Tag Archives: housing
Data confirms buy to let surge in UK ahead of stamp duty change
The UK’s buy to let sector has seen a surge of activity as property investors have rushed to complete their transactions before the new Stamp Duty surcharge comes into force next month. In February the number of buy to let valuations carried out increased by 34% compared to the same month last year. Meanwhile, remortgaging activity, which includes buy to let remortgaging activity, was up 41% over the same period. In addition, buy to let activity saw a month on month increase of 25%, while remortgaging volumes climbed 6% in February compared to the previous month, largely driven by buy to let remortgaging, according to the data from Connells Survey & Valuation. It confirms a lot of anecdotal evidence that the extra 3% Stamp Duty surcharge on second homes or buy to let properties due to take effect on sales completed after 01 April 2016 has resulted in increased demand from buy to let investors. ‘Buy to let investors and those remortgaging with the aim of buying a second home are racing against the clock. Activity from both these groups is picking up pace on a monthly basis as the April Stamp Duty deadline looms and people hurry to complete their transactions before being hit by the 3% surcharge on their buy to let property or second home,’ said John Bagshaw, corporate services director of Connells Survey & Valuation. ‘Expect this activity to reach a crescendo in March before calming in the second quarter of the year. Buy to let investors will be calculating the impact the Stamp Duty hike is having on their rental yields, while those thinking of remortgaging to fund a second home will weigh up whether it’s still financially viable for them to do so,’ he explained. ‘But behind these somewhat frantic figures there is an underlying story of steady, long term growth. Despite taking some political heat recently, the buy to let market continues to attract investment off the back of its potential returns, while the remortgaging sector remains popular with those looking to get a better mortgage or release capital on their home for investment purposes,’ he added. In addition, the home mover and first time buyer sectors have experienced strong monthly rises in valuation activity. The number of valuations carried out for first time buyers surged by 36% between January and February 2016, while those carried out for home movers grew by 35% over the same period. Activity for both these sectors was steadier on an annual basis. Those taking their first step onto the property ladder in February reported a 9% increase compared to January and home movers experienced an 8% uptick on the same month on month basis. ‘Home movers are confident the strong but steady property price rises which typified 2015 are set to continue, and so feel confident that their home’s value will hold them in good stead as they endeavor to move up the ladder,’ said Bagshaw. ‘Meanwhile, first time buyers, whose personal… Continue reading
Poll shows widespread support for UK build to rent sector in Parliament
There is cross party support among British Member of Parliament for the emerging build to rent sector and predictions for growth, according to a new poll. Some 81% of MPs say they support the build to rent sector and the contribution it makes to the UK housing supply while 62% think it will make a higher contribution to housing supply over the next five years compared to current levels. The survey commissioned from ComRes by the British Property Federation (BPF) also found that build to rent has cross-party support, with 71% of Labour MPs in support and 91% of Conservatives. Few MPs think buy to let property will make a higher contribution to housing supply over the next five years, with 27% expecting its contribution to be higher, compared to 41% who expect it to be lower. MPs were somewhat split on social housing and affordable rent, with 26% of MPs expecting to see a lower contribution of social housing and affordable renting, compared to 39% who expect to see a higher contribution over the next five years. The results showed that new MPs are more likely to see this sector as a growth area than long serving MPs at 46% compared to 37%. The BPF estimates that there is at least £30 billion investment ready to enter the build to rent sector, and that it has the potential to deliver significant amounts of additional housing across the UK. The most recent figures from the BPF’s Build to Rent Map show that there are over 37,500 build to rent units with planning permission, under construction or complete across the UK. Most development is concentrated in the capital, where there is more than 20,000 units. ‘The widespread recognition amongst MPs of the build to rent sector is a positive sign it is starting to enter the nation’s housing vocabulary,’ said Ian Fletcher, BPF director of policy for real estate. ]It is also heartening that whilst all political parties are pushing a home ownership agenda, there is recognition amongst MPs that housing supply will come in other welcome forms and our nation requires that if we to get anywhere close to meeting demand,’ he pointed out. ‘This is not a zero-sum game, where tenures are competing, but a quest to deliver far more homes, where it is imperative that other forms of tenures are also encouraged,’ he concluded. Continue reading
Need for affordable housing not likely to be met by Starter Homes scheme
The vast majority of councils in England do not think that Starter Homes should be classified as affordable housing and only 7% of councils think they will address the need for affordable housing in their local authority areas. Indeed, new research shows that local councils, of all political parties, believe that the Government's Starter Homes policy will hinder rather than help to tackle the growing need for genuinely affordable housing in England. They have also raised concerns about the impacts of the Government's plans to reduce social rents by 1% a year for the next four years and the extension of the Right to Buy to housing association tenants, according to a survey commissioned by the Town and Country Planning Association (TCPA) and the Association for Public Sector Excellence (APSE). It found that over two thirds of councils, 69%, anticipate that they will be building less social and affordable housing as a result of the Government's plans to reduce social rents by 1% a year for the next four years. Only 3% say they plan to build more social and affordable homes as a result. ‘Low cost home ownership, such as starter homes, may help some people get a first step on the housing ladder, but as the survey of council's highlights this will not address the need for genuinely affordable homes,’ said Kate Henderson, chief executive of the TCPA. ‘We need a housing strategy for the nation that provides decent homes for everyone in society, including those most in need in the current housing crisis. Our survey has revealed that four out of five councils do not think starter homes should be classified as affordable housing because they are simply not affordable for essential low paid workers or for many people on average incomes,’ she added. Almost three fifths of councils described their need for more affordable housing as severe and 37% as moderate, and 89% of respondents think that the extension of Right to Buy will lead to less housing available for social rent, with only one council thinking that it would be beneficial. ‘What is clear from these survey results is that the headlong rush to extend Right to Buy to housing associations is an ill-thought out measure which enjoys little support, and this is reflected across the different political parties at a local level,’ said Paul O'Brien, chief executive of APSE. ‘With Nine out of 10 councils genuinely concerned that the extension of the Right to Buy to housing association tenants will further diminish the already short supply of socially rented homes, available in their local communities, we say to Government now is the right time to listen on Right to Buy,’ he added. Continue reading
