Estate agents are often secretive about what they charge sellers, it has been alleged, whilst there is great variation in the levels of fees that they charge.
A new survey found that only one agent in London – Winkworth – disclosed its fees on its website. About 20% of London agents refused to disclose their fees over the phone or via email.
The survey, by new estate agent comparison website ipostcode, looked at 250 agents’ fees across London and found that it is not necessarily in the most expensive postcodes where agents charge the highest fees.
Some of the highest average commissions are charged in the SE1 (Bermondsey), NW11 (Golders Green) and W6 (Hammersmith) postcodes, although agents in some lower priced areas – E8 (Dalston), N8 (Crouch End) and SE28 (Thamesmead) – offer some of the lowest commission rates.
The majority of the London estate agencies surveyed quoted 1.5% commission, but 15% of agents quoted 1%. The highest commission level quoted was 2.5%.
There were several postcode areas including Islington (N1) and Clerkenwell (EC1) where commission levels spanned the range from 1%-2.5%, which means that on a property priced at the London average of £342,749 (according to latest Land Registry figures), the seller could be paying anything from £4,113 to £10,282 including VAT to sell the same home.
Estate agents’ reputation for being guarded about their fees was borne out by the survey, with one in five of agents refusing to say what their fees were, either on the phone or via email. Only one agency, Winkworth, which has 43 London offices, displayed fees online.
One in four agents said that their fees are negotiable based on either a realistic valuation of the property or depending on the price range of the property. Many agents in the survey stressed that an agency should not be chosen simply on their commission rates but on service, track record and marketing.
The survey also found that estate agent fees in London at an average of 1.7% are more or less in line with the national average of 1.8% – contrary to the perception that London estate agent fees are the highest in the country.
Estate Agent Today
Sunday, January 22, 2012
Monday, January 16, 2012
Kenley Ex Nursing Home for Sale for Redevelopment
Surrey Investment Property for Sale, Kenley
Kenley
Hayes Lane
Kenley
Surrey
CR8
Gross Site Area: 31507 sq/ft*
£ 1,300,000 + VAT
Kenley is a small town nestled in the Surrey countryside which borders Coulsdon, Caterham and Whyteleafe. Kenley is approximately 13 miles south of Central London.
Located on the corner of Hayes Lane & Abbotts Lane within a quarter of a mile of Kenley Railway Station with services via Purley into Croydon, Central London, Gatwick and the South Coast. Kenley is an affluent area and offers good access to surrounding towns and the countryside.
This vacant former Nursing home is arranged over ground and first floors of brick construction under a pitched tiled roof.
With an approximate gross site area of 31,000sq.ft the property offers good alternative development potential (STPP).
Freehold Development Property for Sale, Surrey
Saturday, January 14, 2012
London Property Market News; WSJ Looks At London Property in 2012
How long can London's property market defy gravity asks the online Wall Street Journal? House prices in the capital rose in December, even as prices elsewhere stayed flat or fell, says the Royal Institution of Chartered Surveyors.
Prices in prime central London are around 16% higher than their September 2007 precrisis peak. Some forecasters predict a further 25% jump by 2016, as foreign investors continue to seek havens for their cash. But downward pressures are likely to intensify this year.
Foreign buyers account for more than half of the sales of London's most desirable residences, helping shield the market from a domestic downturn. Many have large chunks of equity to invest, so are less affected by the mortgage-lending squeeze. Recent sterling weakness against many currencies—down 20% against the dollar since the start of the crisis—has added to London's allure, while ultralow interest rates have kept a lid on distressed sales.
So long as the economic uncertainty continues, the torrent of foreign cash flowing into London property—an estimated £6 billion, or roughly $9 billion, in the 18 months through mid-2011—will likely be sustained. But the top end of the market is sensitive to the global picture. If the euro crisis is resolved or the world economic outlook improves, overseas investors might turn to riskier, higher-return assets. A rise in sterling or a fall in commodity prices are other possible factors.
London property isn't cheap by any measure. Yields are low—at 3.9%, compared with 5% in the wider U.K. housing market and up to 7% for prime offices in most European capitals. Soaring prime central London rents, up 25% since mid-2009, have provided some support to valuations, but an estimated 55% of "prime" tenants work in financial services, where heavy job losses are on tap. Yields are likely to remain flat into 2016, estate agent Savills says.
Meanwhile, the average house price in London is equivalent to 7.8 times earnings for a typical first-time buyer, compared with an average of 4.8 times across the country, website Findaproperty.com estimates. Such a disparity looks unsustainable, and provides a strong incentive for capital-dwellers to relocate and investors to seek better value elsewhere.
