Landlords looking to sell up before wealth taxes kick in
Landlords of expensive properties in London are selling up, in advance of proposed annual taxes.
Richard Barber, partner in residential sales at WA Ellis, said: “We have seen a notable increase in properties coming on to the sales market as one would expect for September, but what’s interesting is that a number of these properties are from landlords considering a sale in light of the proposed annual tax on properties priced above £2m owned by ‘non-natural persons’.
“As yet, we have not seen a glut of company-owned properties coming to the market. However, there is no doubt that the threat of the new legislation is causing concern to some overseas investors and we have been asked to value some properties currently held in overseas companies while clients decide on their options.
“The proposed Mansion Tax from the Liberal Democrats has added fuel to this fire, and our concern is that a marked crackdown on foreign investment by increased taxation will be detrimental to the London property market.
“Of course, the Liberal Democrats’ proposals are not confirmed and the real impact of the Stamp Duty increase and annual tax on properties over £2m remains to be seen.”
The firm has also reported a busy lettings market.
Lucy Morton, senior partner and head of lettings, said: “The September rental market has had frenetic levels of inquiries and applicant registrations.”