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Property price growth in UK set to fall to 5.7% by end of 2016 and 2.2% in 2017
Residential property price growth in the UK will half in the rest of 2016 but house prices are set to by 5.7% over the whole of the year, a new analysis suggests. The fall in growth in the rest of the year will largely be due to the rush of buyers looking to beat April’s stamp duty surcharge having pushed prices up in the middle of the year and Brexit uncertainty now impacting the market. According to the analysis from economic forecaster the Centre of Economics and Business Research (Cebr) London will be most impacted by Brexit uncertainty. Average house price in the capital is expected to increase by 8% in 2016, but fall 5.6% the following year, it predicts. The report suggest that in the medium and long term housing market performance will heavily depend on the economic and immigration policies agreed during the UK’s exit negotiations with the European Union. It points out that average prices increased by 8% year on year in the first quarter of the year so a slowdown will materialise in the second half of the year. As a result of Brexit, Cebr has downgraded its short term house price expectations and now expects prices to grow by just 2.2% over 2017 but expects a smaller impact further down the line. In the medium term Cebr expects house price growth to pick up as exit negotiations with the EU progress and investors and households gain clarity on how post-Brexit UK will look. This expectation is in line with Cebr’s central view of the upcoming post-Brexit negotiations progressing relatively smoothly with the ultimate outcome seeing the UK maintain a close economic relationship with the rest of the continent, without necessarily agreeing to an unrestricted flow of labour or goods and services. The report also says that beyond 2020/2021, housing market developments will depend heavily on the immigration and economic policies the UK negotiates with the EU and the rest of the world. And it explains that although Brexit does have a far reaching impact on housing, it is important to keep in mind that the property market was losing steam even before the referendum. In April, the stamp duty surcharge on second homes was introduced and this is on top of reductions in buy to let tax relief that were announced in the July 2015 Budget. Furthermore, in London, the prime end of the market was showing cracks well before the referendum vote on June 23rd. Also, some of the global regions that many of London’s non-UK buyers come from such as Russia and the Middle East are experiencing economic turmoil and are not as able to invest. ‘Although Brexit has certainly sent shockwaves Cebr expects the housing market to slow down but not plummet. Years of under building mean that demand would have to fall very dramatically to… Continue reading
Poll shows over half of UK landlords refuse requests to improve energy efficiency
Over half of UK tenants claim their rental property is cold and draughty and 58% say their landlords has refused to make energy efficiency improvements, a new poll shows. Since the beginning of April 2016 tenants living in F and G rated homes have been able to request improvements, such as more insulation and landlords are legally bound to bring the property up to the minimum of EPC (Energy Performance Certificate) E rating. Under the new legislation, if a tenant requests a more efficient home and the landlord fails to comply, the landlord could ultimately be forced to pay a penalty notice. The survey, conducted by online letting agent PropertyLetByUs, found that seven out of 10 tenants have indeed made requests to their landlord to make improvements to the property but over half have been refused. The survey also found that 76% of tenants claim the property they rent has an old gas boiler, which is unreliable and 48% say their property does not have double glazing. According to data from the European Union it is estimated that over 10 million British families live in a home with a leaking roof, damp walls or rotting windows. Damp, condensation and mould is a big problem in many rental properties as a result of older, single glazed homes. Jane Morris, managing director of PropertyLetByUs, said it is very disappointing to see that so many tenants have been refused when they have requested their landlords make improvements to the property. ‘Landlords that are trying to rent cold, draughty and damp accommodation should immediately start improving their properties. Otherwise, they could be falling foul of the legislation that requires them to bring their properties up to an E rating,’ she explained. ‘It is estimated that around one million tenants are paying as much as £1,000 a year more for heating than the average annual bill of £1,265. These excessive costs are mainly down to poorly insulated homes, many of which are thought to be the oldest and leakiest rental properties in Europe,’ she pointed out. ‘Landlords that are currently renting out F and G rated properties should be looking at the improvements they can make and researching costs and available help, through the Energy Saving Advice Service (ESAS) or Home Energy Scotland,’ she added. Continue reading
Over 82,500 sales recorded in England and Wales in June
More than 82,500 residential and commercial land and property sales in England and Wales were lodged for registration in June 2016, according to the latest data to be published. Of the 82,530 sales lodged for registration 60,249 were freehold and 9,000 were newly built, the figures from the Land Registry show. Some 442 were residential sales in June 2016 in England and Wales were for £1 million and over and 283 were residential sales in June 2016 in London for £1 million and over, the data also shows. A breakdown of the figures shows that of the total sales 18,910 were detached properties, 20,987 were semi-detached, 23,485 were terraces, and 17,599 were flats or maisonettes. The most expensive residential sale in June 2016 was of a terraced property in the City of Westminster in London which was sold for £16.9 million while the cheapest residential sale was a terraced property in Bishop Auckland, County Durham, which sold for £12,500. The most expensive commercial sale in June 2016 was also in the City of Westminster, London for £65 million and the cheapest commercial sale in June 2016 was in Bassetlaw, Nottinghamshire for £1,000. Continue reading
