Polly Greenway from DOMVS Responds to Recent Budget Announcement
The recent budget announcement introduced several measures likely to influence different segments of the property market. While increases in capital gains tax and VAT on school fees may impact affordability at the higher end, the most significant effect is expected from the stamp duty increase for second homeowners and investors. Reassuringly, however, the Government has not increased capital gains tax on property, which will help preserve affordability for some buyers in the market.
Many purchasers in Dorset had already adjusted their plans in anticipation of these stamp duty increases, and we have observed a marked decrease in the number of holiday-home buyers and landlords seeking additional residences. In the first half of this year, only 13% of buyers in our market were purchasing an additional residence, a significant reduction from 51% just two years ago. This trend has continued, with only 2% of properties currently under offer with DOMVS expected to be impacted by the new 5% additional stamp duty rate, which takes effect tomorrow.
These trends suggest that while changes are underway, the overall impact on the Dorset property market may be more contained than initially expected. With the clarity provided by these budget measures, we believe the market can now move forward with greater confidence. DOMVS remains optimistic about the resilience of the property sector in Dorset and is committed to supporting our clients through this evolving landscape.
