Posted: June 8th, 2010
Our new PM, David Cameron, has taken every opportunity to highlight that the next few years are going to be had, and that’s especially true for
buy to let investors. The Government is proposing an increase in capital gains tax which will hit all investors when they come to sell their property. The expected increase is likely to be from the current 18% up to 40% on any profit made from a house sale; some reports have even suggested this could be up to 50% in line with the super earners income tax.
Research released suggests that a quarter of landlords are considering
selling to avoid the tax hike, which may put a stop to some of the current gains that have been seen in the property market over the least 6 months. The move will also reduce the attractiveness of buy to let in general, which has already seen increased interest rates, higher deposits and complex regulation to manage tenants deposits.
Posted in Buy to Let, House Prices »
Posted: June 4th, 2010
You may be forgiven from getting confused from all the recent reports around house prices movements. Some papers have been reporting prices getting close to 2007 highs; so far so good. However the Halifax building society, part of the Lloyds Banking Group has released figures showing that May was the second consecutive month to show a drop in house prices. All very confusing, so here is a quick breakdown of the current information
1. Nationwide Building Society’s monthly report showed that the average house price rose from £167k up to £169k because interest rates are still very low and there is a limited amount of houses on the market for people to buy – Good news if your a House Seller
2. Halifax’s report showed that the average price dropped from £168k to £167k due to slowing demand and buy to let landlords planning to offload properties
Whilst these views seem to be at odds, the overall picture is showing that prices will stay flat in 2010 with expected growth in 2011. Estate Agents have been advising House Sellers against waiting until September as the market is desperate for quality properties and above market offers are being made by hungry buyers.
Posted in Estate Agents, House Prices »
Posted: May 5th, 2010
Legal cases against Estate Agents have shot up in the last year according to a report by The Times. It seems that over zealous valuations by dodgy Estate Agents have landed them in hot water, when the recent crash in property prices left many of us in negative equity.
Among the cases were buyers that bought into the myriad of new high-rise flats and had not been made fully aware of the costs of putting the development on hold. These issues go hand in hand with many buyers that have come under the smooth patter of agents keen to sell properties in “up and coming” areas. The trend looks set to carry on as many disgruntled buyers look at substancial losses which don’t look set to be reduced in the waining property market.
The fact is that its not the fault of the Estate Agents, who you should expect to wax lyrical about any property, but the unassuming buyer who sees a chance to make a quick buck. We obviously have the benefit of hindsight, but its clear that buyers need to do their research before buying into the “guaranteed income” schemes that seem to make a up a large proportion of the cases currently being heard.
So what does this mean for sellers? Care in choosing your Estate Agent is important because the rogues out there won’t just cause problems for buyers. Low valuations, high fees and poor service may result from poor choice. Obviously you can use Wampuu to find the perfect Estate Agent for you - but we would say that!
Posted in Estate Agents »
Posted: May 1st, 2010
So the Halifax have released their latest quarterly briefing and the signs look good…or do they?
On the face of it the rises are obviously great news for house sellers. The headline is that house prices rose by 1.2% in October which counts for the fourth monthly rise in a row. This means that if your house was worth £100,000 in September, you’re now £1200 richer…All good news, but its important to understand why the prices are rising
1. Lack of Good Houses on the Market – At the moment many people are holding off selling their house in the current economic situation. In fact this is now starting to improve as confidence is gained and more people think about moving but supply of good houses is still outweighed by demand
2. Interest Rates Still low – Whilst the sub 3% mortgages are a distant memory, there is still good bargains to be had for buyers with a decent deposit. Banks and Building Societies are looking for reliable, stable custom and will reward through quality rates. Remember also that the only way that the Bank of England base rate can go is up, so current mortgage offers could be very competitive in the long term
3. Number of House Sales Is Still Low – Compared to 2008 and 2007, this year has been much reduced with over 40% reduction in the number of sales. Reduced sales mean that the effect of lack of good houses is even more enhanced
In essence, what this really means is that whilst prices are rising, sellers may only benefit if they put their house on the market immediately. As confidence resumes within the market and a flood of new sellers arrives, this could bring added competition. So todays report shows that its definitely a case of the early bird catching the worm…..or selling their house quickly in this case.
Posted in House Prices »
