Tag Archives: real estate
Big rise in new rental properties advertised in run up to additional homes tax hike
The rush to beat the April additional homes stamp duty deadline in the UK saw a big rise in new rental properties being listed in the week of the tax hike, research has found. Some 20.6% more properties were being advertised compared to the previous week in more than 90 towns and cities across the country, according to a study from property crowdfunding platform Property Partner. The research looked at the number of new rental properties being advertised between 28 March and 03 April and compared it to the period of 21 March to 27 March. In 85% of the locations there was an increase in the number of new rental listings over the past week compared to the previous week and in many areas, there was a significant increase in new rental properties advertised. Telford in the West Midlands, for example, saw rental listings up almost 160% in the week of the stamp duty deadline, compared to the previous week, and in Stevenage new adverts almost doubled. While five out of the top 10 areas in terms of a rise in rental properties being advertised, were in the North of England. Of the major cities, London saw new rental property listings up 19.4% between 28 March and 03 April, compared to the previous week. While, in Manchester and Birmingham, new rental ads were up 28.7% and 49.9% respectively The following table shows the UK towns and cities that saw the biggest increase in new rental property listings between 28th March and 3rd April, compared to the previous week, 21st March to 27th March. ‘Inevitably there was a final rush by investors to complete on property purchases ahead of the 01 April stamp duty surcharge deadline. More rental properties on the market is good news for tenants, but sadly this looks like a temporary blip,’ said Dan Gandesha, the firm’s chief executive officer. ‘The savings landlords have made may turn into losses further down the line. Future cuts to mortgage interest tax relief and likely interest rate rises, could wipe out profits and force many landlords to sell up,’ he explained. He believes that in the longer term it is likely that the supply of rented properties will fall and rents increase and the most important issue is to build more homes for tenants as well as buyers. ‘The Government has changed the whole structure of the UK buy to let market and made it less attractive and viable for amateur landlords. Once the dust has settled on the stamp duty hike, anyone looking to invest in residential property would be wise to consider alternatives to traditional buy to let, which do away with the hassle, expense and tax implications,’ added Gandesha. Continue reading
Demand for UK property fell by 5% in first quarter of 2016
Property demand across the UK as a whole fell by 5% in the first quarter of 2016 to 39% overall but demand is still up 9% compared to the same period in 2015. London’s outer boroughs and commuter belt continue to outperform the rest of the country where property demand is concerned, according to the hot stop index from estate agent eMoov. With demand at 72%, the London Borough of Bexley remains the hottest spot in the UK once again while Bristol at 68% climbs from third to second and Bedford at 66% was up four places to third. Cambridge and Watford, both at 62%, remain in the top 10 but have dropped down the rankings and outside the top five while Medway at 63% and Milton Keynes at 61% appear in the top 10 at fifth and ninth. Aylesbury at 63% also returns to the top 10 in sixth for the first time since the start of 2015. With demand currently at 65% Ipswich is placed in the top 10 for the first time to take fourth place and the report suggests that a direct commute into Liverpool Street of just over an hour is making the town more popular with London workers searching further afield for affordable property. Aberdeen with demand at 15% is one of the lowest cities on the list but it has seen a 50% increase over the last quarter so that property demand has returned to the same level as this time last year and the city is now off the bottom spot. At 27% Durham is the second biggest climber over the last three months and has also seen the biggest increase in demand over the last year across the whole UK at 90%. Second biggest climber year on year is North Lanarkshire in Scotland with a 67% growth in demand, followed by Barnet up 57%, Sandwell up 56%, Bolton up 45%, Gloucester up 42% and Manchester up 40%. Aberdeen’s shift up the table means it is now only the fifth coldest spot in the UK. Now at the bottom are the London boroughs of Westminster and Kensington and Chelsea, both at 12%. ‘It is interesting to see that despite the rush ahead of April’s stamp duty deadline, the UK market as a whole has cooled during the first half of the year. Although it’s undoubtedly a seasonal influence due to the festive period, it would seem that those looking to push through a second home or buy to let purchase, didn’t have the overall demand impact that many thought they would,’ said the firm’s chief executive officer Russell Quirk. Continue reading
UK house prices up over 10% year on year, latest index shows
Annual house price growth in the UK had edged above 10% in March with the market also seeing price growth on a monthly and quarterly basis, the latest index shows. Property prices increased 10.1% year on year, taking the average price of a home to £214,811, the data from the Halifax index shows. It also records month on month growth of 2.6% compared with February and quarterly growth of 2.9% in the first three months of 2016. But the quarterly rate of change was just below the 3% recorded in February. The annual rate of growth was higher than the 9.7% rise recorded in both January and February and has been within the 8% to 10% range for nearly the whole period since the start of 2015. The monthly increase in March more than offset February’s 1.5% fall but the index report points out that the quarter on quarter change is a more reliable indicator of the underlying trend as monthly house price changes can be volatile. Flat prices have risen more sharply than prices for other property types since 2008, according to recent separate Halifax research. The 57% increase in the average price of a flat is significantly higher than the 37% rise for all residential properties over the period. Detached homes recorded the smallest rise at 20%. Terraced and semi-detached houses saw price rises of 38% and 34% respectively. A considerable proportion of the national rise in flat values has been due to the rapid increase in flat prices in London with growth of 62%. However, flats represent a much higher share of the property market here than elsewhere. Half of sales in London are flats compared with the UK average of 17%. Worsening sentiment regarding the prospects for the UK economy and uncertainty ahead of the European referendum in June could result in some softening in the housing market over the next couple of months, according to Martin Ellis, Halifax housing economist. ‘Current market conditions, however, remain very tight with an acute supply/demand imbalance continuing despite an improvement in the number of properties coming on to the market for sale in recent months. This, together with continuing low interest rates and a healthy labour market, indicate that house price growth is set to remain robust,’ he said. Russell Quirk, chief executive of eMoov, pointed out that much of the increase in March could be due to buy to let landlords rushing to beat the introduction of an extra stamp duty tax on additional homes at the beginning of April. ‘Although it looks like good news for UK homeowners on the surface, this increase could be artificially inflated due to the stamp duty changes. When coupled with the fact that interest rates are still at a rock bottom and keeping the market buoyant, it’s hard to tell exactly how the market will go,’ he said. ‘It will be interesting to see what happens next month once the stamp duty dust has settled and… Continue reading
