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Scotland’s best performing property markets and busiest areas for estate agents

Published On: November 30, 2022 at 10:49 am

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Scotland’s best performing property markets and busiest areas for estate agents

Scotland’s best-performing property market is in Argyll & Bute, says estate agent comparison site GetAgent.co.uk.

GetAgent has analysed the housing market of mainland Scotland and found that the nation’s best-performing pocket of the property market, based on average house price increases in the past year, is in the western region of Argyll & Bute.

Mainland Scotland’s overall average house price has increased by 7.3% in the past year. Growing from £178,865 in September 2021 to £191,941.

In Argyll & Bute, the current average house price is £206,735 following growth of 25% since last year when the average price was £165,416. 

In West Lothian, the analysis has found agents are currently achieving prices 15.7% higher than last year, with the average price rising from £189,322 to £219,002. 

Prices in Dumfries & Galloway have increased by 12.9%, with an average of £165,011, while East Dunbartonshire (12.6%), North Ayrshire (12.5%), and East Ayrshire (12.2%) have also performed well.

GetAgent has found the worst performing market in the past year is the City of Aberdeen where prices have decreased by -2.4%, falling from £148,697 to £145,153. While this is the only area to see negative growth, growth has also been relatively slow in Aberdeenshire (1.9%), Clackmannanshire (4.3%), and Edinburgh (6.8%).

Scotland’s busiest areas for agent activity

The research shows that there are 1,421 estate agents and 32,951 property listings across seven major Scottish cities. This means each agent is currently handling an estimated 23.2 listings each.

On this basis, Scotland’s busiest agents are in Glasgow. The city has 448 agents and 6,890 current listings which equates to 15.4 properties per agent.

In Edinburgh, there are 260 agents and 3,298 listings. This means that each agent is handling 12.7 properties, while agents in Inverness (6.7), Aberdeen (6.5), Dundee (6.0), Perth (5.3), and Stirling (2.1) have relatively lighter workloads. 

Colby Short, CEO and co-founder of GetAgent.co.uk, comments: “The Scottish housing market has been thriving in recent years and the widespread annual price rises displayed in this data are proof of that. With ten regions showing price rises of 11% or more, it’s clear that the appetite for Scottish homes is high.

“Scottish homes are not only attracting existing Scottish residents but also a large swathe of buyers who are looking to move to the country from other parts of Britain, not least England.

“Such buyers are being drawn by the lifestyle that Scotland offers, the relatively affordable house prices, and, perhaps, the potential for the country to gain full independence and reinsert itself as a member of the European Union.”

Capital gains tax research reveals areas where landlords have been hit hardest

Published On: November 25, 2022 at 9:54 am

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Landlords want government to reverse capital gains tax changes

Changes to capital gains tax announced in last week’s Autumn Budget will see the average landlord pay as much as £1,764 more if they do decide to exit the buy-to-let sector come the 2023-24 tax year, says London lettings and estate agent Benham and Reeves.

Benham and Reeves analysed the capital gains seen on a buy-to-let investment across each county of England over the last nine years, as they’ve found this is the average length of time a landlord owns their portfolio. They also analysed the current tax payable if landlords exit at both the basic and higher rate of tax, as well as how this differs to what they will pay once changes to the capital gains tax allowance come into force from next year.

Capital gains for the average landlord

The research shows that, with the current house price across England now sitting at an average of £314,278, the average landlord has seen capital gain of £130,000 over the last nine years based on the latest available house price data from the Land Registry.

Previous capital gains tax paid on their portfolio

With the current capital gains allowance of £12,300, the agent says £117,704 of this £130,000 increase in property value is currently liable for capital gains tax. As a result, the average landlord offloading their portfolio and paying the basic rate of tax would pay £21,187 in capital gains tax today, while this figure climbs to £32,957 for those paying the higher and additional rates of tax.

Current capital gains tax paid on their portfolio

However, with the capital gains allowance now changing to just £6,000 come the 2023-24 tax year, the average landlord looking to offload their portfolio could be facing a bill of £22,321 at the basic rate and £34,721 at the higher and additional rates of tax. 

Those on the basic rate of tax might see their potential capital gains tax bill climb by £1,134, while those paying the higher and additional rates of tax could see an increase of £1,764.

Highest capital gains tax bills

When these changes come into force next year, Surrey will experience the highest capital gains tax bills. Landlords in this county looking to exit the market could be facing a capital gains tax bill of £38,167 at the basic rate and £59,371 at the higher and additional rates based on the capital appreciation of their investment over the last nine years. 

London ranks second, with those paying a basic rate of tax facing a capital gains tax bill of £36,922 when exiting the buy-to-let sector. Those paying the higher and additional rates of tax could be paying £57,435.

