This article by Michelle McGagh of citywire money on October 3rd, 2013 reveals the continued and steady rise upwards of house prices according to the figures from Halifax.
More sellers might be putting their houses on the market but the
continued disparity between supply and demand means that house prices
have increased another 2% in the past three months.
Halifax's house price index shows a 6.2% increase in UK property
prices in the past year, pushing the average price of a home to
£170,733.
Prices in September were up 0.3% on the previous month, the eight
successive monthly price rise, although prices are still 14% off their
2007 peak.
The demand for property has been fuelled by the government’s Funding
for Lending scheme and the successful implementation of the first part
of the Help to Buy scheme.
Supply has lagged behind, meaning prices have ticked upwards, but it
now looks like more homes are coming on to the market. According to the
Royal Institution of Chartered Surveyors the number of people putting
their property up for sale increased successively in the seven months to
August.
The number of new homes being built has also increased and in the first six months of 2013 new building starts were 22% higher than the same period last year.
Martin Ellis, Halifax housing economist, said: ‘House demand has
risen more quickly than supply in recent months, putting upward pressure
on prices. Demand has increased against a background of low interest
rates and higher consumer confidence underpinned by signs that the
economy has begun a sustainable recovery.’
He added that ‘supply is beginning to respond to the pick up in demand’ which should help to ‘constrain prices’.
‘The recent strengthening in house prices is increasing the amount of
equity that many homeowners have in their home, enabling more to put
their property on the market for sale.’
The figures come days after the prime minister announced the government was fast-tracking the second part
of its Help to Buy scheme. The first part sees the government offer a
five-year interest–free loan up to 20% of a new build property’s price
if a buyer has a 5% deposit.
In the second part the government will guarantee
15% of the mortgage taken out on any property up to a total property
price of £600,000. Again the buyer must have a 5% deposit.
The second part was not supposed to come into force until January but
will now be up and running next week. Critics, including business
secretary Vince Cable, have said the mortgage guarantees are not needed
and will further fuel house price rises.
Article Source: http://www.citywire.co.uk/money/house-prices-up-6-2-in-a-year-as-demand-strengthens/a707015?ref=citywire-money-latest-news-list
Friday, 4 October 2013
Thursday, 3 October 2013
All You Need To Know About The Autumn Price Surge In UK Properties
This article by Les Calvert of property-abroad.com on October 2nd, 2013 reveals that UK industry is about to see a price surge in autumn according to the latest report by the real estate market.
The latest reports on the real estate
market in the UK suggest that the industry is about to see a price surge
around autumn. Contrary to popular belief that UK real estate prices
were in general gradual incline, studies have shown that there was
actually a slowdown throughout the most part of the year - with the
trend changing around the autumn.
Real estate in the UK
The increase in search activity with
regards to the UK real estate market shows that sellers have yet to
respond to the sudden increase in interest. Market experts believe that
this is the result of people still being very unsure about investing in
real estate in what is a very volatile market even right now. However,
sellers that really want to get rid of their properties are being seen
to aggressively market their property even now as they are not willing
to wait till the autumn.
Timing, as always is an essential part
of ensuring that you get top dollar for your property. However, various
other personal circumstances will usually play a pivotal role in the
entire deal. Heavy marketing is essential to get people interested in
your property. At the end of the day, there are buyers that have the
money to push a deal through, your job is to ensure that the property
appeals to them enough for them to sign on the dotted line.
Summer slow down and what it means
While there is usually a downturn in
property sales during the summer, 2013 has proved to be a bit different
with market surveys showing a surprising 1.1% increase on the back of a
surprisingly improving market sentiment. The same reports show that
house prices grew up by around 0.4% last year while prices in London as
well as the South Eastern parts of the country grew by 0.9% and 0.5%,
respectively.
Last years (2012) summer downturn was
experienced heavily on the outskirts of London, with the property in the
heart of the city not registering as many numbers as it does through
the rest of the year. However, sale prices had not fallen too much, as
sellers would usually hold onto their houses until the trends changed
rather than sell at a lower cost.
Future trends
Trends in the near future point towards a
much improving long-term health of the property industry. Some of the
biggest property brokers in the land have noticed that there seems to be
a lot more property coming off the market than there is coming on as
people are becoming increasingly open to spending the large amounts of
money on investing in property
than they were previously. The biggest increases in property values
happen to be in, unsurprisingly, the heart of London. The last six years
have seen a consistent downturn in people looking to purchase property,
but that has taken a sharp and credible turn this year with experts
saying that the new model of the way things work now appears to be
sustainable.
