The key changes affecting the property market were as follows:
• Stamp duty increased by 2% for properties over £2million to 7% from midnight
• Stamp duty on property owned by a non-resident entity increased to 15% with immediate effect
• Government to bring in new general rules to clamp down on tax avoidance as part of the 2013 Finance Bill plus a warning that this is likely to include retrospective measures

Prime property

I have to admit, the 2% stamp duty increase took the property market by surprise. It had been leaked to the FT that morning but no-one thought it would take effect immediately, so we were straight on the phone to our buyers for property over the new threshold and plans for Wednesday afternoon were scrapped as we assisted affected Clients to exchange before the midnight deadline, saving all concerned hundreds of thousands of pounds.

In the longer term, Manse & Garret Property Search are not forecasting significant change to prime property sales in prime central London. Clearly the £2 – £2.25m price bracket will feel some aftershock for a few months, but given the lack of supply and increasing demand for stock in the best areas, we don’t think the increase in stamp duty will have a marked effect.

However affected property just outside the centre is likely to take a hit. Popular areas from Richmond, Chiswick and Fulham to the West, Islington, West Hampstead and Muswell Hill to the North and Greenwich and Blackheath to the East are likely to suffer few sales between £2m and £2.25m in the months to come. Motivated vendors are likely to take a hit on price but many will stick to their guns and hold out for the extra hundred thousand and these sales will stick.

Although about 80% of the prime central London market is dominated by overseas investors and many people buy using a corporate structure, in the grand scheme of things, given the capital gains which are routinely made in prime central London, we don’t see the new rules making a difference to price. After all, the best apartments on the best roads from Knightsbridge, Belgravia and Mayfair to Chelsea and Notting Hill are appreciating at circa 20% per year. Most investors will hold prime central London real Estate for 3 years or more so although the 7% stamp duty is an irritation, it won’t make a difference to the logical investor. Also the factors driving the prime central London property market remain, ie political instability in parts of the middle east, the rise of emerging markets who want to keep their offshore earnings offshore but in a stable political and economic situation and global economic uncertainty which favours prime central London real estate as an asset class.

The good news for buyers is that the current low stock levels are likely to be improved for the next year or so, as those looking to sell, rush to do so, mindful of the threat of retrospective legislation, when it comes in in 2013.

Super-prime property

It is the buyers of super-prime property £15m plus who will suffer most from the budget 2012 and it will be interesting to see the effect on this area of the market. There is very little to choose from in this market, few are advertised officially and those which are available are frequently priced using a multiple of their true value. Most of these houses and apartments are used as pied-a-terres and I suspect some will struggle for a few months, while the tax advisors of the super-wealthy find a scheme to mitigate tax and the prospective buyers consider whether they still want an awe-inspiring place in the UK.

The sub-£2 million property market London and Country

There will inevitably be a number of investors with large portfolios of property held by offshore companies who decide to liquidate ahead of the 2013 Finance Bill. As a result we anticipate more stock coming to the market over the next year but whilst this will increase choice for buyers, we don’t think it will have a huge impact in price, although prices should hopefully stabilise this year and not make the significant gains seen during 2011.

Given the issues with very restricted supply and burgeoning demand, which are likely to continue, we definitely don’t see the measures reducing prices.

Technorati Tags: budget, capital appreciation, prime central London property, Stamp Duty, Tax

Tags: budget, capital appreciation, prime central London property, Stamp Duty, Tax

At Manse and Garret Property Search we search for our clients’ perfect home, whether they are looking to buy or to rent. Most clients are aware that if you have a pet it can be difficult to rent a property, as most landlords will specify on the tenancy agreement that animals, including birds, are not allowed to be kept at the property. 

Of course there are always landlords who will consider tenants with pets, and it is worth checking the tenancy agreement to see whether consent will not be unreasonably be withheld and to contact the landlord to see if they will consider it. It is always worth making the best case for your animal: landlords are much more likely to consider a cat or a small dog, over a Great Dane!

 We managed to secure a beautiful house in Chelsea for a couple who had a much adored (and pampered) dog who was very much a part of the family. In this case, when briefing the search to all the relevant agents we always specified at the beginning that they had a small dog, and that the landlord would need to be ok with this. The landlords of the property that they loved were dog-lovers themselves which meant that they were quite flexible on the issue once we had vouched for the dog’s good behaviour! However what also helped our clients is that they were renting a freehold house, so the only potential obstacle was the owner.

 When renting a leasehold property, as the majority of flats in London and Brighton are, it is not simply the landlord’s discretion which matters – this is because there is an overall freeholder for the building and many of the head leases for properties in London and Brighton specify that there are to be no animals kept in the flats which make up the building.

 This is therefore also an issue for people looking to buy their own flat. You could be forgiven for assuming that if you are the owner of a property, your cat, dog, or parrot can live there with you but this is often not the case; if you own a leasehold property this may be forbidden on the lease. It may be worth contacting the freeholder to see if they will make an exception, however this can be a lengthy process and more often than not the freeholder will say no, as they have to consider the other owners of the building.

 That doesn’t mean that you should give up hope. Last year we found our clients a wonderful pied a terre in Shad Thames in a well-known block. Their dog was not to be a permanent resident, which no doubt helped their case. The management company granted permission for the dog   Having written consent we advised the Porters, who man the reception 24hrs a day, to let them know that the dog was not to be refused entry and that we had the appropriate permission, and the dog happily visits on weekends, so all may not be lost for your property search.

 If you are looking to rent or buy in London or Brighton and have a pet that needs to be taken into consideration, please call the UK’s Best Property Finder on 020 7923 7564.

Technorati Tags: buying, freehold, leasehold, pets, property search, renting

Tags: buying, freehold, leasehold, pets, property search, renting

At Manse & Garret Property Search we are almost on first name terms with a number of council planning offices across London and Kent. With three clients currently on our books looking to build their dream properties, a lot of time is inevitably spent on the telephone and in meetings with duty planners and building control.

I must admit that I do have my favourite planning departments: Kensington & Chelsea and Westminster provide the least painful experiences! Equally, I also have a few that I dread dealing with (although I won’t name any for fear of reprisals!)

From the midst of the planning process, preserving the character and appearance of our streets can seem like a bit of a hassle, yet you need only look at a beautiful streetscape in Hampstead Village to know that it is worth it. This is why I am still in a state of disbelief over the report of a developer in Twickenham who bulldozed a semi-detached Regency house, without permission in January of this year.

I may perhaps be slightly biased, as in terms of architecture I happen to be very fond of the housing stock which has survived from the 1820s, but even without my personal aesthetic preferences, I cannot believe that anyone could demolish a house that was attached to another without permission, in order to cut their own developer costs.

The developer was fined £80,000 by Richmond Council, and also had to pay Richmond councils £42,500 legal bill to cover the cost of taking legal action. I imagine that this will serve as a warning to other developers who may be tempted to subvert, or indeed, simply ignore planning regulations in future.

Technorati Tags: Buyers agents, London Buyer's Agents, London Property Buyers Agents, Planning, Planning Permission

Tags: Buyers agents, London Buyer's Agents, London Property Buyers Agents, Planning, Planning Permission