Tag Archives: british
UK politians favour council tax change rather than new mansion tax
The majority of MPs in the UK believe additional higher rate council tax bands would be a better way to reform annual property taxes on high value homes than introducing a mansion tax. A survey found 69% back the council tax change while 75% agree with the need for a revaluation of council tax in general. The poll commissioned by the British Property Federation (BPF) also looked specifically at what Labour MPs think as it is the Labour Party that wants to introduce a mansion tax if it comes to power at the general election in May. It found that 39% of Labour Party’s MPs favour additional higher rate council tax bands over a mansion tax, despite the party championing the tax as one of its flagship policies ahead of the election. Just over half, 56%, thought a mansion tax would be preferable. The majority of the Liberal Democrat MPs surveyed, 89%, also prefer additional council tax bands to a mansion tax, as do 92% Conservative MPs. The Liberal Democrats first mooted the idea of a mansion tax in 2012. Asked separately whether they would support a revaluation of all homes to update council tax, 75% of MPs agreed. Support is strongest amongst Labour MPs at 87%, compared to 64% of Conservative MPs. It seems that this is a priority issue for MPs, with the majority, 53%, of those who would like to see reform preferring revaluation during the next parliament. The BPF has long made the case for council tax reform, pointing out that the 24 year old tax is still calculated on house prices in 1991. Since then, house price inflation has varied significantly, ranging from 160% to over 400% across England’s regions. It has urged policymakers to consider council tax revaluation and the addition of more council tax bands as a fairer and more efficient alternative to the mansion tax, which would be unfairly concentrated in London and could act as a deterrent to investment in the UK’s built environment. The BPF says that a council tax revaluation would be very easy to implement in the next Parliament because there is already legislative provision for it in the Local Government Act 2003. It would also accord with the advice of the Lyons Inquiry to Labour in 2007, which amongst its recommendations, suggested that a future government should revalue council tax and add new council tax bands, in order to update the tax base and improve fairness for taxpayers. ‘This poll shows that a full council tax revaluation rightly commands widespread political support, particularly across the Labour party, and that the majority of MPs recognise that basing council tax on 1991 house prices is simply unsustainable,’ said Ian Fletcher, director of policy at the British Property Federation. ‘The mansion tax is a political gimmick that is more about the narrative of rich vs the rest than anything else. Reforming council tax through a revaluation and raising revenue… Continue reading
Ski property market in French Alps likely to be boosted by low interest rates
With snow finally arriving across the French Alps a flurry of interest is expected in ski property, especially since interest rates offered by lenders in France are so low. Rates below 3% were available in 2014 and the beginning of 2015 may herald even lower rates in France as the long term outlook for growth in Europe remains weak, according to John Busby, private clients director of French Private Finance. He pointed out that the TEC 10 index dropped below 1% for the first time in December, hitting 0.86%. ‘It is worth stressing again that this is now the rate investors will receive when lending to the French Government for a 10 year period. Hopefully this drop will continue to make it through to retail mortgage rates and so buyers will continue to benefit, said Busby. He also pointed out that it seems that the controversial social charges of 15.5% which were added to French capital gains and rental income tax are in fact illegal under European law and many people who sold a property during 2014 are now making cases to reclaim the tax which they have overpaid. ‘This is also reassuring news for those looking to buy over the busy ski property season,’ added Busby. According to Francois Marchand, general manager at Erna Low Property, the ever lower interest rates offered by the French Banks and a weakening Euro versus the Sterling has triggered earlier property searching by clients in the French Alps. ‘Enquiries from savvy investors are up 20% year on year since the end of the summer. Site visits have been taking place since the beginning of September,’ he said. He explained that over the past 12 months, many exciting new developments have appeared in the French Alps with a few new hot spots for investors for example Châtel, part of the Portes du Soleil ski area. Erna Low Property has sourced a few new property developments ready for this ski season or for next December 2015 with leaseback options. Les Gets, also part of the Portes du Soleil and a short drive from Geneva Airport, having been short of new property developments for sale for a few years, due to a need to upgrade the draining systems and water supplies, now has a greater variety of new properties for sale. Tignes les Brevieres has long been popular for its flexible leaseback investment with the British market, with direct access to the world renowned Espace Killy ski domain and in the same ski area, La Plagne has a new leaseback property investment, ski-in ski-out, of fully furnished apartments ready in December 2016. ‘Over the past two years, we have experienced a great increase in activity levels, the winter season has started in the middle of summer for us, which is something we last saw in 2008,’ said James Ross, sales manager at Erna Low Property . ‘It appears that the French Alps is enjoying a renaissance as a favourite… Continue reading
Home sales fall in Miami after two months of significant growth
After two months of significant growth, home sales in Miami fell by 9.2% in November but prices are still rising, but at a slower pace than before. Miami has been one area in the United States that has been leading the real estate recovery but some properties are now seeing demand fall, according to data from the Miami Association of Realtors. While sales of single family homes decreased a negligible 1% compared to a year ago, condo sales were down 15.5% while combined sales were down 9.2%. ‘We are experiencing more moderate growth, which reflects a healthier market and more balance between buyers and sellers, in Miami sales remain strong compared to the record sales activity of the previous three years,’ said Liza Mendez, chairman of the board of the Miami Association of Realtors. Single family home prices, which again increased in November year on year, remain at affordable 2004 levels despite three years of consistent year on year increases. Condo prices also increased in November, marking 41 months of growth in the last 42 months. The median sale price for single family homes increased 5.4% to $245,000 from $232,000 in November 2013. The average sale price for single family homes increased 8% from $366,309 in November 2013 to $395,786 last month. Compared to November 2013, the median sale price for condominiums also increased 5.4% to $189,777 from $180,000 a year prior. The average sale price for condominiums increased 11.9% to $311,323 from $348,290 in November 2013. The data also shows that Miami properties continue to sell rapidly and at nearly asking price, reflecting strong demand. The median number of days on the market for single family homes sold in November was just 47 days, an increase of 20.5% from November 2013. The average percent of original list price received was 93.9%, down a negligible 2.3% from a year earlier. The median number of days on the market for condominiums sold in November was 57 days, an increase of 29.5% compared to the same period in 2013. The average sales price was 93.9% of the asking price, a decrease of 2.6%. Cash sales in Miami continue to decline and the association said this is because more financing becomes available. Still, access to mortgage loans for condominium buyers remains limited, impeding further market strengthening. In Miami-Dade County, 53.3% of total closed sales in November were all cash transactions, compared to 61.7% in November 2013. Cash sales in Miami are still double the national figure of 25%. All cash sales accounted for 41.7% of single family home and 63.8% of condominium closings, compared to a year earlier when cash sales were 46.7% of single family home sales and 73.2% of condominium sales. Since nearly 90% of foreign buyers in Florida purchase properties all cash, this continues to reflect the much stronger presence of international buyers in the Miami real estate market. While traditional sales continue to increase, distressed property transactions in November again declined in Miami-Dade due to fewer short… Continue reading
