Mike Smuts March 28, 2018 Uncategorized no responses

The Pound has strengthened over the course of March and is close to the highest levels seen since the EU referendum, after the government struck a provisional deal with the EU over a transition period to smooth the Brexit process. Sterling had fallen against the dollar earlier in the month amid a recovery in the value of the US currency, but has since recovered thanks to the progress made in the EU talks, ending the month up about 1.6%. The Pound is still worth about 5% less than it was immediately before the referendum.

The Pound appreciated against the dollar by over 8% since the Bank of England (BOE) raised its base rate at the start of November 2017. With at least one more rate rise expected this year, the Pound is likely to strengthen further in 2018. Oxford Economics predicts a rise to £1/$1.46 by the end of the year. In response, annual consumer price inflation has already fallen to 2.7% in February, down from 3.0% in January and the lowest since last July.

For our clients who took advantage of the weaker Sterling and the resulting increase in their buying power, there has already been some significant returns from a pure currency perspective. With positive sentiment carrying the Pound higher, those wishing to make further investments would be wise to act sooner rather than later.

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Mike Smuts March 28, 2018 Uncategorized no responses

The latest data and analysis from Halifax (one of the UK’s largest mortgage lenders) has revealed that UK house prices in the last three months to March were 2.7% higher than in the same three months a year earlier, edging up from the 1.8% annual growth recorded in February. According to the lender’s figures, the average price in March was £227,871.

House prices in the latest quarter (January-March) were -0.1% lower than in the preceding three months (October-December), the second consecutive decline on this measure. On a monthly basis, prices grew by 1.5% in March, this follows a 0.5% rise in February; monthly changes can of course be volatile

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Mike Smuts March 24, 2018 Uncategorized no responses

The latest UK House Price Index from the ONS and Land Registry has shown  a slow start to the year with a fall of 0.3%.

Key Findings

  • Annual house price growth slowed from 5.0% in December last year to 4.9% in January 2018.
  • The East Midlands showed the highest annual growth, with prices increasing by 7.3% in the year to January.
  • South West at 6.9% and the West Midlands and East of England (both 5.3%)
  • The lowest annual growth was in the North East, where prices increased by 0.7% over the year
  • London Growth was at 2.1%.

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Mike Smuts March 23, 2018 Uncategorized no responses

The latest data from Rightmove has shown that a “substantial” 1.5% rise this month has pushed average house prices to new record levels

Key analysis findings

  • price increase has been caused by a strong demand from home movers recorded in January and February.
  • There has been a fall in the number of sellers coming to market, increasing the imbalance between demand and supply in some area which is an influencing factor of the increase
  • The 1.5% increase is the largest seen at this time of year since 2007
  • The average price of newly-marketed property has hit all-time highs in both the East and West Midlands, and also in Wales and the North West.

Miles Shipside, Rightmove director and housing market analyst, commented: “Many buyers entering the traditionally busy spring market this year face paying more than ever for their target property, and having a more limited choice.

The first two months of 2018 saw Rightmove traffic at its highest ever levels, and this demand appears to be now feeding through to fuel the substantial £4,503 jump in average new seller asking prices this month.”

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Mike Smuts March 10, 2018 Uncategorized no responses

Parliamentary Under-Secretary of State in the Ministry of Housing, Communities and Local Government, Lord Bourne of Aberystwyth announced that the ban on tenant fees will apply to all tenancies commencing on or after 1 June 2019.

What fees are banned under the tenant fee ban?

The complicated way of clarifying what is banned under this new legislation is that anything the tenant (or guarantor) is asked to pay as part of the ‘grant, continuance, assignment, termination or renewal of the assured shorthold tenancy.’

Tenant Fees Bill
The Tenant Fees Bill sets out the government’s approach to banning letting fees for tenants. The key measures of the bill include:

  • Security deposits must not exceed the equivalent of five weeks’ rent.
  • Holding deposits will be capped at no more than one week’s rent. The Bill also sets out the proposed requirements on landlords and agents to return a holding deposit to a tenant
  • The amount that can be charged for a change to tenancy will be capped at £50 unless the landlord demonstrates that greater costs were incurred
  • A fine of £5,000 for an initial breach of the ban with a criminal offence where a person has been fined or convicted of the same offence within the last 5 years. Financial penalties of up to £30,000 can be issued as an alternative to prosecution
  • Trading Standards will enforce the ban and will make provisions for tenants to be able to recover unlawfully charged fees via the First-tier Tribunal
  • Landlords are prevented from recovering possession of their property via the section 21 until they have repaid any unlawfully charged fees
  • Enabling the appointment of a lead enforcement authority in the lettings sector
  • The Consumer Rights Act 2015 will be amended to specify that the letting agent transparency requirements should apply to property portals such as Rightmove and Zoopla
  • Local authorities will be able to ring-fence any money raised for future local housing enforcement

