Posts with tag: general election

London Property Sales at Lowest Ever Pre-Election Level

Published On: April 27, 2017 at 8:25 am

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London property sales are at the lowest ever levels recorded pre-election, according to analysis of the latest Land Registry data by Portico London estate agent.

London Property Sales at Lowest Ever Pre-Election Level

London Property Sales at Lowest Ever Pre-Election Level

The data shows that there were just 55 property sales in the whole of the Westminster borough in February this year – the lowest ever number recorded by Land Registry, and 60% lower than in February 2009, immediately after the market crash.

Portico’s study shows that there is a clear correlation between general elections and property sales; hence, the agent is predicting a further decline in sales volumes until the snap General Election on Thursday 8th June.

Historically, low levels of property sales in central London have pushed people further out of the capital, but Portico’s data shows that falling volumes are now a problem across the whole of London.

There were just 105 property sales in the south London Borough of Wandsworth this February, compared with 370 last year – a huge 72% decline year-on-year.

Likewise, the Land Registry figures show that there were just 82 property sales in the east London Borough of Redbridge in February, compared with 260 the year before – a 68% decrease on an annual basis.

According to Portico’s research, the market will likely experience a spike of activity post-election, when certainty in the market is restored. After the last general election in 2015, Wandsworth and Westminster experienced a 28% increase in property sales in the three months post-election, and Redbridge saw an even greater 34% jump in activity.

The Managing Director of Portico, Robert Nichols, comments: “Currently, transaction volumes, or the number of homes being bought and sold in the capital, are at an all-time low. The drop in transactions is in part explained by a big jump in sales in the run-up to April last year, when the change to Stamp Duty taxes came into effect, followed by an immediate fall. Since then, volumes have dropped to historic lows, and Theresa May’s decision for a snap General Election will further subdue the market.

“We are expecting to see some improvement in volume post-election, but, at best, we expect volume to track at -5% year-on-year to summer 2016, when volumes failed to recover after the Stamp Duty changes.”

However, he adds: “We cannot say for certain what impact a boost in market activity will have on property prices, but, historically, there has always been a slight increase. If we look at the last election, house prices rose by 2.4% in Wandsworth in the three months following the vote, 4.6% in Redbridge and 1.7% in Westminster. Similarly, in the election before that in 2010, property prices rose by 1.8% in Wandsworth, 2.5% in Redbridge and a staggering 19% in Westminster in the three months after the election.”

Which Political Party will Mostly Benefit Student Tenants?

Published On: April 26, 2017 at 8:30 am

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As the UK prepares to go to the polls once again, student tenants and landlords alike will be considering which political party to vote for.

StudentTenant.com has assessed the many morals, manifestos and tactics from the three main political parties to guide those in the student lettings market on who to vote for to get the best deal.

A lot has happened since Britain voted to leave the EU last year: David Cameron has stepped down as Prime Minister; Theresa May has taken over and triggered Article 50; and now Britain is preparing for another General Election.

Since May announced the snap General Election to be held on 8th June, party campaigners have been fighting for votes. But finding the right party to benefit student tenants and the future of the private rental sector can be confusing.

Last year, 18-24-year-olds overwhelmingly voted to remain in the EU (71%), but many things have changed since then.

Who should student tenants and their landlords vote for? StudentTenant has investigated the pledges of the top three political parties:

Labour

Private rental sector reform:

  • Reduce rents and increase security for tenants renting from private landlords.
  • Regulate the rental sector to stop substandard accommodation and unfair charges from lettings.
Which Political Party will Mostly Benefit Student Tenants?

Which Political Party will Mostly Benefit Student Tenants?

University tuition fees:

  • Last year, Jeremy Corbyn campaigned to abolish tuition fees by raising £10 billion in taxes from businesses and high earners.
  • 7% rise in National Insurance for those earning over £50,000.
  • 5% increase in Corporation Tax.

There has been no mention of tuition fees by Labour for the upcoming General Election.

Post-Brexit economy and business:

  • Long-term investment in the workplace – creating a high wage, highly skilled workforce to increase productivity and create more job opportunities for young people.

Conservative 

Private rental sector reform:

  • Encourage housing associations and local authorities to increase the supply of rental properties.
  • Attract investors into residential development, including homes for rent.

University tuition fees:

  • Previously raised the tuition fees to £9,000 under the coalition government and has recently increased by a further £250 without an announcement from the Department of Education.

Post-Brexit economy and business:

  • Investment into smaller businesses and enterprises, to create 1.9m new job opportunities for young people.
  • Cut Corporation Tax to help companies invest internally and grow, to create more job opportunities.

Liberal Democrats

Private rental sector reform:

University tuition fees:

  • Last year, the Liberal Democrats announced that they would force a vote by MPs in a bid to stop raising the current £9,000 limit.