Also, the speed at which sales are
taking place appear to have also been cut down with sales completing in a
stunning 8.1 weeks - which is the lowest turnaround time recorded since
November 2007.
Wednesday, 2 October 2013
UK Landlords Advised to Be More Accurate Over Property Decoration
This article by the Property Wire on October 1st, 2013 the failure of UK landlords to protect themselves from redecoration disputes.
Landlords in the UK are failing to protect themselves from redecoration disputes because they are not accurately recording the condition of their property at the start of a new tenancy, it is claimed.
They are also not being clear with tenants on issues such as what constitutes a ‘neutral’ colour, according to the Association of Independent Inventory Clerks (AIIC).
In any dispute involving redecoration costs where the check out evidence shows it is definitely needed, one of the first things an adjudicator will do is look at the check in inventory to see what state the décor was in when the tenant took up residence. The next investigation is how long the tenant has lived at the property.
Industry guidance indicates landlords should expect to decorate every three to five years. It is also suggested that if a tenant has lived in a property five years or more, and they are not required by a contract to carry out redecoration themselves, there is little prospect of success in a claim for costs, where the tenant hasn’t caused the need for redecoration.
‘As a general rule, responsibility for redecorating lies with the landlord. However, lots of disputes are presented where parties agreed to the tenant redecorating, but the precise details were not clearly defined. Landlords can be very shocked to find the walls have been painted jet black or bright red, rather than the desired neutral magnolia or white,’ said Pat Barber, chair of the AIIC.
She explained that the AIIC gets involved with numerous disputes over décor. Recent cases feature a bedroom, which the tenant had been given permission to redecorate. However, he created Lion King murals on all walls. At the end of the 12 month tenancy, the landlord needed to re-let the property, but this room was now firmly designated as a small child’s room due to the décor. As a result, although the walls were in a really good condition, the tenant had to pay for a complete redecoration.
Another case involved four mature and professional sharers. One of them decided to repaint the lounge with the landlord’s permission and a stipulation that it had to be in a neutral colour. At the end of the tenancy, the lounge had been repainted in a dark purple, instead of the required magnolia as agreed.
Fortunately for the landlord the inventory clearly stated the original colour and condition and even though the original décor had been fairly marked, the tenants were made to pay for complete redecoration to return the room to the original neutral colour. The adjudicators agreed with the landlord that purple walls would impair the search for new tenants.
‘Even when a tenant repaints in the correct or authorised colour scheme, there are still problems. We see instances of bad paint application, very patchy walls, paint spills on fixtures and fittings, carpets and curtains, all of which the tenants will be responsible for at the end of the tenancy,’ said Barber.the AIIC has put together to help agents and landlords prevent a dispute over décor. This includes ensuring that there is a detailed account of the décor with description and photographs at check in and making sure the tenancy agreement stipulates clearly that any changes to the property must only be made with the landlord’s permission.
If tenants request to redecorate any areas it should be made clear, in writing , with any authorised colour schemes and any permission given to tenants to redecorate should also include a clause stating the landlord’s right to return the room to its original colour if unauthorised paint colours are used by the tenants.
Article Source: http://www.propertywire.com/news/europe/uk-landlords-decor-disputes-201310028300.html
Landlords in the UK are failing to protect themselves from redecoration disputes because they are not accurately recording the condition of their property at the start of a new tenancy, it is claimed.
They are also not being clear with tenants on issues such as what constitutes a ‘neutral’ colour, according to the Association of Independent Inventory Clerks (AIIC).
In any dispute involving redecoration costs where the check out evidence shows it is definitely needed, one of the first things an adjudicator will do is look at the check in inventory to see what state the décor was in when the tenant took up residence. The next investigation is how long the tenant has lived at the property.
Industry guidance indicates landlords should expect to decorate every three to five years. It is also suggested that if a tenant has lived in a property five years or more, and they are not required by a contract to carry out redecoration themselves, there is little prospect of success in a claim for costs, where the tenant hasn’t caused the need for redecoration.
