Threatening tax rises are not enough to scare London’s property industry – NewStartMag

Why not look at the positive side instead of dealing with the negative aspects – that was the message from industry experts who gathered over breakfast to discuss the future of the real estate market.

On the 26th^Th In September, Century Capital – a leading UK property lender – hosted a breakfast briefing at The Arts Club in Mayfair. The company brought together some of the most influential voices in the property sector to discuss the future of the market – a sensitive topic as the government’s “painful” autumn budget looms.

Professionals who attended the event included Colin Horton, commercial director at Project Chartered Surveyors and star of Selling Super Houses, Andy Morrison, director of UK Property Development and Nigel Lewis, a leading property journalist.

Collectively, experts agreed Labour’s push to increase taxes, not least so-called “wealth taxes” such as capital gains and stamp duty, could have a detrimental impact on the market, but it is based more on hesitation than desertion. Against this backdrop, James Tumbridge, lawyer and partner at Keystone Law, said that while foreign investors are excited to see what the budget has to offer, they are far from rejecting the UK, particularly London, as a major investment destination.

Likewise, experts remain confident that interest rates will continue to fall from their current high of 5%. Economists are currently predicting that there will be one, if not two, interest rate cuts by the end of the year. Goldman Sachs, a global investment banking management firm, predicts interest rates will fall to 3.4% in 2025.

Other key takeaways from the breakfast discussion include:

• Colin Horton reported strong transaction numbers despite recent economic uncertainties.
• It has been suggested that Labor should consider the 30-year long-term mortgage model, already common in countries such as France.
• Prime markets, especially London, are a law unto themselves and largely independent of taxes, budgets and key interest rates. In recent years the market has gone on and on no matter the weather.
• James Tumbridge proposed abolishing stamp duty and replacing it with a sales tax.

Industry experts discuss the future of the real estate market.

Paul Munford, CEO and founder of Century Capital, said: “It was another great meeting for our breakfast briefing.” The insights shared were invaluable and highlighted the resilience and adaptability of the UK property market. Despite the potential impending tax changes, underlying fundamentals remain strong, particularly in London. The expected rate cut will increase confidence and transaction levels across the board.

“I would like to thank all the panelists for their time and brilliant insights, and everyone who attended for making it another truly worthwhile event.”

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