Connect with us

Current

House price rises push 1.8million homes up a stamp duty bracket

Voice Of EU

Published

on

House price inflation over the past year has pushed almost two million properties into the higher stamp duty bracket.

Demand among buyers is down 28 per cent from its pandemic peak ahead of the stamp duty deadline on Wednesday June 30, but still considerably higher than in previous years, according to property listing site Zoopla.

Zoopla’s index puts property inflation at 4.7 per cent – less than broader rival reports from the ONS, Nationwide and Halifax – but the £10,246 average house price gain moved 1.8million homes up a stamp duty threshold.    

Its report said the average house price is £229,300 and named Liverpool, Manchester and Sheffield as the nation’s major city property hotspots, with average prices up 7.9 per cent, 7.2 per cent and 6.6 per cent, respectively.

Average house prices are up £10,246 in a year, the largest rise since October 2016, according to Zoopla

Average house prices are up £10,246 in a year, the largest rise since October 2016, according to Zoopla

The report comes ahead of the phased end of the stamp duty holiday this week, which will see no tax on the first £500,000 of a property purchase price replaced by none on the first £250,000 until the end of September.  

Stamp duty is due to return in full after that and buyers are likely to face even bigger bills due to rising property prices. 

Zoopla suggested that demand has already decreased from its peak. It defines demand as the amount of active engagement with estate agents, covering both calls and email enquiries about properties listed on its site.

However, Zoopla, which measures 64 towns and cities across its index, insisted that demand is ‘still acute’, and remains 55 per cent higher than the average recorded in the more ‘normal’ market of 2019.

The supply of property listed for sale continues to fail to keep up with demand, with total listings down 24 per cent year-on-year.

However, Zoopla said that despite the lack of homes for sale, Britain remains on course to see 1.5 million sales this year.

Earlier this year the property website predicted sales would reach 1.5million, up 45 per cent compared to 2020 – and a figure that would mark 2021 as the busiest sales market since the peak before the financial crash and one of the 10 busiest since 1959.

Supply is being absorbed in part by first-time buyers, who are flocking back to the market – without replenishing supply. They are taking advantage of the stamp duty exemptions that extend beyond the end of June deadline, as well as a wider range of mortgages to choose from.

Zoopla predicts that demand will remain elevated for the rest of the year as the search for space continues and as homeowners make housing decisions based on more flexible working policies. 

Zoopla's 20 City Index shows Liverpool as having the highest house price inflation, whereas Oxford has the lowest and and oil industry-dependent Aberdeen is seeing prices fall

Zoopla’s 20 City Index shows Liverpool as having the highest house price inflation, whereas Oxford has the lowest and and oil industry-dependent Aberdeen is seeing prices fall

Zoopla predicts that demand will remain elevated for the rest of the year as the search for space continues

Zoopla predicts that demand will remain elevated for the rest of the year as the search for space continues

The intense market activity of the past 12 months has accelerated house price growth. The figures emerge at the same time as stamp duty relief starts to taper, marking a double stamp duty win for the Treasury.

Of all UK homes, 940,000 additional properties will now attract some level of stamp duty at 5 per cent should they sell, and an extra 130,000 will command some level of stamp duty at 10 per cent.

The number of homes in the lower stamp duty bands in England is falling, while price growth means it is rising for the top bands.

The average additional stamp duty payable on homes that have moved up into the 10 per cent stamp duty band will be around £6,100 after the end of the tapered stamp duty holiday in September, while the additional cost for the average home that has moved up into the 5 per cent band will be around £725.

Zoopla said 1.8million homes have been pushed into a higher stamp duty bracket

Zoopla said 1.8million homes have been pushed into a higher stamp duty bracket

Strong buyer appetite has also shaped the time it takes to sell a property – from the point of listing to agreeing a sale.

The time to sell has almost halved, down from 42 days in May 2019 to 22 days in May 2021, even though May is typically one of the fastest moving months in the property calendar.

This increase in the pace of a sale reflects how buyers are continuing to make their move regardless of the stamp duty deadline – with the majority of sales agreed in May unlikely to benefit from the larger stamp duty tax relief. Zoopla says this underlines the ‘reassessment of home’, which is fuelling buyer activity, and which has further to run.

