Tag: Stamp Duty
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Making the Most of Your Leasehold, A Landlord’s Guide to Profit
Key points – Owning a property as a leaseholder means you don’t have the ultimate ownership; that belongs to the freeholder. Leasehold agreements typically last 99, 125, or even 999 years, starting from when the freeholder creates the lease. As time progresses, the lease term reduces, often diminishing the property’s value. An interesting case was…
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Landlords Rush to Sell as Tax Allowances Shrink
Key points – The central issue prompting a rush among landlords to sell their properties is the upcoming reduction in the annual capital gains tax allowance. From a generous £12,300 last year, the allowance is plummeting to just £3,000 at the start of the new tax year, a sharp decrease from the £6,000 available this…
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London’s Worst Performing Areas for Affordability
Key Points – In the last decade, London has witnessed a remarkable surge in house prices, far outpacing the growth in local incomes. This has resulted in a significant decline in housing affordability across the city, impacting residents’ ability to own homes. The gap between house prices and earnings in London has widened alarmingly since…
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Falling House Prices May Cause A Financial Storm for UK Homeowners
In a recent revelation by the Bank of England, it’s clear that the UK’s housing market is on the brink of a significant shift, one that could leave many homeowners facing steeper mortgage costs. Here’s a breakdown of what’s happening and how it could affect you. Understanding Loan-to-Value Ratios (LTVs) Before diving into the implications,…
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Buy-to-Let Rent Trends and Investment Viability
In recent years, buy-to-let landlords have faced a slew of challenges: increased stamp duty charges, a slowdown in house price growth, and limitations on mortgage interest relief. These factors have significantly altered the investment landscape. A crucial point of concern has been climbing buy-to-let mortgage rates, which have squeezed the profitability of rental portfolios. This…
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Property Experts Comment on Autumn Statement
Chancellor Jeremy Hunt presented over 100 measures in his full Autumn Statement, but only a few specifically targeted the housing sector. PropertyIndustryEye canvassed the opinions of several property experts. Enhancements to Local Housing Allowance The Local Housing Allowance rate, which assists private renters on low incomes in paying their rent, is set to increase to…
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Is This an Ideal Time to Buy a House?
According to the latest analysis from the Office for Budget Responsibility (OBR), a pivotal moment is approaching for those considering investing in property. The OBR, the Government’s independent economic forecaster, has made a significant prediction for the housing market. They anticipate that the best time for house buyers to make their move will be in…
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Mortgage Guarantee Scheme a Boost for First-Time Buyers
The extension of the government’s mortgage guarantee scheme, as announced in the Autumn Statement, has been met with enthusiasm and relief by many aspiring homeowners. At its core, the mortgage guarantee scheme is a governmental initiative aimed at assisting individuals who are struggling to accumulate a large deposit for a home. Traditionally, securing a mortgage…
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Leasehold Reforms Could Boost UK Property Prices
The UK government’s plans to reform leasehold agreements are poised to bring significant changes to the property market. Before delving into the impact of the reforms, it’s important to understand the concept of ‘marriage value’. This term refers to the increase in a property’s value that occurs when a lease is extended. Currently, if a…
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A Stamp Duty Cut Could Boost Property Market
Rightmove, the property portal, has provided data indicating that if the Chancellor were to eliminate the property tax on the first £500,000 of a purchase in his Autumn Statement, a significant portion of the property listings in England would be affected. This potential change could result in 72% of properties in England being exempt from…