Happy New Y'era
Welcome to 2016 and a new era in property. It promises to be a packed and eventful year. The way has already been prepared for a change in April when higher stamp duty rates are applied to properties bought for buy-to-let or as second homes. So expect a busy time for the next few months as buyers rush to complete purchases before the axe falls. Mr Osborne will further affect landlords from April when they will lose higher-rate tax relief on mortgage interest payments.
So what is happening with the ripple effect and how the London property market influences housing elsewhere in the UK? London now seems more disconnected than ever from the rest of Britain, as prices have spiraled from highly expensive to largely unaffordable over the past few years. Prime London properties are seeing a negative adjustment as higher taxation, the slump in worldwide oil prices and the Chinese economic slowdown have had an adverse impact on the clamour for property. However, elsewhere in the country prices did not spiral out of control like the London market, but there were other hot spots and Oxfordshire was one, although cooling a little now. Outside the capital there has been more stability and consistency in general and this should continue into the immediate future.
But what about those buyers who do not want a holiday home or investment property – those people who merely want a roof over their heads? Well 2016 may be eventful for them also including a possible lift in house prices of between five and eight per cent. The stock of unsold properties is currently the lowest ever recorded and the law of supply and demand suggests this should have a positive effect on prices in many parts of the UK.
Like global warming, the UK housing market is open to conflicting interpretation. Is it the lack of new homes or have we just stopped moving so often. Every year is different and this one should begin with optimism. It is generally accepted that the majority of British adults want to own their home. Add to that aspiration, upsizing, downsizing, job moves, plus many other reasons and that is why the market can be buoyant again this year.
2016 will not be without its challenges, but we are used to handling challenges for our clients. This year will not be a perfect one for property speculation without the greatest prudence and care, but it might be a good year for settling into a home that provides safety, warmth and shelter for you and your family.
If you are thinking of buying a property in the near future, let us have you details and requirements. We will seek out that illusive new home for you. If you are selling, we will provide you with a Free Market Valuation and some good advice accompanied by attractive New Year commission rates. Call us today. 01993 779020