Despite Keir Starmer’s warning of tough times ahead, and suggestion that some parts of the Autumn Budget would be “painful,” figures from London’s property industry have maintained a cautious optimism about the immediate and mid-term future of the market.
At Century Capital’s most recent Breakfast Briefing, hosted on 26th September at The Arts Club in Mayfair, key figures in the property industry held a discussion regarding the future of the market.
At the centre of the event was a panel debate, chaired by media commentator Russell Quirk and featuring: Colin Horton, commercial director at Project Chartered Surveyors and star of Channel 4’s Selling Super Houses; property journalist Nigel Lewis; director of UK Property Development Andy Morrison; and barrister James Tumbridge, partner at Keystone Law.
The central discussion was the Labour Government and its potential impact on the property market, including its ability to deliver on its pledge of building 1.5 million new homes, and its chances of having a positive impact on interest rates.
All of the panellists agreed that Labour’s push to increase taxes – including so-called ‘wealth taxes’ such as Capital Gains Tax and Stamp Duty – could have a detrimental effect on the property market, but that this impact was one of hesitation rather than desertion.
Tumbridge confirmed that foreign investors, especially those looking at commercial assets, were keen to see what the Budget has in store before making any moves, but have not rejected the UK, and especially London, as a major investment destination.
A key reason for optimism among commentators was the broad expectation that interest rates would soon going to fall from their current level of 5%.
There was also widespread speculation that interest rates would almost certainly see one, if not two reductions before the end of 2024.
Paul Munford, CEO and founder of Century Capital, said: “It was another great gathering of minds for our Breakfast Briefing.
“The insights shared were invaluable, highlighting the resilience and adaptability of the UK property market.
“Despite the potential upcoming tax changes, the underlying fundamentals remain strong, particularly in London.
“The expected easing of interest rates will drive confidence and transaction levels across the board.
“I want to thank all of the panellists for their time and their brilliant insights, and everyone who
attended for making it another really valuable event.”
