Archive for Estate Agents
Sign In UK Government Puts Stamp Duty On Hold
The government has announced that for one year, stamp duty tax will not apply to properties worth £175,000 or less.
The Treasury stated that “this will provide an exemption from stamp duty land tax for land transactions consisting entirely of residential property where the chargeable consideration is not more than £175,000.
From 3rd September 2008, the relief will apply to applicable properties until 3rd September 2009..
This announcement ends the speculation from August that the government was considering a stamp duty suspension.
The move is part of a package of measures announced today to aid the housing market. The £1 billion housing package is part of an ongoing programme to prop up the housing market in England.
These measures include:
- Offering first time buyers a £300 million shared equity scheme to help them onto the housing ladder.
- A £200 million mortgage rescue scheme to help those facing repossession to remain in their homes.
- A £400 million cash injection for social housing providers, including registered social landlords (RSLs) to build 5,500 more social housing over the next 18 months.
- Supporting critical regeneration schemes through working with regional development agencies (RDAs).
For all your latest property news visit www.myfirsthomeltd.co.uk
UK Housing Market Is Impacting On UK Economy
The economy expanded by just 0.2 per cent between April and June- the slowest pace since the first three months of 2005, according to the office for National Statistics. These figures confirm the reduction in house building, has impacted on economic growth in the second quarter of the year, as the UK’s slow down of the housing market gathered pace.
The figures come amid fears of recession after recent industry surveys signalled contracting activity in construction, services and manufacturing sectors during June. The annual rate of growth in gross domestic product also slowed to 1.6 per cent, again the lowest for three years.
The quarterly growth performance would have been worse if not for an improvement in the services sector, which accounts for over 70 per cent of the economy. The service sector grew by 0.4 per cent in the second quarter of 2008, compared to 0.3 per cent in the first quarter.
The impact of the credit crunch on a struggling housing market was underlined as construction output fell by 0.7 per cent, following the decision by many house builders to shelve new projects since the beginning of this year.
Home Buyers And Sellers Need To Be Patient
The difficulty, many individuals are presently having in both buying and consequently selling their homes, is now beginning to put added pressure on household budgets. This is reflected in the number of house buyers on estate agents books, which has fallen considerably following research by the National Association of Estate Agent (NAEA). This finding also confirms the shrinkage in the number of first-time buyers seeking homes.
Despite a growing demand for fixed rate mortgages, competitive deals are becoming increasingly hard to come by. Lenders suffering their own fallout from the credit crunch are now beginning to find it increasingly difficult to source funding. This situation is now fast putting further pressure on the number of mortgage products available to the consumer, leading to a tightening and contraction of the lending industry.
In another survey by Moneyfacts, the number of mortgages available to sub prime borrowers has dropped considerably, since the credit crisis broke last summer 2007. The number has fallen from 6,501 (from 32 lenders) to 1,867 (currently available from 20 lenders) today. This is confirmation that some mortgage providers have scrapped them altogether.
Julia Harris, a mortgage analyst from moneyfacts said, “Investment banks have been hit hard by the troubles facing the US sub prime market and therefore are less willing or able to securitize the mortgage books of UK sub prime lenders.”
Homeowners wishing to sell up are helping to slow the market, by listing their properties with prices that are just not viable. According to the latest House Price Index from Rightmove, sellers are coming to the market and ignoring the increased competition from other unsold properties, and the challenge buyers now face in obtaining a mortgage.
The number of properties available to sell during the summer months is 85 per cent greater than a year ago. Therefore it is now concluded ‘a seller’s market has been replaced very quickly by a buyer’s market.’ We know what a seller’s market looks like- several buyers for each property, bidding up the price and usually resulting in a sealed bid at a level way over the asking price. A buyer’s market is one where each buyer has a multitude of offers on several different properties, all at prices that he/she is comfortable to pay. This as now become reality in summer 2008.
This housing climate has made it increasingly difficult for first-time buyers to get a foot on the ladder. At the start of 2008, the numbers thinking of buying their first property had fallen dramatically, with some still having an inclination of battling on through the storm. We can safely say that ‘the rug as been pulled from underneath their feet’ by lenders now turning their back on this market sector. Many first-time buyers will have no other option, except to delay buying until the housing market corrects itself and stabilises in the short-to-medium term. However, those whom are privileged and able to push-on will now be in a strong position to receive attractive big discounts in the market place.
Since Easter, we have begun to see house builders and developers cut house prices, in an attempt to clear slow moving stocks. First-time buyers are being aggressively targeted with packages which include:-
-
Deposits paid
-
Legal fees paid
-
Stamp Duty paid
-
Survey fees paid
-
Incentives worth thousands of pounds given
-
Property prices reduced significantly (in some cases by £35,000)
In the words of UK former Prime Minister, Margaret Thatcher, ‘Tough times never last, but tough people do.’ Is the attitude with which everyone (home buyer and seller) have to adapt in the forthcoming months,
myfirsthomeltd-ServiceAtYourFinger-Tips
For housing market news register free www,myfirsthomeltd.co.uk
Service At Your Finger-Tips
Service AT YOUR Finger-Tips
Are you Selling, Letting or Buying?
We continuously deliver the highest levels of professionalism, customer service, satisfaction together with fast results and competitive prices.
Visit www.myfirsthomeltd.co.uk and register your interest.
NAEA Says, First-Time Buyers Adopt ‘Wait And See’
After several years of price rises, the
First-time buyers are now adopting a ‘wait and see’ attitude when it comes to getting onto the property ladder, according to the National Association of Estate Agents (NAEA). Its recent report on the housing market, suggests that the first-time buyer’s market share reduced last month to 8.3 per cent from 11.7 per cent in February 2008. The squeeze on mortgage approvals has made it increasingly difficult and has contributed to the decline in first-time buyers.
The fundamentals of the
Are you frustrated with your current circumstances? Have you tried and failed to buy your first home? Myfirsthomeltd serves as a vital intermediary between professional partners within the property industry, with a view to helping and supporting first-time home buyers.
Despite the present housing downturn, first –time buyers can profit from property whatever the market! All you need to know, is how? If you are committed to finding a solution to your challenges and still WANT to step onto the property ladder, take the plunge by obtaining further knowledge, your home is within your finger-tips.
Myfirsthomeltd-ServiceAtYourFinger-Tips
For latest news and information register free www.myfirsthomeltd.co.uk
