Three Major Impacts for the UK Property Market in 2021

2021 promises to be an unusual mix of wariness and enthusiasm in the UK property market, as we deal with the Covid-induced financial indigestion.

1. SDLT Holiday

There are still no plans to extend the Stamp Duty Holiday. The budget is on March 3 2021 (four weeks before the holiday is due to end), so Rishi Sunak may review SDLT in line with all revenue matters.

But with estate agents operating and home moves still happenings, the pressure to extend will remain.

2. Capital Gains Tax

Rumour is, the Chancellor may review property taxes - expressly Capital Gains Tax (CGT). It would be an easy and obvious way to close the pandemic-related deficit.

Talk is of doubling the rate and reducing many of property-related exemptions, in part to recoup up to ￡14 billion a year for the Treasury.

If this happens, Buy-to-let investors may feel the biggest impact may be in for a challenging time. And in a pre-emptive move to avoid hefty future tax bills, we could see a lot of BTL portfolios come to the market.

3. Leasehold Reform

After yesterday's announcement on Leasehold reform, property investors will be feeling hard done by in 2021. However, if we see some of them liquidate their position, this may improve housing stock supply. And with a shift in dynamics, new opportunities will come to the fore.

In an attempt to find the silk purse in these rumours, what do you think these opportunities might be?