Martin Bikhit, Managing Director of Kay & Co commented:
“It was pleasing to see that the Office for Budget Responsibility has predicted a steady growth rate in the British economy of around 2% until 2020. This, when combined with the announcement of the Crossrail 2 north-to-south train line through London will positively effect the London property market, as we have seen areas such as Paddington benefit from investment and rising property values due to the original Crossrail.
“We welcome the announcement that Capital Gains Tax is to be cut, as it allows greater investment into London; we hope to see more people investing in the London property market as a result of this policy. Unfortunately, the higher rates of Stamp Duty Land Tax that were announced in 2015 and the 3% surcharge on buy-to-let properties and second homes will continue to stifle the property market in London.
“The announcement of a policy to help the redevelopment of brownfield land that is currently owned by local authorities is laudable, as it will help to create more affordable housing within London. Due to the location of these brownfield sites, we hope that the development will be organic; and benefit the local communities around the brownfield sites.
“In the main, if the economic growth forecasts referred to by the Chancellor are correct, and if the UK economy can continue to grow as it has been doing then that, combined with the international cache of London as a centre for culture and business should ring-fence the London property market against any tremors in the global economy at large.”