Prices of UK Homes Still Falling

With the increases in mortgage lending that occurred in the UK during the month of March, many homeowners felt that the recession was nearing an end and that they would soon start to see an increase in house prices. Read more

Tags: real earnings, home buyers, fact, duty, housing market, Mortgages, house prices, April

Increasing number of rental properties coming onto the market

Over recent years consumers that were looking to rent a home in the private sector often found that the properties were being snapped up before they even had a chance to arrange a viewing, leaving them to start from scratch and select another property from the limited choice available. However, with the problems that have hit the housing and mortgage sectors recent figures show that a rising number of rental properties in the private sector are coming onto the market. Read more

Tags: official, Mortgages, present, rental properties, RICS, Business Finance, duty, rent

Rise in the supply of rental properties coming onto market

Homeowners that have been keen to sell their homes before house prices plummet further have found themselves hitting a brick wall over recent months, as a number of factors have contributed to the housing market facing its worse slump in decades. Estate agents have reported very poor sales figures for properties, and many homeowners have found that they simply cannot sell their properties. Read more

Tags: demand, duty, purchase, slump, rental property

London property purchasers being hit hard by stamp duty

A recent report has highlighted just how hard property purchasers in the London area are being hit when it comes to stamp duty.

The extortionate cost of buying a property in London means that buyers have to also pay more for their stamp duty, as well as for their deposit, and it is estimated that the average upfront fee required by first time buyers in the city comes to over £20,000. This covers just the deposit and the stamp duty, and does not include additional fees such as legal costs and removal fees.

Figures indicate that London stamp duty costs have rise by over 800% in the space of just ten years, which equates to an 80% rise per year in the cost of stamp duty. With the average apartment price in London standing at around £263,000 the 3% stamp duty comes in at a shocking £8000. Coupled with the 5% deposit of just over £13,000, this brings the cost of just the deposit and stamp duty on an apartment with an average value to around £21,000.

The survey was carried out by Zoomf.com and shows the difference between the average apartment price and stamp duty costs in 1997 compared to today. In 1997, a decade ago, the average value of a flat in London was around £87,000, which meant that the stamp duty cost would have been under £900. In just ten years potential property purchasers for the London area – as well as other areas – have had to deal with rising property prices, rising stamp duty costs, increased interest rates, and increased additional costs such as legal fees.

Zoomf.com reported that it has tens of thousands of properties listed for the central London area, but only several of them fell under the £125,000 value, which is the threshold for stamp duty.

Tom Smith
20th October 2007

Tags: house, cost, apartment, taxes, property, charges

ABI: Security measures help lower premiums

Taking measures to reduce the risk to property will not only improve security but will lower insurance premiums.

According to the Association of British Insurers (ABI), factors such as security lights and gravel contribute to much-needed security that will keep home insurance to a minimum.

Kelly Ostler, a spokesperson for the ABI, said: “Having gravel pathways can help because they make a noise so you can hear intruders. Keeping your perimeters secure, so if you’ve got a garden gate, keeping it locked.

“Security lights combined with gravel tends to be quite good. Different insurance companies will ask different things but you can give them extra information.”

She added that crime levels in the area will also affect premiums but, aside from joining the neighbourhood watch, there is little that can be done about that.

Furthermore, making sure the property is well maintained is a necessary duty and it may help avoid the possibility of any claims being declined, Ms Ostler advised.

According to the Home Office’s crime reduction website, in two out of ten burglaries entry to the property is not forced with the majority of thefts executed by opportunistic thieves.

Tags: crime levels, office, gravel, different things, duty, Insurance, Home Office, crime reduction website