Tag Archives: british
Buy to let investors pushing up property prices in UK ahead of tax change
The UK residential property market saw a modest rise in new instructions in January but despite higher supply there is still considerable demand due to buy to let investors seeking to avoid Aprils stamp duty change. The latest residential market survey from the Royal Institution of Chartered Surveyors also says that this means that the near term pressure on prices is intensifying despite a higher level of supply. Feedback to the survey continues to suggest that the recent increase in demand is due to a rush of buy to let investors looking to buy before the 3% stamp duty surcharge comes into effect in April. Some 74% of respondents expect there will be an increase in buy to let purchase as supply picked up across UK, most notably in London where the increase has been significant with a net balance of +58% more noting an increase. Elsewhere, sales instructions across the UK were much flatter. New buyer enquiries rose for the tenth successive month in January, with the pace of growth in enquiries accelerating for a second consecutive report. As activity in the housing market gathers pace overall, agreed sales have risen over the month at the fastest pace since April 2014. The picture across the UK is mixed but most areas have seen a rise in sales since the start of the year and further increases are expected. Supply has also gathered pace in the past two months but stock remains low with 46 properties per branch from 44.5, which is still 21% down compared to a year ago. Even with an improvement in supply, the rush to acquire buy to let property is pushing prices up, with 49% more surveyors reporting prices to have risen in January. Looking ahead, house prices are projected to rise further over the next 12 months, with 72% more contributors expecting prices to increase rather than fall. In the lettings market, tenant demand increased once more, with all areas of the UK seeing a rise in interest from prospective tenants during the three months to January and at the same time, landlord instructions were broadly flat. This extends an uninterrupted run in which supply has failed to keep pace with demand stretching back to 2009. As a result, expectations point to continued rental growth in all parts of the UK both at 12 month and five year time horizons, the report says. ‘How the tax changes planned for the buy to let sector over the next few years plays out remains to be seen, but there are concerns raised in the survey that existing landlords will look to either gradually scale back on their portfolios or exit the market altogether as the more penal regime begins to bite,’ said Simon Rubinsohn, RICS chief economist. ‘Against this backdrop, it is perhaps not surprising that our key indicators point to further rent, as well as house price increases. Steve Bolton, founder of Platinum Property Partners, pointed out that those investors… Continue reading
Average prices in England and Wales now over £290,000, latest index shows
Home values in England and Wales rose by 0.2% in January taking the average house price above £290,000, the latest price index shows. ss England and Wales. Last June, average prices crossed the £280,000 marker, but we have to go back to August 2014 for the crossing of the £270,000 threshold’ said Adrian Gill, director of Reeds Rains and Your Move estate agents. ‘We’re now passing these milestones in quicker and quicker succession, as prices pick up pace. This hastening is good news for home owners, but means it’s getting harder for those still hoping for home ownership. In the last 12 months there’s been a 5.5% upswing in average property prices compared to just a 2.1% rise in average earnings,’ he pointed out. However, he also pointed out that aspiring buyers now have much more support to help get a foothold on the ladder, with the launch of the Help to Buy ISA in December and the new Starter Homes scheme this year. ‘But in the long term there has to be a huge breakthrough in house building if we’re going meet the growing demand for homes and keep house price growth sensible,’ added Gill. The analysis of the data says that while the South East remains the region with the fastest year on year price rise at 7.7%, London has now moved to second place. The typical property in London has increased in value by £34,485 in the last year, almost equal to the £35,333 median gross annual earnings in the capital. Gill explained that this 6.2% rise in the capital’s home values has been driven by activity in the more affordable outer boroughs. The cheapest 11 boroughs have seen the biggest boost in property prices, up 14% or £47,052 year on year, with a typical home in Newham now costing £63,429 or 23% more than in December 2014. ‘As London workers attempt to find affordable places to buy, prices are rising in the nearby commuter towns as well. The fastest growth year on year across the country has been experienced in Luton where home values are up 17.5%, with trains here only taking 23 minutes to get into St Pancras Station,’ said Gill. He also said that while home sales saw the usual seasonal slump in January, falling 26% from the previous month’s level, this is better than expected, with sales typically dropping by 28% between these two months. ‘Regionally, there has been a significant upswing in sales in the North West, rising 8.8% in the last quarter of 2015, compared to the same period in 2014. We are now seeing faster growth in sales in lower-priced areas, as buyers seek more property for their money,’ Gill explained. He also said that when looking at the type of property selling successfully, there has been a turnaround in the trend seen in recent years. Sales of detached homes are now rising fastest, up 5%… Continue reading
Survey reveals many British buyers find buying a home confusing and unfair
Some 62% of British people find the UK property buying process confusing and 37% think it is unfair, according to new research. The main reason buyers think it is confusing is the number of expensive and complicated processes they have to go through to buy a new home, the survey from estate agent Tepilo shows. Almost a third, 27%, said the buying process is far too complicated and expensive, 21% think transactions take too long and 14% worry about the risk of a sale falling through prior to exchange when they've already forked out money on legal and survey fees. Out of the 37% who found the buying process unfair 40% said that it could be fairer if once a sale has been agreed it could be made legally binding so no one could pull out, which would help to reduce the worry of losing money spent on legal and survey fees if a sale falls through. A further 35% think bidding above an already accepted offer shouldn't be allowed and almost 31% think that sellers should be responsible for paying for the survey on the house they are selling. When buyers were asked whether they knew the meaning of key house buying terms, the results were surprising, with many not knowing what phrases like conveyancing, EPC and land registry fees mean. Just 41% know what a mortgage in principle is, only 45% know what a homebuyers report is and 48% know what conveyancing means. The survey found that 60% know what the terms exchange of contracts and stamp duty mean, 53% understanding what the land registry fee is and 50% knowing what an EPC is. Some 5% did not know any of these terms. A staggering five per cent of buyers admitted to not knowing what any of the terms meant! Actually moving was stressful for 42%, while 31% said it was deciding how much to offer on a property. Getting a mortgage agreed in principle was stressful for 28% and deciding which solicitor to use by 27%. ‘It's staggering to see just how many people think that buying a house in the UK is complicated and unfair. It shouldn't be this way, as the actual process of buying and selling houses is fairly straight forward if you understand it,’ said Sarah Beeny, owner of Tepilo. ‘However, many estate agents and solicitors benefit from people thinking the process is complicated, as it allows them to charge astronomical fees to look after key elements of transactions on behalf of buyers and sellers,’ she pointed out. ‘To feel more comfortable when buying and selling, I'd advise people to really research the process thoroughly before purchasing a new home or selling an existing one. Gen up on all the steps involved, the average costs for each and all the terms associated with property transactions. That way, you'll feel much more empowered and in control of the process, which will help… Continue reading
