Direct Property News

February 23, 2017

Demand from investors leads to rise in bridging loans

Demand for short term loans continued to rise in the last quarter of last year, with more property investors turning to bridging finance in order to fund their property acquisitions. Figures compiled by The Association of Short Term Lenders from its members show that the value of bridging loans written rose by 26% in the final quarter of 2016, in comparison to Q3. The year as a whole saw more modest growth, with value of loans written 9.4% greater in 2016 than they were in 2015. Lending in the year totalled £2.83bn, up from £2.59bn in 2015. Finance Benson Hersch, CEO of the ASTL, noted: ‘While lending by ASTL members didn’t quite hit £3bn, there are […]
February 23, 2017

Households in UK confident about housing market outlook, latest survey shows

The majority of households across the UK, led by London, believe that the value of their home rose over the last month and they are confident about the outlook for 2017, according to new research. The perceived rate of house price growth rose month on month with respondents in 10 of 11 regions covered by the Knight Frank and IHS Markit house price sentiment index (HPSI) saying price have gone up. The future HPSI rose in February to a new post-referendum high as households in all regions expect the value of their home to increase over the next 12 months. It was the seventh consecutive month that the index has been in positive territory. Overall some […]
February 22, 2017

Property sales in UK up for fourth month in a row, latest official data shows

Residential property sales in the UK increased by almost 5% between the end of last year and January, according to the latest official figures to be published. Overall the number of property transactions increased by 4.9% between December 2016 and January 2017, according to the latest HMRC data. The seasonally adjusted figure for the month was 0.3% higher compared with the same month last year, the fourth month in a row of increasing sales, and up from the 0.2% rise recorded in November and December last year. The figures are an indication of buyer confidence, according to Stephen Wasserman, managing director of West One Loans. ‘The growth in property transactions is a promising start to the […]
February 21, 2017

Residential property transactions up 4.9%

The latest HMRC data has revealed that between December 2016 and January 2017, residential property transactions increased by 4.9% – the fourth consecutive month of increases. The seasonally adjusted figure for the month is 0.3% higher compared with the same month last year. Jeremy Duncombe, Director at Legal & General Mortgage Club, commented: “These figures show that although the housing market continues to grow in value and the worth of UK housing stock is rising, transaction volumes are not following the growth curve. Seasonally adjusted, purchasing levels have remained relatively flat on an annual basis, however this shouldn’t be mistaken as being representative of a lack of demand but rather the cost of moving, particularly stamp […]
February 21, 2017

Lettings volumes in prime central London saw improvement at end of 2016

The final quarter of 2016 saw strong growth in lettings volumes in the prime central London market, with activity particularly strong at the highest and lowest price sectors, the latest research shows. The decline in annual rental value growth slowed marginally, down 5% in January and there was a 5% year on year increase in the number of super-prime deals in 2016, according to the prime central London rental index from Knight Frank. There was a 12% year on year increase in the supply of new lettings properties in the final quarter of 2016 but that was lower than the increase of 30% recorded over the first nine months of the year. A breakdown of the […]
February 20, 2017

Tax change could result in UK landlords putting up rents by 20% to 30%

Tenants in the UK private rented sector face potential rent increases of up to 30% as a result of tax changes, it is claimed in a new analysis report. Tax changes, including the 3% extra stamp duty on additional properties, that have affected landlords are having a negative effect on the supply of rental properties and are not the neutral, non-discriminatory system that had been suggested. Indeed, David Miles, professor of financial economics at Imperial College London, says that the planned changes to tax for buy to let landlords due to be introduced in April should be abandoned. ‘Stamp duty is now being levied at a higher rate on properties bought to be rented. Most properties […]
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