Tag Archives: london
Court rulings in Spain create more uncertainty over illegal homes
Three rulings by Spain's Supreme Court have left the owners of more than 16,500 homes built in Marbella since 1986 in legal limbo by declaring planning regulations void. In a series of decisions, the country's highest court has declared null and void Marbella's urban planning regulations that were passed in 2010 and which legalised thousands of homes constructed since the previous town plans, dating back to 1986, were approved. In response to appeals against previous Supreme Court of Andalusia rulings, the rulings all arrived at the same conclusions, namely that the Town Council does not have power to retroactively declare legal properties that have been built illegally as that rests with the courts, nor to alter land classifications, nor legal liabilities. According to Adam Neal of real estate firm Terra Meridiana it means that individual property owners, even those who bought in good faith, will be held liable for illegal constructions, rather than passing the responsibility on to developers, as the 2010 plan sought to do. He explained that much of the problem arose during the three terms of the GIL (Grupo Independiente Liberal) government, from 1991 to 2003. The then mayor Jesús Gil is regarded as having run the council like a fiefdom, with claims of cash being funnelling under the table in exchange for carte blanche building licenses. ‘Subsequent administrations, under mayors Julián Muñoz, Marisol Yagüe, and Tomás Reñones, all sentenced to jail time for offences following the Caso Malaya scandal, were little better, leading to the suspension of the entire Town Council in 2006 by the central government, to make way for a team of auditors who tried to unravel Marbella's finances,’ he said. Neal believes that now all the paperwork for every property built within Marbella's municipal area since 1986 will need to be looked at very carefully indeed. ‘There are two possible outcomes: either a property is legal, because it was built on urban land as per the 1986 town plan, or it isn't, because it wasn't,’ he pointed out. According to Mark Stucklin of Spanish Property Insight it is bad news for the local property market, which was one of the few real estate bright spots in Spain until now. ‘It drags Marbella’s reputation back into the dirt by reminding people of its corrupt past, whilst the uncertainty will put off buyers and investors,’ he said. He pointed out that the decision could mean no more new building licences for the foreseeable future, plunging the residential construction business back into crisis just when it looked like recovering after more than a decade of downturn. Ricardo Arranz, president of the National Association of Urbanisation Developers, said the decision was right and expected. He explained that the industry welcomes the demise of the 2010 revised plan. ‘It was an unmanageable plan, absurd in every way and had started to scare off investors. It was done in a hurry by architects who knew absolutely nothing about the needs… Continue reading
UK buyers have saved almost £2 billion since stamp duty change a year ago
Buyers in the UK have collectively saved £1.9 billion since stamp duty was reformed in December last year, according to new research. An analysis of the figures by conveyancing services firm My Home Move says that buyers saving an average of £1,500 each since the reforms. Stamp duty reforms which were announced on 04 December 2014 abolished the old slab system of stamp duty and benefited anyone purchasing a home priced under £937,500. The firm also said that a recent poll of estate agents showed that 87% said that last year’s stamp duty changes have had a positive impact on the market. According to Doug Crawford, chief executive officer, the big winners from the changes have been the first time buyers and second steppers who have really struggled from price hikes due to a lack of housing stock. ‘Cheaper stamp duty bills don’t fix all the problems facing these buyers, but they do help by making it easier to save for a deposit,’ he said. He pointed out that the old slab system was ripe for reform as it was creating a stranglehold over the market, especially where property prices neared the stamp duty thresholds, and in particular around the £250,000 mark. ‘Home buyers have benefited from the significant stamp duty overhaul during the last 12 months with each buyer saving an average of £1,500, a much needed boost for those struggling to get on the housing ladder as prices have risen by 6% during the last year. Thanks to the reforms, people are now able to sell their homes for a truer value,’ Crawford explained. ‘However, as with all reforms there are those who have lost out from the changes. There are a small minority of buyers who are looking for luxury homes or expensive London properties which now command up to 12% in stamp duty,’ he said. ‘With a slowdown now being felt towards the top end of the market, it could cause a worry for the Government as receipts from stamp duty start to fall. However, following last week’s announcement of a 3% stamp duty surcharge for buy to let investors, any deficit could be offset from April,’ he added. Continue reading
US home prices growth set to send first time buyers into the suburbs, says new research
Deteriorating housing affordability will the main drive factor of residential property trends in the United States in 2016, according to a new analysis report. A lack of affordable homes near city centres will push new and first time buyers to suburbs that feel like walkable, amenity rich mini-cities, says the study from real estate form Zillow. It also explains that rising rents will force more young renters to wait longer before buying a home. And the looming threat of rising mortgage interest rates will slowly erode some of the terrific mortgage affordability the market has enjoyed for the past few years. Zillow's 2016 Housing Market Predictions report says that the median age of first time buyers will reach new highs in 2016 as millennials put off home ownership and other major life decisions. Growth in home values will outpace incomes, especially for low income Americans. In 2016, those whose incomes fall in the bottom third of all incomes will be priced out of home ownership and unable to afford even the least expensive homes on the market, it suggests. Rising rents won't let up in 2016, and will continue to set new records. The next year will bring the least affordable median rents ever, the report also predicts. As affordable housing close to city centres grows increasingly scarce, people will move farther out. Dense, walkable suburbs with an urban feel, especially those that offer good access to the city will be 2016's new hot spots. The median expectation of more than 100 economic and housing experts surveyed in the latest Zillow Home Price Expectations Survey suggests that home values are set to grow about 3.5% in 2016. ‘Rents will continue to increase at a brisk rate in 2016, but many potential first-time buyers are living in hot markets where buying a home is really expensive,’ said Zillow chief economist Svenja Gudell. ‘In 2016, we'll start to see more people in hot coastal markets forced to move farther from the core of the city to find housing. When they get there, they'll be looking for amenity rich suburbs like mini cities, with walkable cores and an urban feel,’ she explained. ‘As renters gradually transition into homeowners, the historically low home ownership rate should stop falling quite as quickly as it has been. However, the median age of first time buyers, already the highest it has ever been at about 33, will climb higher. Millennials want to buy, but they are waiting longer than previous generations,’ she pointed out. ‘All of this will happen against a backdrop of slowly increasing interest rates. That will make some homeowners think twice about selling, and many of them will decide to remodel their current homes instead,’ she concluded. Continue reading
