Author: James Cooper

James has been in the property industry since 2003. During that time he has helped hundreds of people move across South Devon. In his spare time he enjoys spending time on the coast with his wife Sarah, son Oscar and Dachshund Ellie.
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Additional homes Stamp Duty surcharge yields Treasury an extra £1.1bn

The Treasury raised £1.1bn from the additional Stamp Duty charge in 2016, official data reveal.

Stamp Duty receipt figures from HMRC show there were 149,400 residential transactions of additional properties accounting for £2.3bn of the property tax, of which £1.1bn is attributed to the additional 3% element.

The additional tax take has prompted the Residential Landlords Association to call for a rethink after the Treasury had originally estimated it would get £630million from the surcharge.

David Smith, policy director of the RLA, said at the very least, the Government should pause the start of the introduction, from April, of the mortgage interest changes to enable a better assessment to be undertaken of the likely impact of the policy.

He said: “In raising nearly twice as much in just nine months as the tax was predicted to make in one year this Stamp Duty windfall gives the Government a chance to back the rental market and support the development of new homes which we desperately need.

“At no stage has evidence been published to support the assertion that landlords are taxed more favourably than homeowners, or that they are squeezing first time buyers out of the market. Assessments by the Institute for Fiscal Studies and the London Schools of Economics contradict the Treasury’s position completely. It is also nonsense for HMRC to suggest that one in five landlords will be affected by the mortgage interest changes, when what matters is the number of properties affected.

“The Government has received far more money than it expected. We urge them to use this to support the country’s tenants and undertake a fuller impact assessment of a policy that has the potential to cause untold damage to the rental market.”

Overall, 882,800 residential properties were liable for Stamp Duty in 2016, up from 823,300 in 2015, raising a total of £8.2bn in Stamp Duty, up from £6.9bn in 2015.

Of the 882,800 figure, 149,400 were classed as additional properties.

The number of additional property transactions liable for Stamp Duty continued to increase in each of the three final quarters of 2016, from 30,400 in the second quarter to 56,200 in the third and 62,800 in the fourth. The surcharge was implemented last April 1.

Nick Leeming, chairman of Jackson-Stops & Staff, said: “The data suggests that buy-to-let investors are not being deterred by the new tax which is supposed to be dampening demand from this group to the benefit of first-time buyers.

“We will see the true impact of this policy in time, but my fear is that additional costs will be passed on to tenants.

“The better solution is a real concerted drive to build more homes, rather than targeting buy-to-let investors.

“I hope the upcoming Housing White Paper contains a real blueprint for change in this regard.”

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Annual transactions highest since 2007, says HMRC

The latest HM Revenue and Customs figures show that there were 1.23 million property transactions in 2016, the highest figure recorded since 2007.

The seasonally adjusted figure is higher than the 1.22 million recorded in 2015 and represents a significant increase when compared with the 2009 low of 847,540.

Last year’s increase is partly down to the introduction of a 3% stamp duty surcharge in April. HMRC reports that in March – leading up to the introduction of the increased tax – transactions soared to almost 175,000 as investors and second property purchasers endeavoured to avoid paying an extra 3% in stamp duty.

In December, there were 97,250 residential transactions – 8.5% lower than the 106,230 recorded in December 2015 and 0.2% higher than the figure recorded in November.

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Top 5 most common winter home problems

Winter is a busy time of the year for everyone. From trying to get work done before you shut down for Christmas to just managing to find the perfect gifts and festive treats for yourself and your family, it can be something of a hectic period for everyone; not least letting agents.

Agents can often find that winter is the busiest period of the year, largely because it can be when tenants will experience the most problems with the property they live in. Winter weather can exacerbate problems in the house, and tenants are more likely to call up to have someone pop round and rectify them.

Many of the problems that will arise at this time of the year will be quick fixes, or even things you can deal with in advance, but as an agent it’s important to just know what’s likely to go wrong. After all, at a hectic time of the year like the festive, it can be great to just have an idea of what to expect. Here, we take a look at the five most common problems that tenants might face in the colder weather.

Draughts

Something that can go the whole year without being spotted, draughts are particularly problematic in the winter months thanks to the wind chill factor, and the fact that tenants will see their heating bills creep up, so it can be a good idea in advance to put insulating strips around the windows and doors before the cold weather really kicks in to alleviate this issue.

Boiler breakdowns

Boilers never seem to break down throughout the year, but when winter comes and people need them most, they always seem to decide that it’s time for a little TLC and a repair. This can be infuriating and frustrating for tenants, but as a letting agent, you can help by having someone qualified on call to help them get their heating back in working order as soon as possible.