There has been no mention of tuition fees by the Liberal Democrats for the upcoming General Election.

Post-Brexit economy and business:

  • Build a sustainable economy for the future by supporting small businesses and new business models.

Danielle Cullen, the Managing Director of StudentTenant, comments: “Educating young people about the upcoming General Election and what each political party is offering them is incredibly important to the future of Britain. We’re edging ever closer towards Brexit, and young people must make an informed decision on who they should vote for, and actually make the effort to go out and put a cross in the box.

“Looking into specific housing, university and post-Brexit economy pledges from political parties, it’s clear that some parties are much more beneficial to the student demographic than others. However, it is also important to think about life beyond university, and the job market for young people and housing issues for young professionals. If we can help some people in more than just finding a student property by actually helping them shape their future, I will be pleased.”

She continues: “A lot is changing in the student sector, particularly in the private housing market, with the announcement that the Government is planning to abolish letting agency fees. It’s encouraging to see that the Government is finally putting in place structured policies to help the rental market, but it’s so important to understand more about the logistics of how this will affect young individuals.

“The current Tory plans leave an area of uncertainty in who is going to foot the bill. Property specialists are predicting that landlords will seek to recoup the costs from rising rents, eventually absorbing the agency costs. We could see some landlords quit the rental market when faced with absorbing these extra costs which could be problematic for the student rental market in particular.”

Theresa May Announces Snap General Election for 8th June

Published On: April 19, 2017 at 8:14 am

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Theresa May announced yesterday morning that she plans to hold a snap general election on Thursday 8th June, despite repeatedly claiming that she was against the idea of an early vote.

The next standard general election is scheduled for Thursday 7th May 2020.

In a surprise statement outside Downing Street yesterday morning, the Prime Minister claimed that opposition parties were jeopardising her Government’s preparations for Brexit.

Theresa May Announces Snap General Election for 8th June

Theresa May Announces Snap General Election for 8th June

“We need a general election and we need one now,” she insisted. “I have only recently and reluctantly come to this conclusion, but now I have concluded it is the only way to guarantee certainty for the years ahead.”

May claimed the decision she will put to voters would be about “leadership”.

In her statement, May said her Government is trying to deliver on last year’s EU referendum result by ensuring that Britain regains control and strikes new trade deals.

“After the country voted to leave the EU, Britain needed certainty, stability and strong leadership,” she stated. “Since I became Prime Minister, the Government has delivered precisely that.”

May later repeated her claim that she was taking the decision reluctantly, arguing that she had decided to go for the election last week.

She explained: “Before Easter, I spent a few days walking in Wales with my husband, I thought about this long and hard, and came to the decision that to provide for that stability and certainty, this was the way to do it.”

She added that she was asking the British public to put their trust in her.

Pressed on the notion that the decision was more about personal and party interest than for the sake of the country, May argued: “This is a decision that I’ve taken reluctantly in the national interest.”

She believes that a decisive election victory would strengthen the Government’s hand in Brexit negotiations.

Under the Fixed-term Parliaments Act 2011, May cannot call a general election directly, but she said she would lay down a motion in the House of Commons. This will require two-thirds of MPs to back it.

Commenting on the announcement, the Policy Director of the Residential Landlords Association, David Smith, says: “As the campaign progresses, this election needs to put housing first.

“Over recent years, the private rental market has been hit by tax hikes, benefit cuts and growing regulations, all of which are making it more difficult for tenants to access and afford a place to live. The same changes have made it harder for good landlords to provide the quality accommodation that tenants have a right to expect, and have discouraged further investment in new homes.”

He urges: “We need a housing market that works for all. The majority of landlords provide good quality housing and a good service to their tenants. The political parties need to recognise this, and deliver for tenants and good landlords alike.”

Yorkshire property prices soaring

Published On: June 18, 2015 at 12:24 pm

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Yorkshire has experienced the largest property price jump outside the South East of England over the last year, according to new data released today.

Research from property website Rightmove indicates that the average cost of a home in the county is now £174,000, an increase of almost £6,000 on the same period last year. Rightmove suggests that the lengthening imbalance between supply and demand is forcing average prices up.[1]

Post-election surprises

Taking England as a whole, the number of properties listed for sale was down 8.5% on the same period last year, with last month also seeing a 3.9% fall in supply of new homes. This has surprised a number of experts, who felt that supply would surge following the outcome of the election.[1]

Miles Shipside, director of Rightmove, described the fall in supply as, ‘unanticipated.’ He went on to say, ‘agents report that the election surprise has given a boost to market sentiment, driven by more certainty about future economic and taxation policies.’[1]

