Tag Archives: london
Poll reveals pensioners with buy to let worried about tax change
Almost three quarters of pensioners in the UK who have an investment property said they would struggle to make ends meet if they didn’t have the income from their buy to let, new research shows. Overall 72% would struggle and 81% of those aged over 65 said that their properties provide an important, even vital, boost to their retirement income, according to a poll carried out by Responsible Equity Release. The poll also found that 92% are worried about the changes to mortgage interest tax relief and the impact on the profit they make from their investment property. The buy to let tax changes coming into force have left many pensioner landlords considering whether it’s worth holding onto their property and 41% said although their buy to let property was a valuable income generator, they are now thinking seriously about selling it. ‘For many pensioners, having a buy to let property has been a life saver in this low interest environment. While their savings have languished, earning very little interest, and pension income has been hit hard by falling share prices, property income has remained strong,’ said Steve Wilkie, managing director at Responsible Equity Release. ‘Without the income boost from their buy to let, many would really be struggling to make ends meet. But the Chancellor has yet again ignored UK’s retirees when he announced changes to the way buy to let would be taxed,’ he pointed out. ‘George Osborne was so focused on taxing the rich, he forgot that a new tax on buy to let won’t just hit the wealthy, it will also hit those honest, hardworking people, who may have a single buy to let property and were just hoping it would earn them a little extra income in retirement,’ he added. Continue reading
Research shows majority of UK parliamentarians support planning fees rise
Some 61% of MPs in the UK broadly agree that planning fees should increase and almost half 47%, say they should increase with stronger guarantees on planning performance. Indeed, MPS from all political parties support fees being changed, according to a new poll commissioned by the British Property Federation (BPF). Some 65% from the Labour party and 61% from the Conservative party support an increase in fees. The BPF says that the results show that Parliamentarians recognise that there is a problem, alongside the property industry and local authorities. The BPF and GL Hearn’s 2015 Annual Planning Survey revealed that 55% of local planning authorities perceived under resourcing to be a significant challenge, and that 65% of applicants are happy to pay more to shorten waiting times. The government has taken some steps to address this problem, proposing to allow local authorities to outsource the processing of planning applications and to reward well performing local authorities by allowing them to increase planning fees by an inflationary increase, but the BPF has warned that these steps will not go far enough. Responding to a government consultation on the technical planning changes set out in the Housing and Planning Bill, the BPF has welcomed the government’s recognition of the fact that local authorities ‘are struggling to provide the service required by applicants’, but cautions that the measures suggested will not be enough to plug the skills gap. ‘The public and private sectors have both been very clear about the need for more resourcing in local authority planning departments, and we now know that there is political understanding of this issue as well,’ said Melanie Leech, BPF chief executive. ‘We are supportive of the small steps that government is taking to address this, but are not holding out hope for any great impact. Some local authority planning departments are simply short staffed, putting those who remain under enormous strain,’ she explained. ‘Outsourcing the processing of planning applications is likely to relieve this burden to an extent, but it is not going to solve the chronic shortage of skills and resource that is the true problem,’ she added. Meanwhile, land broker Aston Mead is advising councils without up to date local housing plans in place to act quickly before the Government steps in to write their plans for them. Local authorities have been given until March 2017 to produce a local plan in accordance with the National Planning Policy Framework (NPPF), which was introduced in 2012. However, with less than a year to go, recent research suggests that fewer than a third of local planning authorities outside London have an up to date NPPF compliant plan. ‘It’s absolutely incredible that with the deadline looming large on the horizon, so few councils have got their act together. By next year they will have had five years since the introduction of the NPPF and yet the vast majority have still to… Continue reading
Research reveals deposit gap between Greater London and rest of UK
The average deposit for a Greater London property is nearly three times or 170% more that of the rest of the UK, at £127,000, new research shows. Average deposit has increased by nearly £30,000 or 30% for London home movers in the last three years, the report from My Home Move also shows. However, overall, the average UK deposit size as a proportion of purchase prices has decreased by 1.8% since 2013, but home movers’ deposits remain high as house prices increase. The figures show that national the average property price in 2013 was £162,040 with a deposit of £44,690, rising to £173,202 and £45,534 in 2014 and £182,293 and 46,976 in 2015. In Greater London the average property price was £377,855 in 2013 requiring a deposit of £99,375, rising to 439,399 in 2014 with a deposit of £112,266 and £482,512 in 2015 with a deposit of £127,141. So in the UK as a whole the deposit needed in 2013 was 27.58 of the purchase price, falling to 26.29% in 2014 and then falling again to 25.77% in 2015. But in Greater London in 2013 a buyer needed an average deposit of £26.3% in 2013, falling to 25.55% in 2014 but rising again to 26.35% in 2015. ‘The London property market has always commanded greater prices than anywhere else in the UK but our research has shown just how extreme the situation is becoming,’ said Doug Crawford, chief executive officer of My Home Move. He pointed out that London property prices have risen by 27% in the last three years and while the rest of the UK has seen a small decrease in the average deposit size, those looking for a London home are depositing 170% more than their UK counterparts. ‘This situation is unsustainable and has been driven by rising house prices. For some, their deposit will come from the equity in the property they are selling. However, for many, they will still need to save tens of thousands of pounds to make the move onto and up the property ladder,’ he explained. ‘Ultimately, it still begs the question – who is going to help those looking to enter the capital’s housing market and those on the lower rungs of the ladder, first time buyers and second steppers?’ he pointed out. He also pointed out that earlier this year the firm predicted that 100,000 properties would be purchased in 2016 using gifted deposits courtesy of the Bank of Mum and Dad and based on these figures, it looks like a very large portion of these could be based in the Greater London area. Having analysed over 60,000 purchase records to determine the average deposit size paid by home buyers between 2013 and 2015, My Home Move compared these findings to the average property prices held by the Land Registry for the same period. Continue reading
