Tag Archives: london
Landlords organisation calls for change of mind on UK tax rises
Private sector rent increases in the UK are inevitable unless MPs move to halt the what the sector believes are unfair tax changes being brought in by the government, it is claimed. The plans to tax landlords on their income rather than after allowances, part of the loss of mortgage interest relief, will inevitably lead to rent increases, according to the Residential Landlord’s Association. Legislation now going through Parliament to implement the Budget will see landlords’ tax bills soar and in some cases will wipe out their profit altogether and as supply of rental homes falls and remaining landlords are facing higher overheads rents will rise to cover costs, the association says. In a recent survey of RLA members, some 84% said that they are likely to consider increasing rents following the Chancellor’s tax hikes which have also included and extra 3% stamp duty charge on buy to let properties. The RLA is now calling for reasonable changes to the Finance Bill to protect both landlords and tenants. It wants the Government to scrap its MIR changes and to remove the stamp duty levy where landlords invest in new property to increase supply in the private rented sector. It has warned this tax raid will have a devastating impact on landlords at a time when the Government needs them more than ever. Some MPs have already voiced concerns. The former Welsh Secretary, David Jones, has called on the Government to stop clobbering landlords whilst the chairman of the influential 1922 Committee, Graham Brady said he has serious concerns about the effect on landlord finances. ‘Landlords do not want to increase rents unnecessarily but many will have to if they are stay in business as a result of these wholly unreasonable tax increases. It is unfortunately tenants who will end up paying the price either through higher rent bills or finding it more difficult to find somewhere suitable to live,’ said Alan Ward, RLA chairman. ‘We welcome the concern of many MPs and hope that they will be able to persuade the Government to change its mind,’ he added. Continue reading
Latest data reveals home building boom in New Zealand
Residential and building construction along with infrastructure has reached a new all-time high in New Zealand, reaching $17.8 billion, new figures show. The building consent data from Statistics New Zealand reveals that 28,387 homes were consented in the past year, the highest number in 11 years, and the 9,434 consented in Auckland is continuing the strong growth over the past four years. The 732 for May is also the highest in 11 years. The growth in Auckland for the residential construction centre was 26%, a total of $4.3 billion, and is about as fast as a sector can grow, according to Nick Smith, Building and Housing Minister. He pointed out that this is treble the rate of $1.4 billion since his party came to office and the growth has been particularly dramatic in the past few years, since the Government entered into a Housing Accord with Auckland Council. ‘The construction sector is booming, with strong residential and commercial building activity across the country. The level of residential building activity in Auckland of $4.3 billion and nationwide of $11.4 billion is an all-time high in actual and inflation-adjusted terms,’ he explained. ‘This continues the longest and strongest period of growth in residential construction in New Zealand history. We are on track for 85,000 new homes to be built nationwide in this term of Parliament, up from 60,000 last term. Auckland is heading for an all-time record of 36,000 homes, the largest in any Parliamentary term,’ he added. ‘This record investment in residential construction is welcome because supply is the most important answer to New Zealand’s housing challenges. The Government is working on further initiatives to ensure this growth is maintained,’ he concluded. Continue reading
Property valuations increased in UK in June despite EU referendum
The pace of property valuations conducted in June 2016 in the UK increased both an annual basis and month on month, according to the latest research. The total number of valuations carried out in June rose by 4% compared to June 2015, and 24% compared to the previous month, the report covering the month of the European Union referendum from Connells Survey and Valuation shows. John Bagshaw, corporate services director of Connells Survey & Valuation, pointed out that the background to the figures is one of uncertainty and shock in the days after the UK decided to leave the EU, yet the property landscape appears surprisingly stable which he believes is encouraging. ‘Initial solidity from the post-Brexit housing market may not be enough to answer all the new legal and financial questions in light of the vote or to offset a likely blow to confidence on the near horizon. But this should bring such fears into perspective. Life will go on and the property market will continue to function,’ he said. Leading the June housing market, activity from first time buyers accelerated last month, making up for a considerable slowdown in buy to let valuations. Numbers taking their first step onto the property ladder rose 23% year on year, whereas buy to let valuations decreased by 40% over the same period. This is on the back of 27% month on month growth for first-time buyer valuations, ahead of the general seasonal pick-up in total activity while buy to let valuations increased by 17% since May, considerably slower than the overall picture. ‘First time buyers continue to drive activity in the housing market, an emerging trend since the start of the year and now reaching a new peak. Government schemes such as Help to Buy continue to be significant. But now a slowdown in the buy to let sector may be adding an extra short term boost for new buyers, as competition from landlords diminishes a little, easing the hunt for a home for sale,’ Bagshaw explained. Remortgaging has also seen a significant boost in valuation activity in June. The number of valuations carried out in June for those looking to remortgage rose by 18% on a 12 month basis and 19% month on month. Home movers were more cautious. Valuations for existing home-owners looking to move to a new property decreased by 7% on an annual basis since June 2015. However the number of such home owner valuations rose by 29% since May. ‘Home movers have once again had a stable month, and this section of the market has enjoyed the strongest seasonal acceleration from May. Meanwhile, remortgaging is the other major winner from a time of consistently low mortgage rates and a possibility of even lower borrowing costs over the summer,’ Bagshaw pointed out. ‘As seen in recent months many people are taking… Continue reading