‘As a general rule, responsibility for redecorating lies with the landlord. However, lots of disputes are presented where parties agreed to the tenant redecorating, but the precise details were not clearly defined. Landlords can be very shocked to find the walls have been painted jet black or bright red, rather than the desired neutral magnolia or white,’ said Pat Barber, chair of the AIIC.
She explained that the AIIC gets involved with numerous disputes over décor. Recent cases feature a bedroom, which the tenant had been given permission to redecorate. However, he created Lion King murals on all walls. At the end of the 12 month tenancy, the landlord needed to re-let the property, but this room was now firmly designated as a small child’s room due to the décor. As a result, although the walls were in a really good condition, the tenant had to pay for a complete redecoration.
Another case involved four mature and professional sharers. One of them decided to repaint the lounge with the landlord’s permission and a stipulation that it had to be in a neutral colour. At the end of the tenancy, the lounge had been repainted in a dark purple, instead of the required magnolia as agreed.
Fortunately for the landlord the inventory clearly stated the original colour and condition and even though the original décor had been fairly marked, the tenants were made to pay for complete redecoration to return the room to the original neutral colour. The adjudicators agreed with the landlord that purple walls would impair the search for new tenants.
‘Even when a tenant repaints in the correct or authorised colour scheme, there are still problems. We see instances of bad paint application, very patchy walls, paint spills on fixtures and fittings, carpets and curtains, all of which the tenants will be responsible for at the end of the tenancy,’ said Barber.the AIIC has put together to help agents and landlords prevent a dispute over décor. This includes ensuring that there is a detailed account of the décor with description and photographs at check in and making sure the tenancy agreement stipulates clearly that any changes to the property must only be made with the landlord’s permission.
If tenants request to redecorate any areas it should be made clear, in writing , with any authorised colour schemes and any permission given to tenants to redecorate should also include a clause stating the landlord’s right to return the room to its original colour if unauthorised paint colours are used by the tenants.
Article Source: http://www.propertywire.com/news/europe/uk-landlords-decor-disputes-201310028300.html
Tuesday, 1 October 2013
U.K. Mortgage Approvals Rise to Highest Since 2008
This article by Eshe Nelson by Bloomberg on September 30th, 2013 reveals the highest increase of mortgage approvals in the UK as the Help to Buy scheme prepares to accelerate.
U.K. mortgage approvals rose to the highest in more than five years in August as the government prepares to accelerate a home-buying program that’s been criticized for potentially over-stimulating the market.
Lenders granted 62,226 mortgages, the most since February 2008, compared with a revised 60,914 the previous month, the Bank of England said in a monthly report in London today.
The improvement in home-loan growth contrasts with business lending, which fell the most in eight months in August.
Hometrack said today house prices rose the most in more than six years this month and Prime Minister David Cameron yesterday brought forward by three months the second phase of his “Help to Buy” mortgage plan, saying it will start within days. The program has drawn criticism it may help fuel a property bubble, prompting the government last week to give the Bank of England the power to perform annual checks on it.
There is a “continued divergence across the household and the corporate sectors,” said Jens Larsen, chief European economist at RBC Capital Markets in London. “This picture will remain a worrying one for the Bank of England. While most commentators are focused on the risk of an overextended household sector, the bank is likely to concentrate its effort on improving credit to the corporate sector.”
The number of mortgage approvals exceeded the 61,500 figure that was the median estimate of 20 economists in a Bloomberg News survey. Net mortgage lending rose 974 million pounds ($1.57 billion) in August, the central bank said. Consumer credit increased 577 million pounds.
“These figures are extremely disappointing, and show that Britain’s business finance system remains broken,” said Adam Marshall, director of policy at the British Chambers of Commerce. “While bigger and older companies can get finance when they need it, many young, dynamic, and fast-growing businesses are still frozen out.”
The pound rose 0.1 percent against the dollar today and was trading at $1.6161 as of 11:32 a.m. London time. The benchmark 10-year government bond yield was down 2 basis points at 2.69 percent.
According to the Hometrack report, house prices in England and Wales rose 0.5 percent in September after a 0.4 percent gain in August. Annual price inflation accelerated to 2.4 percent. Prices rose in nine of 10 regions tracked by Hometrack. London led gains, with a 0.8 percent increase.
The first phase of Help to Buy -- interest-free loans for buyers of newly built homes -- began in April and has already contributed to the strongest housing market since the financial crisis. The second will provide government-guaranteed mortgages for buyers with a deposit of as little as 5 percent of the value of a home costing as much as 600,000 pounds.
