Monday 26 June 2023

ULEZ Tax grab sees property prices plummet

Makes sense doesn't it? Taxes go up in a particular area and demand goes down - after all the running cost of living somewhere has just risen for no good. I haven't personally noticed the air quality in Central(ish) London improving, so let's just call it what it is, a tax grab. I have read recently that the ULEZ pilot scheme which covered the Congestion Zone actually did not materially affect house prices.

Shock Horror

Well, I'm not totally surprised. I'm thinking that people within the Congestion Zone are likely to be affluent individuals who more than likely own a newer compliant car anyway, or don't even have a car. So if your income is 7 figures upgrading your car to something slightly newer or whatever is hardly going to break the bank.

What about outer London?

The ULEZ is expanding, as far as zone 6 even. Now here things change dramatically. We haven't got the tube or train infrastructure and people certainly are less well off than those living in penthouses in Belgravia. The impact of having to change their vehicle or pay a daily charge is a greater percentage of their (disposable) income. Let's look at the stats for when it expanded to the South Circular - the impacted boroughs' house prices crept up by 5.3% in the 12 months since October 2021, falling short of the wider London statistic of 5.7%. Westminster actually dropped by 5% - Kensington and Chelsea  as well as Hammersmith and Fulham dropped 4.1% and 1.1% respectively.

Mass Exodus?

It certainly seems like the frog was boiled too vigorously and there is a mass exodus on our hands. Is it ULEZ or are there other factors at play? We can only speculate of course, but looking at it from this angle I'm seeing that the London market could be subdued for some time because of these draconian measures to get everyone in a Tesla. I'm still not convinced, but Sadiq is doing his best to make driving a combustion engine just as expensive! A win for Elon and a win for Sadiq, crafty!

Your property's value

More importantly you are interested in your property's value. To ensure that you future-proof for those that do want to "be green" (get their energy from a coal power plant instead of from a petrol pump) you can install a charging point in your home in order to facilitate such green ambitions. Sadly we are at the mercy of those we vote for, so next time you vote just remember to vote with your house price in mind!

If you are looking for more tips on how to maximise your property's value then do drop me a line and I can help you get the best out of your property. For now why not check out this video I made?

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