Breaking Property News – 15/11/2023

Daily bite-sized proptech and property news in partnership with Proptech-X.

 

Inheritance Tax, SDLT – will the Autumn statement power the flagging housing market?

On the 22nd of November, Chancellor of the Exchequer Jeremy Hunt, who was not re-shuffled for fear of upsetting the city, will put forward the shape of fiscal policy for the foreseeable future. Some feel that Rishi Sunak is keen to help asset rich constituents, by having a tweaking of the Inheritance Tax thresholds. But the big question is will SDLT be in the mix again?

With a cooling housing market, any fresh stimulus would be welcomed, but setting off house price inflation again, when lending rates are so high would put owning a home out of reach of many first time buyers who typically make up 40% of buyers each year.

Also, though unlikely will the Chancellor put in place any tax breaks for the hard pressed landlords in the PRS, many of whom are checking out due to the high level of cost to finance their rental properties. With rents going through the roof, exiting landlords are not what the government wants as the housing crisis with 1.4M people in acute need just gets worse.

It is thought that there is about £6Bn of wiggle room, but the question is where is this going to be deployed, especially as the government is deep in the bunker brought upon by the Home Secretary being fired to the back benches where she will do all she can to destroy Rishi.

What the UK needs, and what the invisible Prime Minister needs is some good news, it remains to be seen if Jeremy Hunt will be the harbinger of this next Wednesday or we will just see more tinkering at the edges and the property market being left to its own devices.

On the very big positive, (remembering we now have an ex-PM as Foreign secretary) at least this mini-budget is not being prepared by Kwasi Kwarteng – so we must count our blessings however small they turn out to be.

Where in Britain are the most homes being left empty – Admiral Group PLC investigates

Admiral Group PLC has analysed government data as well as gathered data from local councils through Freedom of Information requests to investigate where in Britain the most homes have been sitting empty and unused for the longest periods of time. Looking at London in particular, the research found that there are as many as 25,454 properties that have sat unoccupied for at least six-months in the capital to a collective value of roughly £13 billion.

While councils and charities continue to work on solutions, Admiral wanted to understand the nuances behind the figures of empty homes in relation to social housing waiting lists reaching out to Jonathan Tan, Co-founder and CEO of charity Greater Change.

In Tan’s view, ‘There are over 1.2 million households on the waiting list of council housing in England,  … (and) while the data suggests that long-term empty properties could potentially accommodate up to 21% of the current housing demand, it’s crucial to understand that the actual percentage of habitable properties is likely significantly lower.

Moreover, the estimated total of individuals experiencing homelessness is suspected to surpass the officially recorded statistics. Numerous factors contribute to properties remaining vacant long-term, rendering the full 21% not necessarily feasible for social housing conversion. These factors may include the property being a holiday home, requiring extensive renovation, or being entangled in legal proceedings.

Consequently, it’s crucial to ask: What barriers are preventing these properties from becoming viable homes, and what are the economic challenges involved? Such exploration can offer valuable insights into addressing homelessness and housing shortages more effectively. Local housing allowance rates and universal credit rates have been frozen since April 2020 levels, making private renting unaffordable to those on benefits.

We at Greater Change are actively campaigning alongside our partners, different coalitions and homelessness charities to see the benefits rates rise to protect people who are the most financially vulnerable and give them the ability to afford to live.’

The Six key findings of Admiral’s report:

25,454 properties have stood unoccupied for at least 6 months in London with a collective value of £13 billion.

The City of London has the highest proportion of long-term empty properties in Britain.

London councils saw a 4.6% increase in long-term vacancies from 2021 to 2022.

Southwark has the highest number of long-term empty properties in London despite a 10.5% decrease from 2021.

The collective value of long-term empty houses in the Royal Borough of Kensington & Chelsea is more than £2.1 billion– the highest in London.

Tower Hamlets saw the biggest increase from 2021 to 2022 in empty houses with an increase of 174.5%.

 

If you have a view – please let us all know by emailing me at editor@estateagentnetworking.co.uk – Andrew Stanton Executive Editor – moving property and proptech forward. PropTech-X

Andrew Stanton

CEO & Founder Proptech-PR. Proptech Real Estate Influencer, Executive Editor of Estate Agent Networking. Leading PR consultancy in Proptech & Real Estate. Want to contact me directly regarding one of my articles or maybe you'd like a chat about future articles? Email me via editor@stagingsite.estateagentnetworking.co.uk

You May Also Enjoy

Estate Agent Talk

Matching Your Needs: Choosing The Ideal Residential Property Management Services

Owning residential properties can be an excellent investment, but managing them can quickly become hard. From handling tenant issues to maintenance and rent collection, it’s a time-consuming task. Fortunately, there is a solution—property management services. They can handle these tasks for you, freeing you to focus on other priorities. However, with so many options available,…
Read More
Breaking News

Third of Private Renters Are Struggling to Afford Their Rents Says New Research

Over a third of all private renters are finding it difficult to afford their rent according to new research out today. Whilst overall 35 per cent of renters said they were finding it difficult or very difficult to afford their rent, this proportion increased to 56 per cent for those not in work due to…
Read More
Home and Living

Why Select High-Quality Shower Drains for Stunning Wet Room Design

A wet room is a fully waterproofed bathroom with an open shower area, where the floors and walls are designed to handle water exposure. One of the most important aspects to consider when designing a wet room is your shower drain. With a great range of available designs, homeowners and those in the construction industry…
Read More
Breaking News

Bank of England’s decision to hold the Base Rate – Industry Reaction

The Bank of England held interest rates at 5.25% for the seventh time in a row. The decision comes despite official figures yesterday which revealed inflation had fallen to the Bank’s target of 2% for the first time in nearly three years. Here are some thoughts from the property industry.   Rightmove’s mortgage expert Matt…
Read More
Breaking News

Breaking Property News – 20/06/24

Daily bite-sized proptech and property news in partnership with Proptech-X.   OpenBrix, Home, & TDS unite to digitally upgrade the tenant user experience Full disclosure Adam Pigott and the team at Openbrix are one of my original and long serving clients in my day job of getting proptechs from MVP to exit (Proptech-PR). But as…
Read More
Breaking News

Rental Reform Undermined by Lack of Choice for Tenants

A lack of choice for private renters about where they can live will undermine plans set out by many of the UK’s major political parties to reform the rental market. That’s the warning from the National Residential Landlords Association (NRLA) as the Conservatives, Labour, Liberal Democrats and Green Party all propose ending section 21 ‘no…
Read More