Over the last few months while Budget fever gripped the nation the property market came to a virtual standstill. It was as if buyers and sellers held their collective breath in anticipation over the 26th November announcement.
Well, now we know that there will be a so-called mansion tax. It would be naïve to assume that a tax on property over £2 million won’t first have an effect on the top end of the market and then trickle down to the rest. But the full impact won’t be felt for another two years whilst a mass revaluation of properties is carried out.
What does this mean in the interim? Certainly some people will re-evaluate their own situations and take steps to mitigate this new norm. But that’s the thing with property, we like things to get back to normal when really there is no normal. There is yesterday, today and tomorrow and they are each different. The property market is a restless sea of interconnected factors outside our control. They wrestle not only with each other but also with each of our ever-changing personal circumstances. And every now and then a government comes along and stirs up the pot a little more, seemingly blind to the fact that they are playing in a giant game of consequences.
Estate agents know to expect two distinct responses from those potentially affected. Some will do nothing and then deal with it when life dictates that they must take action. The rest will seek clarity, obtaining professional valuations to assess whether their property will automatically be affected in the future, or if it might be pulled into a fiscal dragnet when any increase in property values means more flats, terraced and semi-detached houses will be taxable, making the term mansion tax laughable.
In this emerging landscape, preparation is the most valuable asset. If you would like guidance or a clear-headed valuation to help you plan your next steps, we are here to assist. Don’t hesitate to get in touch with us on 01797 227338 to arrange an appointment.