With the plan facing criticism, Chancellor of the Exchequer George Osborne has downplayed risks of a property bubble, saying the housing market outside London remains weak. While the BOE has said property activity remains below its historic average, it will be “vigilant” to any risks.
“There is a mounting danger that house prices could really take off,” said Howard Archer, an economist at IHS Global Insight in London. “It is therefore of vital importance that policy makers closely monitor the situation and are prepared to act quickly and decisively if signs of the housing market overheating become increasingly widespread and pronounced.”
Article Source: http://www.bloomberg.com/news/2013-09-30/u-k-mortgage-approvals-rise-to-highest-since-2008.html
U.K. mortgage approvals rose to the highest in more than five years in August as the government prepares to accelerate a home-buying program that’s been criticized for potentially over-stimulating the market.
Lenders granted 62,226 mortgages, the most since February 2008, compared with a revised 60,914 the previous month, the Bank of England said in a monthly report in London today.
The improvement in home-loan growth contrasts with business lending, which fell the most in eight months in August.
Hometrack said today house prices rose the most in more than six years this month and Prime Minister David Cameron yesterday brought forward by three months the second phase of his “Help to Buy” mortgage plan, saying it will start within days. The program has drawn criticism it may help fuel a property bubble, prompting the government last week to give the Bank of England the power to perform annual checks on it.
There is a “continued divergence across the household and the corporate sectors,” said Jens Larsen, chief European economist at RBC Capital Markets in London. “This picture will remain a worrying one for the Bank of England. While most commentators are focused on the risk of an overextended household sector, the bank is likely to concentrate its effort on improving credit to the corporate sector.”
The number of mortgage approvals exceeded the 61,500 figure that was the median estimate of 20 economists in a Bloomberg News survey. Net mortgage lending rose 974 million pounds ($1.57 billion) in August, the central bank said. Consumer credit increased 577 million pounds.
Company Lending
Business lending fell 3.8 billion pounds in August from July, the most since December and more than three times the average decline over the past six months. Lending is down 3.6 percent compared with a year earlier. For small- and medium-sized companies, lending has fallen 3.2 percent over the past year, according to the BOE.“These figures are extremely disappointing, and show that Britain’s business finance system remains broken,” said Adam Marshall, director of policy at the British Chambers of Commerce. “While bigger and older companies can get finance when they need it, many young, dynamic, and fast-growing businesses are still frozen out.”
The pound rose 0.1 percent against the dollar today and was trading at $1.6161 as of 11:32 a.m. London time. The benchmark 10-year government bond yield was down 2 basis points at 2.69 percent.
Help to Buy
The BOE also said foreign investors sold a net 6 billion pounds of gilts in August, the most since June 2012. That followed a net purchase of 1.3 billion pounds in July. It said M4, a broad measure of money supply, rose 0.7 percent in August from July and increased 2.1 percent from a year earlier.According to the Hometrack report, house prices in England and Wales rose 0.5 percent in September after a 0.4 percent gain in August. Annual price inflation accelerated to 2.4 percent. Prices rose in nine of 10 regions tracked by Hometrack. London led gains, with a 0.8 percent increase.
The first phase of Help to Buy -- interest-free loans for buyers of newly built homes -- began in April and has already contributed to the strongest housing market since the financial crisis. The second will provide government-guaranteed mortgages for buyers with a deposit of as little as 5 percent of the value of a home costing as much as 600,000 pounds.
With the plan facing criticism, Chancellor of the Exchequer George Osborne has downplayed risks of a property bubble, saying the housing market outside London remains weak. While the BOE has said property activity remains below its historic average, it will be “vigilant” to any risks.
“There is a mounting danger that house prices could really take off,” said Howard Archer, an economist at IHS Global Insight in London. “It is therefore of vital importance that policy makers closely monitor the situation and are prepared to act quickly and decisively if signs of the housing market overheating become increasingly widespread and pronounced.”
Article Source: http://www.bloomberg.com/news/2013-09-30/u-k-mortgage-approvals-rise-to-highest-since-2008.html
Monday, 30 September 2013
London Housing Crisis: How Would Labour Fix It?
This article by Dave Hill of theguardian
on September 29th, 2013 reveals the ongoing debate that is taking place
about the capital's particular housing problems behind the scenes since
Ed Miliband's conference speech offered big policy ideas, but was short
on detail.
