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What’s the deal for first time buyers as the market hits fever pitch?

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Thousands are racing to complete sales before next Wednesday’s stamp duty deadline which has created a frenzy in the property market.

But many first-time buyers have been shut out from this stampede, as the temporary tax break has helped fuel a 10 per cent surge in property values over the past year.

In particular, prices have been pushed up in previously more affordable locations with poor transport links. 

Out of reach: Many first-time buyers have been shut out from the stampede as the temporary tax break has helped fuel a 10 per cent surge in property values over the past year

Out of reach: Many first-time buyers have been shut out from the stampede as the temporary tax break has helped fuel a 10 per cent surge in property values over the past year

Home-working has turned these areas into what the lender Santander calls the ‘virtual commuter belt’.

But some stamp duty relief will remain until September 30 and, most importantly, lenders are no longer giving first-time buyers the cold-shoulder.

Mortgage minefield

The 95 per cent loans on which most first-time buyers depend are now more available, thanks to the Government’s mortgage guarantee scheme, under which the state guarantees 20 per cent of the loan on a property of up to £600,000. 

Barclays, HSBC, Lloyds, NatWest, Santander and Virgin Money are participating.

Aneisha Beveridge, residential research director at Hamptons, the estate agency, says: ‘In April, rates on these loans were high, but they are starting to come down now — which will help affordability.’

Taxing issues

The stamp duty holiday continues on properties up to £250,000 until September 30. 

From July 1, first-time buyers in England and Northern Ireland will pay no tax on the first £300,000 and 5 per cent on the slice of the purchase price between £300,001 and £500,000. 

A first-time buyer acquiring a property of £500,000-plus does not benefit; the tax kicks in at £125,000 as normal. Different systems apply in Scotland and Wales.

Bank of mum and dad 

This particular bank may be less generous this year, amid concerns about job losses among the over-50s. 

If your parents are worried about their pensions and you do not have a deposit, check out the Barclays Springboard mortgage.

This allows you to use the savings of friends and family as security, if they amount to 10 per cent of your property’s price. 

These guarantors receive their money back after five years with interest. The rates on Springboard loans range from 3.65 to 3.85 per cent.

Lifetime Isas 

A lifetime Individual Savings Account (Isa) can help accumulate that all-important deposit. 

You can save up to £4,000 a year to which the Government adds 25 per cent meaning that you can receive £1,000. 

After a year, you can put the cash towards a property of up to £450,000. The app-based Moneybox account is the most popular (moneyboxapp.com).

Your first home 

The Government’s First Home scheme will allow you to obtain a 30 per cent discount on a new home in an area where you live or work. 

Only homes of up to £250,000, or £420,000 in London, will be eligible and your household earnings must be below £80,000, or £90,000 in London. 

If you like the sound of this, curb your enthusiasm as the homes are not yet built.

Help to buy 

Help to Buy covers new-build homes in England. If you have a 5 per cent deposit and can arrange a mortgage, you can get an equity loan from the Government covering 20 per cent (40 per cent in London) of the price. 

You do not pay interest on this for the first five years.

Shared ownership

Shared Ownership permits you to buy or borrow to acquire a share in a home and pay a subsidised rent on the rest, with the aim of ‘staircasing’, that is increasing your share every year until you are the outright owner. 

The outlay is modest but maintenance fees are payable.

Anne Ashworth

On the market. . . starter homes 

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Higgins raises concerns over volume of legislation received in recent weeks

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Two Oireachtas committees are being convened at short notice to consider concerns raised by President Michael D. Higgins at the volume of legislation sent to his office in recent weeks.

In a letter to the Ceann Comhairle, the Cathaoirleach of the Seanad and the Department of the Taoiseach, Mr Higgins said an “overwhelming number of Bills” were presented for his consideration in the final two weeks before the Christmas and summer recesses.

“For example, in the three weeks since the beginning of July I have been asked to consider 19 separate Bills. Nine were presented on the one day, sharing a requirement to be considered and signed in the same seven-day period,” he wrote, pointing out that in the entire preceding six months, he was presented with 13 Bills for consideration.

Last year, 21 of the total of 32 Bills presented to him were sent in the weeks approaching summer and Christmas recesses.

