Here we look at some of the recent UK property news headlines …
Average UK property price hits a record high of £276,091
The average price of a home in the UK reached a record high of £276,091 in December – attributed to the increased volume of sales encouraged by buyers’ “race for space”, a Stamp Duty holiday, and the increased spending power of individuals who have spent much of 2020 and 2021 isolated at home.
According to the House Price Index published by the Halifax building society, the average house price increased by more than £24,500 in the course of 2021, with the year marking the biggest annual increase in prices since March 2003.
Average prices rose by 1.1% in December alone, with that quarter’s growth achieving an increase of 3.5% – a level not seen since November 2006.
Could the Government clamp down on holiday rentals?
A story in Landlord Today on the 10th of January took up concerns that have been expressed about the impact on the housing market of the growing number of holiday homes and Airbnb rentals.
In some parts of the country, the clamour for holiday rentals has left many local people unable to buy a home in their own area, labour shortages have been created, and community amenities such as shops and schools have been adversely impacted.
Following a debate of such issues in the House of Commons, it has emerged that the government will consider launching a consultation about the creation of a register of holiday rentals and might even pursue a suggestion that owners pay a higher rate of council tax than that paid on long-term lets.
Some tenants potentially facing a tax
Some tenants face a Stamp Duty liability about which the majority of them – not to mention their landlords – will be completely unaware, suggests Landlord Today in a story on the 12th of January.
The little-known rules have been in force since 2003 and impose a Stamp Duty liability for those tenants who have paid a total of £125,000 or more in accumulated rent – because their rental is especially high value, for instance, or because the tenants have continuously renewed the same tenancy over many years.
If that accumulated rental ceiling of £125,000 is reached, the tenant becomes liable to pay 1% of the annual amount of rent paid in the form of Stamp Duty Land Tax (SDLT).
To illustrate the effect of these rules, the article cites the example of London, where average monthly rents are currently £1,597 (£19,164 per annum). At that rate, therefore, a tenant in such accommodation will reach an accumulated total of £125,000 in rent paid after just 6.5 years – when an annual SDLT of £192 will become payable.
New guidelines for unvaccinated buyers and renters
In a posting on the 12th of January, online listings website Zoopla explained that failing to be vaccinated could affect those involved in buying a new home or taking up a new tenancy in rented property.
The government has introduced new rules requiring anyone who is not fully vaccinated against the virus to self-isolate in their current home if someone in their household tests positive for Covid – even if it means missing their moving day.
Those who are fully vaccinated, on the other hand, remain entirely free to go ahead with their intended move of house, even if a household member has tested positive. They are, however, “strongly advised” to take a lateral flow test every day for seven days, and to self-isolate if any of their tests are positive.
