Business as usual? Industry seniors give views on a likely Labour government

Barring a major and unlikely political upset Labour is to gain power and begin implementing changes to the nation’s housing market.

This is likely to include the introduction of a more radical Renters (Reform) Act, changes to stamp duty and an overhaul of the planning system.

So what do three of London’s most high-profile estate agents think of the likely fallout for the capital’s housing market and the landlords and home movers that typify the capital’s central postcodes – and by default their businesses?

Mark Pollack, Aston Chase

“Since the announcement of the UK General Election we have noticed that the – surely – inevitable Labour victory has already been somewhat priced into the London residential market and although there will be a significant amount of new listings coming to the market or being re-launched – similarly – a lot of buyers postponed plans due to a combination of high interest rates and political uncertainty which will have resulted in a degree of pent-up demand which I suspect will help to maintain market stability.”

“In the absence of any additional unforeseen hefty Corbynite/draconian ‘new’ taxes I can see a boost to the core and mid markets if interest rates come down and stamp duty for first time buyers is reduced or abolished this alongside a rare period of political stability should Labour win with a large majority.

“Conversely, if a Labour Government were to attempt to introduce Capital Gains Tax on principle residences this would have disastrous consequences and serve only to further inflate the existing rental market so hopefully this isn’t a likely outcome albeit additional taxation on second homes seems an inevitability which will further reduce the number of private Landlords as this so called form of ‘investment’ has become an increasingly unattractive proposition for most landlords.

“This is due to the withdrawal of tax relief, increased interest rates, exponential increase in services charges and the costs associated with renting not to mention the disproportionate protection afforded to tenants.”

Jeremy Gee, Beauchamp Estates

“Since the announcement of the UK General Election Beauchamp Estates observed that it had three key impacts on the Prime London property market.

“Firstly, it motivated some of our clients to fast-track the purchase of homes in Central London they had been considering buying, for example one of our clients, a buyer from the EU, has just completed the £15 million purchase of a penthouse and two-bedroom apartment in the Oceanic House apartment building in Whitehall.

“They wanted to purchase because of the reports that the new Labour government are looking to increase Stamp Duty for overseas buyers by 1%.

“The second impact of the election announcement is that we have seen a sharp increase in short-term lettings deals as potential buyers have decided to rent a London home short term and wait until the election results are announced before deciding whether they wish to buy a home in London. I think all these people will now re-enter the homebuying market after the new government is formed.

“Finally, some buyers have decided to wait until the government has been formed and they know what the new administration intends to do regarding taxation and other policy announcements.”

Peter Wetherell, Wetherell

“This is my 11th General Election, and I have never seen one quite like this where the result has for a long time been seen as a forgone conclusion.

“Because of this mindset we have seen that buyers in London’s best addresses, and our clients in Mayfair in particular, are treating it absolutely as business as usual.

“There have never been so many properties under offer at a comparable time. It is almost as if a General Election wasn’t happening, for example we put a Mayfair townhouse on the market just a few days ago and it is already under offer and we have just finalised another deal for an apartment in Grosvenor Square.”

“Vendors are also confident about the outlook for the market. For example, Mayfair normally has between 150 and 175 properties listed available for sale.

“As of today, we have 250 listed, a record number. Over the last decade, Mayfair has usually seen between 5% and 10% of its sales stock under offer, currently Mayfair has over of the district’s sales stock under offer with a total value of more than £100million so this indicates that both domestic and international property owners in Prime Central London remain positive about the future of the luxury homes market in the capital.”