Property News Round-up 13/1/16

Property News  All The Latest Updates

Hi guys and welcome to our first property news blog post of the year! The new year hasn’t started well with stock markets coming under severe pressure with the FTSE 100 being down by 5% (its worst start since the new millennium!). In addition, many analysts have predicted more doom and gloom this year (which we will cover in our first story). In China, this year is the year of the Monkey, and we certainly need people who have a huge amount of intelligence and wit (to help us feel a bit more cheery ahead of hard times), both intelligence and wit are associated with people who are born in that Chinese Zodiac year!

 

A Brief Insight Into The Property Market in 2016

property 2016

In this country we always talk about property prices, however, this year there will be more to talk about the likes of stamp duty and landlords.

One thing that will happen in both England and Wales will be an increase in stamp duty – from April 2016, those who are seeking to buy a second home will have to pay a 3% surcharge on each stamp duty band.

The ramifications will therefore make things more expensive for second home buyers and also put off other potential buyers.

In addition, it will not only be second home buyers who will be having a tough time in 2016, buy-to-let landlords will also see their stamp duty rise and will also lose some of their tax privileges (which is already in the pipeline for next year).

As the BBC put it (in my opinion I think they are spot on) mention that who would have guessed that a Conservative government would take a dim view of buy-to-let landlords, just the sort of people supposed to be staunch Tory voters?

The irony is that what exactly has happened as we discovered in George Osbourne’s Autumn Statement.

Regulations such as the illegal immigrant regulation will give landlords even more nightmares (this regulation come into play on the 1st February), they will have to check that their tenants have the right to rent in the UK, if not, they face a £3,000 fine.

One analyst predicts that the first few months will be bumpy as some people will rush to purchase buy-to-let properties before higher stamp duty rates take effect. He also mentions that we will see some quite strong growth in prices, and expects to see prices fall for the next few months as that element of demand is taken out of the market. (BBC, January, 2016)

 

Salford Tops Property Sales In 2015

Salford property

Salford topped the property sales leader board in 2015, a report which was compiled by Halifax, found that the number of property sales taking place in Salford has jumped by 23% this year compared with 2014, also Pontefract in West Yorkshire was ranked second with 20% of property sales.

The report indicated that many towns across Northern England, the Midlands and Wales saw house sale numbers increase, in contrast, the South saw many of the biggest falls in sales.

Below shows the proportions of property hotspots in regions across England and Wales according to Halifax’s research (stats taken from BT) :

  • North 38%
  • Yorkshire and the Humber 26%
  • North West 29%
  • East Midlands 2%
  • West Midlands 20%
  • East Anglia 4%
  • Wales 39%
  • South West 16%
  • South East 15%
  • Greater London 6%

 

Downsizing For One In Three Over-55s Are Dashed Because Of Lack Of Suitable Housing

downsizing property

One in three homeowners over-55 want to downsize but are being prevented by a lack of suitable housing, a report has warned. (Daily Mail, January, 2016)

Researchers found that over-55s hoped to move because smaller homes were easier to manage or because they wanted to release equity to boost savings or pension pots.

International Longevity Centre and retirement housing specialists McCarthy & Stone‘s ‘Generation Stuck’ report revealed that a third of over-55s were actively considering downsizing or expecting to do so in future.

Last year, the Financial Conduct Authority’s mortgage sector manager Lynda Blackwell said Britain had ‘a real problem with the last time buyer’ the Daily Mail mention.

What was particularly interesting to find out was that older people from the UK are among the least likely to move in the Western world. Figures from five years ago show that just 1 per cent of people aged 60 and over moved into retirement housing, compared with 17 per cent in The States and 13 per cent in Australia and New Zealand.

If you fit this age bracket and are looking for an alternative way to invest in property we recommend reading our case study section.

Image Source : Daily Mail

England’s 5,000 Biggest Landowners Are Being Asked To Free Up Land For Affordable Housing

housing crisis

The owners of 5,000 of the country’s largest rural estates hold the key to creating employment, economic growth and housing in areas of the country that are experiencing population decline, according to a recommendation from The Royal Institution of Chartered Surveyors (Rics). (Telegraph, December, 2015)

The call came as figures show that house prices increased at a rapid rate last month, and many have had concerns  that a shortfall of new homes could push the growth in prices higher.

