Tag Archives: london
Brexit threat should not hamper Brits buying in France
British people looking to buy a property in France this year are being urged not to worry about the vote on the UK staying in the European Union due to take place in June. There have been scare stories about what might happen if the UK leave the EU bit according to agents in France very little is likely to change. Indeed, they are reporting an uptick in inquiries which suggests that in reality potential buyers are not worried. According to Trevor Leggett, chairman of Leggett Immobilier which has agents across France, there has been no slowdown in demand from UK purchasers and activity is 40% higher than 12 months ago which was a record year. ‘Our view is that even if the vote was to leave the EU there would be little in the way of substantial change. The polls suggest it will be tight but tipped towards an In vote,’ said Leggett. According to Sextant French property even if the public vote to leave the EU nothing would happen suddenly. There would be a period of negotiations over benefits, pensions and healthcare which might affect expats but not necessarily second home owners. The firm has just reported a record year with an estimated 800,000 sales made in 2015, and buyers are making the most of current market conditions which include favourable exchange rates, low mortgage rates and low prices. ‘A Brexit would not stop you from buying your dream house across the Channel. Nany non-EU buyers from as far flung destinations as Australia and China already buy in France undeterred. The Brexit uncertainties lie largely in tax arrangements, obtaining mortgages and the potential weakening of the pound,’ said a Sextant spokesman. ‘Tax arrangements will depend on negotiations in the grace period following the referendum, though happily double taxation agreements will remain unchanged, ensuring you will never be taxed twice on your income,’ he explained. ‘In the short term run up to the referendum certainly, the pound could drop as uncertainty and instability will always disturb the markets to some extent. Once an outcome has been reached, we can hope that the markets have enough confidence to begin to level out,’ he added. For British people living in France there may not be much change. If the UK votes to leave it is highly likely that it will become a member of the European Economic Area (EEA). Iceland and Norway are already members. EEA membership could also result in retention of the European Health Insurance Card (EHIC) card and thus access to healthcare at the same rate as currently. The UK has never been part of the Schengen agreement of totally free border control so nothing would change. ‘Whichever way the UK votes, at Sextant we don't believe British interest in buying French property will be dampened, nor do we believe that the dream will become unattainable or unviable,’ he concluded. Continue reading
Property prices in England and Wales up over 7% year on year
Residential property prices in England and Wales increased by 2.5% in January and are not 7.1% higher than a year ago, the latest index shows. This takes the average house price in England and Wales to £191,812 but the average price in London is much higher at £530,409, according to the data from the Land Registry. The house price index also shows that the number of property transactions has decreased over the last year. From August 2014 to November 2014 there was an average of 81,656 sales per month. In the same months a year later the figure was 78,652. The January data for London shows a monthly increase of 2.8% and year on year growth of 13.9% the North East saw the smallest annual price increase of 0.2% while Wales recorded the greatest monthly price rise of 3.7% and the North East also saw the most significant monthly price decrease with a fall of 1.6%. Within London the borough with the highest annual price rise was Hillingdon with a ise of 15.5% and Hillingdon also experienced the highest monthly price increase at 2.4%. Camden saw the smallest annual increase of 3% and Camden and Islington both recorded the only monthly fall, each seeing prices down by 0.4%. The number of properties sold in England and Wales for over £1 million in November 2015 increased by 14% to 1,091 from 953 in November 2014. The number of properties sold in London for over £1 million in November 2015 increased by 9% to 657 from 601 in November 2014. In the months August 2015 to November 2015, repossession volumes averaged 409 per month. This is a fall compared to the same period a year earlier, when volumes averaged 801 per month and the report says that repossession volumes appear to be exhibiting a downward trend. The region with the greatest fall in repossession sales was the South West with a decrease of 78% from November 2014. All regions experienced a decrease in the number of repossession sales in November when compared with the same period a year earlier. Continue reading
Rental prices in UK up by 2.6% in last 12 months
Private rental prices paid by tenants in the UK rose by 2.6% in the 12 months to January 2016, up from 2.5% in the year to December 2015, the latest index shows. The data from the Office of National Statistics (ONS) reveals that rental prices grew by 2.7% in England, 0.3% in Wales and 0.8% in Scotland with rents up the most in London at 3.9%. It means that overall rents are up 0.1% in annual terms compared with the year to December 2015, and up 0.7% compared with the annual price increase in January 2015. The regional breakdown of the figures shows that annual rental price growth varies, rising in Yorkshire and The Humber from 0.8% to 1.2%, and in the North East from 0.6% to 0.9%, whereas it fell in Wales from 0.7% to 0.3%. Rental growth in Scotland has gradually slowed to 0.8% in the year to January 2016, from a high of 2.1% in the year to June 2015. Rental prices in England show three distinct periods, increasing from January 2005 until February 2009, then decreasing from July 2009 to February 2010, and increasing again from May 2010 onwards. When London is excluded, England shows a similar pattern but with slower rental price increases from around the end of 2010. Since the beginning of 2012, English rental prices have shown annual increases ranging between 1.4% and 3% year on year, with January 2016 rental prices being 2.7% higher than January 2015 rental prices. Excluding London, England showed an increase of 2% for the same period. A shortage of suitable properties combined with strong demand, both from people priced out of the housing market and those who prefer to rent, lies behind these increases, according to Steve Bolton, founder of Platinum Property Partners. He believes that the Government is taking an enormous gamble on the private rental sector through its announced changes to buy to let investment and this could affect prices and growth. ‘Ending tax relief for landlords and levying a higher rate of stamp duty will ultimately increase investor’s costs, forcing many to push tenants’ rents up to remain profitable. Standards may also be reduced, with landlords having fewer funds to invest in the quality of their property. In some instances, landlords will be forced to sell, adding additional strain to private rented sector housing stock,’ he explained. ‘It is hard to see how the proposed changes will benefit prospective first time buyers. The biggest barrier to homeownership is a lack of adequate property supply, and discouraging buy to let investment will do nothing to alleviate this. With prices standing at such high levels, first time buyers need to raise a substantial deposit and as rental prices continue to grow this will become ever more difficult,’ he added. Jonathan Hopper, managing director of the buying agents Garrington Property Finders, believes that the traditional January uptick in activity and a scramble by second home and buy… Continue reading