Alongside rent and deposits, agents and landlords will only be permitted to charge tenants fees associated with:

  • A change or early termination of a tenancy when requested by the tenant
  • Utilities, communication services and Council Tax
  • Payments arising from a default by the tenant such as replacing lost keys.

As a result of tenant fees ban unfortunately this will most likely see an increase in the charges passed across to the Landlord which in turn would be passed back to the tenant in the form of higher rental increases.

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Mike Smuts March 10, 2018 Uncategorized no responses

The latest data from Halifax has revealed that house prices in the last three months to February were 1.8% andthe average house price now stands at £226,408.

Russell Galley, Managing Director, Halifax, said: “House prices continue to remain broadly flat, as they have since the end of last year. The annual rate of growth has slowed from 2.2% in January to 1.8% in February, the lowest rate of growth since March 2013.

The labour market continues to perform strongly with the number of people in employment rising by 88,000 in the three months to December. Notably, this is almost entirely accounted for by full-time jobs. The strength of the jobs market may finally be benefitting wage growth, with the annual growth rate accelerating from 2.3% in November to 2.8% in December. However, earnings are rising at a slower rate than consumer prices.

Despite the November rise in the Bank of England Base Rate, mortgage rates continue to stay low by historical standards. While we expect price growth to remain low, the low mortgage rate environment, combined with an ongoing shortage of properties for sale, should continue to support house prices over the coming months.”

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Mike Smuts March 2, 2018 Uncategorized no responses

The latest details published by ARLA Propertymark has shown that properties available to rent in the capital where 46% below the national average in January. With fewer Landlords entering the London market tenants are finding increased competition for rental properties.

Other Key Findings

  • In January, letting agents in London were typically managing 99 properties, compared to a national average of 184.
  • It was also the lowest region for supply in December, but it stood at 130 then, compared to a national average of 200.

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Mike Smuts February 28, 2018 Uncategorized no responses

The latest data from NAEA Propertymark has revealed that during January there was a 37% rise in the number of people looking for a new home with the supply of available properties and the number of sales agreed also increasing.

Key findings

  • In December, agents registered 268 per branch, compared to 367 in January. This is the highest figure since September 2017, when there were 394 registered per estate agent branch. 

 Supply of properties

  • In line with rising demand, January saw an influx of sellers marketing their properties – the supply of available properties increased to 36 per branch on average, from 33 in December.

 Sales to first-time buyers (FTBs)

Earlier this month, UK Finance reported that sales to FTBs in 2017 were higher than any other year since the financial crisis. However, increased competition moving into 2018 looks to be affecting the group with sales falling to 27% in January, from 32% in December.

 Mark Hayward, Chief Executive, NAEA Propertymark said: “As we usually see in January, buyers and sellers have re-entered the market after the festive slow-down and triggered an uplift in the number of sales agreed. While this is good news for the market generally, the increased competition seems to have affected FTBs, who generally have less bargaining power when it comes to bidding for properties.

Our members have noticed FTBs holding off on making purchases typically outside of London, and saving for longer to maximise the full stamp duty relief. They’re skipping the ‘first time home’ and moving straight onto their second homes, to avoid growing out of their property in four or five years and facing the cost of stamp duty. This is a smart move and an example of how FTBs are making legislation work to their advantage.”

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Mike Smuts February 8, 2018 Uncategorized no responses

Recent data released  from Halifax has shown that house prices in the last three months to January were 2.2% higher than in the same three months a year earlier.

Key finding

  • The average price of £223,285 at the beginning of the year is 1.9% higher than in January 2017 (£219,217)

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Mike Smuts January 17, 2018 Uncategorized no responses

The latest data from the Office for National Statistics has shown that, in the year to November 2017, average house prices in the UK increased by 5.1%

Key Findings

  • Annual growth rate has slowed since mid-2016 but has remained broadly around 5% during 2017.
  • The average UK house price was £226,000 in November 2017. This is £11,000 higher than in November 2016

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