Tag Archives: yahoo
Continued talk of a mansion tax hitting sales at top end of UK market
The possibility of a mansion tax being introduced in the UK has not disappeared despite many in the industry believing that recent changes to Stamp Duty would rule out the need for it. The shadow chancellor Ed Balls has confirmed that the annual tax on homes worth more than £2 million would be introduced in Labour’s first budget if it win the May 2015 general election. The plan would mean that the Treasury would start collecting the money in the 2015/2016 financial year. People with homes worth between £2 million and £3 million would pay about £3,000 a year. Those in more expensive homes would pay more. He claimed that Treasury officials were working on the proposals, in line with the civil service’s normal practice of making plans to implement the policies of parties that could win the general election. The Labour party plans to use the money to boost the National Health Service. ‘I would like to see that revenue coming in in the first year of a Labour government, before the end of the financial year,’ Balls added. This is despite a general feeling that the changes introduced in early December to make the Stamp Duty tax more even would mean there would be no need for the so called mansion tax. Alex Newall, managing director at Hanover Private Office, had been among those who believed that reform to stamp duty would replace any need for a mansion tax which has been widely criticised as grossly unfair. He pointed out that the tax would be a blow to families who, by no fault of their own, have ended up owning houses which have risen in value and gone above £2 million. ‘In London, this may only be a two bedroom flat, where house prices have risen over 20% in the last year,’ he said. He also explained that sales volumes in the prime market in London have already fallen due to fears over a mansion tax being introduced. ‘Notting Hill has seen a decline of 48% in transaction volumes over the last 12 months following the fears of a mansion tax as people worry about the annual costs,’ he said. He added that while increasing stamp duty will make it more expensive to buy a house at the top of the market, he believes that the wide majority of existing owners will favour this approach. ‘Compare taxes in London to those in New York City, and London will still remain a global draw. Security, education, business, a completely multi-cultural society, and despite operating a tighter tax system, it is in fact one which is now more in line with other global cities, such as Hong Kong where stamp duty is as high as 8.5% and in Singapore where it reaches 15% for foreign buyers or 10% for Singapore buyers acquiring a second home,’ he said. Winkworth estate agents believes that the revival of talk of a mansion tax will hit sales in… Continue reading
Year ahead set to see more British buyers in popular European markets
Rising confidence and a resurging pound are set to boost overseas property market as British buyers once again look for homes overseas, it is claimed. According to Clare Nessling, director at overseas mortgage specialist Conti, excellent buying conditions have lured Britons back into the overseas property market this year, with bargain property prices and historically low mortgage rates making it more affordable than ever. She pointed out that the biggest boost to buyers’ budgets, however, has been the steadily increasing value of the pound against the euro, which is effectively shedding tens of thousands of pounds off property prices in the euro zone. And buyers, full of fresh optimism, are returning in their droves. ‘It’s perhaps no surprise, therefore, that our enquiries have increased by 24% this year, compared with 2013. The first half of the year was particularly busy, with enquiries up by 58%, levelling out again in the third quarter, largely due to the uncertainty surrounding the Scottish referendum result. Overall, however, interest is much stronger than last year and there’s definitely more optimism amongst potential buyers,’ she explained. ‘When you compare the cost of a place in the sun with overheated parts of the UK market, there are plenty of British buyers who are more willing to explore overseas opportunities in their search for better investment potential. Confidence is back,’ she added. She also pointed out that with Goldman Sachs predicting that sterling will continue to climb against the euro over the next three years, British buyers will simply have more buying power, making a bolt hole in the sun even more tempting.’ The relaxation of pension rules, which come into effect in April 2015, could also lead to more people releasing pent up funds and investing them in a foreign property purchase,’ she said. The firm believes that Spain is well and truly back on the map. It accounted for 49% of enquiries received at Conti this year, and the volume of Spanish mortgage enquiries has increased by 54% over the last 12 months. After a turbulent few years in the eye of the euro zone storm, the country appears to be making a turnaround at last. Conti’s report says that the economy is showing signs of recovery, tourist numbers are up, and after years of plummeting house prices, experts are predicting increases in 2015, with prices in some areas rising already. ‘I expect Spain to maintain this momentum next year as prices recover but remain very affordable,’ said Nessling. France remains a firm favourite too, accounting for 32% of enquiries this year, and continues to offer a safe haven for British buyers. ‘A slower property market has been pushing prices down, and under current market conditions, people are keener to sell and therefore more likely to be receptive to offers lower than the asking price,’ explained Nessling. ‘With mortgage rates at their lowest in more than 60 years, it’s a buyer’s market. But it could be wise… Continue reading
UK landlords urged to protect their property from fraud
The UK Land Registry is reminding landlords to take steps to protect their property from being fraudulently sold or mortgaged in 2015. It points out that you are more at risk if you rent out your property, you live overseas, the property’s empty, the property isn’t mortgaged and the property isn’t registered with the Land Registry. Properties will be registered if they were bought or mortgaged since 1998 and anyone who is unsure can check the register. A spokesman said that if any information on the register is incorrect, such as a landlord changing contact address, these should be notified and changed. ‘You can track changes to the register or put a restriction on your title if you think you’re at risk. You can also sign up to get property alerts if someone applies to change the register of your property, for example, if they try to use your property for a mortgage,’ said a spokesman. ‘This won’t automatically block any changes to the register but will alert you when something changes so that you can take action. You can get alerts for up to 10 properties and there’s no fee,’ he explained. ‘You can stop Land Registry registering a sale or mortgage on your property unless a conveyancer or solicitor certifies the application was made by you,’ he added. If you don’t live at the property you can fill in a request for a restriction for owners not living at the property if you own the property privately. Business owners must fill in a request for a restriction for business owners of property. Again there is no fee. Continue reading
