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Em Morley

House prices to rise by 7% after Stamp Duty rise?

Published On: December 9, 2015 at 2:00 pm

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Categories: Property News

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Economists have today warned that buy-to-let lenders seek to avoid paying additional stamp duty from next April could be the catalyst for a 7% rise in UK house prices.

This warning comes despite a fall in property prices during November.

Rises

IHS Global Insight said that it expects a substantial rise in the price of housing in the coming months. The group forecasts increases of between 6% and 7% during 2016.

The Chancellor shocked the industry by announcing the 3% stamp duty hike on buy-to-let and second homes during last month’s Autumn Statement. IHS feel that these changes, ‘could lead to an increase in housing demand and exert upward pressure on prices as prospective buyers look to beat the increase’ in the short term.[1]

House prices to rise by 7% after Stamp Duty rise?

House prices to rise by 7% after Stamp Duty rise?

However, the Halifax reported that property values actually slipped by 0.2% between October and November. This said, prices in the three months to the end of November were 9% higher than at the same time in 2014.

Average property prices last month totalled £204,552.

Martin Ellis, Halifax housing economist, commented, ‘the increasingly acute imbalance between supply and demand is causing prices to rise at a robust pace.’[]

[1] http://www.standard.co.uk/business/house-prices-could-rise-7-thanks-to-stamp-duty-hike-a3132451.html

 

 

 

Neighbour Disputes Causing Stress and Depression

Published On: December 9, 2015 at 1:35 pm

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A new study has found that 18m people, or a third of the UK’s adult population, have faced neighbour disputes in the past year and half of those have been left feeling stressed or depressed as a result.

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The survey, conducted on behalf of mortgage broker Ocean Finance, found that 38% of residents no longer feel safe in their own homes or struggle to sleep due to stress caused by neighbours. A further 24% want to move to a new area to escape the issue.

Most respondents that have suffered from a neighbour dispute have experienced more than one problem.

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Of those that have experienced difficult neighbours, the most common issue is excessive noise (suffered by 57% of residents), including stomping around the house, loud arguments and late-night parties. About 30% have witnessed rude or abusive neighbours and another 15% said their neighbour has used intimidating or threatening behaviour.

A further 50% complained that their neighbour does not look after the exterior of their property or that there are problems with litter and rubbish being dumped, ruining the community.

On a regional basis, London has the highest number of incidents, with 52% of residents saying they have encountered some form of nuisance neighbour during the last 12 months.

Those living in Wales are least likely to suffer difficult neighbours (at 26%), compared with the national average of 36% of residents.

Respondents from Northern Ireland, the North West and South West of England were most likely to suffer a neighbour that uses intimidating or threatening behaviour, with those in the North East the least likely.

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Around 13% of respondents, equivalent to 7m Britons, admitted that they do not know which organisation to contact regarding a neighbour dispute. Over half of those affected (57%) would combat the issue directly, while just 16% would contact the police or their local council.

The Government advises residents to deal with a neighbour dispute by following these steps:

  1. Speak to your neighbour.
  2. If your neighbour is a tenant, contact their landlord.
  3. Use a mediation service.
  4. Complain to the council.
  5. Call the police.
  6. Take legal action.

A spokesperson for Ocean Finance, Gareth Shilton, states: “The research highlights the devastating impact that problem neighbours can have on the lives of people in our communities. Loud noise, dumped rubbish, shabby houses, even threats and abuse are causing misery for millions of people who live in fear.

“It’s understandable that people may feel worried about tackling the problem of nuisance neighbours. There are organisations that can support residents with these problems and give advice on how to deal with neighbour disputes so they can start to feel safe in their homes again.” 

Have you ever suffered a neighbour dispute? Or is this something that affects your tenants?