Buckinghamshire, Hertfordshire, Bath and North East Somerset, Bristol, Essex, Oxfordshire, Kent and West Sussex are also home to some of the highest capital gains tax bills of all counties in England once capital gains tax changes are implemented.  

Marc von Grundherr, Director of Benham and Reeves, comments: “Given the fact that the Government has consistently refused to address the housing crisis and instead persisted in fuelling demand in order to keep house prices soaring, it’s understandable that many landlords feel a little aggrieved at having to pay such a heft lump in tax simply because the value of their investment has soared. 

“This tax bill has only grown all the larger as a result of the Autumn Budget and the latest government attack on the nation’s landlords in the form of a reduced capital gains tax allowance. 

“Buy-to-let remains one of the safest investments you can make and the right investment is still incredibly profitable. So the latest hikes to capital gains tax are unlikely to deter both the institutional and amateur investor. 

“However, it’s clear the government is intent on reducing this profitability and one must wonder just how many minor government cash grabs the nation’s landlords are willing to take, before they decide enough is enough and exit the sector.”

UK landlord investment opportunities highlighted by money.co.uk research

Published On: November 24, 2022 at 10:38 am

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Top five UK rental hotspots for landlords in 2023

New research by money.co.uk reveals the best areas for landlords to invest, based on average rental yields in each UK authority.

Rental yields were calculated by analysing the average house price and rent prices in each UK authority over the last year.

The best areas for landlords to invest

The website highlights that the best place for landlords to invest is Blackpool, based on the average property value and the average rent paid. The seaside resort has an average property price of just £140,108 and an average rent price of £550.

In second place is Barrow-in-Furness. The average property price in Barrow is £141,360, with an average rental price of £550.

Completing the top three is Burnley. It has the lowest house prices in the whole country, at £121,409, although average rents are also slightly lower than the two towns above, at £450.

RankLocal authorityAverage house priceAverage rentRent as % of average house price
1Blackpool£140,108£5500.393%
2Barrow-in-Furness£141,360£5500.389%
3Burnley£121,409£4500.371%
4Hyndburn£128,788£4750.369%
5County Durham£130,414£4750.364%
6Manchester£234,841£8500.362%
7Barking and Dagenham£354,052£1,2750.360%
7Gateshead£152,857£5500.360%
9Newcastle upon Tyne£195,610£7000.358%

The study also found that the UK authority with the biggest ten-year house price growth is Thanet. Average house prices here have increased from £146,322 in August 2012 to £332,070 in August 2022, causing a 126.95% increase.

New statistics released on deaths of people experiencing homelessness in 2021

Published On: November 23, 2022 at 10:38 am

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New statistics released on deaths of people experiencing homelessness in 2021

The Office for National Statistics (ONS) has released its latest report on the deaths of homeless people in England and Wales.

The ONS data shows that 741 people died while homeless in England and Wales during 2021. 

The National Records of Scotland (NRS) has also released their data for 2021, reporting that 250 people died while homeless in Scotland.

Matt Downie, Crisis Chief Executive, comments: “Behind each of these statistics is a human being; an individual who tragically spent their last moments homeless. We know that being homeless often means feeling like you have nowhere to go and no one to turn to. It’s difficult to bear, but that will have been the experience of some of the real people behind these figures.  

“There is no excuse for this shameless suffering. For years we have been calling on the UK Government to expand the safeguarding system used to investigate the deaths of vulnerable adults to include everyone who has died while street homeless. This must be acted upon so we can learn lessons from these tragic deaths.  

“Our services are gearing up for an incredibly challenging winter, with thousands facing the brutality of homelessness as the rising cost of living pushes them to breaking point. These dire economic times must not lead to more people falling through the cracks and dying needlessly on our streets.  

“We can stop this before it’s too late. We desperately need more social homes and for the UK Government to invest in housing benefit so it covers the true cost of rents. Only decisive action will ensure everyone has a safe place to call home and prevent more loss of life in the future.”

Crisis says it’s preparing for an incredibly busy winter. From late December onwards, the charity will be providing hotel accommodation in London to hundreds of people who would otherwise be sleeping rough over Christmas. Crisis will also be supporting thousands in insecure accommodation across Britain, providing food, companionship and support with housing, benefits, and training.  

The charity is warning that demand for its services is increasing and shows no sign of abating as rents have risen at their fastest rate for 16 years across England, while in Wales less than 1% of private rented homes are affordable to people on housing benefit. This, the charity says, will see more and more households pushed into poverty as they struggle to keep up with the rising cost of living. Crisis is also urging the public to stand with people experiencing homelessness this winter via its urgent appeal so that thousands of people can get the vital support they need to leave homelessness behind.

