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Buy to let stamp duty rush sees increase in supply of rental properties in UK
There was an increase in the number of new rental properties in the UK following the rush by buy to let landlords to beat the introduction of additional stamp duty tax on homes in April. New research has found that Worcester saw new rental listings shoot up by almost a half with a rise of 48.9% in April while there was a rise of 38% in Chelmsford and 36.4% in Stevenage. Overall there was a national rise of 11.5% but in London it was just 9.1%, according to the study which looked at the number of new rental properties being advertised last month compared to March in 90 towns and cities from property crowdfunding platform Property Partner. Other locations that saw significant increases included Southport, Telford, Bath, Newport, Woking, Gloucester, Milton Keynes, Oxford, Oldham and St Helens with rise of between 34.4% and 22.5%. ‘The rental market experienced a much-needed boost in April. Unfortunately, this was created by investor frenzy to beat the stamp duty hike, and supply is unlikely to continue on an upward trajectory,’ said Dan Gandesha, chief executive officer of Property Partner. ‘If anything, options for tenants could become more limited in the next couple of months as traditional landlords balk at the prospect of paying the surcharge now, and losing mortgage interest tax relief from next year,’ he pointed out. ‘There is still strong tenant demand, but the Government has changed the traditional buy to let landscape, and this will have ramifications for the rental market longer term. That demand will increasingly have to be met by professional landlords offering tenants a better product, and investors a better deal,’ he added. Continue reading
UK home buyers most concerned about prices and mortgages
Financial worries dominate the thinking of today's generation of prospective home buyers in the UK with prices and getting a mortgage the biggest concerns, new research shows. The survey from the Home Builders Federation (HBF) also highlights the change in attitudes to home buying between young and old, showing that whilst 84% of 18 to 34 years olds still want to own their own home, there are huge financial obstacles to realising their dreams. Indeed, some 73% cited the difficulty of saving for a deposit, for 69% it is property prices and 53% the difficulty of getting a mortgage. The survey also found that one in four 18 to 34 year olds are totally unaware of any government support available to them, such as the 5% deposit Help to Buy equity loan scheme or the Help to Buy ISA aimed at helping young people save for a deposit. And overall younger people today are more concerned than their elders about the running costs of homes with 67% of 18 to 24 year olds taking this into account when considering whether to buy compared to 40% of 35 to 44 year olds. Younger people are also much more likely to consider buying a new build, which are up to 50% cheaper to run than some second hand homes with 55% saying it is likely they would consider buying a new build compared to just 23% of over 45s. It also identifies the huge amounts of money second hand home buyers spend on their properties with 47% of people spending over £10,000, and more than half incurring the expenditure associated with replacing bathrooms or kitchens. Some 13% of people spent over £40,000 upgrading their home and the HBF estimates it costs around £45,000 to upgrade a second hand home to the standard of a new build. The HBF also believes that there are a number of misconceptions about new build homes. With 34% of people polled saying they have never visited a new build or a show home and a further 18% saying they hadn't for at least 10 years, it points out that the industry faces a huge challenge engaging with the public to explain the many benefits of today's modern, high quality new build homes. Some 84% of 18 to 34 year olds that don't already own their own home aspire to do so and when buying a new home, the most important factors house hunters consider are price and location, both cited by 80%. However a greater proportion of younger house hunters, some 67% of 18 to 24 year olds, take into consideration the running costs of a property, compared to 55% across all age groups. The main obstacles for first time buyers trying to get on to the property ladder are saving for a deposit at 73%, property prices at 69% and getting a mortgage at 53%. Similarly, the main put-offs to buying a home for everyone is the deposit for 72%… Continue reading
Call for UK Government to do more to provide affordable homes
Councils in the UK have called on the Government to do more to tackle affordable housing as prices continue on an upward trajectory. A report on housing need in the UK published by the Association for Public Service Excellence (APSE) and the Town and Country Planning Association (TCPA) calls for urgent Government action to deliver the homes needed in the UK. It also reveals that 72% of councils think the National Planning Police Framework (NPPF) hinders building of affordable housing, 96% of councils say that their need for affordable housing is severe or moderate and 7% think starter homes will help address affordable housing. In particular they says that it is the viability test laid out in the NPPF that is hampering their ability to build social and affordable housing. However 11% of councils think that the viability test will provide the numbers that we need to tackle the biggest housing crisis of a generation, an increase of 19% compared to a year ago. ‘With 96% of councils describing their need for affordable homes as severe or moderate, and 89% worried that the extension of Right to Buy will lead to less affordable homes, it is clear that there is a real crisis,’ said Kate Henderson, chief executive of the TCPA. ‘Councils are concerned that government policy is not enabling them to deliver genuinely affordable housing. We need to have a housing strategy that provides affordable homes to all people,’ she added. The report sets out recommendations to tackle the challenges of providing the necessary housing, saying that the government need to put in place a housing strategy that provides decent homes for everyone in society. The report also recommends that councils are not forced to sell off their social housing to fund the extension of Right to Buy with the research showing that nine of 10 councils are worried that the extension of Right to Buy will lead to less housing available for social rent. ‘Our main message is we need Government to put in place a housing strategy for the nation that provides decent homes for all. Whilst efforts have been concentrated on so called affordable homes this is often not the case and these homes remain out of reach for the vast majority of people,’ said Paul O'Brien, APSE chief executive. ‘The situation is even worse for those dependent on social and genuinely affordable housing for rent. Current housing policy is in need of demolition. The time has come to start afresh by putting local authorities and new council homes at the heart of a new housing strategy,’ he pointed out. The report also showcases innovation in local government, including effective new models of housing delivery, and the report calls for the government to give back control to local authorities over their investment plans, rents and assets. This is the second housing research collaboration between… Continue reading
