Taylor Scott International News
House prices in the UK increased by 7.7% in the year to November 2015, up from 7% the previous month, according to figures from the Office of National Statistics. House price annual inflation was 8.3% in England, 1.3% in Wales, 0.4% in Scotland and 4.6% in Northern Ireland. The ONS data also shows that house price growth in England were driven by an annual increase in the East of 10.2%, the South East at 9.8% and London also at 9.8%. Excluding London and the South East, UK house prices increased by 5.8% in the 12 months to November 2015. On a seasonally adjusted basis, average house prices increased by 0.8% between October and November 2015 and prices paid by first time buyers were 7.4% higher on average than in November 2014. The continued upward trend is likely to exacerbate affordability issues for first time buyers, according to Steve Bolton, founder of Platinum Property Partners who added that it is a result of the current dearth in property supply. ‘Recent initiatives aimed at addressing the challenges faced by first time buyers show little signs of reversing this trend. The Chancellor’s decision to levy a 3% surcharge on stamp duty for landlords and second home owners may be with first time buyers’ interests at heart, but in reality this is likely to drive up house prices further in the short term as buyers rush to compete purchases before spring,’ he explained. ‘The stamp duty changes and restriction on buy to let tax relief gives the impression that a strong private rental is a barrier to popular home ownership. However, the reality is that by attacking private landlords and increasing buy to let costs, tenants are likely to face rising rents which is a huge barrier to future home ownership,’ he pointed out. ‘The tax grab is targeted purely at landlords with mortgages, excluding the wealthiest landlords. This is unfair and undemocratic, which is why we’re currently co-heading a legal challenge to fight these changes. Having received considerable industry support, as well as raising funding for the initial stage in a matter of days, its clear many landlords agree the tax changes pose a serious threat to the future of the buy to let market,’ he added. Rishi Passi, chief executive of Oblix Capital believes that the lack of supply is unlikely to change in the short term. ‘Better job prospects, wage improvement and recurring delays in interest rate rises mean that it’s likely this surge in house sales and price inflation will continue, for the meantime at least,’ he said. ‘Further investment is needed to encourage house building, stem the supply imbalance in crowded markets, and ensure that small and medium sized developers have access to the finance they need,’ he added. Jonathan Hopper, managing director of buying agents Garrington Property Partners, pointed out that overall first time buyer prices are rising more… Taylor Scott International
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