More buyers seeking more properties
Posted by The Oracle Group on 26th June 2019 -
INDUSTRY
More buyers seeking more properties
Demand from prospective house buyers in the UK climbed to its highest level in eight months during May, according to new property industry figures. The number of house hunters registered per estate agent branch across the country rose by 16% from 265 to 307 last month. Residential properties available per member branch also increased during May, from 35 in April to 41 to the highest level seen since December. However, year-on-year housing demand has fallen by 13%. Mark Hayward, chief executive of NAEA Propertymark, said: "It's evident that buyers and sellers are no longer waiting for the outcome of Brexit and want to get things moving."
PLANNING
MPs urge planning reform to boost housing output
The Public Accounts Committee has issued a report which says the Government must tackle "inherent problems at the heart of the planning system" in order to achieve its target of building 300,000 homes per year. Research by the MPs found that although councils are required to produce local plans determining which land will be used for homes and how development can be brought forward, two fifths are out of date and 14% have no plan at all. The committee said the Government’s housing department is reluctant to use powers to remove local planning from a local authority. The Planning Inspectorate was also criticised for an increase in the average time taken to rule on planning application appeals – from 30 weeks to 38 weeks in the past five years.
HOUSING
May calls for space standards regulation
Theresa May is calling for new design standards for house builders to ensure future owners and tenants are not forced to live in "tiny" homes with inadequate storage space. In a speech to the Chartered Institute of Housing conference today, Ms May will say that the drive to build more homes must not lead to the quality of new housing being compromised, and will call for the creation a new system of universal mandatory regulation. Tenants and buyers are currently facing a "postcode lottery", she says, with many councils still not applying space standards introduced by the government in 2015. Ms May will also confirm plans to end so-called "no-fault" evictions, and set out a timetable for action on social housing including improved rights for tenants.
TAX
CGT take hits £9.2bn
Figures show that the capital gains tax take has hit a record level, with the Government taking £9.2bn in 2018/19. This marks an 18% increase on the year before. The Telegraph’s Harry Brennan says much of the increase has been attributed to a “squeeze” on the buy-to-let sector, with experts saying a change coming into force in 2020 that will force landlords to pay their tax bills within 30 days of selling a property could drive the CGT take up even further. With current rules giving landlords until January 31 to settle due taxes, NFU Mutual’s Sean McCan says: “HMRC clearly sees the opportunity to increase the CGT take by targeting landlords and is introducing new rules to collect the revenue earlier.”
Surge in expat landlords declaring BTL income
Data obtained via a Freedom of Information request shows that the number of landlords living overseas who have declared taxable income to HMRC has risen from 246 to 397 in the past year, a 61% increase. Moore Stephens attributes this in part to campaign from the Revenue which saw people living abroad who may have British tax liabilities contacted, with those who do not respond to the letters risking penalties. Jonathan Green, of Moore Stephens, said: “More and more landlords are starting to approach HMRC to avoid the risk of being hit with heavy sanctions further down the line.”
Planning errors driving up IHT bills
HMRC figures show that the average inheritance tax bill hit £200,000 last year, up from £141,000 five years earlier. The IHT take generated a record £5.4bn, the analysis shows. Financial planning errors, such as failing to complete forms and neglecting tax-free allowances, mean thousands of families are paying unnecessary IHT bills, says the Express’ Harvey Jones, who goes on to offer advice on planning a financial legacy.
Refund demand sees payout delays
Data from HMRC shows that of the 43,187 people who applied for a stamp duty refund in the 2018/19 tax year, 8,588 had to wait longer than 15 working days due to demand.
MORTGAGES
Homebuyers falsely sold insurance
Research for Money Mail has found how homebuyers are wrongly being told they can only get a mortgage if they buy life insurance or income protection cover. More than three in ten borrowers have been told life insurance is a legal requirement, while a further third say they were advised that they couldn't get a loan without it. More than half of those who were sold income protection insurance alongside their mortgage were also told it was mandatory.
Loyal customers losing out
The Financial Services Consumer Panel has concluded that loyal customers should be automatically upgraded if they are losing out on deals. It comes after research carried out by FSCP found that some loyal customers may be spending as much as 10% of their income on needless "loyalty penalties" because they are stuck in poor value deals, most notably for mortgages or credit cards. The panel also suggested the Financial Conduct Authority should expand its ongoing market research in the insurance, mortgage and investment sectors.
COMMERCIAL
Rental shambles costing the NHS millions
The NHS is losing millions of pounds because GPs, clinics and hospitals see paying rent as “optional”, an investigation has found. A study by the National Audit Office found that NHS Property Services has no effective way of making organisations sign leases, as it was set up in a way that prevents it acting like a commercial landlord – meaning it cannot take legal action, issue penalty charges, stop services or evict NHS bodies. The body is owed £576m of unpaid rent and other charges and has racked up £1.01bn of losses since it was established six years ago, the NAO said. Meanwhile, the British Medical Association has written to NHS Property Services, threatening legal action unless "astronomical rises" in service fees for GP practices over the past three years is dealt with.
LEGAL
Leaseholders to sue Government in fire safety row
Residents of 14 Manchester tower blocks are taking legal action against the Government for failing to protect them from fire in the wake of the Grenfell Tower disaster. Although ministers have pledged £600m to fund the removal of the type of combustible cladding that spread the fire at the London flats, safety checks conducted since the tragedy have identified many high-rise blocks with other faults for which no public funding has yet been offered. The Manchester leaseholders suing the Government face bills of up to £80,000 each.
RETAIL
Carpetright considers store closures
Carpetright could close another 90 of its 334 outlets by 2021, despite making good progress since entering a CVA last year, which allowed it to close 80 stores and cut rents on dozens more. CEO Wilf Walsh said the company could close the 90 stores by 2021 under new, more flexible terms agreed with the landlords if the sites do not make enough money. Another 23 are trading rent free.
ECONOMY
UK retail endures biggest hit in a decade
UK retail sales fell at their fastest pace in over 10 years in June, according to the Confederation of British Industry. The CBI survey indicated that 58% of retailers said sales volumes were lower in June than a year ago, while just 16% said they were higher. This meant the balance of reported sales fell to minus 42, the lowest level since March 2009. John Webber, head of business rates at Colliers, said: “Competition from online, poor weather impacting on shopping enthusiasm and rising costs, particularly the dead weight of business rates, means there is not much light at the end of the tunnel.”
OTHER
UK cities fall in ranking of most expensive places to live
A number of British cities, including London, have tumbled down the rankings in an annual survey of the world's most expensive places to live. Mercer's 2019 Cost of Living Survey revealed that London had fallen four places to 23rd on the list. Birmingham dropped seven places to 135th, Aberdeen fell three spots to 137th and Belfast was six places lower in 158th. Glasgow was an exception, as increases in the cost of living and stronger demand for flats and apartments lifted the city by three places to 145th in the rankings. "UK cities' fall this year is mainly due to a strengthening of the US dollar," said Mercer.
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