The time it takes to sell a property has almost halved, down from 42 days in May 2019 to 22 days in May 2021

The time it takes to sell a property has almost halved, down from 42 days in May 2019 to 22 days in May 2021

Market thrives below stamp duty threshold

The largest share of demand is for homes priced up to £250,000, meaning they are stamp duty exempt until the end of September when the tapering period comes to an end.

While buyer demand for properties below £250,000 is down 24 per cent from April’s highs in England, demand levels remain 75 per cent higher than the average recorded in 2019’s ‘normal’ market.

At the same time, demand for properties priced above £250,000 has dipped by a third since April – the last point at which buyers could try to benefit from the maximum stamp duty saving – but remains up 86 per cent compared to average 2019 levels.

Regional house prices reach 10-year high

Zoopla said average house prices rose by 1.1 per cent in the three months to May, taking the annual rate of growth to 4.7 per cent, matching that in February of this year, which was the highest since the start of 2017.

It said this is supported by elevated levels of market activity compared to the 2017 to 19 average.

The spread of price growth continues to widen across the country, with Wales up 7.1 per cent, Yorkshire and the Humber up 6.2 per cent, and the North East up 5 per cent – marking a 10-year high for these regions. 

Meanwhile, some of the most affordable markets are recording the highest house price growth with Rochdale up 9.9 per cent and Bolton up 8.7 per cent.

They are followed by Hastings in third place, where values are up 8.2 per cent. While it doesn’t offer the affordability of its northern counterparts, it is comparatively affordable to its neighbour, Brighton, just along the coast.

Grainne Gilmore, of Zoopla, said: ‘The stamp duty holiday boosted demand in the housing market, yet buyer demand remains elevated despite the initial holiday ending – signalling that the once-in-a-generation ‘reassessment of home’ has further to run this year.

‘Demand may ease further as the reopening of the economy allows people to do more and travel more widely, but at the same time, the confirmation of working practices for office-based workers will lead to more homebuyers being able to push ahead with a move.

‘The total stock of homes for sale continues to run well below historical norms, and this will underpin pricing. At the same time, it may also constrain potential activity, especially for buyers looking for family houses. Even so, we forecast that this year will be one of the busiest for the housing market since the global financial crisis – with 1.5 million residential transactions.’

Stamp duty benefits  

Mortgage experts highlighted how buyers can still benefit from some stamp duty savings until the end of September. Until then, no tax is due on the first £250,000.

Will Rhind, head of mortgage advice at Habito, said: ‘All good things must come to an end, and the stamp duty holiday is no exception. However, homebuyers completing before the end of September will still benefit from some savings.

‘The property market was hugely bolstered by the relief brought in on July 8 last year, which was initially intended to end this March. Since last summer, we’ve seen several months of record levels of property transactions as demand outstripped supply.’

Source link

Current

Zappone turns down invitation to appear before committee to discuss envoy role

Voice Of EU

Published

on

Former minister Katherine Zappone has turned down an invitation to appear before an Oireachtas committee to explain the circumstances surrounding her now-scrapped appointment as a special envoy.

The chair of the Oireachtas Committee on Foreign Affairs Charlie Flanagan confirmed on Monday that Ms Zappone had declined an invitation to attend to discuss the matter.

The committee, which met last Wednesday in private session, agreed to write to the former minister and invite her to appear before it.

It is understood the decision was taken at a private meeting after it was proposed by Sinn Féin spokesman on foreign affairs John Brady and his Social Democrats counterpart Gary Gannon.

The committee is also to invite Martin Fraser, the secretary general of the Department of the Taoiseach and the State’s highest-ranking civil servant, to address the issue of precisely when Ms Zappone’s name was communicated to the Department of the Taoiseach.

Controversy erupted over an attempt by Minister of Foreign Affairs Simon Coveney to appoint Ms Zappone as a special envoy for freedom of expression and LGBTQ+ rights.

Mr Coveney – who is attending UN meetings this week in New York – last week faced down a motion of no confidence as a result of his handling of the matter.

