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Em Morley

Stamp Duty Changes Save Buyers £4,500

Published On: December 7, 2015 at 4:34 pm

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Categories: Finance News

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Changes to the way Stamp Duty is charged have saved the average buyer £4,500 when purchasing a property in the last 12 months, according to a new report from Halifax.

Stamp Duty Changes Save Buyers £4,500

Stamp Duty Changes Save Buyers £4,500

Stamp Duty was reformed to a more progressive system in England and Wales in December 2014.

Halifax claims that the changes have saved money for most buyers, but have reduced demand at the top end of the market.

The bank says that the total tax charged in the UK increased to a record £7.5 billion in 2014-15.

Mortgages Director at Halifax, Craig McKinlay, states: “The changes made to Stamp Duty a year ago have been of significant benefit to many buyers.

“Only those purchasing the most expensive homes are worse off. There is some evidence that the top end of the market has been adversely affected by the changes, with sales over £1.5m falling by twice as much as the market as a whole.”1 

Sales in the first half of the year dropped by 10% compared with the first six months of 2014, but sales fell by 20% for properties costing over £1.5m, the lender’s research found.

According to Halifax, 72% of Stamp Duty revenue raised was from property purchases in London, the East of England and the South East.

Just 1% of homes in London were bought for under £125,000 in 2014-15 – the threshold for which no Stamp Duty is charged. Contrastingly, 45% of properties in the North East were bought for figures below the threshold in the same period.

In the Autumn Statement, Chancellor George Osborne announced another change to Stamp Duty. From April, a further 3% will be charged on buy-to-let properties and second homes. Read more: /16883-2/

£5,520 will be added to tax on the average £184,000 buy-to-let property.

Use our Stamp Duty calculator to find out how you will be affected: /calculator/

1 http://www.bbc.co.uk/news/business-35004478

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Build to Rent Set to Triple in Size to £50bn by 2020

Published On: December 7, 2015 at 2:24 pm

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Categories: Finance News

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Investment by large-scale investors in the Build to Rent sector is expected to triple by 2020, according to a recent report from Knight Frank.

Build to Rent Set to Triple in Size to £50bn by 2020

Build to Rent Set to Triple in Size to £50bn by 2020

The property firm estimates that this growth will take the total investment in the sector to £50 billion in the next five years, increasing the size of Build to Rent from 2% of the private rental sector to 5%.

This prediction forms part of the Investor Survey from Knight Frank, which includes a study of 16 large-scale Build to Rent investors. The firms shared their views on where gross yields will stand around the country in 2020. They estimate that yields in regional city centre markets will settle 1.75 basis points higher than London, assuming that the economy performs in line with market expectations.

The Tenant Survey report includes the results of a nationwide study of private rental sector tenants – the largest survey of its kind ever conducted, with over 5,000 respondents.

The research, undertaken alongside YouGov, found:

  • More than half (52%) of tenants said living close to work or their place of study is a priority.
  • 30% of renters reported that their main reason for moving was to upgrade to a larger or nicer home, emphasising the flexibility of renting.
  • 38% of respondents have lived in five or more rental properties. While many tenants have moved within one mile of their previous home, around a fifth (19%) have moved more than 60 miles, citing relocation for work or study.
  • 28% of tenants across the country said they would be prepared to pay up to 30% of their gross income on rent, with almost a third (31%) of under-25-year-old renters in London prepared to pay up to 50%.
  • A quarter of private tenants live alone, while 34% live as a couple without children. 43% of 18-24-year-olds share with other adults in a flatshare.

Head of UK Residential Research at Knight Frank, Grainne Gilmore, comments: “The Tenant Survey shows us that priorities for tenants when choosing a property include proximity to their place of work or study, how easily they can reach transport links and how affordable the property is.

“Tenants are mobile, owing to the flexibility offered by renting as a tenure, and while the motivations for moving vary, the largest cohort of respondees identified the wish to upgrade to a bigger or nicer property as their key motivation for moving into their current rented property.”1

James Mannix, Head of Residential Capital Markets at Knight Frank, adds: “The results from the Tenant Survey and the Investor Survey demonstrate that there is a generational shift in the market, both amongst renters and investors, which stands a good chance of both stabilising the volatility of the housing market and satisfying some of the structural shortfall in supply. One of the major controls on production of housing is projected rates of sale. The rental market could significantly accelerate this factor through immediate absorption.”1

1 http://www.propertyreporter.co.uk/landlords/large-scale-prs-sector-to-triple-in-size-to-ã¢50bn.html

 

 

 

 

 

 

 

 

 

 

Landlords and Agents Called to Help Detect Modern Slavery

Published On: December 7, 2015 at 12:19 pm

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Categories: Landlord News

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Landlords and letting agents have been called upon by Thames Valley Police to help tackle modern slavery.

