Winkworth boss warns Chancellor against scrapping non-dom status

Chancellor Jeremy Hunt is reported to be considering scrapping non-dom status in the latest rumour ahead of this week’s Budget.

It comes as agents are hopeful of a boost to the property market such as Stamp Duty reform.

Dominic Agace, chief executive of estate agency franchise brand Winkworth, warned the Government should be careful about steps that will discourage successful wealth generators.

He said scrapping non-dom status is “highly likely” to mean many just choose another country to base themselves and “we will lose the benefit of their wealth generation and not raise the monies required.”

Agace added: “Undoubtedly, this would be a negative for London's international allure and, in turn, London's property market."

Outlining measures Winkworth would like to see in the Budget, Agace said: "We expect to see support for first time buyers with a help to buy update or mortgage guarantee scheme, allowing those that can afford mortgages but can't raise the deposit to get on the ladder.  This will also support demands to ensure housebuilders deliver homes for first time buyers.

The Lifetime ISA and 25% bonus on £4,000 invested per year limited to £450,000 properties needs to be tweaked and simplified to allow for price growth. A cut to income tax appears heavily flagged which will support the UK recovery in 2024.”

The agency boss urged the Chancellor to introduce tax incentives through inheritance tax or Stamp Duty concessions to encourage downsizers and stimulate a healthy flow through the property market.

He said: “A revision to  stamp duty thresholds is vital to reflect the fact  that a £1m property is very different in different parts of the country. Due to the cost of property in London, young families  are being affected because they need space for growing families. The capital should not be a city just for the very wealthy.

 "We must continue to encourage a global London to attract international buyers to invest and/or live here – avoiding punitive moves that will affect the delicate balance of the market and all the suppliers and services which benefit from high net worth buyers.

“Many house builders rely on international investors buying at an earlier stage to ensure the viability of a scheme. The investors also contribute to the homes available for private renters."

Meanwhile, it has also been reported that Hunt has scrapped controversial plans for a 1% deposit mortgage scheme.