Tag Archives: real estate
RICS develops policy ideas report for next UK government
With property a key issue for voters ahead of this week’s UK general election, the Royal Institution for Chartered Surveyors (RICS) has developed a series of policy blueprints for new ministers. These Property in Politics recommendations provide workable solutions for the next government to implement as priorities and include establishing an independent Housing Observatory and for the next government to issue Property Tax Forward Guidance within its first 100 days A Housing Observatory would draw on expertise from across government, the private sector and academia, taking politics out of the housing debate and ultimately delivering the housing supply the UK needs. RICS says that the observatory would be strictly independent at arm’s length from government and fulfil several functions including as a data hub on housing, accessible to policymakers, academics and the general public. It would review and interpret this data and produce briefing papers on what works, both nationally and internationally and analyse policy statements, identifying long term consequences and macro trends modelled on the tax and spending policy analysis carried out by the Institute for Fiscal Studies. It would also create or facilitate new streams of research. Property Tax Forward Guidance would promote certainty and clarity for the property sector, according to RICS and it added that the new government should publish Forward Guidance of its plans for property taxes within its first 100 days. It would seek a commitment to a comprehensive review of Council Tax, including moves towards a wholesale revaluation of properties and the introduction of higher rate bands and reduce the VAT on improvements to rental properties to 5% to stimulate investment in the private rented sector. It says that the parties should undertake a detailed assessment of the probable impact of a mansion tax proposed by Labour and the Liberal Democrats. The proposals were developed through in-depth consultations with RICS professionals, and to date over 1,000 people have been engaged on the campaign. ‘To take these ideas forward, we convened a series of working groups in early 2015, to develop clear plans for action on a number of the recommendations; principal among these were the establishment of a Housing Observatory, the issuing of Property Tax Forward Guidance within the first 100 days of the next government, and the delivery of a Resource Revolution in planning departments,’ said a spokesman. ‘Across each of these areas, we engaged with partners and stakeholders from the professions, from academia, and from government. Each panel moved beyond the headline recommendations to give concrete proposals on how each can be realised and their findings have been compiled in a series of policy blueprints for new Ministers,’ the spokesman added. Continue reading
British prime farm land values continue to rise, but at a much slower pace
Prime farm land values in Great Britain increased by 0.5% to £9,900 per acre, much slower than previous quarters in recent years, the latest available data shows. According to the Farmland Value Survey from Savills it suggests that the ‘bull run’, driven by the top end of the market, in average capital value growth is slowing. In the first quarter of 2014 and 2013 the corresponding figures were 1.4% and 1.8% respectively. Quarter one growth was principally concentrated in the southern regions of England and in the East Midlands, where quality farms and estates dominated the market. Average prime arable farmland growth in these regions was 0.4% in the South East, 3.5% in the South West and 0.6% in the East Midlands. All other regions recorded zero growth and the data also shows that values continue to be highest in the East of the country. It points out that average values continue to mask the diversity in the market with sales at values in excess of £15,000 per acre being achieved for the right farms. ‘This end of the market continues to be driven by quality and location with large commercial arable farms and high quality estates attracting the strongest demand,’ the report says. ‘The trend of limited supply continues and, whilst remaining historically low, shows a slight increase on the first quarter of 2014. Supply remains at close to the lowest levels ever recorded, similar to 2001 during the foot-and-mouth outbreak and 2004 during the run-up to the introduction of the Single Farm Payment Scheme,’ the Savills report explains. It also points out that the lack of clarity surrounding the potential outcome of the general election coupled with pressure on farm incomes is creating some uncertainty. Overall just over 15,250 acres of farmland were publicly marketed across Great Britain during the first quarter of 2015, a 9% rise, amounting to 1,320 acres, on the same period of 2014. In the first quarter of this year the increased activity was concentrated in England with 26% whilst the levels of supply continued to fall in Scotland by 10% and Wales by 53%. Across England there were some significant regional differences during the quarter. Large increases in supply were recorded in the East Midlands at 280% and the South East of England at 362%. In the South East of England activity was boosted by two large properties in Hampshire at 1,600 and 1,000 acres. In contrast, decreases in the supply of farmland were recorded in the East of England with a fall of 30%, the North of England down 37% and also in the South West of England with a fall of 11%. Although activity in the South East of England was dominated by two large farms the market in the first quarter predominantly consisted of a larger number of smaller farms suggesting that pressure on incomes and cash flows may be having some effect Savills does not expect a significant change in the overall levels in the… Continue reading
UK house prices up 1% in April, according to latest index
Annual house price growth in the UK edged up to 5.2% in April from 5.1% in March, according to the latest index from the Nationwide building society. The data from the leading lender also shows that house prices rose by 1% in April, taking the average price of a home to £193,048. This is the largest monthly increase since June 2014 and as a result the annual pace of house price growth increased for the first time in seven months, Nationwide chief economist Robert Gardner pointed out. He explained that the pick-up in price growth has occurred even though the pace of activity in the housing market has remained fairly subdued in recent months. ‘Indeed, the number of mortgage approvals is still well below its long run average and 20% below the levels recorded in early 2014. The strength of the economy and relatively subdued pace of activity in the housing market remains something of an anomaly,’ said Gardner. ‘It is possible that heightened uncertainty ahead of the election is weighing on activity, though there is no compelling evidence from previous UK elections to suggest a strong impact. Healthy labour market conditions and continued low mortgage rates should help underpin housing demand in the quarters ahead,’ he added. The Nationwide has also been looking at how the UK housing market compares to the rest of the European Union. ‘The UK is often characterised as a nation of home owners, though compared with our European neighbours, the proportion of the population owning their own home is not particularly high. In fact, it is actually towards the lower end of the range,’ Gardner said. He pointed out that although some other European nations have seen declines in their home ownership rates in recent years, the movement in the UK has been more pronounced. ‘That said, even at its all-time high of 73% in 2007, the UK home ownership rate was not particularly high by EU standards,’ he explained. ‘Since then, there has been significant growth in the private rental sector. Interestingly, while the UK home ownership rate may not be particularly high, the propensity for young adults aged 18 to 34) to live with their parents is relatively low, a trend which has become more pronounced over the past five years,’ he added. Continue reading
