UNPRECEDENTED UNCERTAINTY

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

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