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Labour Party plans for UK housing market after general election criticised
Announcements from the UK’s Labour party on policies it would introduce if it wins the general election on rent controls and stamp duty for first time buyers have been met with considerable criticism from the property industry. Under the party's plans to tackle the country’s lack of new housing, Labour leader Ed Miliband said he would introduce a ‘first call’ policy that would give first time buyers who have lived in an area for more than three years priority on up to half of new homes. He also announced that he would scrap stamp duty for first time buyers on homes worth up to £300,000 and said foreign buyers would be subject to higher taxes and a ‘local first’ policy would ensure properties are advertised in the UK before they are promoted overseas. Miliband claimed that cutting stamp duty to zero would benefit nine out of 10 people buying their first home and could save up to £5,000. It would fund the stamp duty plans by tackling tax avoidance by landlords, pointing to HMRC figures that estimate it costs £550 million a year. Labour would want the creation of a national register of landlords, saying this would could tax avoidance by landlords by 20% and bring in £100 million for Treasury coffers. Tax relief for landlords to cover the upkeep of furnished properties would also be reduced for rogue landlords that rent out sub-standard properties. Also, under the plan private landlords would be banned from introducing above inflation rent rises over a three year period and landlords and letting agents would be required to disclose the rent paid by previous tenants, to allow renters to negotiate the best possible deal at the start of a contract. Mr Miliband said Labour's plan would help create ‘a stable, decent, prosperous private rental market where landlords and tenants can succeed together’. Jeremy Blackburn, head of policy at the Royal Institute of Chartered Surveyors (RICS) said that while the proposed stamp duty reform could help some first time buyers in the market, it’s another measure that tinkers with demand side stimulus. ‘Prices are already predicted to rise in the next parliament and this is only likely to make matters worse. The promise of one million homes by 2020 is an ambitious target, but Labour has not fully explained how they expect to remove obstacles to such a supply- ide revolution. What we need is a drastic increase in supply,’ he added. Building affordable homes is a better way of solving the housing crisis than reducing stamp duty, according to housing charity Shelter. ‘While reducing stamp duty may help at the margins, the only way to give generation rent a fighting chance of their own home is to tackle the root causes of our housing crisis by building the affordable homes we desperately need,’ said chief executive Campbell Robb. Mark Hayward, managing director, National Association of Estate Agents (NAEA), welcomed the policy on stamp duty for first time buyers, saying… Continue reading
UK residential rents up by over 2% in last 12 months, latest data shows
Private residential rental prices paid by tenants in Great Britain rose by 2.1% in the 12 months to March 2015, the latest index shows. Rental prices grew by 2.1% in England, 2.1% in Scotland and 0.8% in Wales in the 12 months to March 2015, according to the data from the Office of National Statistics. Rental prices increased in all the English regions over the year to March 2015, with rental prices increasing the most in London at 3.2%, the data also shows. It's no surprise rents are rising, according to Matt Hutchinson, director of flat and house share site SpareRoom.co.uk. ‘We have a chronic shortage of housing in the areas where jobs are being created, so rents continue to rise as supply fails to meet demand. In some areas of London we're seeing up to 13 people compete for every room advertised during peak months,’ he explained. He believes that whoever forms the next government after next month’s general election will need to look at introducing policies aimed at making housing, of all tenures, genuinely affordable. ‘The upward pressure on rents is rapidly making the situation both unmanageable and unsustainable for tenants,’ he added. Steve Bolton, chairman of Platinum Property Partners, pointed out that the blame for rising rental prices is often attributed to landlords, but it is because there are simply not enough suitable rental properties coming on to the market. ‘Rental demand is growing as first time buyers struggle to access the housing market and the UK’s workforce becomes increasingly mobile. At the same time, the number of new rental properties is lagging behind, creating a dangerous imbalance between supply and demand that is pushing rental prices upwards,’ he said. ‘Buy to let investors need to consider how they can meet growing rental demand in a way that is affordable for consumers. Houses in Multiple Occupation (HMOs) are a great way of creating high quality rental accommodation by making the most of existing housing stock,’ he explained. ‘They are also far more affordable than renting a one bedroom flat, providing young professionals with high quality accommodation that also enables them to save for their long term financial goals,’ he added. Continue reading
Miami real estate market continues to be popular with US and overseas buyers
The Miami real estate market, one of the most popular in the nation with international and domestic buyers, continued to gain momentum in March with sales growing strongly. The latest data shows that single family home transactions registered double digit growth year on year and existing condominium sales rose despite an increase in new condo construction. The figures from the Miami Association of Realtors reveal that single family home sales are up 10% compared with a year ago. This comes on top of a record 2014. While condo sales were up 4.2% year on year. ‘Miami continues to attract international and domestic home buyers looking to live in a global city with world-class amenities and a diversified economy. Buyer demand in Miami properties is leading to more sales and higher sale prices,’ said Christopher Zoller, the association’s 2015 residential president. The report points out that single family home prices remain at affordable 2004 levels despite more than four years of consistent year on year increases. Condo prices has seen 45 months of growth in the last 46 months. Prices are also seeing growth. The median sale price for single family homes increased 10.6% to $260,000 in March 2015 from $235,000 in March 2014. The average sale price for single family homes increased 3.2% to $473,677 last month from $459,102 during the same time period last year. The median sale price for condominiums surged 7.5 percent in March to $215,000 from $200,000 a year ago. The average sale price for condos increased 5.8 percent to $398,994 from $377,290 in March 2014. Miami single family homes and condominiums continue to sell close to asking price, reflecting a strong consumer demand, the association says. The median number of days on the market for single family homes sold in March 2015 was 54 days, an increase of 14.9% compared to the same period in 2014. The average percent of original list price received was 94.6%, down a negligible 0.3% from a year earlier. The median number of days on the market for condominiums sold in March 2015 was 60 days, an increase of 1.7 percent compared to the same period in 2014. The average percent of original list price received was 93.5% a 0.7% decrease. In Florida as a whole sales of existing single family homes were up 24.6% over March 2014, according to Florida Realtors while condominium sales were up 13.7% compared to March 2014. The statewide median sale price for single family existing homes last month was $190,000, up 9.2% from the previous year, according to Florida Realtors. The statewide median price for townhouse condo properties in March was $152,000, up 8.6% over the year ago figure. Miami sees twice the national average of cash buyers, representing 54.2% of sales in March 2015, down from 60.5% in March 2014. Nationally, just 24% of all national housing transactions are made in cash. Since 82% of foreign buyers in Florida purchase properties all cash, Miami’s high percentage of cash… Continue reading
