Following the Chancellors autumn budget, I thought I’d put in writing how I feel the Kidlington and OX5 market will be affected.
Most in the property industry were expecting at least one reversal on the many tax attacks that have been placed on landlords over recent years. This is because one of the contributing factors to the slugishness in the housing market is the lack of investors buying the smaller properties, the owners of which would then go on to buy which get’s the whole market moving.
There was very little said about addressing the affordability issues for either buyers or tenants which felt, to be frank, a little like they were ducking the problem.
On a positive ‘ish’ note, Mr Hammond did announce plans to extend the stamp duty relief for first time buyers. Taking an average First Time Buyer house in Kidlington of £250,000, the FTB relief would be a saving of £2,500 (not to be sniffed at). The reason for the ‘ish’ though is that FTBs will generally buy to within their affordability meaning they will be able to spend a small amount more…. The guys who were looking at £185K may now look at £187K and so on. With the average FTB deposit in OX5 being a whisker over £33,000 the stamp duty holiday will not open the door to home ownership, it will just mean that those who are already looking can get a slightly bigger house.
Philip Hammond also said that they will be publishing a consultation on taxing overseas buyers an additional 1%. This will be published in January but as OX5 has a very low level of foreign investment I feel the impact of this locally will be negligible.
Help to Buy equity loan scheme will be scrapped in April 2021 and will be replaced with a two year scheme that is reserved only for first time buyers. The scheme will have a regional cap (to prevent abuse) at 1.5 times the average first time buyer purchase price. Taking the current OX5 average of £246,525 that would mean the scheme could be used up to £369,788 in the local area (but who knows where the prices will be in 2021).
Ahead of the budget, there had been talk of CGT relief for landlords selling to long term tenants, however this did not get mentioned.
So what is the outcome for us Kidlington folk…….. More of the same I’m afraid. The market will remain neither good nor bad; any price changes up or down will remain minimal. The only thing that we know for sure is that the tax man will continue to take his slice.