According to Sir Peter Erskine, who has built 22 affordable homes on his family’s Cambo estate in the East of Fife, Scotland, “the big estates are the solution to the depopulation of rural communities”. (Telegraph, December, 2015)

The area near to where his estate is situated has already lost a green grocer and post office, plus the local school has seen a decline in pupils. It clearly shows as Rics‘ head of policy, Jeremy Blackburn mentions that by adding Small amounts of affordable housing can make a huge difference to the viability of rural communities, building just ten units in 1,600 small and market towns in rural areas of the country would solve this rural housing crisis.

Sir Peter Erskine revealed that from experience landowners have dealt with an increasingly hostile political atmosphere and also been held back by high taxes but are willing to create opportunities to effect positive social change in their areas.

Image Source : Telegraph

Northern Property Hotspots For 2016

liverpool property

Last year Rightmove reported that the price tag for a house in London could rocket to an average of £1 million and this is largely down to high demand, cheap mortgages and a lack of accessible homes in the capital.

Investors are therefore heading north as many have discovered that reduce the amount they pay under the new stamp duty rates by purchasing lower entry level properties in northern areas.

Due to the rise of the Northern Powerhouse and having a very good entry level for investors, the north has rapidly become a very attractive place for those wishing to extend their property portfolios.

In addition, investing in student property have also been on the rise in the north, however, as Economic Voice mention, a recent study that sampled 2,000 UK adults by the specialist property company Experience Invest found that only 17 per cent of respondents said they’re aware that investing in student property can result in a high yield.

So what cities are leading the way in the north? Starting with Liverpool, the Merseyside city offers some of the highest returns in the UK due to being a place that has a high yield when it comes to rental income. With a big student population, Liverpool is an ideal place for property investors.

Manchester has always been another popular choice with investors and is arguably the best place in the North to invest due to being centred around the Northern Powerhouse concept. East and North Manchester have good rental yields and good low price properties. With this being such a vibrant and large city – properties can vary from back to back semis to modern city centre apartments. (Economic Voice, January 2016)

Moving our attention to Tyneside, Newcastle is another favourable place for returns. In some areas, there has even been a 50 per cent rise in rental values due to the massive cultural and business rejuvenation throughout the city. Just like Liverpool and Manchester, it also has a thriving student population which makes it another option for investors who are looking to head north.

Yorkshire cities such as Sheffield and Leeds both have an expanding population and the stamp duty is staggeringly low compared with London. Since both have an industrial past, the likes of warehouses and converted modern apartments are being snapped up.

Do you have an interest in the North? If you would like more information, feel free to take a look at our Manchester guides (North and Central), our Liverpool guide and also our South Yorkshire guide.

What Are Your Thoughts?

Which of our chosen property stories has interested you the most? We would love to hear from you, feel free to leave us a comment on our Facebook and Google Plus pages. If you prefer to tweet us, tweet @TheHouseCrowd.

In the meantime if you want to know more about Property Crowdfunding do register for our Information Pack which will tell you all about it. 

Register Now For More Information

 

Property values can fall. Your capital may be at risk & returns may vary. Read our Risk Warning

Property News Round-up 2/12/15

Property News – All The Latest Updates

Hi guys and welcome to another edition of our property news round-up. Today we look at a variety of stories from last week’s Autumn Statement to looking at Brits who struggle with property terminology. In our last property news blog post we asked you how much did the dilapidated shed in Peckham sell for… we can reveal that it was sold for £920,000!

 

A Brief Insight Into The Autumn Statement 2015

Autumn Statement 2015 George Osborne

Last week the government announced to spend nearly 7 billion on building 400,000 affordable (debatable) homes.

A Starter Homes Initiative was mentioned on the day, the announcement will see an extra £2.3bn earmarked for these homes, with direct funding being given to developers to get the process moving. (Which, November 2015).

The initiative caters for households who earn less than £80,000 outside of London and £90,000 for those who live in the city.

Shared ownership allows buyers to buy a stake between 5% and 75% of a home and pay rent on the remainder, this scheme is popular with buyers who will be stepping onto the property ladder for the first time.

Another issue that was raised on the day was the increase in stamp duty for buy-to-let properties. From April next year buy-to-let landlords and people who are planning on buying second homes will have to pay a 3% surcharge. Frazer last week blogged about the budget and how it may affect buy-to-let and property crowdfunding and what the ramifications would mean for the likes of buy-to-let landlords.