The housing element of Ed Miliband's Labour conference speech
was greeted by the wiser commentators with a mixture of disappointment,
puzzlement and hope. Colin Wiles pointed out that despite that heavily-trailed pledge
to be building 200,000 new homes a year by 2020 if Labour wins in 2015,
only a few words of the Labour leader's oration were devoted to
housing. He quoted all 212 of them in full, and so will I:
As I wrote just before Miliband got to his feet in Brighton, the capital could be needing about half of those 200,000 when and if the Labour leader becomes prime minister, suggesting that the target isn't nearly big enough for either London or the UK as a whole. Or Britain. Or England. Jules Birch joined Wiles in wondering precisely which bits of the British Isles Miliband was applying the 200,000 figure to. For Lynsey Hanley the speech was a mere step forward when what's required is a giant leap.
However, both Birch and Wiles found some encouragement in those few dozen words. And their poverty of detail belies the scope of debate in Labour circles about housing policy, not least as it would apply in London should Miliband enter Number 10 and a Labour mayor - Jowell? Khan? Lammy? Adonis? - take command of City Hall in 2016.
There is a strong desire to clamp down on the scandal of land banking for massive profit in London at a time when the housing shortage is critical and overcrowding rife. Shelter's Roger Harding says here that the GLA reckons about half the hoarded sites in the capital aren't even owned by property developers, but by hedge funds and banks with no intention of building so much as a garden shed on them.
We already knew shadow London minister Sadiq Khan is giving some thought to if it's time for a land value tax, which could put a big break on speculation, and I'm told he has found the Smith Institute's case for a property speculation tax "very interesting".
Miliband's "use it or lose it" line on this had right-wing pundits howling about totalitarian state "theft" but even prominent London Tories are calling for radical remedies. In June, Conservative London Assembly member Tony Arbour asked for "the problem of land banking" to be dealt with by boroughs demanding that planning consents set a date for the plan's completion. Boris Johnson himself re-affirmed during the same debate that he is prepared to make greater use of compulsory purchase orders to deal with the "pernicious" phenomenon.
Labour policy thinkers are also putting their minds to devising a concept of "affordable" housing that isn't outright laughable, as is the case with the government's malfunctioning "affordable rent" ploy. How should "affordable" be defined? Who should decide?
There is, it seems, broad agreement that a "fairly high" percentage of the new homes Labour would want built in London would be for social rent as conventionally understood.
On the private rented sector it isn't only Khan who likes Newham council's accreditation scheme for private landlords. Shelter's proposal for inflation-linked, five-year stable rental contracts appears much admired as a better way of limiting rent increases and improving tenant insecurity than old-style rent controls, though the party hasn't yet worked out whether or not it thinks these should be statutory.
Miliband has asked the former BBC Trust chair Sir Michael Lyons to look into ways to to prevent precious land being left unused while its owners idly watch its value mount. Sir Michael will also consider the development of those "new towns and garden cities", a good percentage of which would very likely be within easy commuting reach of the capital. How times have changed. The New Towns built in London's orbit after the last war - Stevenage, Crawley, Basildon and so on - spoke to a readiness among Londoners to leave a smogged, bomb-ravaged London behind. The new New Towns would be in part a response to more and more people wanting to be here.
I'm told that firmer Labour proposals for housing in London will emerge in the coming months. Dare we hope they will be bold?
Article Source: http://www.theguardian.com/uk-news/davehillblog/2013/sep/29/how-would-labour-solve-london-housing-crisis
So we'll say to private developers, you can't just sit on land and refuse to build. We will give them a very clear message - either use the land or lose the land, that is what the next Labour government will do. We'll say to local authorities that they have a right to grow, and neighbouring authorities can't just stop them. We'll identify new towns and garden cities and we'll have a clear aim that by the end of the parliament Britain will be building 200,000 homes a year, more than at any time in a generation.What do these words really amount to and how much encouragement should London, with its distinctive and growing clamour of housing troubles, draw from them?
As I wrote just before Miliband got to his feet in Brighton, the capital could be needing about half of those 200,000 when and if the Labour leader becomes prime minister, suggesting that the target isn't nearly big enough for either London or the UK as a whole. Or Britain. Or England. Jules Birch joined Wiles in wondering precisely which bits of the British Isles Miliband was applying the 200,000 figure to. For Lynsey Hanley the speech was a mere step forward when what's required is a giant leap.
