Property experts Strutt & Parker are cautiously optimistic about the “very clever” Budget delivered by Chancellor George Osborne.

Tim Pearse, of Strutt & Parker’s Harpenden office, says it is “less penal” than expected and one which people should feel good about. Tim continues: “I think this is extremely measured and a less frightening and draconian budget than expected by the public.

“The recent budget has brought certainty where speculation, rumour and massive concern about huge tax bills were rife. Buyers and sellers alike can now make plans knowing their tax position. Our belief is that now the budget is over we will see renewed activity across the market place as homebuyers firm up on their future plans and take advantage of the low mortgage rates that are available to those a good deposit.

“From a property point of view it is good news that capital gains tax (CGT) has risen to just 28 per cent for top rate tax payers rather than the predicted 40 per cent (which we had only three years ago, before Labour introduced the 18 per cent rate), even if it is being brought in earlier than had been hoped. The increase will hit those with second homes or those with buy to let investments only if they sell and the majority of owners take a long term view rather than looking for short term gain. Professional property investors are generally also looking at the long-term benefits and see the importance of the regular income rather than short term capital gains.

Strutt & Parker, Harpenden Office
Telephone: 01582 764343