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Em Morley

House Prices Will Not be Affected by EU Referendum Claim Homeowners

Published On: May 25, 2016 at 8:34 am

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House prices will not be affected by the EU referendum, according to homeowners.

Recent research by estate agent Knight Frank found that UK household sentiment remained positive in May, despite political uncertainty surrounding next month’s EU referendum.

House Prices Will Not be Affected by EU Referendum Claim Homeowners

House Prices Will Not be Affected by EU Referendum Claim HomeownersEU referendum.

The firm’s latest House Price Sentiment Index shows that 25.6% of the 1,500 households surveyed believe the value of their home has risen over the past month, while just 3.6% say that house prices have dropped.

The results give an index rating of 61.0, which, although higher than the 60.1 recorded in April, is still below the peak set two years ago of 63.2 in May 2014.

Household sentiment grew among all age groups, except the over-55s.

Households in the South East are the most confident that house prices will increase in the next 12 months, with an index rating of 79.5, followed by 78.2 in London.

Around 5.4% of UK households plan to purchase a property in the next year, up from 5.0% in April.

The Head of UK Residential Research at Knight Frank, Grainne Gilmore, comments on the findings: “The steadiness of the headline House Price Sentiment Index during such political uncertainty over the EU is a reflection that the fundamentals of the market remain unchanged – there is still an imbalance between demand and supply of housing, and for those with access to deposit payments, mortgage rates are still near record lows.

“However, there has been some softening in sentiment among those aged 55 and over – the age group who have the largest equity stake in the UK housing market.

“While the sentiment reading for this group is still one of the highest, indicating they expect prices to rise, there has been a notable fall from last month, indicating that the current economic and political climate is affecting some corners of the market.”

A recent report from the National Association of Estate Agents and the Association of Residential Letting Agents mirrors the sentiment of the Knight Frank study, suggesting that house prices will rise whether we stay in the EU or not.

As a landlord, how do you think prices will change as a result of the referendum?

Mortgage lending at the Nationwide rises by 20%

Published On: May 24, 2016 at 1:09 pm

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Nationwide Building Society has today announced that their yearly mortgage  lending figures are at their greatest level since the financial crisis.

The full yearly results indicate that there has been a 23% increase in statutory profit, with this total standing at £1.279bn.

Mortgage increases

Further figures suggest that gross mortgage lending increased by 20% to hit £32.6bn. Net lending rose by 28% rise to £9.1bn, bringing their market share to 21.4%.

During the past twelve months, the Nationwide has lent to 57,200 first-time buyers, accounting for one-sixth of all cases.

What’s more, the Nationwide increased their maximum limits for mortgages from 75 to 85, giving it the highest age threshold of any lender on the high street.

Mortgage lending at the Nationwide rises

Mortgage lending at the Nationwide rises

Testament

Nationwide chairman, David Roberts, said, ‘these results are a testament to always putting our members first. I would like to thank Graham Beale for his huge contribution to the Society which has left the business in great shape, prospering as a modern mutual and I wish him well for the future.’[1]

‘I am delighted to welcome Joe Garner as Nationwide’s new Chief Executive. Joe stood out as someone with a deep understanding of the sector, who has championed customer interest throughout his career and who will set the strategic direction for the Society and our people.’[1]

Mr Garner, newly appointed chief executive of the firm, added, ‘it’s a credit to the management and people of the Society that they have consistently understood this and organised Nationwide around this principle. As a result, last year we lent more money to help people into a home of their own than since before the financial crisis in 2007.’[1]

[1] http://www.propertyreporter.co.uk/finance/gross-mortgage-lending-at-nationwide-soars-by-20.html

Lions, Crocodiles and Rattlesnakes Kept in UK Properties

Published On: May 24, 2016 at 11:12 am

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Do you know what could be lurking next door? According to new data, wild animals, including lions, tigers, crocodiles, rattlesnakes and zebras, are being kept legally in UK properties.

A Freedom of Information request (FOI) revealed that more than 100 councils have issued licenses to people who keep undomesticated animals at home.

It found that more than 300 cobras, vipers and rattlesnakes are living on private property across the UK.

