What reforms are home owners looking for in the property market of the future?
Times are changing right now. With Brexit on the horizon many industries are using the opportunity to take stock and evaluate what’s ideal and what could change in the near future to make things better. In residential property there are plenty of ways in which the experience of buying and selling could be improved. Homeowners who took part in research commissioned by Market Financial Solutions identified a number of changes they would like to see integrated into the property market of the future.
Turning old into new
We are in the middle of a housing crisis in the UK and you don’t have to look far to find properties that have seen better days. Old, tired, dilapidated or derelict properties could be transformed into something much more useful and contribute to reducing the pressure on housing supply. 44% of those who responded to the Market Financial Solutions survey identified that financial incentives for those who are looking to renovate derelict properties to make them saleable would be a great step forward for the future of the property market.
A new stamp duty system
19% of people said stamp duty should be totally reformed so that it is a cost paid by the seller, as opposed to the buyer. This tax is one that often adds significantly to the cost of purchase and can even be an obstacle for some buyers. 40% of the survey respondents were keen to see more buying incentives delivered via stamp duty, such as reducing the costs involved and creating more stamp duty discounts.
Removing the burden of inheritance tax
Inheritance tax currently takes effect for an estate worth £325,000 or more. Given that the average price for a London flat is now £563,410, it’s not surprising that many people want to see changes to inheritance tax so that more of the accumulated value of a property can be passed on. For example, 62% of people with more than one property agree with making inheritance tax non-applicable to property assets.
Property ownership caps
While 47% of people indicated they would not like to see a cap on the number of properties that one person can own, 41% would support a cap on ownership. However, more than half of the respondents to the survey indicated support for caps when it comes to properties owned by non-UK residents.
Legislation to stop gazumping
Gazumping happens when a seller accepts a verbal offer on a property but then takes a higher offer from someone else leaving the first buyer without a deal. 55% of people would support future changes to legislation that would prevent this unpopular practice from continuing.
More incentives for buyers
The difficulties with respect to getting on to the housing ladder in the UK are well publicised. So, it’s not surprising that there is a lot of support for new incentives and schemes that are designed to help people to buy, in particular a savings scheme for renters to help people in employment to build up a deposit.
The property sector in the UK has a lot of potential for change and these are just some of the opportunities for evolution in the coming years identified by those with direct experience of being a homeowner.
Get in touch with Clarke Gammon today and we can help you to find the perfect property for you.