Property with Potential weekly round up
Welcome to this weeks Property with Potential weekly round up. We’re still in lockdown but with numbers across the UK coming down, there is light at the end of the tunnel. But what impact is this having on the housing market? This week’s blog will take a look. And keep reading to find out what out what we’ve picked as Property of The Week — trust us, it’s a good one.
First-time Buyer Homes in North West See Biggest Price Growth
The North West has seen the biggest annual rise in property prices for first-time buyer homes, according to new data out today from the UK’s biggest property website Rightmove.
Rightmove’s study shows that average asking prices for such homes in the North West have jumped by 8.6% over the past 12 months — a bigger annual increase than any region in Great Britain.
Yorkshire and The Humber is the region with the second biggest annual increase in average asking prices for first-time buyer homes (8.4%), followed by the West Midlands (7.0%).
However, Yorkshire and The Humber is where average asking prices for first-time buyer homes have increased the most in cash value, up £11,443 compared to a year ago.
The national average asking price of first-time buyer properties is £200,578, which is up 3.9% compared to 12 months ago and equates to an annual rise of £7,475.
This means that the first-time buyer sector is marginally outperforming the market as a whole, which has seen average asking prices rise 3.3% annually.
First-time buyer homes are currently most expensive in London, with average asking prices of £474,950, whilst the North East (£112,150) is where average asking prices are cheapest.
London is also the only region where average asking prices for first-time buyer homes exceed £400,000, with the South East (£261,122) and East of England (£243,492) next on the list.
The capital is, however, the only region where average asking prices for first-time buyer properties have fallen year-on-year, with prices in London down 1.4% compared to a year ago.
DPS Reveals Strangest Items Sent by Landlords and Tenants as Evidence for Tenancy Disputes
A section of carpet, a fully functioning mobile phone and bathroom taps are among the more unusual items sent through the post during tenancy deposit disputes, according to The Deposit Protection Service (The DPS).
The UK’s largest protector of tenancy deposits said that it had received the carpet from a landlord wanting to demonstrate the iron burn that a tenant had left — while another sent a mobile phone complete with charger containing photos that they thought would best highlight the state of the property.
Taps have also proven a favourite according to The DPS, with a landlord posting a faucet covered in lime scale to demonstrate a tenant had not taken sufficiently good care of their bathroom; while a tenant sent in a new shower mixer tap to support an argument that their landlord was charging too much to install a replacement.
The DPS also revealed that one landlord posted a plastic bag containing wet wipes and dirt to argue the property was not clean when their tenant checked out; while another sent in a bag of sweet wrappers in an attempt to prove the tenant had children living with them.
The DPS said it encouraged the use of video and photo evidence to help resolve disputes, but that it was surprised to receive video from a tenant seeking to prove that their landlord had allowed another person to live in a concealed part of the property; and of a landlord climbing over a garden wall and entering a house without the tenant’s consent.
Golf Simulators Latest Home Fitness Trend for Those Looking to Enjoy the Great Indoors
Oakbridge Bespoke reports an increasing number of requests for golf simulators as they provide the ability to practise all year round — an attractive feature, given the vagaries of the English climate and the current limitations on domestic and international travel.
Installing a golf simulator comes with its own design considerations. Basement installations are the norm, as rooms without any windows to break are the ideal setting. But those rooms also need to have sufficient depth — the ceiling needs to be at least 3.2m in height in order to allow for a full swing.
Michael Clifton, Head of Design at Oakbridge Bespoke says “Golf is a great way to clear the mind of distractions and shut off the digital world. The focus on mind/body connection is essential to maintaining good mental health — and not just during the pandemic. Though of course it is particularly important right now!”
Capital Gains Tax Hike Would Freeze Rental Market
Proposals to increase Capital Gains Tax (CGT) would freeze the rental housing market making it less responsive to tenant demand.
That is the warning from the National Residential Landlords Association ahead of the Budget on 3rd March.
With the Office for Tax Simplification proposing measures to equalise Capital Gains Tax with income tax rates, the NRLA is highlighting research which found that 72 per cent of private landlords said that the tax was a major disincentive to sell property on the open market. Increasing it would serve to freeze the market making it far less responsive to changing needs from renters. This includes the shift in demand out of city centres to properties in suburbs, towns and villages, as noted by Rightmove.
With almost half of landlords having entered the market to contribute to their pension, increasing CGT would negatively impact their retirement planning. For many this is predicated on liquidating assets to fund their later life, including in many cases their care costs.
Rather than developing yet more punitive tax hikes on the rental market, the NRLA is calling on the Chancellor to use the tax more smartly in the forthcoming Budget. It recommends that to support the Government’s ambitions for homeownership there should be a CGT exemption or reduction where landlords sell properties to sitting tenants.
This is a policy which has previously been supported by the now Housing, Communities and Local Government Minister, Eddie Hughes MP.
Ben Beadle, Chief Executive of the National Residential Landlords Association, said:
“Increasing Capital Gains Tax would reduce churn in the rental market undermining the flexibility it has always been good at providing.
“A tax hike would be a kick in the teeth for all those who have invested in property to provide security for the future for themselves and their families.
“The Chancellor needs to end the war on the rental market and recognise the importance of a healthy and vibrant rented housing sector. Tax should be used more smartly, not as a blunt attack on the market.”
PROPERTY OF THE WEEK: London’s “skinniest” house
Here at Property with Potential we like to bring you some quirky properties when it comes to Property of the week. So this “Skinny” home in Shepherd’s Bush, London is of course a shoe in for this week. On the market for £950,000, this property may be slim but it does cram a lot in with 1,034 sq ft of internal space.
Set over five floors, this three bedroom property is unique. There are almost too many features to mention but here are a few as a taster — Aga powered, Nest controlled central heating system, beautiful period parquets flooring, original deco bath tub, roof terrace and double full height glass doors leading from the glazed dining area out onto the recently and brilliantly planted private patio garden.
Find out more about this listing at Winkworth