However, both Birch and Wiles found some encouragement in those few dozen words. And their poverty of detail belies the scope of debate in Labour circles about housing policy, not least as it would apply in London should Miliband enter Number 10 and a Labour mayor - Jowell? Khan? Lammy? Adonis? - take command of City Hall in 2016.
There is a strong desire to clamp down on the scandal of land banking for massive profit in London at a time when the housing shortage is critical and overcrowding rife. Shelter's Roger Harding says here that the GLA reckons about half the hoarded sites in the capital aren't even owned by property developers, but by hedge funds and banks with no intention of building so much as a garden shed on them.
We already knew shadow London minister Sadiq Khan is giving some thought to if it's time for a land value tax, which could put a big break on speculation, and I'm told he has found the Smith Institute's case for a property speculation tax "very interesting".
Miliband's "use it or lose it" line on this had right-wing pundits howling about totalitarian state "theft" but even prominent London Tories are calling for radical remedies. In June, Conservative London Assembly member Tony Arbour asked for "the problem of land banking" to be dealt with by boroughs demanding that planning consents set a date for the plan's completion. Boris Johnson himself re-affirmed during the same debate that he is prepared to make greater use of compulsory purchase orders to deal with the "pernicious" phenomenon.
Labour policy thinkers are also putting their minds to devising a concept of "affordable" housing that isn't outright laughable, as is the case with the government's malfunctioning "affordable rent" ploy. How should "affordable" be defined? Who should decide?
There is, it seems, broad agreement that a "fairly high" percentage of the new homes Labour would want built in London would be for social rent as conventionally understood.
On the private rented sector it isn't only Khan who likes Newham council's accreditation scheme for private landlords. Shelter's proposal for inflation-linked, five-year stable rental contracts appears much admired as a better way of limiting rent increases and improving tenant insecurity than old-style rent controls, though the party hasn't yet worked out whether or not it thinks these should be statutory.
Miliband has asked the former BBC Trust chair Sir Michael Lyons to look into ways to to prevent precious land being left unused while its owners idly watch its value mount. Sir Michael will also consider the development of those "new towns and garden cities", a good percentage of which would very likely be within easy commuting reach of the capital. How times have changed. The New Towns built in London's orbit after the last war - Stevenage, Crawley, Basildon and so on - spoke to a readiness among Londoners to leave a smogged, bomb-ravaged London behind. The new New Towns would be in part a response to more and more people wanting to be here.
I'm told that firmer Labour proposals for housing in London will emerge in the coming months. Dare we hope they will be bold?
Article Source: http://www.theguardian.com/uk-news/davehillblog/2013/sep/29/how-would-labour-solve-london-housing-crisis
Friday, 27 September 2013
House Prices Rises in South-West London Beat Capital's Centre for First Time
This article by Anna White of The Telegraph on September 26th, 2013 shows that for the first time escalating house prices in south-west London have outpaced property values in the capital's centre.
“Prime” property (the top five to 10pc of the housing market by price) in the
affluent south-west London belt, which stretches from Fulham to Wimbledon,
increased by a record 11.8pc over the past year.
Prices in central London continued to show steady year-on-year growth of 5.6pc
but were overshadowed by a burgeoning "domestic market" with the
city's south west, north (7.4pc) and east (6.5pc) all experiencing an
uptick, according to new research from Savills.
The real estate adviser’s report quashes criticism of the Conservative’s Help
to Buy scheme, the second stage of which starts in January.
At this week’s Labour Party Conference, shadow chancellor Ed Balls warned the
programme, in which the Government guarantees 95pc mortgages on all
properties worth up to £600,000, could push up prices forcing young buyers
out of the market.
However, the residential property recovery is being driven by equity rich
Londoners and foreign investors, as opposed to Help to Buy expectations.
Lucian Cook, head of research at Savills, said: “In the south-west belt there is still a store of wealth from bonuses earned before the credit crunch and money made recently by hedge fund managers. Europeans are also moving into the areas like Fulham, in which prices have jumped 114pc over the past eight years.”
The analysis shows that £22 out of every £100 of equity in the UK housing market over the past year was spent in London. Therefore the total £146bn of equity applied to buying in the UK, £33bn was spent in London.
