Property Sales Accelerate In A Fifth Of Towns And Cities

New analysis by home purchase plan provider, Gatehouse Bank, has revealed that despite Brexit trying its best to cause turbulence in the UK property market, homes are actually selling quicker in 1 in 5 towns and cities. According to the findings, across the UK, homes on the market have been on sale two weeks longer than a year ago on average (162 vs 148 days) but the slowdown is noticeable by its absence in 19.6% of areas. Gatehouse analysed time-on-the-market data from Home.co.uk and found that property markets sped up in 24 of the 122 towns and cities in the survey. Read more on the Property Reporter website.

https://www.propertyreporter.co.uk/property/property-sales-accelerate-in-a-fifth-of-towns-and-cities.html

Housing Market "In A Period Of Stagflation"

The UK property market has entered a period of stagflation where house price growth is consistently lower than the rate of inflation.  That’s the view of property website Home which says house price growth has been lower than inflation for six consecutive months. Its latest data, drawn from monitoring properties listed on the major portals, suggests that whilst the average asking price is now 3.3 per cent more than in July 2016, the Retail Price Index is rising faster - Home says it increased by 4.1 per cent in May and could now be approaching 4.5 per cent, making house prices fall in real terms by around 1.2 per cent. Read more on the Estate Agent Today website.

The Government Is 'Wiping Out The Buy-To-Let Economy'

Philip Hammond’s failure to reverse George Osborne’s deeply unpopular tax reforms will have far-reaching implications for the buy-to-let industry, it has been predicted. Government plans to strip buy-to-let landlords of mortgage interest tax relief will have a “detrimental impact” on households up and down and the country, according to David Hannah, principal consultant, Cornerstone Tax. From next month, landlords will start to lose the right to tax deduct their mortgage interest costs at the rate they pay income tax - currently up to 45%. Instead, they will see this fall over the next three years and replaced with a 20% tax credit. Hannah has criticised the move, claiming it will result in rent increases for tenants across the UK. Read more on the Home website.

Demand For Student Accommodation Exceeding Availability

Student rents look set to increase amid a housing shortage across many of the UK’s main university cities, according to a new study. Student rentals platform, Studenttenant.com, has examined the demand for property around the top universities in the UK, and found that many students starting their studies are struggling to secure living accommodation before doing so. Despite being four months into the current academic year, a number of universities are still ranking extremely high where demand for student property is concerned. Read more on the Home.co.uk website.

Rent Rises Are Inevitable After Tax Clampdown On Buy-To-Let

Buy-to-let landlords may have failed in their legal battle against planned government tax relief changes for buy-to-let homes, but the real losers will be private tenants. The rules that permit landlords to offset all of their mortgage interest against tax will, from April 2017, be phased out, restricting the amount of mortgage interest landlords can offset against tax on their property investments. By April 2020 Section 24 will mean higher-rate tax payers will only receive 50% of the relief that they currently get. With many landlords likely to face the prospect of having their profits unjustly wiped out, the majority of landlords will have no option but to recoup their losses through higher rents. Read more on the Home UK website.

Rental Expert Calls On New Housing Minister To Reverse Tax Changes

The head of the UK's largest property franchise group has called on the new Housing Minister, Gavin Barwell, to reverse 'punitive tax policies' in order to increase supply and demand in the rental sector. Dorian Gonsalves, managing director of 170 branch agency Belvoir, says that George Osborne's 'disastrous anti-landlord policies' are deterring landlords from investing in the market. He says the policies are affecting tenants, too, as restricted rental supply is pushing up rents. Some of the firm's franchises have reported instances of tenants submitting increased rental offers to landlords without being prompted in order to try and secure the property of their choice. Read more on the Homecouk website.

What Impact Will Brexit Have On The PRS?

The vote in favour of Brexit is a shock and has already resulted in a sharp decline in the value of the UK pound. But what impact will the outcome of the referendum have on the private rented sector?

• Property prices - House prices could fall across many parts of the country as prolonged uncertainty and a potentially weaker economy has an adverse impact on the market.
• New housing supply - Many residential developers will be less willing to commit to new property projects due to the uncertain economic climate. This will make it much harder for the government to achieve its target of building 1m new homes by 2020.
• Rental prices - The cost of renting will rise across many parts of the UK as demand from tenants increases and new housing supply falls.

Read more on the home.co.uk website.