Impending tax hikes aren’t enough to scare London’s property industry
Instead of dwelling on the negatives, why not look to the bright side – this was the message given from industry experts who gathered over breakfast to discuss the future of the property market.
On the 26th September Century Capital – a leading UK property lender – hosted a breakfast briefing at The Arts Club in Mayfair. The company brought together some of the most influential voices in the property sector to debate the future of the market – a sensitive topic with the government’s ‘painful’ Autumn Budget just around the corner.
Image credit: Century Capital.
Some of the professionals who attended the event include Colin Horton, commercial director at Project Chartered Surveyors and star of Selling Super Houses, Andy Morrison, director of UK Property Development and Nigel Lewis, a leading property journalist.
Together experts agreed Labour’s push to increase taxes, not least so-called ‘wealth taxes’ such as capital gains and stamp duty, could have a detrimental effects on the market, but it’s based on hesitation rather than desertion. With this in mind, James Tumbridge, barrister and partner at Keystone Law, said that whilst foreign investors are keen to see what the budget has in store, they’re far from rejecting the UK, especially London, as a major investment destination.
Likewise, experts remained positive that interest rates will continue to drop from their current peak of 5%. Currently, economists are projecting that rates will see one, if not two, reductions before the end of the year. Goldman Sachs, a global investment banking management firm, is forecasting rates to drop down to 3.4% in 2025.
Other key takeaways from the breakfast discussion include:
- Colin Horton reported seeing strong transaction numbers, despite recent economic uncertainties.
- It was implied that Labour should consider the model of long-term mortgages that are fixed for 30 years which is already commonplace in the likes of France.
- Prime markets, in particular London, are a law unto themselves, largely unaffected by taxes, budgets and base rates. Over the last few years, whatever the weather, the market has always kept going.
- James Tumbridge suggested stamp duty should be scrapped and replaced by a sales tax.
Industry experts discussing the future of the property market.
Paul Munford, CEO and founder of Century Capital, said: ‘It was another great gathering of minds for our Breakfast Briefing. The insights shared were invaluable, highlighting the resilience and adaptability of the UK property market. Despite the potential upcoming tax changes, the underlying fundamentals remain strong, particularly in London. The expected easing of interest rates will drive confidence and transaction levels across the board.
‘I want to thank all of the panellists for their time and their brilliant insights, and everyone who attended for making it another really valuable event.’
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