“It would strike me, as President and from my years as a parliamentarian, that there must be a more orderly approach to arranging the legislative timetable that allows all legislators the time to consider and contribute to proposals before the Oireachtas without unnecessary time constraints and an unseemly end-of-term haste to have Bills concluded,” the President wrote.

“Having this vital work concentrated into four weeks of the year strikes me as being less than ideal and, I believe, unnecessary.”

Mr Higgins noted that little time was being given over in the Oireachtas to debate often “very important and far-reaching legislative proposals”.

He said the process has “been curtailed through the imposition of restrictions on time in one or both Houses”.

He said amendments put down by Oireachtas members were often not discussed, and those proposed by the Government were at times “carried without an opportunity for scrutiny or debate”.

The President noted an “unseemly end-of-term haste”to pass legislation and said a “real prospect” of having to convene the Council of State in the days after Christmas day to consider Bills had arisen more than once.

Seán Ó Fearghaíl, the Ceann Comhairle, told The Irish Times that the Dáil’s Business Committee and the Seanad’s Committee on Procedures would meet on Friday to consider the letter, and actions open to the Oireachtas to consider.

There have been renewed concerns during the lifetime of this Dáil about the use of the guillotine to force Government legislation through without extensive oversight, with several heavyweight pieces of legislation passed in a matter of days before the Oireachtas rose for its summer break earlier this month.

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Who do I need to notify if I move home?

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Moving house is frequently said to be one of the most stressful things anyone can do.

The massive investment both financially and emotionally can take its toll, especially if the process takes months to complete.

It is why anything that helps to elevate some of the stress along the way can be hugely beneficial. This includes addressing some of the practicalities in advance, and having a list of who to notify when you move can help. 

We look at some of the organisations and companies who you may need to contact when you move home

We look at some of the organisations and companies who you may need to contact when you move home

Dozens of companies will need to know your new address, whether this is an insurer who may use them to help calculate your insurance premiums or a retailer who need to know where to send the clothing you ordered online.

Without updating them, you may endure a bigger headache from moving home than you had anticipated.

North London estate agent Jeremy Leaf, said: ‘When moving home, it is vital to plan ahead. Moving day can come upon you very quickly, particularly if there is a short time between exchange and completion.

‘Buildings insurance is the most important thing that needs arranging on your new property as soon as you have exchanged contracts.

‘Confirm your moving date with your removals firm and make a list of who needs notifying about your impending change of address – the electoral roll, the DVLA, Amazon and other delivery firms, particularly supermarket deliveries. The last thing you want is for your orders to turn up at your ‘old’ address once you have moved.

‘Don’t forget to change your council tax, while utility providers will also need informing, and given final meter readings. The more you plan ahead, the smoother the process will be.’ 

A checklist for who to notify when you change address can help to elevate some of the stress of moving home

A checklist for who to notify when you change address can help to elevate some of the stress of moving home

Tom Parker, of property website Zoopla, agreed: ‘Moving home can be overwhelming with so much to do. When it comes to notifying organisations, it’s best to divide it into digestible categories like work, household and vehicle.

‘Notifying your employer is a top priority, especially if your payslips are sent to your home. If you own a vehicle, ensure you update your driving licence, insurance providers and vehicle logbook.  

‘Make sure you also notify organisations like your broadband, utilities, insurance providers and council tax. Finally, don’t forget the small things like magazine subscriptions and store cards.’

Here we look at some of the organisations and companies who you may need to contact when you move home.

Employment 

Perhaps one of the most important and probably most overlooked places that need to be notified of your change of address is HMRC, which needs to know for tax purposes.  

Similarly, your employer needs to know when you change address for your payroll, so that it can update your contact details.

In addition, your National Insurance number helps the Government to identify you and is used by the organisations such as the DVLA and HMRC, so this will need your new address attached. 

Household

There are various companies providing services to your household that will need to know about your move so that they can update your contact information.

In some cases, you may end up continuing to pay for a service in your former home that you are no longer using if you fail to update these companies.

They include your cable or satellite provider, your phone and broadband company. It is also important to update your TV licence contact details, which can be done up to three months before a move.

Vehicles

You can update DVLA via its website and within two to four weeks, you should receive an updated licence and V5C log book documents for your car. Failing to update the log book could lead to a fine of up to £1,000.

