Apparently, when the government dropped the stamp duty (tax) for first-time buyers of property under 250K Pounds (USD $384,000) housing buyers returned to the market in number, reviving the drooping asking prices by at least 2.6%, according to figures released by Rightmove.
Dropping the stamp duty seems to have amplified the customary spring surge in the UK housing market, with a concurrent rise in market prices.
Contrary to buyer belief that higher prices are a pain in the wallet, the slightly higher asking prices coupled with record-low interest rates enforced by the Bank of England are actually good news to buyers and sellers, both short-term and longer term.
Having credit to buy houses at a lower price than stamp-duty required means there are homes in quite some variety available for first-time buyers and their families.
Having buyers for homes already built and connected to infrastructure means ongoing profitability for housing developers, real-estate agents, crafts people and trades of all sorts, which in turn spells increased earnings and, later, increased tax revenue for further governmental investment.
Barring an over-supply of new homes, which is not necessarily a given in this scenario, the home building market could be entering a time of sustained and sustainable growth.
Several government policies could further affect this housing market positively, depending on the initiation, execution and implementation of Conservative government policies (moving from campaign promises to real-world brick-and-mortar enactment).
These property-market impacting policies, in condensed form, are as follows, although they are in no way exhaustive:
- Working toward zero waste: this policy will continue to improve quality of life for urban and suburban communities alike, often by
- Providing incentives to recycle: this kick-starts the waste-to-wealth cycle in the general citizenry and gets entrepreneurs involved in the benefits of recycling.
- Transforming electricity networks with smart grid/smart meter technology: a policy which leads proactively to wiser use of existing energy, more accurate forecasting of energy needs and end-user feedback on personal energy consumption.
- Cutting auto congestion and making roads safer in Britain: a policy which positively impacts on both frequent commuters and infrequent drivers. Energy (oil, gasoline) use and environment also figure in here.
In summary, if the Conservative government can actually carry through with these campaign promises, the housing and property markets in Britain would be looking at a period of sustained sunshine, even when it rains, though only time will tell if that happens.