Earlier this month, Mr Coveney told the Oireachtas Committee Ms Zappone was mistaken in her belief she had been offered the job last March.

Mr Coveney also rejected claims that Ms Zappone lobbied for the position or that he breached Freedom of Information legislation by deleting texts between himself and Tánaiste Leo Varadkar.

However, Mr Coveney apologised for “sloppiness”, and for making mistakes in the past few weeks.

Records released by the Department of Foreign Affairs show Ms Zappone texted Mr Coveney to thank him on March 4th “so, so much for offering me this incredible opportunity”.

In mid-July she sent another message of thanks but Mr Coveney has insisted nothing had been formally agreed until it came to Cabinet on July 27th.

Source link

Continue Reading

Current

Lori Loughlin and fashion designer husband drop $13M on Palm Desert vacation home

Voice Of EU

Published

on

Former Full House actress, Lori Loughlin, and her husband, Mossimo Giannulli, have dropped $13million on a gated Palm Desert, California, oasis, following their release from prison for their involvement in the college-admissions scandal.  

Loughlin, who was released from prison in December, with her husband following in April, appear to be celebrating their newfound freedom with the purchase of their vacation getaway in the La Quinta community.

The five-bedroom, 5.5 bathroom home, situated in the guard-gated exclusive Madison Club, comes lavished with several amenities, including a wine cellar, movie theater, two pools, two spas, a wet bar and an outdoor projector-theater.  

Former Full House actress, Lori Loughlin, and her husband, Mossimo Giannulli, have dropped $13million on a gated Palm Desert, California, oasis, following their release from prison for their involvement in the college-admissions scandal.

Former Full House actress, Lori Loughlin, and her husband, Mossimo Giannulli, have dropped $13million on a gated Palm Desert, California, oasis, following their release from prison for their involvement in the college-admissions scandal.

The open dining and living room area is perfect for watching L.A sunsets

The open dining and living room area is perfect for watching L.A sunsets 

The home comes equipped with several outdoor fireplaces, perfect for entertaining guests on chilly evenings

The home comes equipped with several outdoor fireplaces, perfect for entertaining guests on chilly evenings 

Opulent swimming pools encompass the outdoor area, in addition to an outdoor projector for watching films

Opulent swimming pools encompass the outdoor area, in addition to an outdoor projector for watching films 

The home comes lavished with several amenities, including a wine cellar, movie theater, two pools, outdoor fireplaces, two spas, a wet bar and an outdoor projector-theater

The home comes lavished with several amenities, including a wine cellar, movie theater, two pools, outdoor fireplaces, two spas, a wet bar and an outdoor projector-theater 

Former 'Full House' actress, Lori Loughlin, (right) and her husband, Mossimo Giannulli, (left) have dropped $13 million on a gated Palm Desert, California, oasis

Former ‘Full House’ actress, Lori Loughlin, (right) and her husband, Mossimo Giannulli, (left) have dropped $13 million on a gated Palm Desert, California, oasis

Built in 2019, the home was formally owned by Assurance co-founder Michael Rowell and his wife, Alexis, who purchased it for only $9.5 million. 

A few of their neighbors include Kris Jenner, Kourtney Kardashian, Nike’s Phil Knight, Cindy Crawford and Scooter Braun. 

The purchase comes a year after Loughlin and Giannulli bought a $9.5 million modern farmhouse in the Hidden Hills area of Los Angeles.      

A federal judge in Boston recently granted Loughlin ‘expedited’ permission to travel to Canada to possibly rekindle her career. The request was necessary as she remains on probation.

The five-bedroom, 5.5 bathroom home is situated in the guard-gated exclusive Madison Club in the La Quinta community

The five-bedroom, 5.5 bathroom home is situated in the guard-gated exclusive Madison Club in the La Quinta community

Built in 2019, the home was formally owned by Assurance co-founder Michael Rowell and his wife, Alexis, who purchased it for only $9.5 million

Built in 2019, the home was formally owned by Assurance co-founder Michael Rowell and his wife, Alexis, who purchased it for only $9.5 million

An large dining area opens out onto the terrace, as an intricate chandelier hangs from the ceiling

An large dining area opens out onto the terrace, as an intricate chandelier hangs from the ceiling

Also featured in the amenities is a chic, oversized wine cellar

Also featured in the amenities is a chic, oversized wine cellar 

Loughlin was unable to travel due to her prison sentence and ensuing community service commitments stemming from her involvement in the ‘Operation Varsity Blues’ scheme, which involved wealthy parents paying large sums of money to get their kids into elite universities.    

