What Does A Coalition Government Mean For UK House Sellers
What Does A Coalition Government Mean For UK House Sellers
The aforementioned coalition has scrapped Home Information Packs and proposed to double capital gains tax on non-business transactions, from its current 18% to 40% or maybe more.
Here at theadvisory.co.uk we feel that the suspension of HIPs — which had been made a mandatory prerequisite of selling a house by the previous government — makes it easier and cheaper to put a home on the market, and has already increased supply; according to Rightmove new listings went up by 35 per cent in the seven days following the suspension.
It is ironic that moves aimed at improving the housing market could send it spiralling into another crash. But that is exactly the scenario we are faced with:
Even without the 18% drop in sales recorded by Acadametrics, the rising supply alone was near-certain to apply heavy downwards pressure on prices.
Few people are in any doubt over why prices have risen so consistently since last April; lack of supply as people avoided marketing their home either because they were in negative equity, feared they may be in negative equity or simply didn’t want to get less for their house than they could have done just a few months before.TheAdvisory have long predicted a second dip in UK house prices and have pointed to the likelihood of an increase in supply, and more recently even narrowed this down to point at a Tory government’s public sector job-cuts as being behind it. So, if a supply rise would be sufficient to herald a second dip, then a supply rise couple with falling sales is certainly capable of doing so.