UK property news headlines are inevitably underscored by the adverse headwinds of the underlying British economy – currently challenged by inflation, a rising cost of living, and declining currency exchange rates.
A reduction in Stamp Duty may yet help to promote growth. And house prices continue to rise despite the economic turbulence. The latest news stories note that the soaring cost of living has led to the reappearance of more extended family, multi-generational homes. Interest also focuses on improved energy efficiency savings.
Here is a round-up of some of the latest property news stories.
Stamp Duty Land Tax cut to remain
A headlong bid for economic growth by the then incoming Prime Minister Liz Truss was not at all well received by the markets. Several major political U-turns were made after the fall of her short-lived government.
One of the policies to escape such a reversal, however, was the retention of a welcome cut to Stamp Duty Land Tax – or Stamp Duty as it is more commonly known – explained a posting by Propertymark on the 17th of October.
Thanks to the changes, there is no longer any Stamp Duty applicable on the first £250,000 of any residential house purchase. On the next £675,000 – that is the proportion of the price between £250,000 and £925,000 – Stamp Duty is levied at a rate of 5%. On the next £575,000 – the price between £925,000 and £1.5 million – the tax is 10% and on the balance of any price above £1.5 million, the rate is 12%.
As before concessionary rates are available for first-time buyers who now have no Stamp Duty to pay on the first £425,000 of their house purchase. For any sum between £425,000 and £625,000, they will pay Stamp Duty at a rate of 5%. No concessions are available if the home costs more than £625,000.
UK house prices rise in October despite economic turmoil
Despite the economic woes of inflation, higher costs of living and an unfavourable exchange rate, prices in the UK housing market remain firm, revealed a story in the Guardian newspaper on the 17th of October.
During October, average house prices edged up by a further 0.9% to a new record of £371,158.
Nevertheless, the higher cost of living, increasing mortgage rates, and the withdrawal of many mortgage products from the market have discouraged first-time buyers – amongst whom demand has already begun to dip significantly.
Multi-generational homes are becoming popular as costs soar
A further result of increases in the cost of living and more expensive mortgages seems to be a return to multi-generational households in which an extended family lives under the same roof, according to a story in the Daily Mail on the 14th of October.
The newspaper points out that an estimated two-thirds of homeowners between the ages of 50 and 65 own their homes mortgage-free. By selling that property and pooling resources with younger members of the family to buy a bigger house, several generations can all share the same home.
So appealing has this lifestyle become that at least one developer is now building homes specifically to meet the demands of such multi-generational families.
EPCs – Which areas have the worst rental energy efficiency?
As winter approaches and energy prices rocket, the energy efficiency of rented accommodation becomes a critical factor, explained Landlord Today on the 19th of October, when it identified those parts of the country currently lagging behind in energy efficiency measures.
The very worst areas – measured by the proportion of poorly-rated Energy Performance Certificates (EPCs) – were:
- Cleethorpes in Lincolnshire, where 80% of the rental stock has an EPC rating between D and G;
- Barrow-in-Furness in Cumbria, where 79% of rented homes are rated D to G;
- Westcliff-on-Sea in Essex and Grimsby in Lincolnshire, where 72% are rated D to G; and
- Accrington in Lancashire, where 71% of the rented housing stock is rated no higher than D to G.
The government has already warned landlords that by 2025 it expects all rented property has an EPC rating of at least a C or above.
