THE UK HOUSING MARKET IS EXPERIENCING UNPRECEDENTED UNCERTAINTY
- Political and economic uncertainty.
- Brexit uncertainty.
- The high cost of stamp duty land tax following reform in Autumn 2014 plus the introduction of the 3% second home owner surcharge in Spring 2016.
- The reduction in tax relief for financing costs for buy-to-let landlords.
- The possibility of more tax exposure for overseas buyers, due to the proposed stamp duty surcharge of up to 3% for overseas buyers. This will be the subject of a government consultation in the early 2019.
- The expectation of interest rate rises.
THE CURRENT RISKS TO THE MARKET
- Brexit pushes the UK into recession.
- Interest rates rise faster than expected.
- Political change & further tax increases.
Savills 5 Year Market Predictions
The latest release from the Savills:
- Brexit uncertainty will last into the transitionary period.
- The bounce will be delayed until 2021.
- The bounce will be a bit weaker because of SDLT changes.
- The general election will suppress growth in 2022.
Source: Savills← Back to insights