Tag Archives: government
Sales to first time buyers increased in UK in March
Sales to first time buyers in the UK were up in March and real estate agents expect to see further increases in sales to the group following the buy to let stamp duty changes. Some 28% of total sales in March went to people buying their first home, an increase of 4% compared to February, according to the latest housing market report from the National Association of Estate Agents (NAEA). The report also says that 39% of estate agents expect the stamp duty change which saw the introduction of 3% rate on buy to let properties and second homes to increase availability for first time buyers as interest from investors slows. More than a third of estate agents, some 36%, argue sales to first time buyers will pick up further, due to less competition for properties. Overall, the supply of houses available to buyers soared by54% in March from 35 properties available to buy per branch in February to 54 in March. On the other hand, demand decreased last month, when agents reported an average 417 house hunters registered per member branch, down from 463 in February when demand for housing was at the highest level in 12 years. In March, estate agents also reported a decrease in the number of properties selling for more than asking price. Only 7% of agents saw this happen in March compared to 11% in February. ‘The last few months first time buyers have had to compete with landlords for the same properties and those landlords have really pushed hard to complete ahead of the rise in stamp duty,’ said Mark Hayward, NAEA managing director,. ‘Now, in theory things should get easier for first time buyers as we have seen with a slight increase in sales this month and as those seeking to buy to let will tail off,’ he explained. ‘However in reality, it’s unlikely in the long term that first time buyers will notice a huge difference, as prices remain high and housing is in short supply. The Government needs to significantly increase the number of homes that are being built in this country to really make a difference to those that are struggling to get on the housing ladder,’ he added. Continue reading
Survey reveals many home owners support additional home stamp duty charge
Twice as many home owners in the UK support the new 3% stamp duty surcharge on additional homes as oppose it, despite loud opposition from landlord groups, new research shows. Some 47% support the extra charge which was introduced on second homes and buy to let properties on 01 April while 18% are against it and believe that it supports first time buyers. The results of the poll, conducted by YouGov for the HomeOwners Alliance and BLP Insurance shows that overall concerns about stamp duty have fallen dramatically since the reforms in 2014. In 2014, some 64% of UK adults believed that stamp duty was a serious problem but in 2016 that has fallen to 52%. Supporters of the stamp duty surcharge on second homes believe the measures are a good way to level the playing field between those buying a home to live in and those making an investment purchase. ‘The buy to let market is slowly destroying the overall housing market and making affordable properties less available for those wanting to own a home as their principal place of residence,’ said one survey respondent. The research also found that some feel there has been a shortage of homes available for first time buyers and this will make it harder for buy to let investors competing to purchase similar properties. Indeed it found that there are some anti buy to let feelings, a sense that buy to let may have been inflating house prices and pricing out local residents in some areas. Some also feel that those able to afford to buy a second home or to buy a property for the purpose of letting it out and making profit should be able to afford to pay higher stamp duty on their purchase. Those who oppose the stamp duty surcharge on second homes suggest the policy could have unintended consequences such as the surcharge being passed on to tenants in the form of higher rent. Comments also indicate that they feel the government is making another tax grab or that the policy is anti-enterprise. ‘I have been saving for five years to be able to afford to purchase an investment property. This change has now meant that it is not feasible for me to do so. It is unfair to penalise people who work hard and save,’ said another respondent. Paula Higgins, chief executive of the HomeOwners Alliance, thinks that the British public believe that homes are for living in and not speculating with. ‘The stamp duty surcharge might be bad for landlords but it will allow more young people to realise their dream of owning the roof over their head,’ she said. ‘This is why we initially called for the tax system to differentiate between aspiring homeowners and property investors. However, we must see the money raised ploughed back into building more affordable housing,’ she added. According to Kim Vernau, chief… Continue reading
Land around railway stations to be used for new housing in the UK
A massive programme of development of railway stations and surrounding land will deliver thousands of new homes, the UK government has announced. Up to 10,000 homes are to be built around rail stations and three local authorities have come forward with ambitious proposals for the first sites which aim to revitalise town centres. A new agreement between Network Rail and the Homes and Communities Agency will see them working with local councils to trail blaze development opportunities across England’s railway stations for housing and businesses. The Government wants to hear from at least 20 local authorities to take the scheme forward as York, Taunton and Swindon councils already have proposals to spearhead the new initiative and have identified railway sites that could be pooled to deliver housing and other locally led regeneration. Drawing on the example set by the transformation of Birmingham New Street, Manchester Victoria and London Kings Cross, the Government said that it will bring together high calibre technical expertise and local knowledge to increase development opportunities that exist throughout the entire rail estate. ‘We’re determined to fire up communities and back local business so they build much needed housing and create thousands of jobs. Rail stations are a hub of communities, connectivity and commerce and should be making the most of their unique potential to attract investment and opportunities,’ said Communities Secretary Greg Clark. ‘With record numbers of people travelling by train, it makes sense to bring people closer to stations and develop sites that have space for thousands of new homes and offices. This new initiative will bring about a step change in development and ensure we go further and faster in putting these rail sites to good use,’ he added. According to Transport Secretary Patrick McLoughlin it will put stations at the heart of wider community regeneration. ‘I’m pleased to see that exciting visions for regeneration at Swindon, Taunton and York are being developed, with the potential for hundreds of additional homes and new businesses. I look forward to seeing how Network Rail and the Homes and Communities Agency’s excellent work on these projects develop,’ he said. ‘Local areas are best placed to understand and identify the opportunities that exist within their communities. The Homes and Communities Agency and Network Rail will now work with councils on the opportunities they see and any plans already in place to explore how government can support them to deliver locally led regeneration and development schemes quickly,’ he added. Proposals suggest that land at York Central station can support up to 2,500 homes. Housing would be key to creating a sustainable new community and would include Starter Homes and community facilities. Around 100,000 square meters of office and commercial space for private sector firms could also support more than 6,600 jobs in industries such as professional services. Housing and office regeneration around the station could add £1.16 billion to the local economy. Regeneration at Taunton station could provide a significant increase in commercial spaces… Continue reading