Prices in prime central London are around 16% higher than their September 2007 precrisis peak. Some forecasters predict a further 25% jump by 2016, as foreign investors continue to seek havens for their cash. But downward pressures are likely to intensify this year.
Foreign buyers account for more than half of the sales of London's most desirable residences, helping shield the market from a domestic downturn. Many have large chunks of equity to invest, so are less affected by the mortgage-lending squeeze. Recent sterling weakness against many currencies—down 20% against the dollar since the start of the crisis—has added to London's allure, while ultralow interest rates have kept a lid on distressed sales.
So long as the economic uncertainty continues, the torrent of foreign cash flowing into London property—an estimated £6 billion, or roughly $9 billion, in the 18 months through mid-2011—will likely be sustained. But the top end of the market is sensitive to the global picture. If the euro crisis is resolved or the world economic outlook improves, overseas investors might turn to riskier, higher-return assets. A rise in sterling or a fall in commodity prices are other possible factors.
London property isn't cheap by any measure. Yields are low—at 3.9%, compared with 5% in the wider U.K. housing market and up to 7% for prime offices in most European capitals. Soaring prime central London rents, up 25% since mid-2009, have provided some support to valuations, but an estimated 55% of "prime" tenants work in financial services, where heavy job losses are on tap. Yields are likely to remain flat into 2016, estate agent Savills says.
Meanwhile, the average house price in London is equivalent to 7.8 times earnings for a typical first-time buyer, compared with an average of 4.8 times across the country, website Findaproperty.com estimates. Such a disparity looks unsustainable, and provides a strong incentive for capital-dwellers to relocate and investors to seek better value elsewhere.
Wednesday, January 11, 2012
Kilburn Park Freehold Investment Property for Sale
Freehold Investment Property for Sale London
Kilburn Park
Canterbury Road
London
Greater London
NW6
Existing: 10000 sq/ft*
£ 2,750,000
Freehold
Kilburn Park can be found to the south of Kilburn High Road close to Carlton Vale. The area has seen a recent resurgence of good local bars, coffee shops and hotel opening.
The building is situated on Canterbury Road offering easy access to Kilburn Park (Bakerloo Line) station and further transport, shopping and recreational facilities of Kilburn High Road.
The existing character building comprises of a large B1 office of some 10,000 sq.ft over ground and first floors with off-street parking for up to 25 cars.
Planning permission has granted for the change of use from offices (B1) to residential (C3) on the first floor to create 2x1 bed and 3x2 bed flats and a 3-storey side extension to provide staircase and lift, erection of additional storey to form a further 4x2 beds flats.
There is a S.106 contribution of £48,000 and car free housing.
The building also offers the potential to create serviced offices, student accommodation or a hostel.
Rates payable £28,200 p.a.
NW London Site with Planning for Sale
Monday, January 02, 2012
Commercial Real Estate Investors Head for The US in 2012
The United States will remain the top choice of most global commercial real estate investors in 2012, but the country has lost ground to Brazil which ranked No. 2 this year, according to a survey released Sunday.
While the United States offers the most stable and secure option in commercial real estate, investors said improvement in rent and occupancy growth and the repeal of a 1980 foreign investment tax would have the strongest impact on their investment decisions, according to the 20th annual survey of Association of Foreign Investors in Real Estate (AFIRE) members.
For about the past year or so, investors in U.S. commercial real estate have focused on gateway cities such as New York, Washington, Boston, San Francisco and Los Angeles, driving prices up and yields down.
Meanwhile commercial property in Brazil, with its bubbling economy and safer investment environment, has become a hot spot for global investors. Sao Paulo, Brazil's largest city, jumped to the fourth best city for real estate investment dollars in 2012, up from 26th place last year.
The United States is still very desirable and was second behind the UK in attracting cross border investment in 2011, according to Real Capital Analytics preliminary figures.
"The negative is it doesn't promise a whole lot of capital appreciation because the prime markets are already fully priced," AFIRE Chief Executive Officer James Fetgatter said. "By no means will Brazil replace the U.S., at least not in the forseeable future. Brazil is considered now a much safer place to invest and a place where you can get capital appreciation and good yield."
AFIRE'S survey respondents hold more than $874 billion of real estate globally, including $338 billion in the United States.
Sixty 60 percent of respondents said they plan to increase their investment in U.S. real estate in 2012, down from a record 72 percent last year, according to the 20th annual survey.
Some 42.2 percent said they believed the United States in 2012 would offer the best opportunity for the price of their commercial real estate investments to increase, down from 64.7 percent last year's survey.