‘While would-be buyers have been able to respond quickly to these events, many potential sellers have so far failed to come to market,’ Shipside continued. ‘This has pushed up some of the asking prices of those properties that have been marketed, meaning that buyers are faced with paying a new average record price high for the more limited choice available.’[1]

Shipside describes this as, ‘the price of political certainty.’[1]

Yorkshire property prices soaring

Yorkshire property prices soaring

Rises

Property prices in Yorkshire have increased substantially, but the average home still costs less than in all other parts of the country, apart from the North East, where prices average at £144,000. Across both England and Wales, the average property on the market is more than twice as costly as those in the North East of England at £294,351.[1]

Shipside feels that the market is set for a surge during the second-half of the year, stating, ‘it all seems set-up for an active second-half housing market in 2015, barring any external shocks to the economy. However, it remains to be seen whether stretched buyer affordability can reach sellers’ post-poll pricing.’[1]

‘The new Government and other stakeholders now need to urgently deliver more new-build homes, to stop asking prices being pushed further up.’[1]

[1] http://www.yorkshirepost.co.uk/business/business-news/house-prices-grow-faster-in-yorkshire-than-anywhere-else-1-7308747

 

 

House Prices Could Surge After Conservative Win

Published On: May 18, 2015 at 11:49 am

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Before the general election, asking prices of homes coming onto the market dropped, unseasonal for May. However, with the Conservatives’ shocking win, the housing market could reverse, says Rightmove.

Rightmove found that uncertainty at the beginning of May caused vendors to price their homes “more aggressively”1 triggering a 0.1% decrease in the average asking price. In England and Wales, the average price asked for homes coming onto the market dropped by £242 to £285,891.

This figure makes May 2015 the first May in five years to experience lower asking prices than in April. Rightmove believes that the fall may be short-lived.

House Prices Could Surge After Conservative Win

House Prices Could Surge After Conservative Win

Commercial Director of Rightmove, Miles Shipside, says: “This is an election-driven price stall which gives some buyers only short-term relief from the backdrop of a long-term housing shortage, and many estate agents are now reporting a resurgence in interest following the surprise election result.

“Election uncertainty, and particularly the threats of financial penalties on landlords and those with properties valued at over £2m, put a brake on the market and their removal gives a reason for a rebound in activity and prices.”

The greatest drop in prices was seen in Greater London, where it is believed Labour’s proposed mansion tax and measures to challenge overseas investors were most likely to affect the market. Asking prices in the capital decreased by over £13,000 (2.3%) to an average of £581,074.

Contrastingly, the East of England witnessed price rises of 1.4% to an average asking price of £303,763. In the south and Wales, there were also increases of 1% and more.

Rightmove analysed new-seller data for the three months after the 2010 general election and observed a 17% rise in the amount of homes coming onto the market. The property portal predicts another rush of sellers now that the Conservatives are in power. For the buyers who have been faced with higher prices due to lack of supply, this news will be welcome.

Shipside continues: “In a traditional tight-stock market, an increase in supply of available property and greater competition among sellers to attract buyers may moderate their price expectations and make them more open to an offer.

“There may be a window for buyers to act now in this late spring market before prices rise in the next few months.”1

Soon after the election, estate agents for high-end London homes saw a surge in interest from buyers wishing to buy before prices rose again. Some agents expect prices in the luxury market to increase by up to 20%. Others predict price rises outside of the capital.

The Royal Institution of Chartered Surveyors (RICS) says that the shortage of homes coming onto the market will drive prices up. Read more: /property-prices-rise-due-to-lack-of-supply/. It has also advised the Government to build more homes.

1 http://www.theguardian.com/money/2015/may/18/a-fall-in-the-price-of-houses-new-to-the-market-will-reverse-after-tory-win

New Communities Secretary Revealed

Published On: May 14, 2015 at 10:51 am

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New Communities Secretary Revealed

New Communities Secretary Revealed

In the reorganisation of the cabinet, Greg Clark, MP for Tunbridge Wells, has been selected as secretary of state for Communities and Local Government.

Before the general election, Mr. Clark was Minister of State for universities, science and cities. Prior to this, he was financial secretary to the Treasury and previously the Minister of State for decentralisation.

Alan Ward, Chairman of the Residential Landlords Association (RLA), responded to the announcement: “The RLA looks forward to working with the new secretary of state in what will be a challenging but vital portfolio.

“As the only housing tenure that is growing, supporting and encouraging the army of individuals that make up the vast bulk of the country’s landlords will be critical to Mr. Clark meeting his ambitions for housing.

“Key to this will be a pro-growth regulation, planning and taxation system that provides the safe, legal and secure homes to rent the RLA has long been calling for.”1 

1 http://www.landlordtoday.co.uk/breaking-news/2015/5/greg-clark-announced-as-new-communities-secretary