I hope you have had a relaxing week. We have made some investors very happy this week by announcing a few choice units that have become available within previously sold-out schemes.
These prime units are often snapped up shortly after they are released, due to exceptionally high demand.
If you are interested in learning about any of these rare deals as they come in, register your interest by replying to this post today.
Now, let’s take a look at all the headlines that caught our attention this week. I always try to summarise the links to save you from having to click through.
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Property News This Week
- Stamp Duty Cuts & Threshold Changes Announced by Chancellor – The Chancellor has announced plans to reach a national growth trend of 2.5% in the latest mini-budget, with aims to promote public services, support businesses and raise the average standard of living across the UK. Among a host of tax and policy changes, the Chancellor announced significant cuts to Stamp Duty Land Tax, doubling the nil rate band permanently from £125K to £250K. It is hoped that this will enable up to 200,000 more people to get on the property ladder each year without paying any Stamp Duty. First-time buyers can now benefit from tax relief on houses up to £625K from £500,000. In an effort to make good on the Conservative promise to deliver much-needed housing in the UK, the Chancellor also announced an increase in the disposal of surplus government land to build new homes, combined with relaxing planning rules to encourage property development.
- Bank of England Announces Another Interest Rate Hike – In a 5-4 majority vote, the Monetary Policy Committee of the Bank of England has agreed to raise interest rates to a new level of 2.25%. The voting ratio on this latest rise of 0.5% shows disparity among the committee members, with three ‘against’ voters favouring a higher rise of 0.75%.
Analysis from Rightmove paints a picture of growing concern amongst those homeowners on fixed-rate mortgages that are due to expire imminently. Constant interest rate rises could result in fixed rate options that are double what was available just a few years ago. The threat of higher monthly mortgage payments is one that many homeowners simply cannot afford to meet head-on and it is expected that downsizing will become more prevalent as the economical crisis takes true effect. However, the majority of buyers and sellers are still keen to take advantage of the slowing house price growth.
Majority of Landlords Supporting Tenants Amid Cost of Living Crisis – Private landlords are often given a bad name in the media, frequently painted as heartless capitalists keen on draining their tenants of every last penny – but new research published by Shawnbrook reveals a very different story. As people are increasingly struggling to cope with rising costs, 75% of residential landlords participating in the survey reported taking steps to support their tenants. Of those landlords, a quarter have frozen rents for their tenants and 22% have responded to struggling tenants by directly offering rent holidays to help them cope with pressures from inflation. A further 19% have offered to include bills in the rent amount, a move that could help tenants control their expenditure and simplify their outgoings. Just 14% of landlords have reported making no changes in response to the cost-of-living crisis but even these have reported a willingness to do so if their tenants enter a financial crisis.
Residential Rent Costs Rising in Manchester & Across the UK – New research shows that rents are now 40% higher than a year ago, compared with mortgage prices of 13%, and Manchester is one of the areas showing the biggest increases. The figures, from Rightmove, show that average private rents have hit record highs, jumping by more than 20% in some areas such as Manchester. The average advertised rent outside London is 11.8% higher than a year ago, while in the capital it is up by 15.8%. Rightmove’s table of rental price hotspots was topped by Manchester, where the average asking rent is up 23.4% in a year – from £913 in the second quarter of 2021 to £1,127 in the same period this year. Manchester has risen 26 places in this year’s Global Liveability Index, making it the top most liveable city in the UK and 28th across the globe. Every year, The Economist releases its rankings of the most liveable cities in the world, and this year’s list included 172 cities in total – up from 140 last year.
That is all we have for you this week. If you have any comments or questions on this week’s news summary, please feel free to email us at [email protected] – if not, see you next week.