Tag Archives: london
Residential rents in prime central London rising again
After months of decline, rents in prime central London have begun to climb upwards again, according to new research. Rents in many of London's most prestigious locations such as Knightsbridge, Belgravia and Mayfair increased by 4% or more over the final quarter of 2014, the data from lettings firm Benham & Reeves says. Inner suburbs, meanwhile, saw more modest rental increases but indicators suggest the market is still very strong. Agents also report a number of tenants choosing to rent until the sales market stabilises after the general election. However, Chelsea and South Kensington saw significant falls in rents in contrast to neighbouring areas and the firm pointed out that they rely much more heavily on the domestic market so have not seen the same uplift from foreign demand. Most of the inner suburbs saw rents stabilise or enjoy modest growth although the rental market in north London areas such as Hampstead and Highgate continued to cool. The firm also pointed out that fewer new homes are being built in the area so tenants are drawn to newer and often less expensive developments in east London. The two boroughs that reportedly saw the biggest capital growth in London last year, Hackney and Greenwich, also saw large rent increases as new developments came to the market. ‘Prime central London is seen as a blue chip investment for a reason. Capital growth may have slowed but its popularity remains undiminished, especially in the eyes of tenants,’ said Marc von Grundherr, lettings director at Benham & Reeves Residential Lettings. ‘Bearish headlines at the end of last year were cause for concern, but landlords who have kept their nerve in the latter half of 2015 are finally seeing their just rewards,’ he added. Continue reading
UK politians favour council tax change rather than new mansion tax
The majority of MPs in the UK believe additional higher rate council tax bands would be a better way to reform annual property taxes on high value homes than introducing a mansion tax. A survey found 69% back the council tax change while 75% agree with the need for a revaluation of council tax in general. The poll commissioned by the British Property Federation (BPF) also looked specifically at what Labour MPs think as it is the Labour Party that wants to introduce a mansion tax if it comes to power at the general election in May. It found that 39% of Labour Party’s MPs favour additional higher rate council tax bands over a mansion tax, despite the party championing the tax as one of its flagship policies ahead of the election. Just over half, 56%, thought a mansion tax would be preferable. The majority of the Liberal Democrat MPs surveyed, 89%, also prefer additional council tax bands to a mansion tax, as do 92% Conservative MPs. The Liberal Democrats first mooted the idea of a mansion tax in 2012. Asked separately whether they would support a revaluation of all homes to update council tax, 75% of MPs agreed. Support is strongest amongst Labour MPs at 87%, compared to 64% of Conservative MPs. It seems that this is a priority issue for MPs, with the majority, 53%, of those who would like to see reform preferring revaluation during the next parliament. The BPF has long made the case for council tax reform, pointing out that the 24 year old tax is still calculated on house prices in 1991. Since then, house price inflation has varied significantly, ranging from 160% to over 400% across England’s regions. It has urged policymakers to consider council tax revaluation and the addition of more council tax bands as a fairer and more efficient alternative to the mansion tax, which would be unfairly concentrated in London and could act as a deterrent to investment in the UK’s built environment. The BPF says that a council tax revaluation would be very easy to implement in the next Parliament because there is already legislative provision for it in the Local Government Act 2003. It would also accord with the advice of the Lyons Inquiry to Labour in 2007, which amongst its recommendations, suggested that a future government should revalue council tax and add new council tax bands, in order to update the tax base and improve fairness for taxpayers. ‘This poll shows that a full council tax revaluation rightly commands widespread political support, particularly across the Labour party, and that the majority of MPs recognise that basing council tax on 1991 house prices is simply unsustainable,’ said Ian Fletcher, director of policy at the British Property Federation. ‘The mansion tax is a political gimmick that is more about the narrative of rich vs the rest than anything else. Reforming council tax through a revaluation and raising revenue… Continue reading
Annual house price growth in England and Wales down to single digits
Annual house price growth in England and Wales fell back into single figures, as house prices paused in December, the latest index shows. Values in London and the South East are cooling but price growth across other regions remains steady, according to the LSL Property Services/Acadata index. Overall prices are up 9.6% year on year to an average of £278,997 but there was no change month on month. However, when London and the South East is excluded from the figures then the monthly rise was 0.4%. The index data also shows that growth accelerated at top end of the market in 2014, but price rises slowed at the bottom of this sector. But total home sales across 2014 were up 18% year on year as stamp duty reforms boosted activity in December. ‘There was a brief interlude in the tempo of house price growth in December, with values pausing for breath after a chorus of uninterrupted monthly climbs since May 2013. On a monthly basis, property price inflation peaked last January, and has gently petered out over the course of the past year,’ said Adrian Gill, director of Reeds Rains and Your Move estate agents. ‘This has pruned annual house price growth back to single digit territory again, recording a steadier 9.6% rise in average property values in England and Wales in the year ending December, down from 10.6% recorded in November,’ he added. He pointed out that there has been an about turn in the South East of the country, and London in particular. ‘Property values in the capital and surrounding areas are beginning to concede ground after significant advancement over the last year. Average house prices dropped in a third of all London boroughs in the month to November, with Southwark experiencing the sharpest fall in average values of 3.1%,’ said Gill. He also pointed out that monthly house price growth has continued if the exceptional London and South East regions are excluded from the calculations. Similarly, annual price rises across England and Wales are stable when these regions are omitted, as home values across the rest of the country stand firm and continue forward on their calmer trajectory. ‘But it’s not just geography that disrupts the march of house price growth across England and Wales. It is the most expensive properties that are showing the strongest gains in value, while the rate of price growth is slowing among cheaper homes,’ he explained. ‘Properties worth over £250,000 have seen average annual growth of 10.7%. But those valued below £153,000 have typically witnessed a year on year price increase of just 2.9%. As the two paths of growth diverge, this is widening the gap between the different rungs of the housing ladder,’ he said. He explained that 2014 was the year of the first time buyer, with the second Help to Buy scheme offering further assistance to aspiring home owners throughout the country, and ensured that many potential buyers could still navigate around the… Continue reading