Landlords and Agents Called to Help Detect Modern Slavery

Landlords and Agents Called to Help Detect Modern Slavery

Modern slavery has been identified as a growing problem, with the latest Government estimate suggesting that there are 13,000 victims in the UK.

Police state that every victim is forced to live or work somewhere, thus, they are urging landlords and letting agents to help combat the issue and to be aware that modern slavery is occurring in many communities.

Victoria Butler, the Modern Slavery Intelligence Lead at Thames Valley Police, says: “We know victims of modern slavery are often forced to live in accommodation with others, frequently in large groups, which causes overcrowding.

“They are sometimes transported from home to work and made to work long hours. They have their documents taken from them and they do not control their own finances.

“I would ask any landlord or letting agent to ensure they know exactly who is renting their premises. If they have any concerns about the welfare of those living and working there, or suspicions about the financial arrangements, they should contact police.”1

If you are renting out a property, ask yourself these questions:

  • Do you know exactly who you are letting the property to and who is living there?
  • Is the occupant the same person that signed the tenancy agreement?
  • Does the occupant pay their own rent from their own bank account?
  • Are you aware of any anti-social behaviour complaints regarding the property?
  • Do the occupants of the property change regularly?
  • Is the occupant in possession of their own passport or identification documents, and have these been checked prior to the start of the tenancy?
  • Does the tenant seem withdrawn, frightened or show signs of physical abuse?

Modern slavery includes: Child trafficking; forced labour; debt bondage; sexual exploitation; criminal exploitation; and domestic servitude.

There is no typical victim, but modern slavery is usually more common amongst vulnerable, minority or socially excluded groups.

Hidden signs make it difficult to identify a victim, but common indications include: Poor physical appearance; isolation; poor living conditions; few or no personal effects; restricted freedom of movement; unusual travel times; and a reluctance to seek help.

1 http://www.thamesvalley.police.uk/newsevents-pressreleases-item.htm?id=325251

 

Flood risk information should be included in sales material

Published On: December 7, 2015 at 10:00 am

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Categories: Property News

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Winter is here and with bad weather on the horizon, a new survey suggests that people looking to buy a home in the UK should be given more information on the property’s flood risk.

Lighting

The investigation, conducted by the Association of British Insurer, found that 90% of people believe more flood risk information should be included on material about properties up for sale.

Presently, no property search websites have this type of information for the location of properties that they list. This is despite including features such as school catchment areas. Additionally, the ABI notes that there is no flood risk information included in the details of new build properties.

As such, the association has calling for agents and property search websites to provide traffic light style information which indicates the risk for the areas of homes that they list. This information, according to the association, should be based on publicly accessible Environment Agency data.

Guide

The Association has also called for solicitors and conveyancers to follow the Law Society’s guidance to conduct exact searches for flood risk. In addition, it feels that they should arrange for a detailed assessment by a technical expert if a flood risk is found to be present.

What’s more, the ABI is publishing a new house hunters’ guide, to assist people of the measures that they should take in order to stay up to date with flood risks on properties that they are looking to buy.

‘Flooding can ruin a home, destroying valuable possessions and often force you to move out while repairs are made,’ said ABI director general, Huw Evans. ‘A higher risk of flooding also tends to mean higher insurance premiums.’[1]

‘With one in six homes at risk of flooding, we need to make thinking about flood risk as much part of the home buying process as school catchment areas and transport links, ‘Evans continued. ‘At the moment, information on whether a property is at risk of flooding comes too late, often when people have already invested hundreds if not thousands of pounds in the conveyancing process.’[1]

‘That’s why we are calling for those who sell properties to include new traffic light warnings on flood risk in a property’s area. You can currently get more information about what paper your new neighbours might read than if a particular property might be at flood risk!’[1]

Flood risk information should be included in sales material

Flood risk information should be included in sales material

Opening the flood gates

Mr Evans went on to say that, ‘these simple warnings will help people go into the home buying process with their eyes open and knowing whether further investigations are necessary. We now want to work with estate agents, property websites and the Environment Agency to make this happen.’[1]

Encouragingly, Floods Minister Rory Stewart stated that more information is being made available. He said that, ‘flooding can devastate lives, homes and businesses. It is important that everyone has access to the right information, including the flood risk in their area, so they can make fully informed decisions when buying a home.’[1]

‘We are making more data and technology available to help people plan and prepare for potential floods, such as the Environment’s Agency’s free Flood Warnings Service and our advanced flood mapping and forecasting,’ he added.[1]

[1] http://www.propertywire.com/news/europe/uk-homes-flood-data-2015110211156.html

 

 

Welsh Government Urged to Repeal Rent Smart Wales

Published On: December 7, 2015 at 9:56 am

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Categories: Landlord News

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Welsh Government Urged to Repeal Rent Smart Wales

Welsh Government Urged to Repeal Rent Smart Wales

A new online petition has been published on the Welsh government’s website calling for the repeal of the Rent Smart Wales law.