Mr Cook said: “This is a cash-driven phenomenon and completely unrelated to Help to Buy. It provides no evidence of a credit-fuelled boom in the wider market.”
The hike in house prices in south-west London is also due to a reluctance to move further out into commuter zones such as Guildford.
“This is a psychologically big move and often ties in with finding a new school. Following the recession people are not exploiting the pay gap between south-west London and the Surrey corridor. Mindful of job security, they’re staying put and therefore allocating more wealth towards housing,” he said.
There is a new build development pipeline around Canary Wharf, and continued appetite for warehouse conversions in Wapping. Gentrification of fashionable areas such as Shoreditch and Dulston is also driving up London prices.
“But talk of a housing boom is premature. Transaction levels are still very low at around 60pc - it is still not a fully functioning market,” Mr Cook concluded.
Despite this, at the top end, the cost of mansions in the capital's centre in the £10m plus bracket has increased by 38pc since 2007. The most expensive properties purchased in London over the past year include a Regent’s Park house for £80m and a luxury pad on Avenue Road, St John’s Wood, sold for close to £25m. While a house in Richmond went for £12m.
Article Source: http://www.telegraph.co.uk/finance/newsbysector/constructionandproperty/10334345/House-prices-rises-in-south-west-London-beat-capitals-centre-for-first-time.html
Lucian Cook, head of research at Savills, said: “In the south-west belt there is still a store of wealth from bonuses earned before the credit crunch and money made recently by hedge fund managers. Europeans are also moving into the areas like Fulham, in which prices have jumped 114pc over the past eight years.”
The analysis shows that £22 out of every £100 of equity in the UK housing market over the past year was spent in London. Therefore the total £146bn of equity applied to buying in the UK, £33bn was spent in London.
Mr Cook said: “This is a cash-driven phenomenon and completely unrelated to Help to Buy. It provides no evidence of a credit-fuelled boom in the wider market.”
The hike in house prices in south-west London is also due to a reluctance to move further out into commuter zones such as Guildford.
“This is a psychologically big move and often ties in with finding a new school. Following the recession people are not exploiting the pay gap between south-west London and the Surrey corridor. Mindful of job security, they’re staying put and therefore allocating more wealth towards housing,” he said.
There is a new build development pipeline around Canary Wharf, and continued appetite for warehouse conversions in Wapping. Gentrification of fashionable areas such as Shoreditch and Dulston is also driving up London prices.
“But talk of a housing boom is premature. Transaction levels are still very low at around 60pc - it is still not a fully functioning market,” Mr Cook concluded.
Despite this, at the top end, the cost of mansions in the capital's centre in the £10m plus bracket has increased by 38pc since 2007. The most expensive properties purchased in London over the past year include a Regent’s Park house for £80m and a luxury pad on Avenue Road, St John’s Wood, sold for close to £25m. While a house in Richmond went for £12m.
Article Source: http://www.telegraph.co.uk/finance/newsbysector/constructionandproperty/10334345/House-prices-rises-in-south-west-London-beat-capitals-centre-for-first-time.html
Thursday, 26 September 2013
UK Taxman Launches New Crackdown on Residential Landlord Payments
This article by the Property Wire on September 25th, 2013 reveals how private residential landlords are being advised to put their house in order as the UK's taxman has announced a crackdown on unpaid taxes.
It is estimated that around £500 million is owed by landlords in unpaid tax and HMRC has launched a campaign to target buy to let, student and holiday let landlords who it believes are underpaying or deliberately not declaring rental income.
Residential landlords can expect a knock on the door during the Let Property Campaign which builds on previous initiatives aimed at plumbers and electricians, building contractors, takeaway restaurants, motor traders and many other sectors that have collectively seen HMRC collect over £800 million in unpaid tax.
The so called ‘amnesty’ will last 18 months and failure to come forward could result in criminal proceedings. ‘All rent from letting out a residential property or holiday home has to be declared for income tax purposes,’ said Marian Wilson, head of HMRC Campaigns.
‘We appreciate some people will have made honest mistakes, and some may not be fully aware that the rent from a property is taxable, and that is why it always makes sense to talk to us so we can help,’ she explained.
‘It is always cheaper to come forward voluntarily and pay the tax you owe, rather than wait for HMRC to come calling. Telling HMRC about your tax liabilities is simple and straightforward, and help, advice and support are available. The message for all landlords owing tax is simple; it is better to come to us before we come to you,’ she added.
