While British politics remains mired in continual and it seems perpetual uncertainty or lack of resolution; there still remain such absolute certainties; the British weather has kicked in, there is a new season of Strictly Come Dancing, Labour and Conservatives MP’s don’t get on, new political parties don’t seem to last very long, the tube goes wrong, and every Monday morning in the Magnet Capital office the dynamics begins with critical analysis of whoever’s footie team is (temporarily) in the ascendancy before analysis of the new episode of Peaky Blinders and onto the day’s loans business…
Some things do change though; England finally won a Cricket World Cup this glorious Summer; opening a bank account does take just a bit longer than 5 years ago, and the government might be looking at reforming the stamp duty system that from 2015 that along with other issues brought to an end the UK’s 20 year property boom
For all the political unknowns, and threats of tax changes and economic slowdown the UK economy remains the 6th biggest in the world and economic growth in Britain in the current year for all the talk, growth is the same as the average in the Euro zone (1), and we are way ahead of Germany and Italy this year, the Government is (so far) in control of the Budget deficit, and with historic low interest rates, and a lot of money waiting to be deployed (liquidity) the ability to re-bound with confidence can be quick – should certainty in the market return
Making predictions in current times on Brexit, the property market, Manchester United’s next score and what happens to Stamp Duty may appear a mugs game at the moment, is an election coming? We seem in a waiting period.
Stamp duty changes proposed have included the seller paying, instead of the buyer, which we think is impractical, sharing the payment (also difficult), raising the minimum charge, cutting the rates at the top (obvious, but looks like it is helping rich people), but something will have to move eventually, as like in all taxes if the take drops then a rethink is needed.
Property business issues may be the same, interest rates, stamp duty, the costs of build changing, but the fundamentals of build haven’t – Most developers just want to get on and build, find the next project and move on…
However, here at Magnet Capital we operate in the engine room of the property world, deals still happen, so we don’t feel the slowdown as some have on higher unit prices, particularly in parts of the South East – and a year in since we started we are very proud the map of England and Wales in our office, is now ablaze with green dots of ongoing projects we have signed up and after 12 months showing our first 6 yellow redemptions where we have lent which have successfully completed.
The team has grown with two new starters this month and a bigger office, roll on Year 2….