Frozen pipes

The biggest issue with frozen pipes is that they have the real potential to lead to much larger problems when they thaw, exposing cracks caused by the ice and leaving homes flooded. The best course of action is to advise tenants how having the heating on regularly can help to avoid this issue in advance. With this issue, it’s definitely better to be proactive rather than reactive!

Roof problems

Another problem that is exacerbated by winter weather, heavy winds and stormy rain can cause issues with loose roof tiles and expose weaknesses in their makeup. This can, of course, lead to leaky roofs and tenants facing a miserable winter. When leaks occur, it’s absolutely vital to get them patched as soon as possible.

Trees

Most of us would probably not even look at a tree as being a potential problem, but they really can be if they’re not kept under control. In winter, it’s not unknown for high winds and rain to contribute to trees falling and colliding with homes, causing a lot of damage. It’s for this reason that it’s always a good idea around winter to just trim trees back a little and make sure they are in good condition for withstanding some of the worst weather.

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Six of the top ten places most desirable places to live are in Devon and Cornwall

The Isle of Skye has been named the nation’s most desired place to live, after almost 24,000 people were asked by Rightmove where they would most like to live in Great Britain.

It’s clear the nation wants a room with a view as the top ten most desired places to live are islands, seaside towns and places of outstanding beauty across Great Britain.

The popular seaside resort of Woolacombe in Devon made second place on the list, with one of the most expensive seaside towns of Salcombe in Devon coming eighth, where average asking prices are just below those in London, at £635,083.

Four places in Cornwall make the top ten: the market town of Callington, the surfer’s seaside town of Newquay, the fishing port of Padstow and holiday favourite St Ives. Flying the flag for the north are Keswick and Ambleside, both in the beautiful Lake District.

The top 10 most desired locations to live in Britain are:

Place Region Average asking price
Isle of Skye Scotland £230,952
Woolacombe South West £346,396
Callington South West £235,860
St Ives South West £366,628
Keswick North West £319,628
Pembroke Wales £169,969
Padstow South West £421,290
Salcombe South West £635,083
Ambleside North West £431,669
Newquay South West £246,976

 

Rightmove’s Research Manager Abiola Oni comments: “The nation clearly want to retreat from the hustle and bustle of the city and settle down in some of the most beautiful places around Britain, from as north as the Isle of Skye to as south as the glitzy town of Salcombe. It’s interesting that none of the areas are in the highest priced regions of Britain, London and the South East, likely because the appeal of some of the big cities is the good job options and transport links rather than moving for the amazing scenery.” 

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Could a wood-burning stove save you money on your energy bills

  • Almost 200,000 wood-burners were installed in Britain last year
  • The initial outlay can be expensive, costing £3,000 on average (including installation)
  • But they can significantly reduce your heating bills over time

With the weather turning and the days growing shorter, attention is shifting to the darker months ahead and keeping our homes warm.

One way of making a home more cosy this winter – and potentially saving money along the way – is installing a wood-burning stove.

While the initial outlay can be expensive, they can reduce your fuel bills, while at the same time being a fashionable addition to your home.

Why have sales risen in the past decade?

Wood-burning stoves were traditionally found only in countryside homes, which had a shed of wood close by and draughty rooms to keep warm.

But Paul Chesney, who runs the upmarket fireplace shop Chesney’s, says: ‘A decade ago, wood-burners were just not found in towns and city homes, but they’ve since gain ground in urban areas.’

He adds that they remain popular in countryside homes.

In total, 195,000 wood-burners were installed last year, according to the Stove Industry Alliance. This is up from 180,000 in 2012, but down from 210,000 in 2014.

Hugh Wells, vice chairman of the Stove Industry Alliance, said: ‘Installation figures have flattened recently due to winters not being so cold and the oil price being down. These factors do have an effect.

‘Wood-burning stoves are generally installed for a reason, such as a secondary heating supply or to save money. There is a percentage who have them installed because they are fashionable.’

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House price forecast bodes well for south west

House prices will rise by more than £50,000 in some areas over the next five years, Savills forecast, as it mapped out potential property gains across the UK. The typical value of a home across the country will rise 13 per cent by the end of 2021. However, the biggest monetary gain is tipped for the South East, where higher prices combined with a larger percentage (17%) increase led to a forecast rise of £53,200 over five years. And the South West is forecast to enjoy a 14% increase by 2021 producing an average price of £272,000.

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