House prices are still up year-on-year, latest government report shows

Published On: November 21, 2022 at 3:12 pm

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Scrapping mortgage tax relief hike would ease rental supply crisis says new research

Average house prices in the UK have increased 9.5% annually, according to the latest government report.

The September UK House Price Index shows the average price of a property in the UK was £294,559. There was a monthly change of 0.0%.

Property industry responses to the UK House Price Index

Marc von Grundherr, Director of Benham and Reeves, comments: “The property market has continued to weather the storm of late and while we may have seen a reduction in buyer demand due to higher mortgage rates, we’re simply not seeing any downward pressure applied to sold prices, despite a static rate of growth on a monthly basis. 

“This is largely due to the fact that buyers have been keen to transact at pace in order to secure the rates currently on offer, before they climb even higher. In doing so, they’ve helped to maintain a consistent level of activity in the process which has kept the market afloat.”

James Forrester, Managing Director of Barrows and Forrester, comments: “It’s incredibly hard to gauge the true health of the UK property market at present, with increasing mortgage rates leading to a period of turmoil, followed by a renewed level of certainty as a result of a government refresh.”

Chris Hodgkinson, Managing Director of HBB Solutions, comments: “All current indicators suggest the market is starting to freeze over with homebuyers giving the idea of homeownership the cold shoulder following a sizeable uplift in the cost of borrowing. 

“This declining level of buyer demand is yet to cause house prices to actually fall, but the tide is starting to turn, and with the market now slowing right down until spring we can expect property values to follow suit sooner, rather than later.”

Tenants in England paying council tax bills up to the equivalent of 37.5% of rent

Published On: November 11, 2022 at 9:15 am

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Tenants in England paying council tax bills up to the equivalent of 37.5% of rent

The cost of the average council tax bill in England is equivalent to 17.7% of a tenant’s rent bill, research from rental platform Ocasa shows. For the hardest-hit renters, this rises to 37.5%.

It says rising inflation, interest rates, and living costs mean that renters are bracing themselves for hard times ahead, as many landlords start to increase rent prices to cover rising mortgage rates.

Many tenants are responsible for paying the council tax bill on their rented property in England, with the average council tax bill at £164 per month. Ocasa’s market analysis also found that, with average rent sitting at £926 per month, this means council tax costs the equivalent of 17.7% of rent.

When comparing regions, council tax is hitting tenants in the North East the hardest. The average council tax bill in the region is £175 per month, equivalent to 30.3% of the average regional rent bill which currently stands at £577.

In the North West, average council tax bills of £171 per month equate to 25.3% of rent and the same is true in the East Midlands, where council tax costs £172 per month. 

Council tax as a percentage of rent is also higher than the national average in Yorkshire & Humber (25.1%), the West Midlands (22.6%), and South West (19%), while renters in the East of England (17.5%), South East (16.3%), and London (8.7%) are paying less than the national average. 

When analysing the nation at local authority level, the analysis shows that the tenants whose council tax bills equate to the largest percentage of rent are those in Hartlepool, County Durham. Here, the average monthly council tax bill is £183 which is equivalent to 37.5% of the local average rent bill (£488).

Tenants in Burnley, Lancashire have an average council tax bill of £179, which is also equivalent to 37.5% of rent (£479).

Tenants in Middlesbrough are paying the equivalent of 37.3% of rent. The percentages are also high in Pendle (36%), Hyndburn (35.5%), County Durham (35.1%), North East Lincolnshire (34.9%), and Redcar & Cleveland (34.7%).

At the other end of the scale, London tenants have lowest price of council tax versus rent. Renters in the City of Westminster are paying an average monthly council tax bill of just £72 which is equivalent to 3.1% of the average monthly rent price of £2,359.

In Wandsworth, council tax of £73 per month equates to just 3.7% of rent, while tenants in Kensington & Chelsea (4.2%), the City of London (4.8%), Hammersmith & Fulham (5%), Camden (7.5%), Southwark (7.5%), and Tower Hamlets (7.6%) are paying well below the average for council tax as a proportion of rent.

Jack Godby, Sales and Marketing Director at Ocasa, comments: “This research makes it glaringly obvious that those tenants who can afford to pay the highest rent are being gifted with below average council tax bills, while those who live in the most affordable locations are being saddled with the most expensive tax.

“Is it fair that the wealthiest people are paying the least council tax while the hardest-up are paying the most? It certainly doesn’t seem so, but the government will argue that public services in the wealthiest areas are under much less strain – and therefore require less money to operate – than in those places where the population relies more heavily on government-funded assistance. 

“The result is a vicious cycle in which those with the least advantage become even more disadvantaged. As the current cost of living crisis becomes more entrenched, more people are going to have to turn to public services for help. And this comes at a time when the government is already expected to increase council tax rates.”