Tag Archives: british
Calls for large scale build to rent projects to be exempt from new additional home tax
The property industry is urging the UK Government to protect large scale investment in residential property from a proposed higher rate of Stamp Duty for purchasing additional homes. The British Property Federation says in its response to the consultation on the new tax that is due to be introduced in April that unless they are protected the housing industry risks losing much needed investment in new housing. It warns that the higher rate of tax could cancel out the progress that the build to rent sector has made since 2011 with new data showing that there are now over 30,000 build to rent units with planning permission in the UK, a 47% increase since October, when the BPF calculated there to be 21,000 units with permission. The BPF has noted that since the turn of the year there have been significant build to rent investment announcements made by the sector, these include Grainger Plc pledging to invest £850 million in the private rented sector by 2020. Legal and General is working with Dutch pension fund PGGM to deliver a £600 million build to rent investment plan, Greystar Europe Holdings, one of the USA’s biggest housing investors, announcing the acquisition of a 26.5 acre site in Greenford, West London, on which it will develop the UK’s largest purpose built rented housing scheme and the Royal Bank of Scotland has pledged £1 billion in lending for the build to rent sector. The BPF is calling for the introduction of a simple portfolio test to exempt institutional investors with 15 or more units in their portfolio from the additional tax. ‘Since the start of the year, there has been investment in the build to rent sector on a scale that we have never seen before. Following the changes that were made to SDLT a few years ago, investment in the sector has really taken off, and it is great to see pension funds and other institutions now investing heavily in housing,’ said Melanie Leech, BPF chief executive. ‘There is cross-party support for new housing and a better quality rented sector, and we would expect Government to recognise the impact that the SDLT surcharge might have on investment in new homes, and the creation of a better quality rental product,’ she added. Without such an exemption there would be a significant negative impact on the sector, according to Andrew Stanford, UK residential fund manager at LaSalle Investment Management and chair of the BPF’s Build to Rent Committee. ‘LaSalle intends to provide good quality, built to rent homes across the country for customers on their journey to home ownership or for customers who want the flexibility and security of renting a home with a long term institutional landlord,’ he said. ‘We were encouraged by the proposed exemption for large scale investors from the additional 3% SDLT charges. If the exemption was not implemented it would have a significant negative impact on our ability to invest in… Continue reading
Indian, British and Pakistani buyers top list of non-Gulf area investors in Dubai property
Indian, British and Pakistani buyers topped the list of non Gulf area overseas real estate investment in Dubai in 2015, according to official figures. Indians accounted for AED20 billion ($5 billion) of transactions last year, followed by British buyers with AED10 billion and Pakistanis with AED8 billion, according to the latest data from the Dubai Land Department (DLD). However, buyers from the Gulf Co-operation Council states accounted for almost a third of sales, investing AED44 billion and Emiratis accounted for half of that at AED26.08 billion. Overall, the data shows that 55,928 investors from 150 nationalities invested a total of AED135 billion or $26 billion in Dubai real estate during 2015. Buyers from Saudi Arabia invested AED9 billion in property and those Kuwait accounted for AED3 billion of investment, followed by investors from Qatar, Oman and Bahrain. The data also show that Arabs from outside the GCC invested a total of AED16 billion in the Dubai real estate market, with Jordanians ranking the highest value investors with AED3.5 billion. Egyptians invested AED2.55 billion and Lebanese nationals invested AED2.53 billion. Significant investments were also made by nationals from Iraqi, Yemen, Sudan, Palestine, Libya, and Algeria. According to Sultan Butti Bin Merjen, director-general of the DLD the sheer diversity of investors in Dubai’s real estate market is an overwhelming endorsement of the emirate’s international appeal to property investors. ‘Dubai enjoys an extremely high degree of acceptance from international investors because of its attributes and return on investment,’ he said. ‘We are reassured with the size of investments from UAE citizens, in addition to the enormous demand from the GCC which provides the market with a strong shield from seasonal fluctuations,’ he added. Continue reading
Location is still the top consideration when buying a home in the UK
The old cliché location, location, location when it comes to buying a home is still relevant with new research showing it is the top reason for buyers making up their mind. More than half, 56% of British people make an offer on a home because they fall in love with it with location, price and garden the top three reasons for doing so. Being close to friends is the least important factor when choosing the location of a property with only 9% of buyers saying so, according to the research from conveyancing services firm My Home Move. Some 58% cited location as the top characteristic that made them fall in love with their home, 37% said it was price and 29% said it was the garden. When it comes to that all important location some 40% said transport links were important, 35% said a green area nearby and 32% said being near to shops, cafes and restaurants. Women are more likely to base their decision on being close to family at 32% compared to 26% of men yet both genders list being close to friends as the least important factor, shared by only 9%. For those in their 20s, having a nearby school and being in an up and coming area ranked in joint second place, with 34% saying these factors were important. This suggests that the younger age group are planning ahead, as well as looking to settle in an area that has investment potential as it shifts from being on the cusp of gentrification, to a sought after location. Location is also the most important factor in putting people off a property with 43% said a bad location would mean not buying a property. Some 40% would be put off a home that as too expensive and 34% by the appearance of the property. Younger home owners aged between 21 and 30 were less put off by the location, with only 37% citing this. However this age group tends to be more limited on choice due to job location and affordability issues than older Brits. ‘For most people, location is the secret ingredient that makes them fall in or out of love with their home. People also love a bargain, which explains why cost was the second most important factor in making someone fall in love with their home,’ said Doug Crawford, chief executive officer of My Home Move. ‘As house prices continue to climb and many first time buyers struggle to take their first step onto the property ladder, younger buyers are more willing to scout out up and coming areas to try and find a bargain to fall in love with,’ he explained. ‘Unfortunately, not all of those buying a home have the flexibility to pick and choose their ideal location or perfect interiors, especially as demand continues to outstrip supply. Compromise may have to become… Continue reading
