Following the recent Budget, here at Dutch & Dutch we’ve been assessing what impact Mr Osborne’s announcements will have on the local property market.
Whilst some within the property industry have been campaigning for an adjustment to Stamp Duty levies to reflect increased values, we were not at all surprised to see the Stamp Duty money spinner left untouched.
The big Budget surprise was the adjustment to annuities and pensions which we feel could have a significant effect on the property market. With pensioners now able to access their pension pots in one lump sum withdrawal, we believe many will decide to take the money and run rather than receive their hard earned cash on a monthly drip feed.
But what to do with the released pension cash? In such a low interest rate environment, we believe many will be enticed to put their capital into good old fashioned, Buy to Let property investment with the perception that “you can’t go wrong” with a flat in London.
This is precisely what we’re seeing here at the coalface of the property market in West Hampstead.
Mature buyers with cash in their pockets earning little-to-no interest are wanting to “inflation proof” their pensions and buy one and two bed flats. Many are purchased for rental income and many are purchased for children starting out in the capital. With proposed new developments in West Hampstead and our “Zone 2” status, it’s no wonder that younger buyers seeking a place to call home are fighting it out with the older generation seeking yield and capital appreciation.
Though residents of West Hampstead don’t have a bingo hall on their doorstep to take advantage of the Chancellor’s bingo tax cuts, we do have some great bars in West Hampstead such as the Alice House www.thealicehouse.co.uk and The Gallery www.ilovethegallery.com where you’ll now be able to take advantage of a very generous 1p cut off the price of a pint. Thanks George!
This 1p cut will help some to drown their sorrows for less as we believe the competition from buyers is about to get ever tougher.