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Bruce Ritchie, CEO and founder of Residential Land comments in Property Week on the topic of ‘Will resi run out of rocket fuel?’

property week - Residential Land

“This will be a pivotal year as higher property taxes begin to impact the market. When George Osborne decided to hike stamp duty land tax on residential property in December 2014, he would not have guessed the national stamp duty take would fall. But that is what has happened, and a subsequent rise to up to 15% on buy-to-let investments will only cool the market further.

“The upshot, without a cut in stamp duty, will be a reduction in: the number of new homes starting in London; the amount of a° ordable housing built inside the M25; and the number of family-sized units in developments.

We’ll also see an above-average increase in the value of new homes under £1.5m, as people flood into property priced below the top stamp duty tax band. At the same time, Osborne is an accomplished politician and I expect that later in 2016 he will realise he has overcooked tax on residential and increase stamp duty on commercial property to level the playing field and help new-build.

“Finally, we’ll see an increase in the global appetite for property as an investor safe haven. And it will be ‘back to the 1970s’ – with many key London figures exiting the UK to become residents in other jurisdictions while jetting in and out to run their businesses.”

Will resi run out of rocket fuel? - property week