Fairways & Fiscal Flair
Unpacking the Spring Budget’s Swing on the Property Market
Once again, the West Surrey Golf Club played host to over 100 professionals at the Property Professionals’ Lunch on March 13th. The focus of this luncheon, held just one week after the Spring Budget, centered around the measures that might impact the property market.
As guests tucked into a delicious lunch, David Graham-Smith, a senior consultant from the leading law firm Penningtons Manches Cooper, stepped up to the microphone. The audience comprised a diverse mix of individuals, including agents, accountants, bankers, investors, developers, consultants, solicitors and other legal professionals.
David wasted no time and directed the attendees to an online poll, posing the question: What likely impact will last week’s Budget have on the property market in 2024? The response was hardly surprising—93% believed that it will make no material difference.
After introducing newcomers to the gathering, David handed the microphone over to senior tax partner at Penningtons Manches Cooper, Stephen Goldstraw who delved into the announced changes that would affect the property market including:
1. Abolition of Multiple Dwellings Stamp Duty Relief:
•The government aims to curb misuse of the system by ending this relief.
2. Capital Gains Tax Reduction:
•For higher rate taxpayers, the Capital Gains Tax on residential properties will be reduced from 28% to 24%. A positive move.
3. Business Rates and Empty Property Relief:
•The period a property needs to be let before empty property relief can be claimed again is increased from 6 weeks to 13 weeks, again to counter misuse of these rules.
4. Removal of Tax Breaks for Furnished Holiday Lettings:
•Although this change won’t take effect until April 2025, it signals a shift in policy.
David then shared insights from the guests regarding the state of the market. While retail rents in Guildford have declined, prime office space rents have risen. Additionally, the continuing high mortgage rates are likely to impact prime residential property values in the region. The value of development land has declined slightly owing to the lack of demand last year from first time buyers, a trend that is now being reversed. Notably, the budget failed to address the continuing backlog of planning applications.
The next Property Professionals’ Lunch is in July.
For more information about the event, please contact business development manager Caroline Barry (caroline.barry@penningtonslaw.com).
David Hogg, director at Horizon Imaging Ltd, a company that specialises in drone and ground-level photography and filming services for the property and construction industries, kindly supplied the photographs of the event. Please visit David’s website for more information on the range of services his innovative company provides at www.horizonimaging.co.uk, or you can email him on david@horizonimaging.co.uk.
Disclaimer: This post is a paid advertorial in collaboration with MoveTo.co.uk The views and opinions expressed in the linked article are those of the author and do not necessarily reflect the official policy or position of MoveTo.co.uk. #Ad #PaidPartnership #SponsoredContent
Read next;
Surrey’s Property Pulse