The United States lost ground to Brazil, with 18.6 percent saying Brazil's property market offered the best growth opportunity for their investment dollars. That's up 14.2 percentage points, moving Brazil up to second place from fourth, and pushing China down to No. 3, according to the AFIRE survey.
Seventy percent of respondents picked one of the three countries as their favorite, while the remaining 30 percent had top choices from 13 other countries on five continents.
While the United States offers the most stable and secure option in commercial real estate, investors said improvement in rent and occupancy growth and the repeal of a 1980 foreign investment tax would have the strongest impact on their investment decisions, according to the 20th annual survey of Association of Foreign Investors in Real Estate (AFIRE) members.
For about the past year or so, investors in U.S. commercial real estate have focused on gateway cities such as New York, Washington, Boston, San Francisco and Los Angeles, driving prices up and yields down.
Meanwhile commercial property in Brazil, with its bubbling economy and safer investment environment, has become a hot spot for global investors. Sao Paulo, Brazil's largest city, jumped to the fourth best city for real estate investment dollars in 2012, up from 26th place last year.
The United States is still very desirable and was second behind the UK in attracting cross border investment in 2011, according to Real Capital Analytics preliminary figures.
"The negative is it doesn't promise a whole lot of capital appreciation because the prime markets are already fully priced," AFIRE Chief Executive Officer James Fetgatter said. "By no means will Brazil replace the U.S., at least not in the forseeable future. Brazil is considered now a much safer place to invest and a place where you can get capital appreciation and good yield."
AFIRE'S survey respondents hold more than $874 billion of real estate globally, including $338 billion in the United States.
Sixty 60 percent of respondents said they plan to increase their investment in U.S. real estate in 2012, down from a record 72 percent last year, according to the 20th annual survey.
Some 42.2 percent said they believed the United States in 2012 would offer the best opportunity for the price of their commercial real estate investments to increase, down from 64.7 percent last year's survey.
The United States lost ground to Brazil, with 18.6 percent saying Brazil's property market offered the best growth opportunity for their investment dollars. That's up 14.2 percentage points, moving Brazil up to second place from fourth, and pushing China down to No. 3, according to the AFIRE survey.
Seventy percent of respondents picked one of the three countries as their favorite, while the remaining 30 percent had top choices from 13 other countries on five continents.
Tuesday, December 27, 2011
British Property Remains a Safer Bet Than Stocks and Shares
Lofty apartments in London's prime boroughs, chic chalet's in the finest Alpine ski resorts of France and Switzerland, and 2 bed semi's in Salford. Spot the odd one out?
While there may be many reasons making the 2 bed semis in Salford the odd one out, investment potential is not one of them according to British institutional investors, who have invested heavily in British housing stock in the last 12-18 months, to capitalise on the current rental boom, and solidify their investments away from the tumultuous global stocks and bonds markets.
According to data just released by Her Majesty's Revenue and Customs, financial institutions invested £2.2 billion in UK houses and apartments in the year ending April 2011, a 189% increase over the previous year.
Specialist property companies also increased their exposure to UK buy to let during the period, the data shows that such firms purchased £7.5bn worth of UK rental properties, which is a 27 percent increase over the same period in 2010. Wealthy British individuals are also getting in on the action. They invested a combined £193.8 billion in the year ending April, which is surprisingly only a 24% increase over 2010.
The growth is hardly surprising. The financial world is a scary place, and the stock markets are even scarier. The Eurozone debt crisis is making any European investment a high risk strategy, especially now with some reports indicating that banks are putting in place contingency plans for the Eurozone's complete break-up, although few believe this will come to pass.
Never the less, this makes British property one of the few safe investments in Europe. Property is far less volatile than stocks, and of course, Britain stayed out of the euro, so, while it would suffer a shock if the Euro collapses, its property market will see a far smaller hit than those in the Eurozone.
On top of the long term safety of British property, the rental yields are currently very attractive in the short-mid term as well, with the constrained mortgage market, lack of affordability and housing shortage continually drive up rental demand. The latest data rents and yields are growing across the country. The latest Residential Lettings Survey from the Royal Institution of Chartered Surveyors said that 15% more chartered surveyors reported rental yields rose rather than fell in the three months ending October. This is the 7th consecutive quarter of rising yields according to RICS.
While there may be many reasons making the 2 bed semis in Salford the odd one out, investment potential is not one of them according to British institutional investors, who have invested heavily in British housing stock in the last 12-18 months, to capitalise on the current rental boom, and solidify their investments away from the tumultuous global stocks and bonds markets.
According to data just released by Her Majesty's Revenue and Customs, financial institutions invested £2.2 billion in UK houses and apartments in the year ending April 2011, a 189% increase over the previous year.
