Prior to the hike in stamp duties, the United Kingdom (UK) is gearing up to witness a higher number of investments in real estate from global investors. The proposed increase of 1% in stamp duty for those who are foreign buyers, should spur growth in property transactions throughout the UK before the consultation slated for January 2019. The Autumn Budget 2018 for the UK had several economic changes listed out and these will clearly impact both locals and non-residents.
The 1% surcharge on stamp duty for residential property in England and Northern Ireland will still be approved post a consultation in the month of January next year. It may however be overruled as per reports. However, prior to this consultation, experts also anticipate staggering growth in real estate transactions in several parts of the UK and London with several global investors queuing up to buy residential properties at cheaper prices.
The 1% added tax for foreign buyers was formally declared in the House of Commons by Chancellor Philip Hammond. This is lower than many were previously anxious about. Theresa May, the Prime Minister, had earlier considered an increase of 3% but this has been toned down for now. Putting the consultation on hold till January means that global investors can get ample time to do their research on property in the UK and snap up good deals at the present price levels. With values of property in the UK expected to increase hugely over the next few years and comprehensive development being witnessed in London and other major cities, the UK residential market already has forward purchase arrangements in place.
These account for a big chunk of transactions with investors getting current prices secured and anticipating immediate gains in the near future. The Crossrail Elizabeth Line is also another major development that continues to boost property prices throughout South-East England and London prior to the formal roll-out from December 2018 and much of 2019. Some areas near the Crossrail stations are already witnessing price growth in double digits for residential property. Growth signs are also being observed in the Prime Central London micro markets this year and experts have anticipated growth in prime London home prices to the tune of 8.7% by the year 2022. With new prime realty being developed in areas like Nine Elms and Canary Wharf and growth prospects alive and kicking in Manchester and other key cities, this could well be the best time to invest in UK residential property.
