Property experts have warned that Chancellor George Osborne\u2019s buy-to-let tax changes will take their toll on house prices in coming months \u2013 and potentially \u2018cripple\u2019 the London property market by next year.<\/p>\n
The warning comes following predictions from The Royal Institution of Chartered Surveyors (RICS) that average house prices will plummet this summer for the first time since 2012, following the implementation of the Chancellor\u2019s three per cent Stamp Duty Land Tax (SDLT) surcharge on second homes.<\/p>\n
Under the recent changes, an investor buying a \u00a31.5million second home would be hit with an SDLT bill of \u00a3138,750, up \u00a345,000 from the \u00a393,750 the purchase would have cost prior to the changes.<\/p>\n
Property experts are warning that Britain\u2019s capital, which is \u2018propped up\u2019 by buy-to-let properties, will see a \u2018major shock\u2019, assuming landlords and investors stray away from buying City properties.<\/p>\n
Oliver Reiff, of Deutsche Bank, said: \u201cThis is likely to see fewer landlords buying properties, which will be a shock to the London market.<\/p>\n
\u201cYou also have to bear in mind that because of new mortgage regulations in the pipeline, many landlords may not be able to take out as much debt as before.\u201d<\/p>\n
Henry Pryor, an independent property expert, added: \u201cGeorge Osborne\u2019s buy-to-let tax changes will almost certainly push down house prices across the country \u2013 not just in swanky SW1 postcodes in London.\u201d<\/p>\n
Furthermore, RICS Chief Economist, Simon Rubinsohn, said: \u201cThe tax changes on buy-to-let is having a negative impact on mood in the market. It\u2019s not beyond the realms of plausibility that we will see a slowdown.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Property experts have warned that Chancellor George Osborne\u2019s buy-to-let tax changes will take their toll on house prices in coming months \u2013 and potentially \u2018cripple\u2019 the London property market by next year.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"_links":{"self":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/1364"}],"collection":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=1364"}],"version-history":[{"count":1,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/1364\/revisions"}],"predecessor-version":[{"id":1365,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/1364\/revisions\/1365"}],"wp:attachment":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=1364"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=1364"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=1364"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}