT altogether, is welcome and fair. Its impact on the market is likely to encourage more beneficiaries to progress with the disposal of inherited properties and could result in more money entering the buy-to-let arena. Limiting mortgage interest relief for landlords evens the playing field with owner-occupiers and may well result in some hesitation amongst first-time landlords entering the BTL market. However, as interest rates remain low, and yields high, the difference is not significant enough to force landlords to off-load investment property.
‘However with no mention of housebuilding, the Government has neglected to address the needs of the housing market and the lack of supply therewith. There is an urgent and essential need to meet the ongoing demand for more new housing stock in order to ensure a healthy and sustainable housing market.
‘Activity in the housing market has been stifled this year. The much anticipated bounce back after May’s election didn’t happen as home movers continue to adopt a wait and see approach and the engine of the property market – the second hand market – has yet to get out of second gear. Today’s announcements won’t provide the confidence injection we hoped for but at the very least they will provide some level of certainty for the remainder of the year, the effects of which we would hope to see in a busier Autumn market."
Notes to Editors:
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Humberts is a premier multi-disciplinary property company in the UK specialising in Sales, Rural and Commercial Services including Valuation, Investment and Financial services. With a 172-year heritage, Humberts has 23 branches based mainly in the Southern and South Western regions with its head office located in Wiltshire.