The Death Of Buy-To-Let
From 1st April 2016 buy-to-let properties will be hit by an additional surcharge of three percent on top of the standard stamp duty for all second properties. The price hike will see a property worth £275,000 go from costing £3,750 to a staggering £12,000. Experts believe this could result in a rush purchase of properties before April 1st 2016 which will distort the housing market. George Osborne’s plan is to prevent rich individuals squeezing people for rent. It is estimated the surcharge will raise £1 billion in revenue for the government.
Source: Daily Mail
Homeowner Confidence Is High
According to research, 85% of homeowners expect their situation to either get better or stay the same over the next year. Normally at this time of year sellers lower their asking price but this month’s dip of 1.3% is the smallest for this time of year since 2011. While interest rates are likely to rise, the confidence in the UK housing market stems from the fact demand still far outstrips supply.
Source: Property Reporter
Average UK House Prices At Record High
Average UK house prices have seen the biggest annual growth on record with a 10.5% increase since October 2014. Figures show that the number of registered potential buyers has risen by 6.4%. In contrast, the amount of properties registered as coming on the market has dropped by 10.1%. The result of this is that the average national property price now peaks at £22,4242. There are now, on average, 12 buyers chasing every property that comes on the market.
Deals Unveiled for Help To Buy ISA
The government-backed initiative for help-to-buy ISAs launches this Tuesday (1st December 2015). The idea is to help first time buyers save for a deposit on a property to help Generation Rent. Rates will be as high as 4% with all income and interest tax free. The government will also give 25%, up to £3,000, of whatever is in the account when the saver looks to take it out for property purchase. Campbell Robb, chief executive of housing charity Shelter, said this would act as a key test to see if this will help those on lower incomes afford to buy property.
79% of People Switch Mortgage Lenders When Renewing.
According to a report from LMS, 79% of people chose to switch lenders when remortgaging to take advantage of new deals. This is an 8% increase from those who looked to switch last month. Despite the competitive rates on offer only 50% of people switch their mortgage provider before their current deal comes to an end. The study hints that many borrowers are complacent in taking advantage of better rates believing the rates will remain low for the foreseeable future. Bank of England Governor, Mark Carney, has indicated that the interest base rate will remain at its record low until at least the middle of next year.
Source: Property Reporter