Rent prices in the UK will rise as a result of the new stamp duty rate being introduced on 01 April for additional properties as it will hit landlords of buy to let properties, it is claimed.
The extra tax, which affects anyone buying an additional home, is seen as a huge burden for the UK’s private rental sector as a time when there is increased demand for rented homes.
‘We’re about to see supply nose dive, demand rocket and rent prices go through the roof. The introduction of the new stamp duty charges is set to push the private rental sector into a state of despair,’ said David Cox, managing director of the Association of Residential Letting Agents (ARLA).
House prices in cities across the UK increased by 11% year on year in February, taking the average value to £234,900, according to the latest index.
This was up from 8.1% a year ago and the highest rate of growth for almost 18 months, the Hometrack UK cities house price index shows.
The report says that there has been a notable and unseasonal acceleration in house price growth in the last three months across most large regional cities thanks, in part, to a temporary increase in demand from those looking to beat the stamp duty increase for second homes from April onwards.
Private rental prices paid by tenants in Great Britain rose by 2.6% in the 12 months to February 2016, unchanged when compared with the year to January 2016.
A breakdown of the figures from the Office of National Statistics shows that rents grew by 2.8% in England, 0.2% in Wales and 0.7% in Scotland.
The data also shows that rental prices increased in all the English regions with London seeing the biggest rise at 3.8% but down slightly from 3.9% in January. If London is excluded from the calculation the growth was 1.9%.
Prices of prime London residential properties fell marginally in the first quarter of 2016, as uncertainty regarding the global and domestic economic outlook continued, says a new analysis.
Overall values across the whole of the prime property market in London fell by an average of 0.3% in the three months to the end of March, according to the report from real estate firm Savills.
But there continues to be a distinction between the higher value, discretionary prime central London markets and the more domestic, needs-based outer prime London locations.
A FORWARD-FUNDED residential development in York has been snapped up by investors Empiric Student Property for a cool £11.1m.
The 115-bed accommodation on Lawrence Street has been acquired by the prolific buyers of student-focused properties.
The Lawrence Street site was formerly a working men's club, and the Tom O'Shanter public house. According to the developers it cost £11.5m to revamp.
Residential property prices in England and Wales increased by 6.1% in the year to February 2016 taking the average value to £190,275.
The latest data from the Land Registry also shows that overall month on month prices fell by 0.2% but most regions have seen prices rise.
London has seen the greatest increase in average property values over the last 12 months with a rise of 13.5% to £530,368 but at the opposite end the North East saw prices fall by 3.2% year on year.
The North East also saw the most significant monthly price fall with a decrease of 1.2% the North West saw the greatest monthly price rise with a rise of 1.8%.
Some buy to let landlords in the UK face tougher regulation when it comes to getting a mortgage for expanding their portfolio, the Bank of England has announced.
In what may be seen as another blow to the buy to let market but the Bank’s Financial Policy Committee (FPC) says that some lenders are applying ‘weaker’ standards when it comes to applications in this sector.
The FPC also believes that the rapid rise in buy to let lending, while likely to slow when the new stamp duty levy comes into play on 01 April, the sector is still not without potential threats in terms of financial stability.
Land Registry figures show price growth in Slough, Luton and Reading running at up to 19%, while Essex borough of Thurrock is at 17%
The UK Government’s target of building a million new homes over the next few years is not as ambitious as some may think, according to a new analysis from the Royal Institution of Chartered Surveyors (RICS).
The individual components of the goal includes 200,000 Starter Homes, an initiative still working its way through parliament, and 135,000 shared ownership properties about which little has been said to date.
Trying to access the success of such a programme it about the official data on housing starts, according to RICS chief economist Simon Rubinsohn, and these show that a mere 144,000 new units were begun through the course of 2015.
Rising house prices in Scottish cities has led to a further deterioration in affordability with average values up 3% from £176,009 in 2015 to £181,077 in 2016.
This has resulted in average affordability in Scotland’s cities worsening in the last 12 months from 5.25 to 5.36 times gross average annual earnings, the third successive annual decline in affordability.
The data from the Bank of Scotland Affordable Cities Review also shows that on average, affordability in Scottish cities is now at its lowest level since 2009 but is still 12% lower than the peak of 6.12 times earnings in 2008 at the height of the last housing market boom.
