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Your Move Property Blog

Thoughts, Opinions & Analysis of the UK Property Market

February 2014 Buy-to-Let Index

March 26, 2014 09:30 by YOUR MOVE

 

Rent rises accelerate in February
-Rents across England and Wales rise by 1.6% in twelve months to February
-After first month-on-month rise since October, rents now average £743 per month
-Seven in ten regions see higher rents in February than January
-Second best month on record for tenant finances as proportion of late rent falls to 6.9%
-Landlords earn average annual return of 9.7% (or over £16,000) over last twelve months          

General overview
Annual rent rises across England and Wales have accelerated, according to the latest Buy-to-Let Index from LSL Property Services plc, which owns Your Move.
As of February, the average rent across England and Wales is now 1.6% higher than twelve months ago, currently standing at £743 per month.
This is the fastest annual increase since November 2013, and compares with a year-on-year rise of 1.4% in January this year.
On a monthly basis, rents increased by 0.1% (or approximately £1) between January and February. This represents the first month-on-month increase in residential rents since October 2013.


Regional Snapshot
Seven out of ten regions saw rents rise on a monthly basis between January and February, in line with the monthly increase across England and Wales as a whole.
The sharpest monthly rises were seen in Yorkshire & the Humber and the West Midlands, where in both regions rents rose by 1.2% on a monthly basis. The next fastest monthly rise was in Wales, with a 1.0% increase, while the East Midlands saw rents rise 0.6% between January and February.
Of the three regions to see a monthly fall in rents, the fastest drop was in the South East, down by 1.5% since January. Meanwhile rents fell by 0.6% on a monthly basis in the East of England, and by 0.1% in the North West.

Monthly rents in February: By region
A majority of regions also saw higher rents on an annual basis. The South West saw the quickest rise, up 4.7% from February 2013. This was followed by 3.1% in London and annual rent increase of 2.2% in the North West.
By contrast, rents in the East of England now average 3.1% less than a year ago, followed by a 2.3% annual drop for Wales and a 1.9% annual fall in the West Midlands.

 Read the full index

 




How will the recent budget affect the property market?

March 26, 2014 09:23 by Your Move Chris Stonock

The housing market in the UK is already in recovery mode. The North East has been one of the last regions to feel the benefit but there is no question the market is on the up. Transaction numbers are rising and whilst house prices are just starting to move into positive territory in terms of growth the outlook is brighter than it has been for a number of years.

Confidence in the property market

One of the fundamental drivers of the property market is confidence. People need to feel confident to commit to a housing transaction. It's likely to be the biggest single transaction most people will make and therefore one of the key measures in the budget for the property market is to try and assess whether the budget is likely to increase confidence in the house buying public.

Support economic growth…

Whilst the budget is probably not a game changer for the property market in the North-East the impact is unlikely to hurt the market and there are number of factors which may help. Setting aside the additional support from the help to buy initiative there is good news for business in terms of investment which hopefully will lead to more jobs and support economic growth. There is also positive news in terms of tax thresholds and changes to pensions which should help to boost confidence.

Help to Buy…

The help to buy scheme has been given greater longevity and whilst we need to see the detail this proposal will help the property market by encouraging house building which will be good for the employment market as well as helping the supply of new homes and in turn the choice for homebuyers.

Stamp Duty…

One of the areas that could have been tackled but has been ignored in the budget is the issue of stamp duty. Many commentators believe the growth in house prices has caused stamp duty levels to be artificially high and the thresholds should rise in line with house price inflation to reduce their impact. Such a change would certainly have helped the property market.

Bearing in mind where we are in the economic and political cycle with an election next year this is probably the budget that the property market expected and therefore we should see the current trend of gradual improvement continue. In the light of what we have been through since 2007 that may not be a bad thing




January 2014 Scottish House Price Index

March 20, 2014 11:13 by YOUR MOVE

Scottish house prices show no negative response to Independence debate
- House prices up £1,680 in January – largest monthly increase for 50 months
- Average Scottish prices rise by £6,073 – largest annual increase since September 2010

Commentary on the Index

Donald MacLellan, Chairman of Walker Fraser Steele Chartered Surveyors, part of LSL Property Services, comments: “The enthusiasm of property investors suggests the Independence debate is having no impact on confidence within the Scottish housing market. Scottish prices are up £1,680 in January. Five consecutive months of rising prices indicate the market has bounced back fast as it gathers the fruits of the wider economic recovery. Whether or not the possibility of Scottish Independence throws up all sorts of question marks, such as the economic cost of a separate monetary system for Scotland, currency risks, changes to stamp duty and land tax, the property market seems currently unaffected."

