BREAKING NEWS – top 5 stories 24/03/2021
CHANCELLOR FAILS TO WEILD THE TAX KNIFE ON HOUSING MARKET
Yesterday – Tax Day – a separate day set aside to deal with possible changes to the fiscal policies of the government, it had been expected that Rishi would possibly change two key areas in property taxation.
The first was to further play around with SDLT, perhaps abolish it and have an annual tax on the property assets that any person has, so if you own a second or third home you would pay extra.
The second area, was around CGT Capital Gains Tax, where it was thought that the tax paid when a second property owned by an individual was sold would increase – to 20% for lower tax payers, and a huge 40% tax increase for higher tax earners, this would have been a big money spinner but maybe an election loser.
As it turns out – both these sacred cows – were, for now, left alone, instead focus was put on new taxation for New Home Developers to put their hands in their pockets to help with paying for the ‘cladding scandal.’ So, the housing market moves on.
COADJUTE GAINS MOMENTUM
Coadjute a company that I have knowledge of and are looking to be the default operating system of the real estate sector, based upon a blockchain model, has just announced some big enlightened big hitters jumping onboard. These include Search Acumen.
Headed up by Dan Salmons CEO, the seasoned development team have in an almost stealth type of mode been covering much ground in 2020, and with recent investment it will be interesting to see if they become the huge business, they have potential to become.
Certainly, there is a need for a secure joined up solution, and the pandemic has focused all stakeholders in the real estate sector to try to work out the future path to take.
PURPLEBRICKS AND ADVERTISING STANDARDS ANOTHER SPAT
Purplebricks have had to take down claims that they sell properties at a better price, all of this was agreed in an amicable fashion with the ASA. Our thoughts are they should focus on their strengths for example they list (not sell) more properties annually than in 2020, the top three agents by volume listed – added together.
ASKING PRICES CONTINUE TO RISE
A study carried out in February shows that not only did a record amount of completions take place in the month, in certain price sectors the listing prices of property jumped also. Anecdotally agents are saying that in the present seller’s market, key property types have many more potential buyers fuelling this housing inflation.
LANDLORDS UNDER INCREASING FINANCIAL PRESSURE
The pandemic is squeezing some landlords who are finding it increasingly hard to deal with tenants unable to pay the rent or part of the rent. Courts are moribund, and the new ‘breathing space’ provisions are leaving many landlords boxed in. The recent budget offered in England no respite and it is going to be a long summer if there is not some strong messaging from the government.
If you have a view – please let us all know by emailing me at [email protected] – Andrew Stanton Executive Editor – moving property and proptech forward.