Lions, Crocodiles and Rattlesnakes Kept in UK Properties

Lions, Crocodiles and Rattlesnakes Kept in UK Properties

The FOI discovered:

  • In Cornwall, licenses for pumas, lynxes, ocelots, lemurs, vipers, ostriches and a range of wild cats have been issued.
  • Wolves, alligators, caiman crocodiles, black widow spiders, venomous snakes and short-clawed otters are being kept in Central Bedfordshire.
  • Cannock Chase Council has issued licenses for three tigers and two lions.
  • Among the most popular dangerous pets are lemurs, 115 of which are kept in domestic settings.
  • 15 wolves are registered at UK addresses.
  • 412 bison and over 2,000 wild boar live in private fields in the UK, along with a group of zebras.

Licenses are required to keep animals that are considered wild, dangerous or exotic on private property. Councils grant these licenses, provided that mandatory safety measures are in place at the owner’s home and a fee is paid.

Just last week, we reported that a zookeeper was looking for a rental property for himself and two animals – a walrus and a flamingo. Would you accept these wild pets in your property?

Iain Newby, who runs a wild animal rescue facility from his home in Essex, spoke to BBC Radio 5: “I can understand people’s fascination with a lot of these animals, I keep servals myself – African cats.

“A lot of these animals I do believe should never be pets, they should be – if they are rare or if they are endangered – in proper breeding groups to keep the populations.

“But there are certain animals that are kept as pets, have been kept as pets for a long time, are bred in captivity, such as the servals.”

Although the results of the FOI are shocking enough, the councils have only revealed details of animals being kept legally with a license, but not any that are being kept illegally on private property.

Newby believes that there are many more animals being kept in homes around the UK than the FOI states. Do you know of anyone that keeps wild animals in their house? Make sure your tenants don’t!

64% of would-be homeowners rent first

Published On: May 24, 2016 at 10:58 am

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Nearly two-thirds (64%) of would-be homeowners in Britain rent a property before picking up the keys to their own place, according to new research.

Data from the report by Clydesdale and Yorkshire Banks underlines the difficulty that many potential buyers are facing in the current market.

Renters’ struggles

Saving up for a deposit is one of the greatest hurdles facing first-time buyers. The survey found that renters are not likely to get assistance from their family, with only 41% saying that this was the case. This was in comparison to 62% living with their parents.

Building up a sufficient deposit is also a challenge to tenants currently living in the rental market, with an average months rent standing at £681.70.

Of those living with their parents before purchasing their own home, 21% said they don’t pay rent. One-third of would-be homeowners said that they put this money towards their deposit instead.

52% said that they pay a fixed amount each month to their family, with 22% contributing towards food and bills.

Stress

In addition, the research found that those currently residing in rental properties find getting a foot on the property ladder more stressful. 28% admitted they were finding the process difficult, in comparison to 16% of those still living with their parents.

Steve Fletcher, head of customer banking networks at Clydesdale and Yorkshire Banks, said, ‘buying a first home is one of life’s most significant financial milestones and the banks can work with the individual needs and circumstances of potential first time buyers to help make their dreams of becoming a homeowner a reality.’[1]

64% of would-be homeowners rent first

64% of would-be homeowners rent first

Cover

Additional research conducted by Royal London indicates that nearly five million renters in Britain have no plan in place to cover their rental payments, should they become too ill to work.

This alarming figure comes despite 27% of renters in work saying they were aware of someone who had struggled in a similar situation. 34% admitted they didn’t know how long they could pay their rent for should they be unable to continue in their employment

60% said that they could only continue paying their rent for three months or less.

Solutions

In terms of solutions, 53% said their first move would be to apply for state benefits, while 47% would cut their expenses and 39% would use their savings.

Just 7% of renters in employment said that they had consulted a financial advisor.

Debbie Kennedy, head of protection for Royal London Intermediary, noted, ‘renters who assume that housing benefit will be there when they need it could find the reality is very different. A series of cuts to housing benefit means that more people would not get their rent paid in full if their income fell unexpectedly.’[1]

‘It would be bad enough to be taken ill without the added anxiety of getting behind with the rent and facing possible eviction. Income protection may be more affordable than people realise and can provide a financial safety net and enable people to focus on getting better,’ Kennedy added.[1]

[1] http://www.propertywire.com/news/europe/uk-property-market-buyers-2016052411948.html

 

Property Sales Down by 45% Between March and April

Published On: May 24, 2016 at 9:59 am

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The number of residential property sales dropped by a huge 45.2% between March and April, according to the latest transaction figures from HM Revenue & Customs (HMRC).

