Tag Archives: london
Home valuation rush expected for inheritance tax change in England and Wales
There is set to be a rush of home valuations in England and Wales after the Chancellor George Osborne signalled that properties worth up to £1 million will be scrapped from inheritance tax. Currently the tax is levied on homes from £650,000 but in the government’s mini Budget later this week he will raise the threshold. It means that owners of homes worth up to £1 million can pass them on to their children tax free. An analysis of Land Registry data suggests that owners in Gloucestershire, Yorkshire, Somerset, Dorset and Cheshire may be leading the charge to get their homes re-valued. It could also leave looming insurance problems for up to a third of families living in high value or listed homes which are more expensive to repair or rebuild, according to the study by NFU Mutual, a leading rural insurer and financial advice firm. ‘If you don’t know how much your home is worth, then there’s a real danger that you and your family could lose out. Around three in every 10 homes are undervalued by their owners, leaving families at risk of underinsurance and an unexpected tax bill,’ said Nicki Whittaker, high value home specialist at NFU Mutual. Around 80% of million pound homes sold in England and Wales in the last 15 years are in London and the South East but there are concentrations of expensive homes across the rest of the country, including Gloucestershire, Cheshire and Dorset. ‘We expect there will be a rush to re-value these properties as parents and grandparents look to hand down as much as they can to their families. But many of these bespoke and listed properties need more thorough assessment to establish their true worth,’ explained Whittaker. ‘Figures from our valuation partners show many expensive country homes are dramatically undervalued because owners are often unaware that the cost of rebuilding listed and unique properties is so much greater,’ he pointed out. ‘It’s clear from these results that thousands more people need to take action if they want to make sure their biggest financial asset remains in the family. A valuation and some simple tax planning would help to make sure people are fully protecting what is rightfully theirs,’ he added. The Conservative Party outlined plans for a new transferrable main residence allowance in its election manifesto earlier this year. The move, to be announced by Osborne in his Budget speech on Wednesday 08 July 8, would increase the effective inheritance tax threshold for married couples and civil partners to £1 million. Continue reading
UK landlords seeing rise in tenant demand, especially from families
Almost half of landlords in the UK are reporting an increased demand for rental properties which is expected to continue over the next 12 months. Some 43% have experienced a rise in tenant demand and it is being driven by young people and families, according to the latest research by specialist buy to let lender Paragon Mortgages. It also shows that 51% expect this level of growth to continue over the next 12 months with 47% renting to young couples, 43% to young singles and 42% to families with children. ‘It is no surprise that rental demand is steadily increasing. With continued stress on the housing stock driving prices up, tough affordability hurdles for would be buyers and a social rented sector under pressure as a result of renewed interest in right to buy, a steady increase in rental demand was practically inevitable,’ said John Heron, Managing Director of Paragon Mortgages. ‘It is important that landlords continue to expand the supply of rented property in order to maintain balance and so avoid unsustainable increases in rents. A healthy, competitive and innovative buy to let market is critical to this,’ he added. Meanwhile, separate research shows that more than half of tenants say they experienced problems with their rented homes over the past 12 months, ranging from poor maintenance to breaches of their contract. The biggest problem, for 15% of tenants, was their landlord’s failure to fix structural problems including damp, a leaking roof or rotten window frames, according to the research by mortgage and loans provider Ocean Finance. A further 13% of tenants suffered delays in repairing broken furniture, showers and washing machines. 14% of tenants faced unexpected increases in their rent, disputes over money deducted from their deposits and even early eviction when their landlord sold their property. Tenants in London, where more than 10 million people live in private rental accommodation, fared the worst, with 60% saying they experienced problems in the past 12 months. This was followed by those in the East Midlands and the rest of the South East region. Some 35% of tenants said even though they complained to the landlord or letting agent, the problems were not fixed. While 13% said they didn’t know who to turn to for advice, while 5% took matters into their own hands and refused to pay their rent until the landlord resolved the problem. ‘Landlords have an obligation to ensure that the properties they let are well maintained and safe for their tenants to live in. The research indicates that many tenants are renting sub-standard properties. It’s also concerning that people are facing mid-tenancy rent increases or have money unexpectedly taken from their deposits,’ said Gareth Shilton, a spokesman for Ocean Finance. ‘One of the problems may be a lack of clarity over whose responsibility it is to maintain different aspects of a property. Often the landlord believes the tenant is responsible for doing repairs that in fact they are obligated to make,’ he… Continue reading
Property prices near London’s Olympic park outperform rest of the country
Property prices in areas surrounding the Olympic Park in London have increased by £1,500 per month since London won the bid in July 2005, new research shows. This rise is more than twice as fast as seen in the rest of England and Wales and these areas have also outperformed the rest of London since September 2012, according to an analysis by Lloyds Bank. The average property price in the 14 postal districts in East London closest to the Olympic Park has grown from £206,191 in July 2005 when the Games were awarded, to £378,884 in March 2015, an increase of 84% or £172,693, which is equivalent to a monthly increase of £1,476. In comparison in the rest of England and Wales property values grew on average by 41% over the period from £185,672 in July 2005 to £261,962 in March 2015. The analysis report says that recent price performance in areas surrounding the Olympic Park also compares favourably with London as a whole. Since the end of the Games in September 2012 the average price in the 14 East London areas has outperformed London with an increase of 33% compared to 25% in the capital as a whole. Over the same period average property values in England and Wales grew by 12%. In the past year, house prices in the 14 areas closest to the Olympic Park rose by 13%, from £334,123 in March 2014 to £378,884 a year later, compared to 10% in London. Stratford, where the Olympic Park in located, recorded the largest price growth in the past year, at 22%, followed closely by Plaistow and Walthamstow both at 21%. ‘When London won the bid to host the 2012 Olympic Games many within the organising committee saw this as the perfect opportunity to regenerate the East London area. A decade on, the impact of major investment is there for all to see such as improved rail and tube networks, a high class retail environment and the gradual conversion of the Olympic sites into residential homes,’ said Andy Hulme, Lloyds Bank mortgages director. ‘The improved attractiveness of living is this area of London has resulted in rising property values. Since July 2005 average house price in the 14 areas closest to the Olympic Park has increased at more than twice the average rate in England and Wales. And, since the end of Games in September 2012 price growth in this area has outperformed London as a whole,’ he added. The research also shows that since July 2005 five of the 14 areas close to Olympic site have seen their average price rise by over £200,000. Dalston has recorded the largest increase at £285,800, followed by Shoreditch at £261,054, Clapton at £244,591, Bethnal Green at £233,076 and Homerton at £220,761. Six other areas recorded price increase of at least £100,000 including Walthamstow at £170,006, Leytonstone at £167.559 and Bow at £136,683. Eleven of these areas now have an average house price of over… Continue reading
