DEBATE: Are Rachel Reeve’s rumoured Budget cash grabs stalling the market?

A panel discussion held yesterday in London attended by some 40 key players within the Capital’s property and mortgage broking sectors revealed that there is real nervousness among many about Rachel Reeve’s budget due on 30^th October.

The panel, which was chaired by Russell Quirk, (left) included (LtoR) developer Andrew Morrison, legal expert James Tumbridge, The Neg’s Nigel Lewis and TV star agent Colin Horton.

Many of those on the panel and in the audience said they were worried over the rumoured changes to Capital Gains Tax and Stamp Duty to be included within the budget, the latter which could impact central London’s high-end property sales most severely.

James Tumbridge, who is a Partner at Keystone Law, said that foreign investors particularly in commercial real estate are “very keen to see the budget before they invest”.

Wealthy appetite

However several people counter-argued that the prime central London (PCL) market is different to the rest of the UK and that many buyers within it are so wealthy that even major changes to tax did not conern them – yet – and panellist Horton, who was runner-up in the Channel 4 Selling Super Houses TV show, said activity within his market remained strong despite wider jitters about the Labour budget.

Also, Paul Munford of Century Capital, which hosted the event at the Arts Club on Dover Street, pointed out that while 75% of homes are mortgaged across the UK on average, 90% of properties bought in PCL are bought for cash despite their high price tags.

Quirk added: “As thoughts turn to 2025, we can thank lower inflation, lower mortgage rates, high employment and chunky wage growth for the demand levels that most agents are seeing resulting in house prices up 4% year on year and mortgage approvals at a two year high. There’s good reason to be positive.

Nevetheless, the meeting concluded on the prediction that Labour’s call for ‘those with the broadest shoulders’ to carry the burden of getting the nation’s finances back on their feet means both business and taxes for the wealthier are likely to rise at the end of next month.