Thank god for no Mansion Tax!

There’s now over half a million Brits thankful that Labour’s Mansion Tax policy never saw the light of day, writes Richard Carr.

Mansion Tax

Richard Carr  Kensington Palace Gardens

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.

Unsurprisingly this caused a lot of panic and for a number of months the property market stalled, however since the Conservatives’ victory the market has only prospered and now more than half a million British properties are worth over £1m.

According to Zoopla, who collated the data, it’s the first time ever that the figure has reached over half a million.

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Zoopla warns of risk to property prices if Labour wins

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.

Warning

Richard Carr Ed Miliband Stone

Ed Miliband’s pledge stone

Featured on the Express’ website earlier this month, Zoopla explained how Ed Miliband being in charge of the country could “spell trouble” for first-time buyers, whilst Labour’s “mansion tax” on larger, more expensive homes would have a knock-on effect across the whole market.

Ed Miliband’s Labour party are also opposed to the Conservative’s Help-to-Buy scheme and a new ISA which would provide bonuses for people saving for a housing deposit.

Zoopla said: “This could limit the support offered to aspiring first-time buyers, and eventually kill off the initiative.

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Lib Dems unleash housing pledge ahead of the election

The latest party to unveil its housing policies ahead of the general election in May are the Lib Dems, who earlier this month told the BBC about their ‘rent-to-own’ homes election pledge.

Help for the young generation

Richard Carr image of Nick CleggThe Conservatives have also outlined their plans which include a promise to build 200,000 starter homes for first-time buyers in England under the age of 40. These homes would be available at 20% below the market rate.

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.

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A Labour win spells danger for the property market

Property experts have warned that a Labour led victory at this year’s General Election could have a detrimental effect on the housing market, an opinion shared by Commercial and Residential Development Consultant, Richard Carr.

Rent controls will leave tenants worse off

One of Ed Miliband’s many proposals is to introduce three-year tenancies, with only limited rent rises permitted in that period, in line with inflation.

Richard Carr Ed Miliband

Labour leader, Ed Miliband

In response, two thirds of the UK landlords said they would leave the private rented sector, as the policy would limit the number of affordable rental properties.

The research was conducted by the Residential Landlords’ Association (RLA) and their chairman, Alan Ward, warned that the proposals will leave tenants with less choice in a market of dodgy landlords.

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Mansion Tax opposed by UK politicians

With the general election set to take place later this year, Labour’s Mansion Tax policy is once under scrutiny, writes Richard Carr.

UK MPs favour higher rate council tax

It’s fair to say that the response to the Labour party’s Mansion Tax proposals, since the announcement last year, has been negative. Although many believe there is a need for changes to the tax system, Mansion Tax is not seen as the way forward.

Richard Carr Mansion Tax

Labour’s Ed Miliband

Richard Carr, a commercial and residential development consultant, is strongly against Labour’s proposals, but is of the opinion that a reform to the tax system is needed.

The latest proposals from UK MPs on reforming annual property taxes on high value homes would be to introduce additional higher rate council tax bands.

69% of MPs were in favour of the idea, whilst three quarters agreed that a reform to the current council tax system was required.

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Rental market booming as Mansion Tax begins to take affect

There are still six months until the 2015 General Election, but already the potential policies that may be enforced are having an effect on the property market, reports Richard Carr.

Rental market booming

Richard Carr Mayfair

Mayfair, London

Propertyweek.com reported last week that London’s £100,000-plus and £1million-plus per annum rental markets are booming – and they believe it’s because of ‘Mansion Tax’ and the recently amended ‘Stamp Duty’.

There has been a 12.8% rise in the number of properties let at rental values of over £10,000 per week compared to the same period in 2013.

Remarkable the average weekly rent in London’s ultra-prime lettings market is more per year than it costs to buy the average home outside the capital in England and Wales.

People don’t like being taxed

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Richard Carr explains the reforms to Stamp Duty

In his final blog post of the week, Richard Carr explains the reforms to ‘Stamp Duty’ outlined in George Osborne’s final ‘autumn statement’ before next year’s general election.

Who benefits?

The new stamp duty reforms are now in force and will affect homebuyers across the country. During his autumn statement speech, Osborne claimed that stamp duty will be cut for 98% of homebuyers who currently pay it.

For example: you would receive a tax cut of £4,500 when purchasing an average £275,000 family home.

Richard Carr Stamp Duty

Stamp Duty reformed

What bands are affected by stamp duty?

Below are some easy bullet points to help you understand how much stamp duty you will now pay:

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Politics are getting in the way of planning

That is the opinion of Richard Carr who, like many, believes that the upcoming general election is negatively affecting the housing market.

Property sales falling

Richard Carr is a commercial and residential development consultant who has a successful track record of achieving planning permission to help redevelop sites. His latest work has seen him achieve planning for apartments and homes in the Poole area of Dorset.

Richard Carr new housing developments

Is the election affecting house prices?

His opinion on the current state of the housing market is shared by Jeff Fairburn, the chief executive of house building firm Persimmon. Fairburn has blamed the looming general election for a delay in planning as his firm struggles to get sites open.

Planning appeals are on the increase

Speaking to the London Evening Standard, Fairburn criticised the planning system: “Running up to the election there will be political decisions made in local councils and the planning system means those local decisions can go against the officers’ recommendation, and you need to go through the appeal route.

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Richard Carr: Are Scotland setting the right example on property tax?

Following the news earlier this month that Scotland will introduce a new land and buildings transaction tax, Richard Carr assesses whether this will be a good move for people north of the border.

Scotland introduces new taxation powers for first time in more than 300 years

Commercial and Residential Development Consultant Richard Carr has operated in the sector for 30 years, achieving planning permission for both himself and clients.

Richard Carr Scotland Homes

Scotland introduces a new Land and Building Transaction Tax

Scotland’s Land and Buildings Transaction Tax (LBTT) is set to replace the current stamp duty land tax. It will be charged at 10% of the purchase price of a home between £250,000 and £1m and 12% on more expensive properties.

Mixed reaction to proposed new taxations

The LBTT announcement was made as part of the draft Scottish Budget 2015/16. It will supposedly benefit buyers of cheaper properties, whilst the new rates will only be payable on the portion of the total value which falls within each band.

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Richard Carr not surprised by fall in London house prices

It was reported last week that house prices in London have fallen for the first time in nearly four years, a statistic that has come as no surprise to Richard Carr.

Mansion Tax already having a negative impact

Richard Carr has provided expert advice to a number of high net worth property developers to help them achieve planning permission and maximise profits on their investments.

Richard Carr London Skyline

Bubble about to burst on London housing market

He recently wrote about the negative effect that Labour’s proposed ‘Mansion Tax’ could have on the property market – however, it already looks to be making an impact. The party’s proposed new tax scheme would affect homeowners with properties valued at over £2m, and it is those houses that are seeing very little activity according to estate agent Charles Puxley:

“Traditionally September is a busy month for instructions in central London. This has not happened this year and there is notably very little activity at just over the £2m mark. Mansion tax it seems to be a real worry. It will decimate London prices.”

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