Tag Archives: government
UK property prices up in August despite Brexit worries
House prices in the UK increased by 0.6% in August and are now 5.6% above a year ago, according to the latest index figures to be published. This continued growth takes the average price of a home to £206,145, the data from the Nationwide shows, indicating that an expected fall due to Brexit has not yet materialised. The pick up in price growth is somewhat at odds with signs that housing market activity has slowed in recent months, according to Robert Gardner, Nationwide's chief economist, saying that this includes a softening of new buyer enquiries to the introduction of additional stamp duty on second homes in April and the uncertainty surrounding the EU referendum. Meanwhile, the number of mortgages approved for house purchase fell to an 18 month low in July. ‘However, the decline in demand appears to have been matched by weakness on the supply side of the market. Surveyors report that instructions to sell have also declined and the stock of properties on the market remains close to 30 year lows,’ Gardner explained. ‘This helps to explain why the pace of house price growth has remained broadly stable. What happens next on the demand side will be determined, to a large extent, by the outlook for the labour market and confidence amongst prospective buyers,’ he pointed out. He believes that it is encouraging that the unemployment rate remained at a 10 year low in the three months to June, though labour market trends tend to lag developments in the wider economy and it is also positive that retail sales increased at a healthy rate in July, up almost 6% compared to the previous year, even though consumer confidence fell sharply during the month. ‘However, business surveys suggest that the manufacturing, services and construction sectors all slowed sharply in July, and, if sustained, this is likely to have a negative impact on the labour market and household confidence,’ he said. ‘Most forecasters, including the Bank of England, expect the economy to show little growth over the remainder of the year. Indeed, these concerns prompted the Bank’s Monetary Policy Committee (MPC) to implement a range of stimulus measures at the start of August, which will provide support to economic activity and the housing market. Monetary policy measures will provide some support for households and the housing market,’ Gardner commented. ‘The MPC’s decision to lower UK interest rates from 0.5% to a new low of 0.25% will provide an immediate benefit to many mortgage borrowers, though for most the boost will be fairly modest. The MPC’s stimulus measures will also provide indirect support to the housing market, and not just by boosting wider economic activity,’ he added. According to Nicholas Finn, executive director of Garrington Property Finders, the data reveals a property market that is still unsettled rather than upbeat. ‘On the front line we’re seeing some strong intent but a lack of clarity among buyers. The cut in interest rates and resilient… Continue reading
Third of UK tenants fund energy improvements instead of landlords
A new report reveals that a third of tenants in the UK have paid for energy efficiency improvements despite recent Government legislation that requires landlords to do so. Currently landlords are required to bring their property up to the minimum Energy Performance Certificate (EPC) rating E. Under the legislation, which came into force on 01 April 2016, if a tenant requests a more efficient home and the landlord fails to comply, the landlord could ultimately be forced to pay a penalty notice. However, the study conducted by online letting agent PropertyLetByUs, shows that one in six tenants have paid for roof insulation, 7% have paid for double glazing and 92% have paid for draft excluders for windows and doors. A further 71% have paid for their boiler to be repaired. The research also shows that 88% of tenants want their landlord to install a more fuel efficient boiler, while 78% want their draughty front door replaced, 72% want more loft insurance and 48% want double glazed windows fitted. Properties with EPC ratings of F and G will be progressively banned from the market, starting with rental homes with new tenancies. That will become the legal minimum for private rented properties when new regulations come into force in England and Wales from 2018. The Residential Landlords Association estimates that a total of 330,000 rental homes in England and Wales are likely to be affected. Though Government officials have estimated it could cost landlords between £1,800 and £5,000 to bring energy-inefficient properties up to an E rating, according to PropertyLetByUs it could be tenants that have to fund the improvements. ‘Our research shows that is falling on tenants to pay for energy improvements to their rented properties which is simply unacceptable. Many tenants are finding that their landlords are refusing to make improvements to the property, leaving tenants no choice but to dip into their own pockets,’ said a spokesman. ‘Tenants should not have to pay for roof insulation and repairs to old boilers, when it is the landlord’s responsibility. Landlords should comply with the current legislation that requires them to make energy efficiency improvements and they also should start improving their properties, if they have an EPC rating of F or G, so they are brought up to the required standard by 2018,’ the spokesman added. The Government has recently given guidelines on the costs with a typical package of measures for a small semidetached house. Gas central heating and low energy lighting is estimated at £4,000, loft insulation at £300 and cavity wall insulation at about £500. The firm also pointed out that the Government will need to put measures in place to ensure that landlords are compliant or it fears that the financial burden on tenants could be even greater. Continue reading
More people in UK want to buy a home but ownership levels are falling
The appetite amongst people in the UK to own their home has risen steadily over the past four years but ownership levels have also been falling, new research shows. Some 73% of non-home owners now say they would like to own their home compared to 69% last year, 68% in 2014 and 65% in 2013, according to the annual survey from the consumers group the HomeOwners Alliance. But despite more people wanting to own the roof over their heads, home ownership levels have been declining for the past decade after peaking in 2002 at 69.7% and the report says this is because the high demand for homes is pushing house prices to unaffordable levels. It explains that the mismatch between house prices and wages is worsening, average house prices have risen five times more than wages in the last five years and this is exacerbated by an inadequate supply of new homes. It also points out that despite a series of measures announced by the government aimed at supporting first time buyers, such as the Starter Homes Initiative, extension of the Help to Buy loan scheme and introduction of a new Help to Buy ISA there are still difficulties in first time buyers finding affordable homes. One issues is that in dealing with the housing crisis, much of the focus has been on helping first time buyers, but there is growing recognition that solutions need to go further, it suggests, adding that with availability of homes for sale at a record low, last time buyers in under occupied homes have become a focus for freeing up housing stock for younger families. ‘Despite a blizzard of government initiatives aimed at helping homeowners, the housing crisis is deepening across the country, with ever more non-homeowners wanting their own home, and ever greater concern about the lack of housing,’ said Paula Higgins, chief executive of the HomeOwners Alliance. ‘Many government policies have boosted demand for homes, but what this survey shows is that the real problem is the desperate shortage of houses. Until the government tackles the fundamental issue that we just don’t have enough good quality homes, the housing crisis will continue to deepen and a generation will continue to have their dreams of home ownership crushed,’ she added. It explains that so-called last time buyers, could help ease the housing crisis in the UK freeing up under occupied properties. There are an estimated 11.4 million home owners age 55 and over and 10% of them have considered a move in the past two years but did not. Some 23% of home owners aged 55 or over who considered moving say lack of suitable housing was the main reason they did not do so, this equates to more than 500,000 home owners. Stress and upheaval of moving is also more likely to be a barrier for those moving later in life with 30% saying so compared to 21% of home owners… Continue reading
