Things That Are Affecting Your Bottom Line if You Own Property in the UK
If you live in the UK, you are already very aware of the political and financial upheaval that the country is going though. Still reeling from the fallout from Brexit, an announcement was recently made that Buckingham Palace needed to undergo a 369million pound renovation project. Support for the project, just as support for Brexit, is highly divisive. Plentific.com, a leading UK based online home improvement marketplace has recently released some interesting press regarding the general sentiment that taxpayers across the UK are feeling about the current state of affairs.
A whopping 68% of all UK taxpayers are not pleased with the proposed cost of the renovation of Buckingham Palace. The 369million pound price tag seems extremely outlandish to most of the working tax payers in the area. There is however, more tolerance to the idea amongst certain areas of the UK. Namely, in London, only 61% of taxpayers are unhappy with the cost of the project. The reason for this is that those that are living and working in London understand the need to preserve the national symbol of the monarchy and look at the project through a different lens-or so they say. They see the project as a necessity and something that will continue to propel tourism to the Palace and to other areas of London. In other areas of the UK like Scotland and Edinburgh over 80% of all taxpayers are not supportive of the project.
What does this mean for you and your taxes? Someone has to foot the bill for the renovation and the Queen is not paying for it herself so get ready to see some increases leading into the 10-year project.
Rising Property Costs
2016 was a boom year for the housing market across the UK with double digit percentage growth in the average price of a home in most areas. In the London area alone the highest percent change from the selling price of a property in 2015 to 2016 was 19.91%. The lowest percent increase within London was still a double digit one, coming in at 14.79%. Will prices for property continue to rise at these progressive rates? Projections for 2017 are highly debatable. Some are projecting a plateau, while still others are projecting a possible decrease. One thing is for sure right now. The effects of Brexit, The Buckingham Palace renovation project and other economic and fiscal policies are playing an unquestionable role in the valuation of your property and your tax payments.
Whatever happens in the UK housing market going into 2017 remains to be seen. With a continued foreign emigration to London, the population in the year 2030 is slated to be over 51% international born citizens. The population boom continues to drive high demand in the housing market. With high demand comes high price tags and high taxes. If living in London and the surrounding area is something that is important to you, be prepared to shell out big bucks for that privilege.
Author: Carol Trehearn