There’s now over half a million Brits thankful that Labour’s Mansion Tax policy never saw the light of day, writes Richard Carr.
Residents of Kensington Palace will be grateful the Mansion Tax policy never become a reality
It’s now a distant memory, but in the lead up to this year’s general election Mansion Tax was one of the most widely talked about policies. Labour proposed to heavily tax properties worth over £2m to help fund the NHS.
Conservatives in-tune according to the Generation Rent report
The research suggests that the Conservatives proposed housing policies had the most appeal to young voters.
Policies such as getting empty homes back into the market received a good response from the youngsters surveyed by the Halifax Generation Rent report, which provides ongoing insight into the attitudes and behaviour of young people towards home ownership.
David Cameron’s re-election as Prime Minister looks set to open the floodgates for Chinese investors in the UK property market, reports Richard Carr.
Are Chinese investors set to invade London
China’s flagging economy coupled with the UK’s attractive investment opportunities is enticing high net-worth Chinese investors into spending big in the UK property market.
Paul Welch, founder and chief executive of largemortgageloans.com told ibtimes.co.uk: “China and Chinese investors coming to the UK is the next big thing. The British government has been wooing big business and high net worth individuals in the country in a big way. If you also take into account China’s flagging economy and a potentially unstable political environment, London is seen as a safe haven for foreign money. It’s an escape and access to a European passport.”
Legal experts have warned that major changes will need to be made if the incoming government is to fix the country’s housing shortage, reports Richard Carr.
Rosemary Edwards, partner and head of residential development with corporate solicitors Shulmans LLP, told propertywire.com that planning permissions, regulatory requirements, funding, the economy and lack of skills have all added to the housing shortage.
Is the UK’s housing crisis unsolvable?
“I have heard of many major house builders being accused of land banking but this is patently ridiculous. A house builder’s business is entirely based on selling homes. If they can build them and sell them, why would they hold back?” she said.
An increase in planning and regulatory hurdles have added time and costs onto projects for developers with requirements such as Community Infrastructure Levy and s106 agreements causing problems.
Richard Carr has previously spoken of the negative impacts that a Labour win would have upon UK citizens’ lives and now property expert Zoopla has warned that thousands of pounds could be wiped off the value of homes if Ed Miliband gains power.
It has taken a lot of time and the country has had to be patient, but UK citizens are now better off than when the Coalition government came to power five years ago, reports Richard Carr.
A growing Economy
Under the Conservatives the UK’s economy has grown
According to the Office for National statistics, Britain is enjoying its strongest growth since 2006. Families are now better off than when the Conservatives and Lim Dems first came to power. The official figures also show that consumers are more confident than they have been for more than 12 years.
Richard Carr believes that a change in government in the coming general election could send the country spiralling back to square one. He feels that the timing of these statistics, just days after the election campaigns began, couldn’t be better.
They highlight that the country, under the Coalition government, is out-performing all other leading economies including the United States, Japan, Canada, Germany and France.
Reporting on new data by Savills, Property Week announced that investment in the UK hotel market hit a post-recession high last year of £6.1bn – the highest since 2006.
Will the hotel investment boom continue in the UK?
Activity wasn’t just high in the capital though, with 71% of deals taking place outside of London as confidence in the regional markets flooded back.
In 2013, Middle East investors had been most active in the market, however last year it was US investors who were busiest. Investors from the States doubled the amount they spent in the UK last year, taking them past the £2.1bn mark.
In total, overseas investors accounted for £2.9bn (47%) of total volumes, which was an increase of 14.1% on 2013.
Investment from Asia and the Pacific also rose considerably by 65%, with the largest deal costing £135m for the purchase of Wentworth Golf Club by the Chinese Reignwood Group.
David Cameron’s party has also revealed its ‘Help-to-buy’ ISA policy which will see the government provide young savers with a £3,000 bonus.
On the opposite side of the bench, Labour’s housing policies include building 200,000 new homes by 2020, as well as new towns and garden cities. However, the party has come under fire for its proposed ‘Mansion Tax’ policy, which they would introduce to help reduce the NHS deficit.
With the UK General Election 2015 in two months’ time this year’s budget announcement had the potential to make or break the outcome. In his latest blog, Commercial and Residential Development Specialist Richard Carr examines the affect that Chancellor George Osborne’s budget will have on the property market.
Under the current government the UK property market has steadily risen, in line with the growth that the economy has also experienced.
However, getting on to the property market – especially for the younger generation – is still a tough task.
In an attempt to ease the transition on to the property ladder a new ‘Help-to-Buy ISA’ will be introduced by the government.