‘Ms. Loughlin anticipates she will be traveling for about one week’ and is ‘being offered a filming production project’ if granted permission, her initial request sent by a probation official stated.   

It emerged in 2019 that Lori and Giannulli bribed their daughters Olivia and Isabella’s way into University Of Southern California.

Lori and her fashion designer husband paid $500,000 to falsely pass the girls off as potential college rowers on USC’s rowing team.

Although they initially claimed to be innocent, Mossimo pled guilty last May to conspiracy to commit wire and mail fraud and honest services and mail fraud, while Lori pled guilty to conspiracy to commit wire and mail fraud.  

Giannulli was sentenced to five months, while Loughlin served two months behind bars.

It emerged in 2019 that Lori and Giannulli bribed their daughters Olivia and Isabella's way into University Of Southern California

It emerged in 2019 that Lori and Giannulli bribed their daughters Olivia and Isabella’s way into University Of Southern California

Source link

Continue Reading

Current

Tenor fails to rent home as work in Covid-hit sector deemed precarious

Voice Of EU

Published

on

An Irish tenor, who has performed for presidents and emperors and been shortlisted for a Grammy award, is struggling to rent a home in Dublin because of a perception that working in the Covid-19-hit entertainment industry makes him a risk.

Paul Byrom said he was “knocked for six” last week after a potential landlord refused to even meet him on the grounds that the pandemic had made his profession singularly unsuitable for the rental market.

Byrom has earned his living as a musician for more than 20 years and has performed for Emperor Akihito of Japan, former Irish presidents Mary McAleese and Mary Robinson and former US president Barack Obama.

He was one of the original soloists in the Celtic Thunder show that toured the world and had number one albums on the World Billboard Chart. A solo album, This is the Moment, debuted at number one on the same chart and was shortlisted for a Grammy nomination.

Byrom has continued to work online during the pandemic and is looking forward to restarting his live career soon. “I am no Bono, but I am not starting out in the game,” he said.

However, none of his achievements appear to have been good enough for one Dublin landlord. Byrom said he and his girlfriend were keen to move to a bigger home and found a two-bedroom house in south county Dublin advertised at a rent of €2,000 a month.

‘Exemplary tenant’

It was being let by the estate agent which manages the property the couple currently live in and he was assured that, as an “exemplary tenant” for more than three years, his application would most likely be considered favourably.

“The estate agents said that while it was looking after the letting, it wouldn’t be the management company and the guy who owned it would be the point of contact,” Byrom said. “I was told that the landlord would want to meet me and I had no problem with any of that – I thought that made sense.”

He and his girlfriend assembled all the paperwork including her payslips and details of his earnings from his accountant. “I had moved in in my head but then I got a phone call saying the application had been rejected,” he said.

His mother joked that he had been turned down “because the landlord didn’t want you practising your Ave Maria’s at 10 in the morning.”

But that was not the reason. It emerged that the “landlord thought that because Covid had hit my industry hard he would be too nervous to take me on. He simply didn’t want anyone from the entertainment industry,” Byrom said.

Mortgage

He said struggling to rent or get a mortgage were not the only issues entertainers encounter.

“Try and look for car insurance as a singer and the companies don’t want to know. So I can’t drive a car or rent a home or even take advantage of the bike to work tax scheme because I am self employed.

“And this is a country that claims to be the land of the bards and the poets. The amount of roadblocks put in an entertainer’s way are just crazy, but then they will say get out there and sing Danny Boy and represent the country. You’d have to wonder if Ireland wants artists to be here at all.”


Source link

Continue Reading

Trending

Subscribe To Our Newsletter

Join our mailing list to receive the latest news and updates 
directly on your inbox.

You have Successfully Subscribed!