In our latest residential property review we are covering how sellers are knocking off on average £18,000 off the asking price of their properties – the highest average price cute in five years.
You will also read about buy- to – let lending dropping by 53% and predicting to fall by another 13% in 2024.
Our residential property review covers much much more.
Spring Budget 2024
On 6 March, Chancellor of the Exchequer Jeremy Hunt delivered his Spring Budget to the House of Commons declaring it was “a Budget for long-term growth.” The fiscal update included a number of new policy measures, such as a widely-anticipated reduction in National Insurance, abolition of the non-dom tax status and new savings products designed to encourage more people to invest in UK assets.
Read our highlights from this spring budget.
In the latest residential property review we are covering how the housing market is slowing but far from stopped, how landlords are still optimistic despite tougher market and much more.
Supply and demand both fell in November 2022, according to the latest UK Residential Survey from the Royal Institute of Chartered Surveyors (RICS), though sales completions remained high for the month.
More than half of UK landlords feel optimistic about the future, despite 49% admitting that market conditions have become harder in the past year, a new survey from Aldermore reveals.
Click here to view January’s Property Review!
Strong monthly transactions but slowing activity ahead.
Latest data from the UK housing market presents a mixed picture, with dwindling demand and limited supply contrasting markedly with strong transaction figures. Homebuyer demand remains above average, Zoopla pointed out. Yet analysts expect demand to weaken in coming months as more households feel the cost-of-living squeeze, a prediction supported by the latest Royal Institution of
Chartered Surveyors (RICS) survey, which showed new buyer enquiries still in negative territory. The RICS survey also noted that new instructions to sell homes remained largely flat, which is keeping supply limited.
Check out the latest residential property review to stay up to date on the property market.
Our new Economic review is now available studying the latest figures and how the cost of living standards is effecting the economy.
The latest gross domestic product statistics show that the UK economy unexpectedly grew in May although forward looking indicators still point to a deteriorating outlook. Figures released last month by the Office for National Statistics (ONS) revealed that the economy returned to growth in May after contracting during April. In total, UK economic output rose by 0.5% across the month, significantly exceeding the consensus forecast from a Reuters poll of economists which had predicted zero growth.
ONS said the main sectors of the economy all expanded during May including construction, travel and manufacturing. The data also revealed significant growth within health services as one of the key drivers of growth during the month. In spite of May’s rebound, analysts still expect the economy to come under increasing pressure in the coming months as the cost-of-living squeeze weighs heavily on households’
ability to spend.
The Power Of Purposeful Wealth
Most people would agree that wealth is not about hoarding money but the financial freedom and flexibility it affords to help us achieve our passions and goals. Wealth essentially has the capacity to create a powerful purpose within our lives, provided we are able to unlock its true value.
Understanding your ‘why’
A good starting point for unlocking the value of wealth is to develop a clear understanding of what you want from life and what mark you want to leave. Do you want to travel; start your own business; support your family; create opportunities for others, or leave a legacy? Establishing the type of things that you really care about can provide a genuinely powerful purpose to wealth.
Sharing your wealth
One of the best ways to find fulfilment in your wealth is by sharing it; there is certainly no joy in holding onto wealth you will never use. Using wealth to help family, for instance, can be a particularly rewarding experience that allows you to positively change loved ones’ lives.
Indeed, as the cost-of-living crisis continues to weigh heavily on household budgets, there has perhaps never been a better time to offer financial support to family members.
Housing featured prominently in the Queen’s Speech on 10 May, with social housing, rental reform and leasehold reform all part of the government’s priorities in the coming twelve months. Of the 38 legislative announcements, there were three significant ones relating to housing; the Social Housing Regulation Bill, the Renters’ Reform Bill and the Leasehold Reform (Ground Rent) Act.
First, the Social Housing Regulation Bill promises to give tenants more rights with regards to the quality and safety of their homes. Five years after the Grenfell Tower tragedy, the proposed legislation will give more power to the regulator to inspect homes, order emergency repairs, issue limitless fines and intervene in badly managed organisations. Standing in for his mother, Prince Charles affirmed the government’s commitment to “improve the regulation of social housing, strengthen the rights of tenants and ensure better quality safer homes.”