You will also need to notify the supplier of your vehicle breakdown cover and your car insurer.

Insurance

Most insurers take postcodes into account when calculating premiums and the cost of insurance cover, so they will need to be notified of your change of address. 

You may need to contact those insurers who provide cover for household contents, health, life, travel and your pets.

Healthcare

As well as your health insurer, you will also need to provide your address to other healthcare organisations.

For example, if you change doctors when you move home, you will need to let your old doctor know so that your medical information can be forwarded to your new doctor. This may similarly apply to your dentists and opticians.

Utilities

Your gas, electricity and water suppliers will need your updated contact information, even if you are leaving them behind at the old property and taking on new suppliers.

It can take a couple of days for energy providers to update your information, so it is worth contacting your suppliers ahead of your move. However, you may be able to move your deal to your new property.

Make sure you take readings of your utilities on the day of your move so you can update your suppliers with these and only pay for the amounts you have used. 

Royal Mail’s redirection service may be worth considering as it forwards any post sent to your former address to your new address. You can apply for the redirection up to three months before your moving date.

Money

There are several companies and organisations that fall into this category and will need to know your new contact address.

They include bank and building societies, your pension providers, loan companies, credit card providers and store cards. If you are on a state pension, the Government will need to know your new details.

Similarly, you will need to update your address for council tax purposes.

Others include your accountant as you don’t want important tax documents going to your old address (if you are not using the a postal redirection service). And don’t forget updating NS&I with your new address if you put money into premium bonds.

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Ireland ‘one of world’s best five places’ to survive global societal collapse

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Ireland is one of the world’s five places best suited to survive a global collapse of society, according to a new study. The others are Iceland, Tasmania, the UK and, topping the list, New Zealand.

The researchers say human civilisation is “in a perilous state” because of the highly interconnected and energy-intensive society that has developed and the environmental damage this has caused.

A collapse could arise from shocks such as a severe financial crisis, the effects of the climate crisis, destruction of nature, an even worse pandemic than Covid-19 or a combination of these, the scientists says.

To assess which nations would be most resilient to such a collapse, countries were ranked according to their ability to grow food for their population, protect their borders from unwanted mass migration, and maintain an electrical grid and some manufacturing ability. Islands in temperate regions and mostly with low population densities have come out on top.

The researchers say their study highlights the factors that nations must improve to increase resilience. They say that a globalised society that prizes economic efficiency has damaged resilience, and that spare capacity needs to exist in food and other vital sectors.

Billionaires have been reported to be buying land for bunkers in New Zealand in preparation for an apocalypse. “We weren’t surprised New Zealand was on our list,” says Prof Aled Jones, at the Global Sustainability Institute, at Anglia Ruskin University, in the UK.

“We chose that you had to be able to protect borders and places had to be temperate. So with hindsight it’s quite obvious that large islands with complex societies on them already” make up the list.

The study, published in the journal Sustainability, says: “The globe-spanning, energy-intensive industrial civilisation that characterises the modern era represents an anomalous situation when it is considered against the majority of human history.”

The study also says that environmental destruction, limited resources and population growth mean civilisation “is in a perilous state, with large and growing risks developing in multiple spheres of the human endeavour”.

New Zealand was found to have the greatest potential to survive relatively unscathed due to its geothermal and hydroelectric energy, abundant agricultural land and low human population density.

Jones says major global food losses, a financial crisis and a pandemic have all happened in recent years, and “we’ve been lucky that things haven’t all happened at the same time – there’s no real reason why they can’t all happen in the same year”.

He adds: “As you start to see these events happening I get more worried, but I also hope we can learn more quickly than we have in the past that resilience is important. With everyone talking about ‘building back better’ from the pandemic, if we don’t lose that momentum I might be more optimistic than I have been in the past.”

He says the coronavirus pandemic has shown that governments can act quickly when needed. “It’s interesting how quickly we can close borders, and how quickly governments can make decisions to change things.”

But, he adds, “This drive for just-in-time, ever-more-efficient economies isn’t the thing you want to do for resilience. We need to build in some slack in the system, so that if there is a shock then you have the ability to respond because you’ve got spare capacity. We need to start thinking about resilience much more in global planning. But, obviously, the ideal thing is that a quick collapse doesn’t happen.” – Guardian

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