Tag Archives: sales
Property sales liable for UK inheritance tax reach record level
More than one in four properties sold in the UK so far in 2016 have exceed the Inheritance Tax nil-rate band of £325,000 thanks to rising house prices, new research has found. And in London surging house prices in the capital mean that three in every four properties sold for more than £325,000, according to […] The post Property sales liable for UK inheritance tax reach record level appeared first on PropertyWire . Continue reading
Rents up 1.5% in UK, but growth is slowing across the country
Rents in London fell by 0.5% in July compared to the same month in 2015 as growth in the lettings market in the city stalled, but they increased across the UK by 1.5%, the latest index shows. However, a breakdown of the figures from the Countrywide Lettings Index shows that rental growth slowed across every region of the country and the drop in London was the first annual fall in rents for six years. In July the average rent in the UK was £951 a month, up 1.5% on last year, but rising half as fast as in July 2015. Rents fell by 2% in Wales, by 1% in Scotland and by 1.1% in the South East of England but in the North of England and the Midlands, the rate of rental growth hit the highest level for two years. The highest rents are in Central London at an average of £2,638, up 2.1% year on year, followed by Greater London at £1,280 and the South East at £1,173. In the East of England they are £963, up 3.8%, in the South West £856, up 3.3%, in the Midlands £703, up 4.8%, in the North of England £694, up 4.7%, in Scotland £689, down 1% and in Wales £671, down 2%%. The report points out that while tenant demand has increased nationally, the volume of homes coming onto the rental market has slowed or in some cases reversed rental growth. In July there were 23% more homes available to rent in the UK than at the same time last year, while the capital saw a rise of a third. Some of this increase has been driven by purchases rushed through to beat the stamp duty deadline, however the number of homes available to rent has continued to rise in recent months, particularly in London and the South East. An increase in the number of homes on the market has meant less deals are agreed above asking rents. In July 2015 16% of tenants paid over the asking rent to secure a home compared to 7% in July 2016. In London the fall was larger, 11% of homes let for more than the asking price in July, down from 32% in July 2015. ‘The large rise in numbers of homes available to rent has certainly slowed rental growth, even with tenant numbers increasing. Stock levels were already running higher than usual due to investors bringing forward purchases in the rush to beat the stamp duty deadline in April,’ said Johnny Morris, director of research at Countrywide. ‘Added to that, uncertainty in the sales market in the run up to, and after the European Union Referendum has caused more discretionary sellers to turn to the rental market. While rental price growth has slowed, current market dynamics are likely to accelerate the growth of renting. It seems that with more stock and demand from tenants we will… Continue reading
High end home prices keep rising in mainland China despite cooling measures
Luxury home prices in major mainland cities in China continued to rise in the second quarter of 2016 despite government cooling measures, according to the latest real estate market report. In Shanghai, where non-residents are restricted from buying homes, sales decreased 20% quarter on quarter but as a key safe haven asset class, luxury homes were still sought after, says the report from international real estate firm Knight Frank. In Beijing some 257 new luxury homes were sold, up 38% quarter on quarter, driven by booming supply and demand in the traditional peak season. In Guangzhou, where market recovery became slower, sales fell over 20% and inventory level fell 11.7% due to a lack of new supply. The report says that the Hong Kong market remained polarised, with super luxury homes popular with billionaires, but other homes recording price drops because of an anticipated increase in supply and a potential interest rate rise. In Taipei, the new administration did not emphasize curbing measures, which encouraged developers to launch new projects. Enquiry levels for luxury homes surged, but buyers were deterred by the high property tax, which dragged down sales to only 30% of the volume a year ago. Overall prices and rents remained stable amid the low interest rate environment. ‘In the short term, curbing measures are expected to remain in first tier mainland cities but luxury home prices are set to rise, propelled by high premiums in recent residential land sales,’ the report explains. It predicts that luxury home prices could fall 5% to 10% in Hong Kong and stay steady in Taipei for the rest of the year. Meanwhile, in the commercial sector mainland Grade-A office markets remained active. In Shanghai, rents rose and the vacancy rate fell, driven by strong demand, with core business districts seeing satisfactory leasing performance. In Beijing, rents continued to climb, although the vacancy rate edged up slightly with six new projects completed. Guangzhou was relatively quiet, with minor increases in both rents and prices. The sales market saw transaction volume drop over 40% quarter on quarter and in Hong Kong, leasing activity was slow on Hong Kong Island due to the low availability of space and weaker demand from the mainland, while Kowloon East remained active, boosted by strong relocation demand from tenants on Hong Kong Island. In Taipei, the letting market performed well with a good absorption rate, most notably in Xinyi District. Overall rents and prices remained steady. Looking ahead, a huge amount of new supply is likely to impose upward pressure on vacancy rates in Shanghai, Beijing, Guangzhou and Taipei, the report suggests. But it explains that the shift from Business Tax to Value-added Tax on the mainland is likely to reduce the tax burden and benefit the absorption of office space. Continue reading
