Scotland now fastest place to sell a home - Plus all the latest property news
Posted by The Oracle Group on 7th August 2019 -
INDUSTRY
Scotland now fastest place to sell a home
Scotland has overtaken London as the fastest place for a seller to find a buyer for their home. In 2014, it took 36 days in London on average to secure a buyer, but this rose to 60 days by last year, according to new figures compiled for the BBC by Rightmove. In contrast, the average time to secure a buyer fell from 66 days to 41 days over the same period in Scotland. Rightmove suggested increasingly stretched buyer affordability and changes in taxation have contributed to a slowing market, especially in the sale of flats. The debate over leaseholds may also be significant, and may also explain the difference with Scotland, where so-called hidden costs are “far less of an issue”.
Promise of transport links drive up house prices
Despite the fact it is still not operating, property values within a ten-minute walk of stations along the Elizabeth Line have outperformed their local markets by 4% since 2008, according to Knight Frank. The proposed north to south Crossrail 2 route will also attract house-hunters. Six of the ten most affordable London boroughs are in the east of the capital, and Knight Frank compared these with commuting locations in Kent, Essex and Suffolk to find markets that look set to soar. Among the study’s top picks are Tottenham Hale, Leyton, Ilford, Thamesmead and Basildon.
Airbnb invests in Scottish lobbying
Airbnb lobbyists have met Scottish ministers and MSPs almost once a month since last April as the website battles plans for more regulation. The company sought out politicians before a Holyrood planning bill that aimed to crack down on short-term lets, according to the Scottish Lobbying register. It also sought to discuss tourist taxes and its own regulatory proposals. Airbnb wrote to Nicola Sturgeon last year to argue that regulation should be specific to Edinburgh, and Airbnb hosts were reported this year to be “love-bombing” politicians with emails about their experience. A spokeswoman said: “We wholeheartedly support fair and proportionate regulation, which is why we are continuing to work with the government, MSPs and local councils.”
Holiday lets remain profitable
Increasing numbers of landlords are fleeing the buy-to-let market after their profits were hit by stringent new tax rules phased in from 2017. But because holiday lets are classed as a business rather than investment, owners are still entitled to many of the tax advantages landlords no longer get. For example, you can deduct the cost of your mortgage from your profits before income tax. You can also subtract expenses such as council tax, utilities, maintenance, cleaning costs, property management costs and advertising. Holiday let hotspots include Yorkshire, the Lake District and the South-West, according to Leeds Building Society.
FIRMS
Buccleuch attributes profit boost to portfolio rejig
Buccleuch, one of Scotland’s largest property owners, has seen earnings rise on the back of strong sales activity. The company’s MDS Estates parent firm posted overall post-tax profits of £23.2m in the year to 31 October, a jump of more than 300% from the previous year. Turnover climbed to £54.2m, up from £36.7m. Executive chairman Benny Higgins attributed “a very significant part” of the results to property revaluations and boosts upon the sale of assets, as the firm has pushed ahead with a commitment to reducing its geographical footprint.
IWG announces £100m share buyback
Office space provider IWG has launched a £100m share buyback and increased its dividend, leaving boss Mark Dixon looking forward to a much-anticipated flotation of rival landlord WeWork to “level the playing field” between the two firms. In its first half results, IWG reported total pre-tax profit of £53.4m, while revenue increased 10% to £1.3bn from £1.16bn in the same period last year.
‘Reduce’ recommended for Rightmove
Despite strong half-year results, Rightmove’s premium valuation does not reflect the challenges ahead, according to brokers Peel Hunt. "Despite rumours of positive stamp duty reforms on the horizon, we believe the housing market could deteriorate further in the near term," it says, adding that it is starting to see signs that indicate future trading could be challenging for Rightmove. Peel Hunt retains its "Reduce" recommendation with a 450p target price.
Harworth appoints CFO
Land and property regeneration company Harworth has appointed Kitty Patmore as its new chief financial officer and executive director with effect from October 1. in October. She joins Harworth from Harworth Real Estate, the company's property arm. Kitty has 14 years of finance, banking and real estate lending experience from roles at Harwood, DRC Capital and Barclays, and is a former national director of the Investment Property Forum.
TAX
Record CGT take as HMRC pulls in £8.8bn
HMRC figures show that the tax office saw a record capital gains tax take of £8.8bn in the 2017/18 tax year, a total that marks a 14% increase and exceeds the £5.2bn pulled in through inheritance tax. With the analysis showing that the average CGT bill was £31,317 last year, Harvey Jones in the Express looks at ways people can cut their bills with “some basic financial planning.” Mark Giddens of UHY Hacker Young advises that CGT planning is easier for married couples and civil partners, who can make tax-free gifts to each other.
PLANNING
Gloucestershire scheme helps planners deal with newts
A new scheme is being rolled out in Gloucestershire aimed at helping housing developers with great crested newt mitigation. The amphibian is protected by law and must be removed before building works begin. NatureSpace has assessed districts and produced a newt "risk map", which it said could prevent the need for a time-consuming survey. The areas which will be covered by the scheme include Gloucester City Council, Tewkesbury Borough Council, and Stroud, Cotswold, Cheltenham, and Forest of Dean district councils.
Granton waterfront planning appeal won
Work to create a waterfront community in the north of Edinburgh will begin later this year after developer Edinburgh Marina Holdings won a Scottish Government appeal over expired planning permission. The £500m development at Granton's Western Harbour will include more than 1,850 new homes, a conference hotel and spa, a retirement complex and a medical hub. Scottish Government reporter Andrew Flemming approved an appeal by the developers after the 15-year masterplan planning permission, granted by City of Edinburgh Council in 2013, expired.
LEGAL
Fraud fears for pension pots
A Financial Conduct Authority poll has found that two-fifths of pension savers would be likely to fall for common tactics used by fraudsters. Nearly 45% of the 45- to 65-year-olds surveyed said they would discuss their pension with a cold caller, while one in six aged 45 to 54 would be interested in speaking to companies that could help them take money from their pension early, despite withdrawals below the age of 55 not being permitted and drawing a 55% tax penalty from HMRC. Nearly a quarter said they were likely to pursue offers of high returns in exotic investments such as overseas property, biofuels and storage units. Figures from Action Fraud show that fraudsters took around £15m from pension savers last year, with victims losing an average of £82,000 each.
RETAIL
Boohoo buys Karen Millen and Coast
Boohoo.com has bought the online business and intellectual property of Karen Millen and Coast in a £18.2m pre-pack administration deal. An initial 62 job losses have been announced, while over 1,000 more are in danger across 32 UK stores and 177 concessions. Administrators said stores would only stay open for “a short time” while stock was sold off.
INTERNATIONAL
German bucks overall positive Eurozone construction trend
The Eurozone construction sector grew marginally in July despite activity falling in Germany for the first time in nine months. The IHS Markit construction purchasing managers' index (PMI) rose to 50.8 in July from 50.6 in June. In Germany, the area's biggest economy, the construction PMI fell to 49.5 from 50 over the period. Across the zone, growth was driven by a sixth successive monthly expansion in commercial construction such as offices and shops, but both commercial and civil engineering activity fell in Germany.
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