Stephen Barratt, private client tax director at accountants James Cowper said landlords should not be wary and take it as an opportunity to put their tax affairs in order.
‘This campaign is designed to give residential landlords the opportunity to come forward and disclose any unpaid or under paid tax. This is a window of opportunity to get tax affairs in order before HMRC comes knocking,’ he explained.
He pointed out that in targeting residential landlords, HMRC recognises that there will be instances where individuals have either deliberately not declared rental income on let properties or made an honest mistake. This distinction is important when looking at what penalty might be imposed.
‘HMRC is using increasingly sophisticated software to identify those who are not paying sufficient tax and the chances of going undetected are therefore diminishing. This campaign offers landlords the opportunity to come forward voluntarily and pay any unpaid tax, interest and penalties at a preferential rate,’ said Barratt.
‘Landlords who continue to close the curtains and hide behind the sofa can expect HMRC to find them and enforce much stiffer penalties or even criminal prosecution,’ he added.
The advice from the firm for residential landlords who believe that they may have an outstanding tax liability is not to approach HMRC directly without first speaking with an accountant or tax adviser as HMRC is an increasingly tough negotiator and without detailed knowledge of the tax system larger tax bills and penalties than necessary might be charged.
It also says landlords should not ignore this clampdown as it is possible that HMRC is already aware of landlords’ financial details. Also, if HMRC make the first move because no voluntary disclosure has been made, penalties can be expected to be more severe.
Article Source: http://www.propertywire.com/news/europe/uk-landlords-tax-crackdown-201309258276.html
It is estimated that around £500 million is owed by landlords in unpaid tax and HMRC has launched a campaign to target buy to let, student and holiday let landlords who it believes are underpaying or deliberately not declaring rental income.
Residential landlords can expect a knock on the door during the Let Property Campaign which builds on previous initiatives aimed at plumbers and electricians, building contractors, takeaway restaurants, motor traders and many other sectors that have collectively seen HMRC collect over £800 million in unpaid tax.
The so called ‘amnesty’ will last 18 months and failure to come forward could result in criminal proceedings. ‘All rent from letting out a residential property or holiday home has to be declared for income tax purposes,’ said Marian Wilson, head of HMRC Campaigns.
‘We appreciate some people will have made honest mistakes, and some may not be fully aware that the rent from a property is taxable, and that is why it always makes sense to talk to us so we can help,’ she explained.
‘It is always cheaper to come forward voluntarily and pay the tax you owe, rather than wait for HMRC to come calling. Telling HMRC about your tax liabilities is simple and straightforward, and help, advice and support are available. The message for all landlords owing tax is simple; it is better to come to us before we come to you,’ she added.
Stephen Barratt, private client tax director at accountants James Cowper said landlords should not be wary and take it as an opportunity to put their tax affairs in order.
‘This campaign is designed to give residential landlords the opportunity to come forward and disclose any unpaid or under paid tax. This is a window of opportunity to get tax affairs in order before HMRC comes knocking,’ he explained.
He pointed out that in targeting residential landlords, HMRC recognises that there will be instances where individuals have either deliberately not declared rental income on let properties or made an honest mistake. This distinction is important when looking at what penalty might be imposed.
‘HMRC is using increasingly sophisticated software to identify those who are not paying sufficient tax and the chances of going undetected are therefore diminishing. This campaign offers landlords the opportunity to come forward voluntarily and pay any unpaid tax, interest and penalties at a preferential rate,’ said Barratt.
‘Landlords who continue to close the curtains and hide behind the sofa can expect HMRC to find them and enforce much stiffer penalties or even criminal prosecution,’ he added.
The advice from the firm for residential landlords who believe that they may have an outstanding tax liability is not to approach HMRC directly without first speaking with an accountant or tax adviser as HMRC is an increasingly tough negotiator and without detailed knowledge of the tax system larger tax bills and penalties than necessary might be charged.
It also says landlords should not ignore this clampdown as it is possible that HMRC is already aware of landlords’ financial details. Also, if HMRC make the first move because no voluntary disclosure has been made, penalties can be expected to be more severe.
Article Source: http://www.propertywire.com/news/europe/uk-landlords-tax-crackdown-201309258276.html
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