For more information on Ocean Finance’s research, click here: https://www.oceanfinance.co.uk/blog/the-uks-most-common-neighbour-nuisances-and-effects-0-4670-0.htm 

Stamp Duty hike will redraw BTL investment map

Published On: December 9, 2015 at 11:44 am

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Categories: Finance News

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Countrywide is the latest group to raise concerns over the forthcoming three percent hike in stamp duty on buy-to-let properties.

The company believes that the changes will effectively redraw the map for investors looking for the greatest returns.

Increases

Fionnualla Earley, Countrywide’s chief economist, said, ‘the effect of the new duty will be to effectively increase the price investors pay and hence reduce the yield they achieve. New landlords must do their sums more carefully to make sure returns on investment add up.’[1]

Research by Countrywide published in the Sunday Times shows their offices in the West Midlands sold 16.7% of their homes to buy-to-let investors-the greatest proportion of any region in England.

However, some individual cities outside of this area saw much bigger shares of their on-sale stock purchased by investors. These are likely to see their markets more significantly affected should the stamp duty hikes deter many from buying next April.

Stamp Duty hike will redraw BTL investment map

Stamp Duty hike will redraw BTL investment map

Regional concern

There is certainly concern amongst buy-to-let landlords that the rises in tax will have a substantial negative effect on the sector. In Leeds, 41% of the total number of Countrywide’s sales in the year to October were to buy-to-let investors. In Southampton, this proportion was 38% and in Harrow 35%. Plymouth and Calderdale followed with 34%.

Earley noted that, ‘while the region with the higest proportion of investors is the West Midlands, the highest concentrations of investors are spread more widely across the country.’[1]

Investors concerned about the rising stamp duty costs should visit Landlord News’ Stamp Duty Calculator to see just how much the changes will affect them.

[1] https://www.lettingagenttoday.co.uk/breaking-news/2015/12/new-stamp-duty-may-redraw-buy-to-let-investment-map-says-countrywide

 

 

 

Warning: Common Mould Can Kill

Published On: December 9, 2015 at 10:29 am

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Categories: Landlord News

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Warning: Common Mould Can Kill

Warning: Common Mould Can Kill

As the winter weather really sets in, property management specialist VPS has issued a warning that damp homes can develop a poisonous killer – common mould.

The firm states: “Not many people realise that mould is classed as a Category 1 health risk – the same as asbestos.”

As landlords have a duty of care for their tenants, it is recommended that you follow VPS’s advice in having any serious outbreaks of mould checked by a specialist team.

The company revealed that 50% of people who contract Invasive Pulmonary Aspergillosis (IPA) die. Despite mould being a common household issue, it is vital that this problem does not get out of control.

Aspergillosis is a group of conditions caused by a fungal mould called aspergillus. It typically affects the respiratory system, but can spread to anywhere in the body. It is just one of many types of mould and can be found growing on damp walls, as a major component of mildew.

Anthony Owen, the Managing Director of VPS, explains: “Everyone knows that most mould comes from excess water, but what many people don’t realise is that the type of fungi that grow give off micro toxins can make people ill. It is classed as a Category 1 health risk, the same class as asbestos.”

VPS has developed specialist mould prevention and removal teams to combat the issue and offer property owners free consultations if they believe they have a mould problem.

“Mould can be avoided by eradicating the contamination and also by addressing the root causes, ensuring that the contamination can be effectively controlled,” says the firm. “However, once mould spreads and takes hold, its removal should be carried out by a specialist team who will identify the causes, deal with the contamination and ensure a stable condition in the affected areas is achieved.”

Removing mould and ensuring that it does not build up on surfaces around the property can hugely improve the health of tenants. However, the root cause of the mould must also be tackled. These are: Condensation, water leaks, damp basements, inadequate ventilation, and rising damp.

An initial consultation with VPS can suggest how to treat the problem and how to prevent further issues. A specialist may be necessary to protect the health of current occupants and future tenants.

 

 

 

 

 

 

 

 

 

 

 

 

Property employees not angels at Christmas party!

