Tag Archives: portugal
London properties under £2 million done better than prime sector, analysis shows
Properties in London under £2 million outperformed the rest of the prime London property market in the second half of 2015, continuing a trend of recent years, the latest analysis shows. In particular, properties worth less than £1 million have grown by more than any other price bracket, according to the latest London residential review from real estate firm Knight Frank. The analysis says that this is because it is a market that is less exposed to regulatory change. The series of tax changes in recent years that affect the prime London market adds £30,000 to the current stamp duty rate for a second home buyer of a £1 million property, though this sum would be matched by house price inflation in less than a year at current growth rates. It is also a market that is less exposed to global economic volatility and more closely aligned with the performance of the mainstream market, where demand continues to outstrip supply on the back of a London population forecast to grow by more than 100,000 every year for the next decade. Indeed, the highest growth has largely been outside the higher price brackets of prime areas of central London over the last 20 years. The analysis report explains that changes to stamp duty rates in December 2014 raised questions around the viability of a system that has dampened transaction levels and lowered the tax take in London. The new rules mean that buyers will pay £153,750 in stamp duty for a property worth £2 million versus to £100,000 before the change. The result is that £1 million plus transactions in London in the first seven months of this year fell 25% compared to the same period in 2014. A Knight Frank analysis of sales volumes across London local authorities shows the biggest impact has been felt in prime central London. Between January and July this year, the volume of transactions fell 28.6% in the borough of Westminster compared to 2014. The drop was 27.5% in Kensington and Chelsea and 27.9% in Tower Hamlets, which includes the Canary Wharf district. Accordingly, the total value of transactions in central London has fallen disproportionately. The report also explains that while a progressively structured tax means more first time buyers and home movers will pay less when they buy a home and there is every indication policymakers are now turning their attention to supply, making sure there are enough new homes to meet demand across London and the rest of the country, the volume of sales only rose in three out of London’s 32 boroughs between January and July 2105 and the value of transactions only rose in 11 boroughs. As a result, the stamp duty tax take was down 8.7% across London, which included a decrease of 17.5% in Westminster, -33.8% in Tower Hamlets and -19.1% in Wandsworth. The stamp duty take only fell 1% in Kensington and Chelsea due to the impact of the higher… Continue reading
Quarter of UK house hunters take less than a week to find the right property
It seems that the old adage love at first sight applies to the UK property market with new research showing that almost a quarter of home seekers take less than a week to find a new place to live. Some 17% visit only one property when looking for a new house, 25% need to see their future home only once and over two thirds know instantly or by the end of the first visit that they want to move in. The research from mortgage provider Ocean Finance also shows that a third of house hunters spend almost three months browsing the property market, looking at online services such as Zoopla or Rightmove, contacting estate agents and organising viewings. When asked how many times they visited the property they liked best, some 60% of home owners to be admitted they need to see their future homes two to three times before moving in, although over a quarter visit their chosen property only once. Over two thirds of home buyers know instantly or by the end of the first viewing that they want to move in but the research also shows that small things can put buyers off with the biggest one traffic noise. The majority of those questioned won’t buy a house on a main road. A lack of natural light or an electricity pylon around the corner can also make a house unattractive for many people. No local shops or supermarkets can let the property down, as well as little or no storage in the house. Home seekers are also put off by a property that is too far from public transport or with an untidy or small garden. People rarely enjoy living above a take away or chip shop, as strong food smells are another reason for turning down a house however, people can live with coloured bathroom suites and without local restaurants and pubs. Continue reading
New land reform bill in Scotland too vague and timetable too tight, says RICS
The New Land Reform Bill in Scotland is set to have a substantial impact on the country’s land and property markets but it is too vague, subjective and inconclusive, according to the Royal Institution of Chartered Surveyors. RICS is urging the Scottish Government to consider undertaking a full impact assessment before any of the provisions are implemented and to introduce more clarity regarding a number of its parts and provisions. While the organisation is ‘fully supportive’ of the Scottish government’s aims to modernise and rejuvenate the rural landscape, it also believes that the current timescale for reform is too tight and therefore will be dependent on regulations which will be deduced after the passing of the Bill. There is also concern about the cessation of sporting estate tax relief. The Bill’s Policy Memorandum states that many small scale shootings would be expected to eligible for rates relief under the existing Small Business Bonus Scheme. RICS believes that research into how many estates will, and how many will not, benefit from rates relief needs to be undertaken before this provision is taken forward. Furthermore, it points out that the Scottish government has, thus far, not indicated whether the Small Business Bonus Scheme (SBBS) will endure beyond until 2016/2017, the proposed date where business rates exemptions will cease. ‘We believe it would be prudent of the government to inform the sector of its plans for the future of SBBS one way or another,’ said Sarah Speirs, director Scotland of RICS. ‘Whilst RICS welcomes a Land Rights and Responsibilities Statement (LRRS), as it will provide an indication of legislative travel, we do not agree that it should be a statutory requirement to be updated every five years, as currently specified,’ she added. Speirs explained that regular and changeable legislative modifications do not create favourable conditions for property and land markets and these markets require consistency to reach the necessary degree of stability to create confidence. ‘As such, RICS believes a balance needs to be struck between the land reform process and the establishment of stable, consistent legislative and economic conditions. Removing the statutory requirement for a review of the statement is one way of creating these conditions. Sarah on the proposal to create a Scottish Land Commission,’ she said. ‘we welcome the provision to establish a Scottish Land Commission, but still believe there would be merit in having separate Land Commission and Tenant Farming Commission office to ensure transparency,’ she pointed out. ‘Whilst the Commission’s work may result in increased costs to the public purse, the potential outcomes of the Commission’s research, evidence gathering and positive impact on land, should it follow the remit outlined above, should outweigh the costs. It is imperative that all work undertaken by the Commission is open, transparent and accessible to the Scottish public,’ she added. Agricultural holdings account for a substantial quantity, almost half, of the Land Reform Bill. RICS is concerned that agricultural holdings is too substantive an issue to be… Continue reading
