James Greenwood of Stacks Property Search says, “We welcome the restriction of mortgage interest relief for buy to let investors to basic rate income tax. There has been a threat of a bubble being created sub-£500k which is primarily investor-driven and is squeezing ever more first-time buyers out of the market forever. We have to decide if we want to be a nation of owner-occupiers or renters. On the one hand, these new rules may force up rental prices which is bad news for tenants, but if we are to encourage home ownership, and make life easier for first time buyers, then the marginal dampening down of investor demand could help check run-away prices in some of the hotter spots.
“Stricter rules on non-doms is likely to further check property price inflation in Prime Central London, but will have little effect on the market outside London.
“The rent a room scheme for homeowners will encourage a much more efficient use of housing stock through the use of spare capacity. This is good news for tenants, and also good news for homeowners who are struggling with mortgage repayments. So full marks for Mr Osborne on this initiative!
“The IHT changes may help to release large homes onto the market; but equally the increase in threshold may mean that the older generation hang onto the family home longer than they might have as they won’t need to sell and pass some of the equity over through tax-planning. So the effect on the property market may turn out to be negligible.”
Stacks Property Search & Acquisition, 01594 842880 / www.stacks.co.uk