Tag Archives: cookies
UK house prices up 7% year on year, latest index shows
UK house prices increased by 7% in the year to October 2015, up from 6.1% in the year to September 2015, according to the latest official statistics. The data from the Office of National Statistics also shows growth of 7.4% in England, 1% in Wales, 0.9% in Scotland and 10.3% in Northern Ireland. Average mix-adjusted house prices in October 2015 reached £300,000 in England and stood at £174,000 in Wales, £196,000 in Scotland and £158,000 in Northern Ireland. Excluding London and the South East, UK house prices increased by 5.6% in the 12 months to October 2015 and month on month on a seasonally adjusted basis, average house prices increased by 0.8%. A breakdown of the figures show that the pace of annual house price growth was again varied across the nine English regions in October 2015. The largest annual increase was in the East at 10.4% followed by the South East at 9.5%. The North East had the lowest annual growth of the nine regions, with prices increasing 2.9% in the year to October 2015 but up from 1.8% in the year to September. London prices increased by 7.7% over the year to October 2015, up from 7.2% in the year to September 2015. Prices paid by first time buyers were 5.9% higher on average than in October 2014 while for existing owners prices increased by 7.4% for the same period. Rishi Passi, chief executive officer of Oblix Capital, believes that prices are set to continue growing in 2016. ‘As the economy stabilises, driven by improving job prospects, rising wages and recurring delays in interest rate rises, for the meantime at least, it’s likely this surge in house sales and price inflation will continue,’ he said. ‘Warnings that growth on this scale is unsustainable may ring true in the long term, especially in crowded London and the South East, as affordability issues become too significant a barrier to entry for first time buyers and low income families. Developers should take heed and look to other regions for their next opportunity,’ he added. Continue reading
Investigation reveals alarming flood risk for new homes in UK
Floods have already hit thousands of homes in the UK this winter and now an investigation has found that many more homes being built under the government’s new home building drive are also at risk. Nearly half the areas earmarked for fast tracked housing development by a flagship government scheme are at significant risk of flooding, making thousands of new homes potentially uninsurable, according to a Greenpeace investigation. The sites targeted by a recent house building drive unveiled by Chancellor George Osborne include two areas threatened by the latest floods and others which were inundated during previous emergencies, the Greenpeace report says. It claims that the findings raise more questions about the government’s approach to flood risk management amidst growing controversy over delays in the construction of flood defences for existing homes in areas hit by flooding in Cumbria and Lancashire in recent days. Earlier this year, the Chancellor announced a flagship housing scheme which saw 20 brownfield sites around the country designated as new housing zones, with local councils given access to money and experts to expedite the building process. Greenpeace UK researchers used details obtained through Freedom of Information requests to plot the location of these housing zones, and cross referenced this with flood risk maps from the Environment Agency. They found around nine of the 20 zones, comprising a total of 9,000 planned new homes, are in areas now identified as being partially or fully at risk from flooding. Under the terms of a new government flood insurance scheme soon to be implemented, these properties would be excluded from cover. The report claims that this would leave home owners reliant on commercial insurers who may choose not to insure homes built in flood zones, or do so at prohibitively expensive rates. A spokesperson for Flood Re confirmed to Greenpeace that ‘properties built from 2009 onwards’ in flood risk areas are still excluded from the government scheme. ‘It would be irresponsible to incentivise developers to build in such areas simply because those properties could have their insured flood risk ceded to Flood Re,’ the spokesperson added. Greenpeace UK also obtained new figures showing that the number of people employed by the Environment Agency to work on Flood and Coastal Erosion Risk Management fell by 230, a 5% cut, in the last three years. The agency plays a key role advising councils on flood risk. ‘The current flood emergency isn’t even over yet, and the government is already storing up the next one. Rushing to build thousands of new homes in flood risk areas whilst at the same time cutting flood protection staff is a recipe for disaster,’ said Greenpeace UK chief scientist Dr Doug Parr. ‘When it comes to energy, flood defences, and other big infrastructure projects, we need the government's hands to start following what the government's mouth is saying rather than acting of their own accord,’ he added. The details in the report indicate that in Yorkshire there are flood warnings… Continue reading
Stamp duty increase for UK landlords equivalent to 11 months net income
The cost of the new 3% stamp duty rate for UK landlords announced recently in the Autumn Statement would be the equivalent to 11 months income for the average mortgaged landlord, new research has found. It is suggested that most private sector landlords buying after April 2016, when the measure is introduced, will likely try to offset the cost by offering less when purchasing. It comes at a time when the rent on newly let properties has increased by 2% year on year, led by markets in the East of England, according to research by property services group Countrywide. In the Autumn Statement, the Chancellor George Osborne announced an additional 3% stamp duty rate for landlords and second home owners. The research also suggests that the rate will put pressure on yields for landlords, unless they account for increased costs when buying. Indeed, the research shows that if the higher tax burden is not factored into the purchase price of a property, it would mean a reduction in gross yield of 0.2%. That is equivalent to 11 months income for the average landlord, taking into account borrowing costs, based on the average loan to value of 68%. Landlords in the South West and North East of England will see the highest cost relative to rental income, as the extra tax burden is equivalent to 14 months and 12 months of income, respectively. Those buying in the North West of England will see the least, with the extra stamp duty equivalent to eight months of income. The majority of landlord purchases take place in London, the South and East of England and some 60% of homes sold to landlords in England this year were in these regions. Landlords in these areas will see the biggest cash increase in stamp duty, £6,000 on average. However, high expectations of future house price growth will likely mitigate some of the impact of the tax increase. If prices grew at the same rate as the last five years, within 12 months the growth in house prices would have offset the cost of the additional stamp duty. In the Midlands and North of England, 16% and 12% of total sales respectively are to landlords. Countrywide data shows that the average property bought by landlords in these regions would previously not have faced any stamp duty but will now face a £3,200 tax bill next year. The changes to stamp duty come as the shortage of homes available to rent continues, levels of stock have decreased 5% year on year. The growing imbalance between supply and demand will continue to support rent increases in future months as tenants compete for fewer homes. ‘The stamp duty increase will impact landlords’ purchasing power. Many entering the market will be faced with a choice between making a lower offer when buying or having to cover the additional costs themselves,… Continue reading
