A lot in the weekend press, now that the dust is settling on the 'new' government on what ipacts will affect the housing market. Two area are the main sticking points where clarification is urgently needed.
Capital Gains Tax - likely to rise to 40% in line with income tax. This will have a very bad, some say disasterous, effect on the private-sector rental market and to an extent on property supply. A major lift in CGT is bound to be considered adversly by professional Investment buyers. If tye are not 'churning' the smaller housing stock, then we could see a bigger shortage of first time buy property. It is likely that rentals may also increase in the private sector to cover the downside, meaning aspirant first time buyers, moving out of the rental sector will take longer to build deposits, also adding to the sluggishness in the market.
EPCs IN, HIPs OUT - Tory manifesto always stated this as the plan, and with no evidence of any appetite for consultation, this may be introduced rapidly as a quick win for the new government. In the meantime, are HIPs now voluntary? Clarity is needed NOW to ensure the market continues to work correctly.
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