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UK agents launch 2015 manifesto for sale and rental housing sectors
Estate and lettings agents in the UK have launched their 2015 housing manifesto calling for better supply, enhanced regulation, and a change to property taxes. The National Association of Estate Agents (NAEA) and Association of Residential Letting Agents (ARLA) launched the manifesto today at the third consecutive NAEA Conference. During the last six months NAEA and ARLA have met professionals, politicians, experts and campaigners across the UK to understand their hopes and fears for the housing sector. The three main concerns which were identified were the lack of supply, a need for more regulation in lettings and sales, and appropriate taxes across the whole property spectrum. ‘Britain is standing today on the precipice of a crisis in the supply of housing. We are simply not building enough homes to meet burgeoning demand from both the sales and private rented sectors,’ said Mark Hayward, managing director, NAEA. ‘We are growing as a society, and our needs for housing have developed from what they may have been previously. But what still rings true is that everyone has a universal right to a home. And our deep-rooted concern is that government policy on housing, as it currently stands, cannot deliver on this requirement,’ he pointed out. He explained that providing housing, or more importantly homes, requires finance, suitable land, time and skill. ‘Policymakers seem to have forgotten this. Housing cannot be a political football for future governments to use to score points against each other. Ultimately we need to take the politics out of housing. We know this is easier said than done. So instead we ask for all future parliamentarians to maintain a long-term progressive view and to deliver on our manifesto commitments,’ he added. David Cox, ARLA managing director, highlighted the need for greater regulation in the private rented sector. ‘Britain currently maintains a two tier private rented market, consisting of those who operate to professional standards and those that do not,’ he said. ‘Consumers often do not know the difference between the two, thus the onus falls on them to be able to tell the difference. Our agents are already regulated and operate to the highest professional standards. They are fully qualified and we offer tenants and landlords client money protection,’ he explained. ‘The certainty we provide should not be the gold standard, but what every consumer should demand from their agent. It is imperative therefore that letting agents be members of a client money protection scheme, and that regulation be tightened for the entire industry,’ he added. ‘Greater regulation for letting agents in particular will ensure fairness, a level playing field and the removal of those agents who bring the industry into disrepute,’ he concluded. Continue reading
US residential rents up 3.3% overall but some areas seeing higher growth
Median residential rents in the United States continued rising nationwide in January, with rental appreciation in some small and even struggling housing markets catching up to the country's hottest areas. According to Zillow's latest real estate market report its rental index increased by 8.5% year on year in Kansas City, more than twice the national pace and faster than markets where rapidly growing rents are an old story, including Seattle, Boston and Los Angeles. Two years ago, when West Coast rents were already soaring, rental growth in St. Louis was flat and even falling. But between January 2014 and January 2015, rents there rose 4.2%. The fastest growing rent in the country in January 2015 was in San Francisco, where median rents were up 15% year on year for the fourth month in a row. Overall rents were up 3.3% year on year in January, near the historical norm. The fastest growing rental markets in January included Denver, Kansas City, Nashville, Portland in Oregon and Charlotte in North Carolina. Nationally, the Zillow rent index rose 0.4% from December, to a median of $1,350. For years, demand for rentals has driven up rents, and income has not kept pace, the firm pointed out. It also said that currently, Americans should expect to spend roughly 30% of their incomes on rent as opposed to historic norms of around 25%. And the problem is far from over, according to more than 100 housing experts surveyed in the latest Zillow home price expectations survey with more than half saying they expected rental affordability to continue to be a problem for at least two more years. ‘Rental appreciation has been a freight train these past few years, chugging along without any appreciable slowdown. Since 2000, rents have grown roughly twice as fast as wages, and you don't have to be an economist to understand why that is hugely problematic,’ said Zillow chief economist Stan Humphries. ‘More than one third of Americans are renters, and today's renters are tomorrow's buyers. For many current renters, buying a home could mean both a lower and more stable monthly payment, but rising and increasingly unaffordable rents make it difficult to save for a down payment on a home,’ he explained. ‘The rental market used to be and should remain a stepping stone to home ownership. But given how widespread rental affordability problems have become, the rental market could be acting more like a barrier to buying,’ he pointed out. ‘More supply will help ease the crunch, both from new construction and as current renters transition into homeownership, creating more vacancies in existing developments. But neither will happen overnight,’ he added. Nationally, home value growth continued to level off in January and the Zillow home value index increased by 0.2% from December and 5.4% year on year to a median value of $178,500. Home values are expected to grow another 1.9% through to January 2016, according to the firm and by the end of the… Continue reading
Two thirds of buyers in England and Wales to benefit from stamp duty tax change
More than two thirds of buyers in England and Wales will benefit from the stamp duty changes announced last year and it is set to stimulate housing market activity. According to a new analysis of land registry prices by the Nationwide Building Society some 86% of housing transactions in London and the South East should benefit and 85% of transactions in Cardiff North will see a reduction in stamp duty payable. This comes as the slab structure of the tax was completely abolished, with purchasers paying the marginal tax rate on the relevant elements of the purchase price. Overall some 98% of buyers will pay the same or less tax and only those purchasing homes costing between £937,500 and £1 million or more than £1,125,000 are set to pay more. The Nationwide report says that the new marginal SDLT should help to remove the distortions caused by the slab structure, which led to a clustering of transactions. The greatest impact is likely to be for homeowners looking to buy property just above £250,000, who could save around £5,000 in tax or around 2% of the purchase price. Based on 2013/2014 transactions data from the Land Registry, nearly 590,000 purchasers in England and Wales would benefit under the new regime, with an average benefit of around £1,600. The benefits tend to be greater in areas where average house prices are higher and thus a higher proportion of transactions are liable for stamp duty. The report estimates that 86% of transactions in London and the South East regions would benefit from the changes, compared with around 50% across the North East, North West, and Yorkshire and the Humber. A further breakdown of the figures show that only a small number of sales would see people paying more while a large number would see no change. In England and Wales as a whole 71% would benefit, 28% see no difference and 2% would pay more. So, in London 86% would benefit, 7% would see no change and 7% would pay more. In the South East 86% would benefit, 13% would see no change and just 2% would pay more while in the East of England 81% would benefit, 18% see no change and 1% pay more. Elsewhere no one would pay more. In the South West 81% would benefit and 18% would see no difference. In the West Midlands it is 61% and 39%, in the East Midlands 58% and 42%, in Yorkshire and the Humber 53% and 43%, in the North West 51% and 49% and in the North East 45% and 54%. While in Wales it is 53% and 47%. Continue reading