Property Sales Down by 45% Between March and April

Property Sales Down by 45% Between March and April

The provisional seasonally adjusted UK property transaction count for April was 84,280 residential and 10,090 non-residential sales.

April’s seasonally adjusted figure has dropped by 14.5% over the past year.

The substantial monthly decline in property sales in April follows a surge in transactions in March, which was likely caused by the upcoming 3% Stamp Duty surcharge, which was introduced on 1st April.

Buy-to-let landlords and second homebuyers are now charged an extra 3% in Stamp Duty when they purchase an additional property. This guide will help you understand how the tax change will affect you: https://www.justlandlords.co.uk/news/landlords-guide-stamp-duty-surcharge/

While April 2016’s transaction figure is lower than April 2015’s, the HMRC reports that the total for March and April this year is still significantly higher than for the same period last year.

In April, the amount of non-adjusted residential transactions was 59.2% lower than in March. On an annual basis, the number dropped by 18.7%.

The Managing Director of estate agent Stirling Ackroyd, Andrew Bridges, comments on the data: “The wheels of the property market are turning, but not quick enough to meet demand. A rush of activity at the start of the year left both buyers and sellers in a whirl. Now things have settled down, the property market needs to settle into a steadier rhythm.

“In the majority of London, this is happening – with a healthy hum of buyers and sellers. But the old luxury corners of London are far quieter – the traditional top quarter of the market saw a 2.4% annualised fall in house prices in the last quarter of 2015. This means fewer properties on the market and ultimately less choice for buyers. Fortunately, this hasn’t spread too far. The east of London has shown its cards and is in a strong position – resistant to price falls and leading London’s property fortunes. Activity across the rest of the capital and the rest of the country now needs to catch up with the beacons of growth and optimism around developing hotspots.”

Negativity around Housing and Planning Bill slammed

Published On: May 24, 2016 at 9:08 am

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Leading land agent Aston Mead has slammed doubters skeptical on Britain’s ability to build one million new properties by 2020. This pledge is at the core of the Government’s Housing and Planning Bill, which gained Royal Assent this month.

Pessimism

A recent survey of owners and directors of 389 housebuilders across England uncovered plenty of pessimism around this pledge. 51% of those asked said that they did not feel that the target would be met.

Mr Adam Hease. Land and Planning Director at Aston Mead, said: ‘the danger is that the planning pessimists out there will create a self-fulfilling prophecy. A million homes by 2020 is perfectly possible-as the Home Builders Federation have stated quite clearly. But it will need conviction and commitment, as well as further government policies in favour of development and help to speed up the planning process.’[1]

‘We’ve already seen huge increases in output, with build rates on large sites doubling since 2010. There were more than 180,000 new homes delivered in 2014/15, with this year’s figure expected to be higher still. And by 2019 the big companies will be building double what they did six years ago. Now we need to speed up the momentum ever further, so that we ensure we reach the target of one million new homes by 2020.’[1]

Negativity around Housing and Planning Bill

Negativity around Housing and Planning Bill

Optimism

Despite his belief in the scheme, Mr Hesse believes that the industry must see more land coming through the planning system. In addition, he wants to see more processes than support both big and small housing developers.

Hesse explained, ‘several significant advances have happened already. Brownfield sites will now automatically be approved for building, with £10m worth of funding to help local authorities prepare them. There are also plans to relax the planning rules for smaller house builders, enabling them to gain automatic planning permission on suitable sites. And changes to the section 106 agreement will enable developers to provide affordable homes to buy, instead of affordable homes for rent.’[1]

‘But it’s local councils-the largest landowners in the country-which will be key to the success of this project. They must get up-to-date housing plans in place, ensuring that they are robust and evidence-based. They should review their planning application process and the conditions attached to planning which represent such a major challenge for developers. Plus they need to streamline their planning processes and improve communication so that once approved, building can get underway quickly.’[1]

Concluding, Hesse said, ‘for their part, house builders are already investing in their supply chains and have taken on tens of thousands of new workers to ensure there is the capacity and skills required. All we need now is the conviction and commitment to carry it off.’[1]

[1] http://www.propertyreporter.co.uk/property/planning-pessimists-slammed-by-land-agent.html