The ‘polo mint’ effect: an unexpected side effect of remote working A recent survey has suggest- ed that the trend for working at home could revive the local high street but cause what is being known as the ‘polo mint’ effect. The survey, by the Royal Insti- tution of Chartered Surveyors, found that 93% of members saw businesses scaling back their office space in the next two years. This move away from urban hubs could prompt a hol- lowing out of city centers - AKA the ‘polo mint’ effect. The rise in home working due to the COVID-19 pandemic has resulted in local shop hubs ben- efiting but offices and shops in city centres left struggling. Three-quarters of those sur- veyed said that they believed the market was in a downturn. Head of UK government rela- tions for RICS, Hew Edgar says that this effect could be utilised to free up property for housing: “It’s quite clear the pandemic is going to result in more space becoming available. One of the obvious answers to that is to begin... to think about address- ing the housing crisis that we have through use of some of this space.”
Stamp Duty threshold increase likely to drive growth in the property sector
Following the Chancellor of the Exchequer’s announcement on 8 th July that the stamp duty threshold had been raised to £500,000, the property industry have reacted with enthusi- asim and positivity after concerns that the COVID-19 lockdown would nega- tively effect the sector. Chancellor Rishi Sunak announced a package of measures that aim to make people feel more confident in buying or selling property, including the temporary change to stamp duty, meaning buyers will pay no stamp duty on the first £500,000 when they move home until the 31 st March 2021. This means that nearly 9 our of 10 people getting onto or moving up on the prop- erty ladder will pay no stamp duty at all. The announcement has since been met with positivity from the sector, with mortgage lenders praising the effort to stimulate the industry. Chief Executive at NAEA Propertymark Mark Hayward said: “These measures will enable people looking to buy a home to have the confidence and stability to be able to move forward with their purchase,
which in turn will have a knock on effect on the wider economy as people buy white goods and furniture.” Capital Markets and Digital Director at Kensington Mortgages Alex Maddox commented: “We anticipate the recent- ly announced temporary stamp duty changes will help to kickstart the housing market and increase demand for mortgage products that are tailored and suited to individual’s needs.” Some industry experts, however, are concerned that the stamp duty change is not a perfect solution, with a lack of mortgage products in the market resulting in deposit levels rising. “In our view, it’ll drive a surge in demand, but it’s more than likely going to support people to buy bigger than helping those who are struggling to get onto the prop- erty ladder”, says Twenty7Tec Sales Director Phil Bailey. Regardless, the temporary stamp duty change is the first step in ensuring the housing market stays afloat, after a difficult few months when the industry saw the highest levels of uncertainty for generations.
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