Second, the Renters’ Reform Bill promises to abolish Section 21 evictions and strengthen landlords’ rights of possession. A Section 21 notice, commonly known as a ‘no-fault eviction’, gives tenants just two months to move out – without the landlord having to give any reason for the eviction.
The Bill is expected to include widespread reforms to the private rented sector, including a national register of landlords. For now, however, details remain scarce; the government is expected to produce a White Paper later this year.
Third, the Leasehold Reform (Ground Rent) Act 2022 is the most advanced proposal, with the legislation set to come into
force on 30 June 2022. The Act will end ground rents for new, qualifying long residential leasehold properties in England and Wales by limiting the lease to no more than ‘one peppercorn per year’. It will also ban freeholders from charging administration fees for
collecting this peppercorn rent.
Affordability concerns are not yet holding back activity in the residential market, the latest figures show, even if the rising cost of living could forewarn leaner times ahead.
Total transactions in March reached 111,000, 12% above 2017-19 levels for the month, according to Savills. Meanwhile, sales agreed remained 18% higher than pre-pandemic levels in April, according to TwentyCi, which should translate into strong sales for the next few months. Alongside this persistent demand, there are some signs of increased supply. The number of homes on the market has increased in each of the first three months of 2022. This re-balancing of supply and demand could take some heat out of the market, experts suggest.
Moreover, inflationary pressures are adding to affordability concerns, with lenders now expecting lower availability of mortgages in Q2 2022, according to a Bank of England (BoE) survey. Indeed, the BoE’s own decision to raise its Bank Rate to 1.0%, the fourth such rise in six months, could further erode mortgage affordability.
Total transactions in March reached 111,000, 12% above 2017-19 levels for the month, according to Savills.
Our new Economic review is now available studying the figures and movements over the last few months and looking at the effect Omicron has had to the Economy. In this issue we are also looking at inflation and the current investment markets.
The UK economy grew strongly in November to move beyond its pre-COVID level, with increasing momentum recorded across all industry sectors prior to the arrival of the Omicron.
Data released by the Office for National Statistics (ONS) revealed that the economy grew by 0.9% in November. This was much stronger than the consensus forecast predicted in a Reuters poll of economists and saw the UK economy recover all of the ground lost during the pandemic, with November’s output figure 0.7% above its February 2020 level.
Economic activity over the last two months, however, has clearly been hit by the spread of the Omicron variant. Data from IHS Markit/CIPS Purchasing Managers’ Index (PMI) reported a sharp slowdown in UK private sector growth in December and activity slipped further in January as Omicron again hit consumer-facing companies.
Click here to read more ….
Autumn Budget and Spending Review
Chancellor of the Exchequer, Rishi Sunak, delivered his third Budget and the results of his Spending Review on 27 October, declaring that it begins “the work of preparing
for a new economy post-COVID.” The Chancellor struck an upbeat tone during the key fiscal event, as he outlined his vision of “an economy fit for a new age of optimism, where
the only limit to our potential is the effort we are prepared to put in and the sacrifices we are prepared to make.”
Click here to read our summary of the important areas in the Autumn budget and how this may effect you.
includes guides to property values, stats and more.
Supply still lagging demand
Steady buyer demand and a sixth successive month of net negative new instructions, were the stand out trends in the September UK Residential Market Survey published by the Royal Institution of Chartered Surveyors (RICS).
At the national level, new buyer enquiries had a net balance of zero in September, up from -13% in August. Meanwhile, the recent decline in new listings persisted,with new instructions registering a net balance of -35%.
Simon Rubinsohn, RICS Chief Economist, commented, “The imbalance between demand and supply remains the most striking theme… And feedback from members provides little reason to believe this issue will be resolved anytime soon.”
Following a slight dip caused by the tapering of the Stamp Duty holiday, steadier buyer demand is now causing sales expectations to gain momentum, with 11% more respondents anticipating an increase in sales in the coming three months, up from +6% in August.
Indeed, with over one million homes sold by the end of August – a threshold not usually passed until October – analysts are
suggesting 2021 could see more transactions completed than in any year since the global financial crisis.
Rents surge nationwide
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