In addition, another topic mentioned that was linked to property was specialist homes and reduced rent. There has been a lot of talk about specialist homes particularly for the elderly and those with disabilities.

It was revealed that a £200 million fund will be spent on 10,000 reduced-rent homes that tenants can live in for five years whilst saving for a deposit. Once a tenant has saved up their deposit they are entitled to have the first right to buy the property.

 

Image source : The Spectator

 

Bed Under The Stairs In A Shared Flat In Manchester Is Advertised For £380 A Month

Bed under the stairs in a shared flat in Manchester

The claustrophobic looking single bed  as pictured on the right hand side is located in the Gorton area of Manchester and has grabbed many people’s attention when it was spotted on spareroom.com for £380.

The rental price, which is in addition to a £100 deposit, the prospective tenant will have to share a bathroom, a kitchen, living room space and a garden.

The monthly rent includes all bills plus broadband, while the room claims to be furnished the tenant will have to find their own parking space if they wish to bring a car as there is no available garage or parking facility to park outside of the Gorton property.

Luckily, at The House Crowd you won’t find any beds under the stairs in our Manchester properties! If you would like more info on Manchester properties and other investments that won’t make you feel claustrophobic click here.

 

Image source : Daily Mail

 

18 Areas In the UK With New Home Development Opportunities

Manchester Property

A report from Knight Frank has indicated 18 areas in the UK where economic fundamentals are good opportunities for developers.

The areas that were mentioned in the report were :- Leeds, Manchester, York, Durham, Birmingham, Nottingham, Warwick, Leicester, Brentwood, South Cambridgeshire, Bristol, Bath and North East Somerset, Exeter, Cherwell, South Oxfordshire, Guildford, Reigate and Banstead and Tunbridge Wells.

Factors that were taken into consideration included economic and employment growth, affordability, and liveability.

In the north, Manchester and Leeds are expected to see the strongest rates of household growth in the next decade, York also scores well, particularly on liveability rankings.

If Manchester and the Yorkshire areas interest you and you would like more information, feel free to take a look at our Manchester guides (North and Central) and also our South Yorkshire guide.

 

One In Three Property Buyers Influenced By Mobile Phone Coverage

Property Mobile Phone

One in three property buyers or renters look for areas that have good mobile telephone coverage as part of their decision making.

Root Metrics (who provide independent mobile phone analytics) conducted a survey on mobile phone coverage and property buyer and found that 34 per cent of buyers and renters regard good phone coverage as vital.

One of the main factors that people are concerned about their signal strength is that 83 per cent stated they have experienced poor mobile phone coverage and 54 per cent mentioned that they have experience some kind of difficulty with their mobile internet.

The survey also revealed that had they known about problems with their mobile phone coverage before moving, nearly a third of participants said it would have discouraged them from buying or renting the property.

Are you currently looking for a property investment that’s in an area with good mobile phone coverage? If so we can help, feel free to contact us here.

 

Two-Thirds Of Adults Do Not Know What Stamp Duty Means

stamp duty

Nearly a half of Brits have claimed that they do no not understand property or to be more specific, home buying terminology.

A survey which was conducted by First Direct found that most people lack even a basic understanding of key terms. 66% of first-time buyers don’t know what stamp duty means and one in four (25%) don’t know who pays the stamp duty. 5% of Brits think stamp duty is a sales tax based on the square footage of the property. (Financial Reporter, November 2015).

In addition, almost 70% of adults can’t give the correct defintion of an offset mortgage, while 67% of Brits do not know what the acronym ERC stands for (if you don’t know already it stands for Early Repayment Charge).

If you would like to improve your knowledge and understanding on property and investment we recommend watching our latest videos, click here.

 

What Are Your Thoughts?

Which of our chosen property stories has interested you the most? We would love to hear from you, feel free to leave us a comment on our Facebook and Google Plus pages. If you prefer to tweet us, tweet @TheHouseCrowd.

In the meantime if you want to know more about Property Crowdfunding do register for our Information Pack which will tell you all about it. 

Register Now For More Information

 

Property values can fall. Your capital may be at risk & returns may vary. Read our Risk Warning.