Market forces can work both ways as we have witnessed in the housing sector over many years, the effect of the stamp duty resulted in an increase in price of homes as buy to let landlords rushed to get hold of property before the tax; demand exceeding supply.
As we reported earlier this month, property sales in general in March increased in England and Wales to their highest level since 2007. However, the really good news for those anxious to get their foot on the housing ladder is that due to changes in the stamp duty affecting buy-to-let property, more homes in the lower price bracket have become available allowing the first time buyer to buy their own property.
A drop in house price in Scotland has to be good news for buyers anxious to get onto the property ladder in that country and figures reveal that an overall drop of 2.1% year on year was recorded. This means that the average price of a home now stands at £168,020, according to figures released in the latest Your Move monthly index. The drop in price is to be welcomed and it is seen in spite of a surge in sales that witnessed a growth of 19% year on year, the strongest since February 2008.
A recent poll conducted by Gocompare Energy has revealed some novel and it has to be said wacky if not unrealistic ideas, that some people believe will be how their homes are powered in the future. Wind turbines in the garden may not be too far from reality, but it has to be said that little water turbines in gutter pipes and bathroom drains to harness further power has to be taking the imagination a bit too far, in the same way that 14% thought flooring could be used to generate energy.
Latest index data shows that property sales in England and Wales have seen their strongest March since 2007, up nearly 30% to 80,000 house sales. The data also showed that the average house price growth also accelerated, up 6.9% compared to March 2015 and 0.6% higher than February.
Despite the popularity of urban living in the UK over the past decade, those still looking for properties in national parks and areas of outstanding beauty still have to pay a premium according to new research.
Prime properties in central London rose in March compared with the same time last year and it is the first rise in 2016 according to new data. The dash to complete sales has been fuelled to beat the 3% stamp duty surcharge, however year on year growth indicated that this has slowed down to 0.8% which is the lowest figure recorded in six years.
The 2106 budget announcement, first mentioned in the Autumn Statement, that additional homes would attract stamp duty at a starting rate of 3% for properties up to £125,000, 5% for properties sold at £125,000 to £250,000 progressing up to the highest figure of 15%. It can be seen that most buy to let properties will fall into the bottom two bands, which has prompted a rush to secure these properties before the April 1st deadline.
Taking average house prices across the UK, figures revealed in a report from Lloyds Bank show that prices have risen by 8% from the 2015 figure of £196,229 to a new 2016 average of £211, 880. This has meant that average affordability in the nation’s cities worsened in the last 12 months from 6.2 to 6.6 times gross average annual earnings, and it is the third successive year that this has happened.
There are a number of areas in the UK where it is possible to buy a home at below the current national average of £200,000, often these areas where it is seen, as well as predicted, that there will be a strong price growth.
In the Autumn Statement the chancellor George Osborne announced that there was going to be a new range of stamp duty charges for anyone who bought a second home in the UK, which of course included buy to let investments. At the time he said that the rates would be revealed following the budget proposals and details of these charges UK have now been provided by the Treasury.