Budget Reaction

23rd March 2011
From Ben Everest, partner at West End specialist estate agency, LDG

Ben Everest, partner at West End specialist estate agency, LDG, comments: “We welcome The Chancellor’s announcement that the default answer to planning applications will now be “yes”. This, together with Eric Pickles’ announcement that the need to apply for planning permission to convert empty offices or shops into residential homes is to be scrapped, should help to increase stock levels of residential housing.

“In London’s West End, there is a distinct shortage of residential property and at present, areas that are controlled by Camden Council have very strict planning procedures which apply to converting commercial premises into residential accommodation. Currently, purchasers need to prove that the premises has not been a viable business premise for at least two years – this means two years of paying business rates, mortgage payments and bills for an empty building which produces no income.

“I am currently working with a number of developers who are looking at office to residential conversions – some are in prime areas which will make fantastic, ground-breaking new homes. Also, because of other planning conditions, developers will need to incorporate a mixture of affordable and social housing into their schemes; this will benefit people at all income levels and ease the soaring demand for residential accommodation in the area.

“Another interesting announcement from Mr Osborne is the proposed ‘crackdown’ on Stamp Duty avoidance, in anticipation of the Stamp Duty rise in April. The Chancellor plans to make it more difficult for buyers to avoid Stamp Duty by purchasing property via ‘corporate vehicles’; we have experienced people doing this in the past, but I do not expect the it to have a significant effect on the West End market. In the run-up to the Stamp Duty increase, I have only had one completion that was agreed just below the £1million mark in order to save on Stamp Duty.

“It is encouraging to hear the Chancellor’s plans to help first time buyers by offering loans to help boost their deposits; although the West End tends to be out of reach for the vast majority of first time buyers, it is good to see the government recognising the issues which are affecting the market.”

For further information and to enquire about properties LDG is currently marketing, please visit www.ldg.co.uk or telephone: 020 7580 1010.