Published On: December 9, 2015 at 9:00 am

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Categories: Property News

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Tis the season to be merry…and for many of us, we save our greatest glad tidings until the annual work’s do.

With party season in full swing, new research has revealed how Britain’s workers across many sectors REALLY behave when outside of the office.

The (fully impartial) research suggests that those in the property sector are most likely to cause a snowball following their antics at the Christmas bash.

Ho ho..oh no

8% of property sector employees have admitted to being ‘sacked’ following too much fun under the mistletoe. One in ten said that they ended up on Santa’s naughty list when back in the office.

The rise of Facebook has been snow-joke for many of us property folk, with 1 in 5 employees facing a frosty reception with their other halves following an inappropriate picture or status from the party.

However, one in four of us look at the Christmas do as an excuse to use the romantic element of the festive season and tell a colleague that they fancy sharing a mince pie with them.

30% said that they have learned lessons from last year and as a result, will be less crackers!

Property employees not angels at Christmas party!

Property employees not angels at Christmas party!

Sector shenanigans

But before the property industry gets too much of a bad reputation, other sectors were also found not to be full of angels!

Travel

Those in the travel sector were found to be most amorous spirit, with a whopping 42% saying they have kissed a colleague at an office party, with one in four wished they could get on a plane the next day!

10% said that they were planning on getting lost in the snow this year as they couldn’t trust themselves!

Energy and utilities

14% of energy and utility workers made property professionals look like good little boys and girls, saying they had been dumped by their partner after one too many sherrys and misbehaviour at the bash. Another 14% are planning on using the Christmas party to tell another colleague that they don’t like them. Well, at least it saves on Christmas cards…

Marketing and Advertising

At least the marketing and advertising sector contains some wise men (and women), with 36% saying that they would drink much less year to avoid embarrassing themselves.

Christmas cheer

As a whole, the research revealed:

  • 26% have kissed a colleague at the Christmas do
  • 21% expect to do something embarrassing this year
  • 1 in 10 plan to tell someone they like them at the party
  • 26% said that they will drink less in order to behave themselves!

So there we have it. Property professionals should behave like those in the Marketing industry. Or maybe…just one more drink…

Cheers!

Best Locations for Buy-to-Let Returns to Change Under New Stamp Duty

Published On: December 8, 2015 at 3:34 pm

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Categories: Finance News

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Best Locations for Buy-to-Let Returns to Change Under New Stamp Duty

Best Locations for Buy-to-Let Returns to Change Under New Stamp Duty

The best areas for buy-to-let returns are likely to change when the new Stamp Duty rules come in from April, warns Countrywide.

Landlords seeking the highest returns will have to look to different parts of the country when they are charged an extra 3% Stamp Duty on new property purchases. Find out more about the change here: /16883-2/

Chief Economist at Countrywide, Fionnuala Earley, states: “The effect of the new Duty will be to effectively increase the price investors pay and hence reduce the yield they achieve. New landlords must do their sums more carefully to make sure returns on investment add up.”

Countrywide’s latest research found that its West Midlands offices sold 16.7% of their properties to buy-to-let investors – the highest proportion for any region in England.

However, some individual cities have reported much larger percentages of their stock bought by landlords. These areas are most likely to see their markets affected more significantly when the Stamp Duty changes are enforced in April.

In Leeds, 41% of all Countrywide’s sales in the 12 months to October were to landlords. In Southampton, the figure was 38% and in Harrow, north London, it was 35%. Plymouth and Calderdale followed at 34%.

Earley adds: “While the region with the highest proportion of investors is the West Midlands, the highest concentrations of investors are spread more widely across the country.”1

Are you expecting to change the locations you search for new properties in when the changes are implemented? Use our Stamp Duty calculator to work out how the price of your next investment will change: /calculator/

1 https://www.landlordtoday.co.uk/breaking-news/2015/12/new-stamp-duty-may-redraw-buy-to-let-investment-map-says-countrywide