2
Jul
Property market 'returning to normal'
Property developers have been encouraged to buy houses and flats in
the current market.
Editor of City AM Allister Heath told readers that the housing
market is looking healthier than it has in a long time, despite
recent the Land Registry's recent figures which revealed house
prices in England and Wales fell by 0.2 per cent month-on-month in
May.
Mr Heath stated that this was a good indication that the housing
market was returning to "some sort of rationality".
He said: "Another way to look at all of these numbers is to say
that property is a good way to enjoy the benefits of economic
growth while hedging for inflation."
The recent increase in capital gains tax (CGT) from 18 per cent to
28 per cent for top-earners will also improve the market by giving
homebuyers an incentive to purchase even larger homes, the editor
commented.
Managing director of first-time buyer consultancy FirstRungNow.com
Helen Adams agreed that the CGT hike could be good news for
potential buyers.
She said that it will encourage people to sell properties which
will bring house prices down and boost sales for first-time
buyers.
