Brexit hitting house prices is myth: THIS is the real issue, says top estate agent
07-09-2017
DRACONIAN tax measures are the real reason house prices are faltering - not Brexit - according to a top estate agency.
By Lana Clements
Brexit is not hitting house prices, said a top estate agent
Buyers outside of the European Union are treating Britain's exit from the bloc as an opportunity, according to Toby Whittome, director of sales at Jackson-Stops & Staff in London.
The estate agent has seen home hunters from across Asia and the Middle East flocking to scoop up property amid the weaker pound, cancelling out a pause among European buyers.
It is hefty stamp duty rates at the top end of the market that are in fact taking the wind out of home values, according to Mr Whittome.
Buyers paying more than £925,000 more a home pay the levy at rates of 10 per cent, while more than £1.5million means tax at 12 per cent.
Anyone buying a second home faces another three per cent of additional stamp duty.
The increased tax burden has discouraged people from moving home and buying property at the top end of the market since the rules changes a couple of years ago, said Mr Whittome. It means that fluidity has been lost among top end home changes and this has a knock-on effect across the whole market.
Mr Whittome said: “It is quite clear stamp duty increases are designed for yesterday’s market and are proving wholly unsuitable for today’s. "Although Brexit is seen by many, both in the UK and abroad, as the problem, the UK is looking more attractive than ever to these those outside the EU and has resulted in a significantinflux from buyers across Asia and the Middle East.”It comes as house prices across Britain fell one per cent in June, taking annual growth down to just 2.6 per cent, as measured by Halifax. Momentum for values is now at its lowest level since 2013, with the average home worth £218,390, according to the lender.