2 Jul

Property market 'returning to normal'

Property market 'returning to normal'

Property developers have been encouraged to buy houses and flats in the current market.

Editor of City AM Allister Heath told readers that the housing market is looking healthier than it has in a long time, despite recent the Land Registry's recent figures which revealed house prices in England and Wales fell by 0.2 per cent month-on-month in May.

Mr Heath stated that this was a good indication that the housing market was returning to "some sort of rationality".

He said: "Another way to look at all of these numbers is to say that property is a good way to enjoy the benefits of economic growth while hedging for inflation."

The recent increase in capital gains tax (CGT) from 18 per cent to 28 per cent for top-earners will also improve the market by giving homebuyers an incentive to purchase even larger homes, the editor commented.

Managing director of first-time buyer consultancy FirstRungNow.com Helen Adams agreed that the CGT hike could be good news for potential buyers.

She said that it will encourage people to sell properties which will bring house prices down and boost sales for first-time buyers.

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