Tag Archives: news
UK home owners save average of £1,400 on stamp duty
UK home owners have saved £701 million in the six months since the introduction of the Stamp Duty Land Tax reforms last December, according to new research. The changes to how stamp duty is levied cut the tax for the 98% of people purchasing homes under £937,500 with each house buyer below this level saving an average of £1,400, says the analysis from conveyancing services firm myhomemove. ‘The stamp duty reforms have saved UK home buyers a significant amount of money since its introduction and provided an important boost to the property market, just as house transactions were starting to slow down in the run up to the general election,’ said Doug Crawford, the firm’s chief executive officer. He pointed out that the changes have a particularly positive impact on those struggling the most to get onto the property ladder, first time-buyers, as they can now save more money towards a deposit for their purchase. He also explained that under the previous system, there was a substantial increase in price at the stamp duty thresholds, which the reforms have reduced significantly, leading to greater movement up the property ladder and enabling home owners to aspire to own properties that would have previously been unobtainable. ‘While there are losers from the changes, these are a small minority of buyers. For them, the risk of a prospective ‘mansion tax’ was far greater than the increase in stamp duty. Early signs indicate that the election result has reassured buyers of higher value properties, with many estate agents reporting a buoyant market at the top,’ added Crawford. Continue reading
Detached home approvals in Australia reach five year high
Detached house approvals in Australia hit a five year high during April, according to the latest report from the Housing Industry Association, the voice of Australia’s residential building industry. During April, detached house approvals rose by 4.7% in seasonally adjusted terms to reach 10,264, the highest monthly total for detached house approvals since February 2010. However, HIA senior economist Shane Garrett pointed out that a weaker month for the multi-unit segment of the market actually drove total new dwelling approvals lower during April. In the month the total number of new dwelling approvals fell by 4.4% to 18,715 in seasonally adjusted terms. The reduction was driven by the multi-unit segment, with a 13.6% fall. The data also shows that the detached house market saw a total of 214,331 approvals recorded in the year to April, the highest 12 monthly total on record. ‘Strengthening activity in detached house building is crucial to broadening the base of the new home building recovery which has been largely contained to the multi-unit market to date,’ said Garrett. ‘It is important that policy settings allow the expansion in detached house building to deliver on its full economic potential,’ he added. A breakdown of the figures show that seasonally adjusted new dwelling approvals only increased in Tasmania with growth of 29.8%. Approvals declined in all the other states, with the largest monthly reductions occurring in New South Wales with a fall of 14.6%, Queensland down 14.2% and South Australia down 10.3%. New dwelling approvals also declined in Western Australia by 3% and in Victoria by 2.2% while in trend terms, new dwelling approvals increased in the ACT during April by 8.4% and fell by 6.2% in the Northern Territory. Continue reading
Number of sales to first time buyers in UK edges up
Just over a quarter, 26%, of house sales in the UK were made to first time buyers in April but estate agents are warning that with prices increasing it could be harder for them in the next few years. Sales to first time buyers are up from 22% in March, according to the National Association of Estate Agents (NAEA) April Housing Market Report. However when looking further ahead, 93% of NAEA agents do not see first time buyers having substantial cut through in the market over the next five years. Further, 55% of member agents think that house prices will increase over the next five years, continuing to push first time buyers out of the market. The report also found that in the build up to the General Election, demand in April remained similar to the previous month with 344 house hunters registered per branch compared to 343 in March, whilst supply decreased from last month, with just 43 houses available per member branch compared to 48 in March. In addition to this, 74% of NAEA member agents do not see supply and demand levelling out over the next five years, meaning that more buyers will be squeezed out of the market. ‘The market is notoriously tough for first time buyers. House prices continue to increase and lenders have tight and restrictive lending criteria,’ said Mark Hayward, NAEA managing director. ‘Whilst this month’s figures are positive and a step in the right direction, I’d like to think that with the help of 200,000 new starter homes and the Help to Buy ISA, first time buyers will be given even more help to get their foot on the ladder, however these things may take time to come to fruition,’ he explained. Following the result of the General Election, 92% of NAEA agents think the majority Conservative government is great news for the housing market and out of all the Conservatives’ pledges, 60% of agents believe their plan to build 200,000 new starter homes will benefit consumers the most. Also, some 41% of estate agents believe that the Help to Buy ISA will be the most beneficial, allowing first time buyers to save more successfully for their first home. Continue reading