Market Overview

Donald adds: “2014 recorded the highest volume of sales in a January since 2008. Increased lending and mortgage availability are reaching heights not seen since before the recession as first-time buyers return to the market en masse. Mortgage finance – for those who can access it – is at its cheapest for some time. This is sustaining activity in all sections of the market, specifically buy-to-let investors and homeowners looking to upgrade. The spring market in Scotland will see more lending to first-time buyers thanks to cheaper rates, a boost in high loan-to-value mortgages and the support of Help to Buy. The lack of supply in properties in Scotland is boosting competition between new and previous buyers, propping up prices.

Read the full Index




January 2014 Scottish House Price Index

March 20, 2014 11:04 by YOUR MOVE

Scottish house prices show no negative response to Independence debate
- House prices up £1,680 in January – largest monthly increase for 50 months
- Average Scottish prices rise by £6,073 – largest annual increase since September 2010

Commentary on the Index

Donald MacLellan, Chairman of Walker Fraser Steele Chartered Surveyors, part of LSL Property Services, comments: “The enthusiasm of property investors suggests the Independence debate is having no impact on confidence within the Scottish housing market. Scottish prices are up £1,680 in January. Five consecutive months of rising prices indicate the market has bounced back fast as it gathers the fruits of the wider economic recovery. Whether or not the possibility of Scottish Independence throws up all sorts of question marks, such as the economic cost of a separate monetary system for Scotland, currency risks, changes to stamp duty and land tax, the property market seems currently unaffected."

Market Overview

Donald adds: “2014 recorded the highest volume of sales in a January since 2008. Increased lending and mortgage availability are reaching heights not seen since before the recession as first-time buyers return to the market en masse. Mortgage finance – for those who can access it – is at its cheapest for some time. This is sustaining activity in all sections of the market, specifically buy-to-let investors and homeowners looking to upgrade. The spring market in Scotland will see more lending to first-time buyers thanks to cheaper rates, a boost in high loan-to-value mortgages and the support of Help to Buy. The lack of supply in properties in Scotland is boosting competition between new and previous buyers, propping up prices. The




Stamp Duty Paid for First Time Buyers

March 12, 2014 11:21 by YOUR MOVE

The Halifax has announced that it will offer to pay the full stamp duty bill for first time buyers purchasing properties up to £250,000. This lender will pay the stamp duty on purchases between £125,001 and £250,000, plus buyers of properties under £125,000 will get £250 cashback.

Recent research by the TSB reveals that nearly one in four (22%) of first time buyers do not consider the cost of stamp duty before they make an offer on a property.^

  • You have to pay stamp duty land tax if you buy a property in the UK over a certain price. Currently, on residential properties with a purchase price of under £125,000 there is no stamp duty to pay.
  • However residential properties being purchased between £125,001 and £250,000 carry a stamp duty of 1%. If the purchase price of the property is between £250,001 and £500,000 then the stamp duty rises to 3%.
  • Click here for more information on Stamp Duty  

Your Move’s parent company, LSL Property Services’, latest First Time Buyer Tracker  is reporting an average first time buyer purchase price of £155,832. Therefore it is likely that first time buyers will need to find the money to cover stamp duty as well as all the other costs associated with buying their first home.

Here at Your Move a mortgage advisor will be able to talk to first time buyers about all the costs associated with their first home purchase, and will advise on a comprehensive range of mortgages from across the market, including those from the Halifax.

 Your Move Toolbox for First Time Buyers

First Time Buyer Guide How Much Can I borrow?
Help to Buy Budget Planner
Viewing Tips Guide to Buying

 Arrange your first mortgage appointment+ today >>

 

^ TSB March 2014

+For mortgage advice our initial consultation is free, however we do charge a fee for administering your mortgage application. The precise amount will depend upon your circumstances however we estimate that it will be £399.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

03/14 EAF 4995

 

 



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YOUR MOVE is a multi-award winning estate and letting agent with branches across England and Scotland

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