Richard Stovold from Seymours Estate Agents in Burpham discusses what influence new Prime Minister Boris Johnson might have on the property market
Whatever your thoughts are on our new Prime Minister, there’s no denying his enthusiasm and this could have a very positive effect on the property market.
Brexit will be the first thing on his extensive to do list and, if he delivers this on time on October 31st as he has promised, it will most certainly help lift the grey cloud which has loomed over the housing market for some time.
Boris’ mandate has a clear emphasis on home ownership, which fits with the mentality of the British people – despite the difficult market in recent years, owner occupation is still the most prevalent tenure in England.
The new Prime Minister has promised stamp duty reform and this is very welcome news.
The top rate stamp duty increases on houses valued at £925,000 or more, implemented by George Osborne in 2014, have put considerable pressure on the higher end of the market which, as a result, has become relatively stagnant over the past three years.
If Boris fulfils his promise to reverse this, it will help generate more movement in the top end, the benefits of which we fully expect to filter down to the middle and lower end of the market. This will be particularly good news for the South East, especially here in Surrey where we have more homes priced over £1 million than anywhere else in the country (outside London).
Furthermore, if the new prime minister moves to make homes below £500,000 in England, Wales and Northern Ireland exempt from stamp duty, this will help benefit the first-time buyer market, enabling more people to step onto the property ladder.
While change in the property market may not come quickly, it is most definitely on the horizon and that’s a more positive outlook than we have seen for some time.