The scheme requires all landlords and letting agents in Wales to register themselves and their properties and to obtain a license. Find out more here: /todays-the-day-for-change-in-the-welsh-private-rental-sector/

The petition suggests that instead, landlords and agents should join a recognised scheme.

Greg Roberts & Co, estate agents in Blaenau Gwent, brought the petition. The firm states: “The legislation proposes all landlords and letting agents are licensed to be able to let a property in Wales. This in principle does have merit. However, the scheme put forward is over-complicated and extremely costly.

“Making it illegal for individuals or agencies to let properties who are not members of a recognised organisation, i.e. ARLA [the Association of Residential Letting Agents], NAEA [the National Association of Estate Agents], RICS [the Royal Institution of Chartered Surveyors] or private landlords affiliations, would ensure the tenant is protected, as all the above have standards and criteria members have to adhere to.

“This is also backed up by the need to have Client Money Protection insurance and to be a member of an independent redress scheme, like say The Property Ombudsman [TPO]. Then there would be no need for any further costly Welsh government involvement.”1 

The petition is only open for a month, closing on 31st December 2015. Sign it here: https://www.assembly.wales/en/gethome/e-petitions/Pages/petitiondetail.aspx?PetitionID=895 

1 https://www.assembly.wales/en/gethome/e-petitions/Pages/petitiondetail.aspx?PetitionID=895

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Over Half of New Build Homes are Too Small, Says RIBA

Published On: December 6, 2015 at 12:04 pm

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Categories: Property News

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More than half of the new build family homes under construction by private house builders in the UK are too small, according to the Royal Institute of British Architects (RIBA).

The average new three-bedroom house is lacking space equivalent to a bathroom, its report states, while many are missing space the size of a double bedroom, if judged against the Government’s minimum reasonable space standards launched in October.

Homes outside London are the worst affected by this “rabbit hutch” trend, found RIBA after measuring a sample of new homes on 100 developments.

Over Half of New Build Homes are Too Small, Says RIBA

Over Half of New Build Homes are Too Small, Says RIBA

The organisation identified two of the leading house builders that are the worst offenders. From a sample of new three-bed homes surveyed, RIBA found that Barratt Homes’ properties are on average 6.7 square metres smaller than minimum space standards and homes by Persimmon are typically 10.8 square metres too small – around the size of a double bedroom.

President of RIBA, Jane Duncan, says: “Tiny rabbit hutch new builds should be a thing of the past. But, sadly, our research shows that, for many people, a new home means living somewhere that’s been built well below the minimum space standard needed for a comfortable home. The Government must take action to ensure a fairer minimum space standard is applied to all new homes across the country.”1

RIBA warns that the lack of space is “depriving thousands of families of the space needed for them to live comfortably and cohesively, to eat and socialise together, to accommodate a growing family or ageing relatives, or even to store possessions including everyday necessities such as a vacuum cleaner.”

It identifies Persimmon’s Staynor Hall development in Selby, North Yorkshire. Its Hanbury three-bedroom, two-storey house has a floor space of 70.7 square metres, when the Government says the minimum space for a three-bed house for a family of five should be at least 93 square metres.

These space standards are optional for local councils to use. House builders have opposed them, claiming they reduce customer choice.

The Executive Chairman of the Home Builders Federation (HBF) – which represents firms including Barratt and Persimmon – Stewart Baseley, says: “Overwhelmingly, the people that matter – buyers of new build homes – are happy with their houses and how they are designed.

“Imposing space standards and so restricting what builders can build takes away choice from home buyers. This would not only prevent more people from buying their own home but also exacerbate the acute shortage of housing that we have experienced over several decades.”

A spokesperson for Barratt adds: “We make the best use of space and our customer recommendation score is over 90%, the only major national house builder to achieve this.”

In London, minimum space standards have been in force since 2011. As a result, new homes are significantly bigger. The average three-bed home in the capital is now 25 square metres bigger than in Yorkshire – the area with the smallest new homes.

New three-bed properties in the West Midlands are also more than seven square metres smaller than the minimum standard.

The RIBA report states: “On average, every new three-bed home in Leeds, York or Scarborough is missing out on the equivalent of a double bedroom and a family living room.”

RIBA had highlighted another issue with housing space – the conversion of office buildings into homes after the relaxation of planning rules in 2013. Last year, 20,000 of these homes were built, but the lack of regulation means they are some of the smallest available.

The report claims: “Across the country, two-person ‘apartments’ of less than 14 square metres (the size of a typical bedroom) are being delivered. Under the national space standard, the minimum floor area for any new home is 37 square metres – almost three times the size.”1

1 http://www.theguardian.com/society/2015/dec/02/rabbit-hutch-homes-should-be-thing-of-the-past-say-architects