Posts with tag: property news

Help to Buy shows no signs of slowing down, particularly in London

Published On: December 3, 2019 at 9:57 am

The total value of properties bought using the Government’s Help to Buy scheme exceeded £60bn in the second quarter of 2019. The amount of Help to Buy properties purchased has increased year-on-year, since the scheme first began in 2013 and shows no sign of slowing down.

In 2013, 14,023 completed transactions were recorded, whilst in 2018, this number reached over 52,000. The latest figures for 2019 show that the year is on track to reach similar or higher figures, with 25,275 completed transactions just in the first half of the year. The majority of these sales were to first-time buyers, but the number of buyers already on the property ladder has gradually climbed too.

This increased growth is to be expected as Help to Buy becomes more well known, but the Government is planning to replace the scheme in March 2021 with something that is only available to first-time buyers.

Andrew Southern, chairman of property development company, Southern Grove says:

“Almost a quarter of a million homes have now been purchased since Help to Buy was launched six years ago. And the feeding frenzy at the Help to Buy table shows no signs of slowing down.

“However, looming large over the frenetic activity is the March 2021 cut-off, when the scheme is replaced with one which will only be available to first-time buyers and will set regional property price caps.

“This deadline is likely to inject even more urgency into the market. And first-time buyers, unperturbed by Brexit uncertainty, are already showing increased eagerness to make the most of these equity loans while they can, with the number of purchases using Help to Buy growing 8% year-on-year.”

In 2016, the maximum equity loan was increased from 20% to 40% in London, bringing with it a spike of first-time buyers using Help to Buy in the city. In 2019, of the 15,623 completed Help to Buy transactions in London, 95% were to first-time buyers.

Andrew Southern believes that this highlights the difficulty of getting onto the property ladder in the capital:

“Demand has been particularly strong in London with properties bought by first-time buyers using the scheme increasing by more than a quarter compared to last year.

“It is notable, however, that 75% of purchases are made using the full 40% equity loan, emphasising the challenge of buying a property in the capital with its high prices.”

Government loses Court of Appeal cases on Bedroom Tax

Published On: January 27, 2016 at 12:33 pm

Author: Em Morley

Categories: Landlord News

Tags: bedroom tax,court of appeal,government,property news,tax

The Court of Appeal judges have today declared the bedroom tax to be discriminatory, following a legal challenge by a victim of domestic violence and the family of a disabled teenager.

Both challengers had argued that the tax, which cuts housing benefit for social housing tenants with a ‘spare’ bedroom, is discriminatory.

Following an initial hearing in November, the Court of Appeal decided today to rule in favour of the challengers. The Government has already said it plans to appeal the decision.

Discriminatory

A domestic violence sufferer, known only as ‘A’, brought forward a case which concerned the effect of the policy on women like herself who reside in properties adapted especially because of a threat to their lives. She noted that her home was equipped with a panic room and that many other women could have the same issues.

The second appeal was forwarded by Paul and Susan Rutherford on behalf of their disabled grandson Warren. This focused on the impact of the tax on disabled children who needed around the clock care.

It is believed that there are around 300 victims of domestic abuse who could be affected by the tax, alongside thousands of severely disabled children in a similar situation to young Warren.

Government loses Court of Appeal cases on Bedroom Tax

Allowance

At today’s ruling, Lord Chief Justice Lord Thomas, Lord Justice Tomlinson and Lord Justice Vos, allowed both appeals, after deciding that the, ‘admitted discrimination,’ in the cases, ‘has not been justified by the Secretary of State.’[1]

Mr Rutherford said that he was, ‘absolutely delighted,’ with the outcome and added that the tax, ‘was so unfair that somebody had to do something to get the law changed.’[1]

Michael Spencer, of the Child Poverty Action Group, noted that today’s ruling meant, ‘families can stay in their homes safe in the knowledge that their disabled children can get the care they need.’[1]

Rebekah Carrier, a solicitor acting on behalf of, ‘A’, also said that, ‘our client’s life is at risk and she is terrified. The anxiety caused by the bedroom tax and the uncertainty about this case has been huge.’[1]

Disagreement

However, a spokesman for the Department for Work and Pensions said that the Government, ‘fundamentally disagreed,’ with the outcome.

‘We have already been granted permission to appeal to the Supreme Court. We know there will be people who need extra support. This is why we are giving local authorities over £870m in extra funding over the next five years to help ensure people in difficult situations like these don’t lose out,’ the spokesman added.[1]

[1] http://www.bbc.co.uk/news/uk-35418488

Most-common property deal breakers

Published On: November 17, 2015 at 12:14 pm

Author: Em Morley

Categories: Property News

Tags: property,property market,property news

Aggressive sellers. Lousy letting agents. Nightmare neighbours. These are just some of the biggest deal-breakers highlighted in a new survey.

Data from a poll of UK adults by property guide website SellingUp.com reveals that 42% of potential home buyers would pull out of a deal due to a rude seller. 28% said that they would punish the vendor by reducing their original offer.

Costly cause

An unpleasant or annoying estate agent was found to be as costly for sellers, with 35% considering this a reason to call-off a deal, with 19% this represented grounds for making a lower offer.

The stereotypical neighbour from hell was a large for making would-be buyers pull out of a deal, with 70% citing this as the case.

However, this was not top of the list. 77% said poor security was the main potential deal-breaker.

The top-ten reasons by percentage for potential deals falling through were found to be:

Poor security (77%)
A bad energy rating (75%)
Noisy neighbours (70%)
Bad mobile phone signal (53%)
Pests (44%)
Messy garden (42%)
Rude seller (42%)
Aeroplane noise (41%)
Being next door to a cemetery (31%)
Located on an embarrassing street name (25%)

Most-common property deal breakers

Informed decisions

‘The aim of the survey was to remind sellers to think like a buyer when marketing their property and try to sort out as many flaws as they can,’ remarked Oliver Lewis, SellingUp.com’s research manager ‘Also, we wanted to help buyers make better informed decisions when purchasing, especially for investment and think about the less high profile issues that could affect resale value.’[1]

‘When sellers are getting ready to put their property on the market, they are always being told to tidy up and make the place presentable, but there are many more factors they need to consider if they want to attract the widest number of buyers,’ he continued.[1]

Lewis also said that, ‘clearly with some ingrained issues like aereoplane noise and a bad mobile signal there is little or nothing the vendor can do. They simply have to hope that the buyer doesn’t notice or care.’[1]

‘On other points like evidence of mice, badly overgrown gardens or poor home security there is much greater scope to take action in advance. Hiring a pest control company, a gardening firm or a security specialist to resolve any problems might cost a few hundred pounds but could save them thousands when selling.’[1]

[1] http://www.propertyreporter.co.uk/household/could-noisy-neighbours-be-a-property-deal-breaker.html