As London Buyer’s Agents we were interested to read a recent interview with The Telegraph (http://tgr.ph/n7WTGf) where Eric Pickles, the secretary of state for communities and local government has said that it would be a, “very big mistake”, to go ahead with any form of the Liberal Democrat’s proposed “mansion tax” on properties worth over £1 million.

A 1% annual tax applied to houses worth more than £1 million was first proposed at the Liberal Democrat party conference of 2009. The suggested threshold was later increased to properties worth more than £2 million, and this year the policy was refined further, with the Liberal Democrat Party suggesting that there should be a levy of 1% on capital gains tax from the sale of a property after the first £1million. .

This is an obvious attempt to make owners of high value property in the UK, whether British or foreign citizens, to pay up in order to share the burden caused by the national deficit, a questionable source of revenue when you stop to consider that an overhaul of the current council tax system has been estimated to cost upwards of £250million.

Although unlikely to temper overseas buyers’ zeal for good quality, high-end property in prime central London, a “mansion tax” is likely to dissuade middle-class British buyers from progressing up the property ladder. They are instead likely to decide to remain where they are, which would decrease the amount of property below £1million that comes onto the market, negatively affecting both ends of the market.

It is also possible for an astute property investor to buy property below the £1 million mark, and develop the property sufficiently after its official government valuation and still benefit from their investment, which makes the £1 million threshold seem rather arbitrary indeed.

There would be an uneven burden on home-owners in London and the South-East where the value of property continues to increase despite the recession. Eric Pickles rightly said last week that it would be, “imposing taxation on the back of changes in property value”. Following Eric Pickle’s interview it seems unlikely for now that any version of the “mansion tax” is likely to be passed under this coalition government, however much the Liberal Democrats want to replace the 50p tax rate for high earners with a tax for so-called “unearned wealth”. This would negatively affect people who are house-rich, but cash-poor, and whose life earnings have been channelled into their property, with a view of it being a retirement safety net, or a legacy for their children. Many people view their home as an investment, and I don’t believe that people should be taxed for choosing to invest their money well, and having their savings in bricks and mortar.

Technorati Tags: Buyers agents, government policy, Hackney house prices, House prices in London, London property, mansion tax, Property News, recession

Tags: Buyers agents, government policy, Hackney house prices, House prices in London, London property, mansion tax, Property News, recession

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

Musings of the London Property Buyers Agents

We’re no experts on the American property market – actually, we know nothing about the American property market but for us in London, a 36% drop sounds like very bad news – normally reserved for the repossessions market.

So has Hef been foreclosed?  Apparently not, but according to the Wall Street Journal, he and Mrs Hef (they split in 1998) have apparently accepted an offer of $18 million, $10 million less than the asking price from 25 year old Daren Metropoulos, the son of C. Dean Metropoulos, a super-successful private equity investor.

The house in question is not Playboy Mansion, where Hugh Hefner still lives with the ‘playmates’ but the smaller version next door where his wife had been living.

So was it just grossly over-priced to begin with or has Hugh taken a hit where it hurts?  There are a few top end drops in London at the moment, but they are almost exclusively the reserve of the handful of people like us in the know.  If you need London Property Buyers Agents who might just be able to secure a similar gem, in London, you can contact us here.

Technorati Tags: Buyers agents, Hugh Hefner's house, Hugh Hefner's house for sale, London Property Buyers Agents, property buyers agents

Tags: Buyers agents, Hugh Hefner's house, Hugh Hefner's house for sale, London Property Buyers Agents, property buyers agents