Twindig Housing Market Index (HMI) - 20 Mar 21

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Housing market investors are nervously awaiting the news on Capital Gains Tax reform. Many expect to see proposals for Capital Gains Tax rates to be brought into line with Income Tax (which would lead to big increases in capital gains tax liabilities). A few voiced concerns that the reforms could go further and either cap or tax away the current Capital Gains Tax exemption on primary residences. Such a move would help to take the heat out of house price inflation as tax liabilities would reduce the fire-power of the Bank of Mum and Dad. Changes to inheritance may also have a similar impact.

Increasing taxes on homeowners would of course be controversial, unpopular with the property 'haves' and popular with the property 'have-nots'. However, with the haves outnumbering the have nots it would be a brave Government that publishes a policy to upset homeowners.