Weekly Property Newsletter - Week Ending 28/02/16

Rightmove is our absolute must, say over eight in ten vendors

Friday 26th February

The results from the Home Moving Trend Survey 2015 report that more than eight in ten home sellers say that being on Rightmove is their most important choice of marketing, way ahead of both Zoopla and OnTheMarket.

The survey received responses from 5,420 people who were selling their home or investment property and the most interesting results were that 55% of people visited an agent’s website before inviting them for a valuation, with only 32% visiting the agent’s office prior to instructing them.

A staggering 82% of respondents didn’t choose the agent with the lowest fee.

And when asked which website was the most important to them, 85% of sellers said Rightmove, with only 11% opting for Zoopla and 5% going for OnTheMarket as their number 1 choice.

David Gascoyne, Manager of Sales and Lettings at Residential Estates said “As a sales and lettings agent, we strive to use all the property portals to ensure the best coverage for our clients. Rightmove has proved extremely popular.”

Private rents on the rise across Britain

Friday 26th February

The most recent ONS survey has reported that private rental prices paid by tenants in Great Britain rose by 2.6% in the 12 months to January 2016, up from 2.5% in the year to December 2015.

Private rental prices grew by 2.7% in England, 0.3% in Wales and 0.8% in Scotland in the 12 months to January 2016.

The survey gives no actual rent figures.

David Gascoyne, Manager of Sales and Lettings at Residential Estates said “With house prices also rising, first time buyers and rents are finding it more and more difficult to move out of the family home.”

Number of house sales declines slightly, says Land Registry

Thursday 25th February

Transactions dropped in the latter part of last year, the Land Registry has reported.

It says that between August and November – the last period for which statistics are available – there was an average of 78,652 transactions per month across England and Wales.

In the same period in 2014 the figure was 81,656.

In November itself there were 72,167 transactions, down 2% from the 73,282 transactions registered in November 2014.

Interestingly, despite the Stamp Duty changes reportedly hitting the top end of the market, sales of properties costing above £1m were actually up.

There was a 19% rise to 380 properties sold over £1m; a 4% drop from 135 to 129 of properties between £1.5m and £2m; and a rise of £2m-plus properties sold from 147 to 148.

Reporting for January, the Land Registry says that average house prices across England and Wales stood at £191,812, up 7.1% on the year.

Jason Dodd, Sales and Lettings Co-ordinator at Residential Estates said “the lack of stock on the housing market pushed prices up, however now due to this less people are able to buy and thus, have impacted on the number of property sales across the country.”

Loophole means Starter Homes bought at discount could become buy-to-lets

Thursday 25th February

There is to be a new consultation by the Government, aimed at ensuring that Starter Homes cannot be bought by buy-to-let investors as a current loophole in the Housing and Planning Bill has been found which does not specify that the purchaser must actually live in the Starter Home.

Some 200,000 Starter Homes will be built on brownfield sites at a 20% discount available only to first-time buyers.

According to the Lib Dems, who identified the loophole, wealthy parents could give their children lump sums to buy Starter Homes, which could then be let out.

There would also be nothing to stop a first-time buyer doing a deal with an investor.

Party leader Tim Farron said: “The Government’s plans for Starter Homes are very badly designed and will fail to help the right people. They will be snapped up by the sons of millionaires and make them a huge profit.”

A spokesperson for the Department of Communities and Local Government said: “We are clear Starter Homes will not be buy-to-let properties and will be consulting shortly on rules to include letting restrictions.”

It is not clear whether the consultation will only cover the first purchase of a Starter Home, or any subsequent discounted purchase. The rules allow for Starter Homes to be resold or let at their open market value five years after the initial sale.

UK house prices: Biggest monthly jump for property market since 2002

Thursday 25th February

House prices recorded their biggest monthly jump since 2002 in January, Land Registry figures show.

The £4,732 cash increase in the average property value compared with December pushed the average house price across England and Wales to £191,812.

The 2.5 per cent upswing is the biggest monthly percentage increase recorded by the Land Registry since June 2002.

On a regional basis, Wales saw the biggest monthly increase in property values in January, with a 3.7 per cent increase taking the average house price there to £125,665.

Across England and Wales as a whole, property values increased by 7.1 per cent in the year to January.