AN 80,000 sq ft office building which is described as the "centrepiece" of the masterplan for Stoke-on-Trent's business district has gone out to the market.
The offices team at Bilfinger GVA has been appointed as sole letting agent on No 2 Smithfield. The property forms part of the first phase of a 1.2m sq ft mixed-use Smithfield masterplan for the wider central business district site.
STAR CITY shopping centre is being offered for sale for £60m, according to reports.
It was bought for £85.5m in 2006 by F&C REIT, on behalf of Nationwide, and was subsequently acquired by Cerberus Capital Management as part of a £680m purchase of a tranche of loans in 2014.
THE Holiday Inn Express on Oxford Road in Manchester city centre has been acquired by property investment firm Heeton Holdings for £17.3m.
The deal between Singapore-based Heeton and the seller Manchester Property Holdings Ltd (MHPL), which was handled by Lambert Smith Hampton, represents a sub 7% yield.
The 12 storey building between the Palace Theatre and Manchester Metropolitan University has 147 bedrooms across 61,284 q ft and currently trades at over 80% occupancy.
A £1 billion spending spree has created a new “Qatari quarter” in Mayfair as the oil-rich emirate’s royalty pump huge sums into London real estate, new research showed today.
West End estate agent Rokstone says that the investment by the Qatari royal family, nationals and wealth funds poured into mansions and apartments has formed the quarter on the north-west of Mayfair, bordering Park Lane and Hyde Park.
The exclusive district covers almost a quarter of Mayfair’s 279 acres and 4300 homes, the agent suggests, with borders running from South Street and the Dorchester Hotel to North Row and with Duke Street to the east and Grosvenor Square and Carlos Place to the west.
Wednesday’s Budget announcements confirmed the government’s appetite for a new wave of garden settlements with a promise of legislation to make it easier for local authorities to work together to create new garden towns and cities.
Ministers have confirmed plans to provide greater flexibility over the deployment of mobile phone infrastructure by modifying the existing planning regime. This follows a consultation exercise carried out last year.
In a written parliamentary statement Planning Minister Brandon Lewis insisted the changes “were vital for our continued economic prosperity and social inclusion for all”.
With the sweep of a pen, 22,000 people disappeared in Camden this week. Where previously the waiting list for a council house stood at 27,000, now only 5,000 remain on it. Facing the fact that nearly everyone on the list was unlikely to ever reach the top and be handed keys, the council has tightened eligibility rules massively: applicants must now have lived in the London borough for five of the last seven years, and overcrowding rules mean living and dining rooms must now be counted as possible bedrooms.
New research shows that for the first time since the start of the tenant deposit schemes in 2007 in the UK more landlords and agents are being awarded 100% of the disputed amount at adjudications than tenants.
The figures from the Tenant Deposit Scheme Annual Review 2015 show that 19.8% of all disputes raised by landlords or agents resulted in 100% pay outs to them, while 19.2% of all disputes raised resulted in 100% pay outs to tenants. The remaining 61% of cases saw the disputed money split between the parties.
This compares with 2014 when 20.25% of all disputes raised by tenants resulted in 100% payouts to them, compared with 18.21% to landlords and agents.
Average house prices in cities in the UK have reached their highest since 2008 and are more than six times annual earnings, new research shows.
The affordable cities review report from Lloyds Bank shows that the average UK city house price has risen by 8% from £196,229 in 2015 to its highest ever level of £211,880 in 2016.
This has resulted in average affordability in the nation’s cities worsening in the last 12 months from 6.2 to 6.6 times gross average annual earnings, the third successive annual decline in affordability.
On average home buyers in the UK are paying almost £20,000 more for flats than semi-detached properties, new research has found.
This could be one reason why first time buyers are bypassing flats in favour of semi-detached homes, according to a study by leading lender the Halifax.
It shows that the average price of a flat in the UK has risen by £86,474 since property prices were at their lowest in late 2008 from £150,749 to £237,223 at the end of 2015.
The 57% increase in the average price of a flat is significantly higher than the 37% rise for all residential properties over the same period. Additionally, it means that buyers are on average now paying almost £20,000 more for a flat than for a semi-detached home.
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