Specialist property companies also increased their exposure to UK buy to let during the period, the data shows that such firms purchased £7.5bn worth of UK rental properties, which is a 27 percent increase over the same period in 2010. Wealthy British individuals are also getting in on the action. They invested a combined £193.8 billion in the year ending April, which is surprisingly only a 24% increase over 2010.
The growth is hardly surprising. The financial world is a scary place, and the stock markets are even scarier. The Eurozone debt crisis is making any European investment a high risk strategy, especially now with some reports indicating that banks are putting in place contingency plans for the Eurozone's complete break-up, although few believe this will come to pass.
Never the less, this makes British property one of the few safe investments in Europe. Property is far less volatile than stocks, and of course, Britain stayed out of the euro, so, while it would suffer a shock if the Euro collapses, its property market will see a far smaller hit than those in the Eurozone.
On top of the long term safety of British property, the rental yields are currently very attractive in the short-mid term as well, with the constrained mortgage market, lack of affordability and housing shortage continually drive up rental demand. The latest data rents and yields are growing across the country. The latest Residential Lettings Survey from the Royal Institution of Chartered Surveyors said that 15% more chartered surveyors reported rental yields rose rather than fell in the three months ending October. This is the 7th consecutive quarter of rising yields according to RICS.
Friday, December 23, 2011
London Property for Sale With Possibility of Extending, Queens Park
Brondesbury Villas, Queens Park, London, NW6
A spacious (826 sq ft) well presented two double bedroom two bathroom garden flat set within an attractive four storey semi-detached period property on one of the most desirable tree lined streets in Queens Park. The property is situated a short walk from Queens Park underground station (Bakerloo Line) and the variety of shops, gastro pubs and deli's along Salusbury Road.
The accommodation comprises an entrance hall with wood floors and a fitted storage cupboard; a modern family bathroom incorporating a white three piece suite with fully tiled walls/floors; an 18' front facing reception room with wood floors and a gas fireplace with wood surround; guest cloakroom and a separate fully fitted kitchen with integrated appliances.
Further benefits include a 15' master bedroom with fitted wardrobes and direct access to the private rear garden, an ensuite shower room with extractor fan, the second double bedroom with direct access to the private rear garden, side access to the 53' mature rear garden and a private front garden. The property also has potential for a single storey rear extension (Subject To Planning).
Queens Park Garden Flat for Sale
Tuesday, December 20, 2011
House Prices Remain Stable in November
There was no movement for house prices in the UK in November, according to the latest England & Wales House Price Index from LSL Property Services/Acadametrics.
However, just because house prices have remained static, people should not assume that they are not becoming more affordable.
David Brown, commercial director at the firm, said that zero growth means that in real terms houses are becoming more affordable.
"With inflation running at five per cent the real cost of property is getting smaller and smaller, which is good news for buyers and mortgage borrowers alike," he added.
The data showed that the average house price in the UK now stands at £220,043.
Mr Brown said that while over the past year house prices have dropped 0.7 per cent, low mortgage rates, the stamp duty holiday and the government's FirstBuy scheme have prevented larger falls.
Recent data from Halifax showed that 2011 has so far seen five months of price falls and the same number of rises, with one month of no change.
Mortgage Rate & Home Loan News
However, just because house prices have remained static, people should not assume that they are not becoming more affordable.
David Brown, commercial director at the firm, said that zero growth means that in real terms houses are becoming more affordable.
"With inflation running at five per cent the real cost of property is getting smaller and smaller, which is good news for buyers and mortgage borrowers alike," he added.
The data showed that the average house price in the UK now stands at £220,043.
Mr Brown said that while over the past year house prices have dropped 0.7 per cent, low mortgage rates, the stamp duty holiday and the government's FirstBuy scheme have prevented larger falls.
Recent data from Halifax showed that 2011 has so far seen five months of price falls and the same number of rises, with one month of no change.
Mortgage Rate & Home Loan News
Wednesday, December 14, 2011
10% Increase in October Mortgage Agreements
It’s not all doom and gloomy in the mortgage market says leading broker John Charcol.
The mortgage advisory firm says that despite media reports of a subdued market place, purchase business for residential property and buy to lets is actually performing quite well and there is a glut of suitable products available.
Simon Collins, product and technical manager at John Charcol, said that it saw a ten per cent increase in the amount of mortgages agreed during October compared with the same month in 2010.
“Despite the approaching festive season, we have seen the number of good quality purchase enquiries hold up very well, so whilst the market’s not great, it’s not as bad as it’s being painted,” he stated.
Last week, the latest Mortgage Monitor from chartered surveyors e.surv found that mortgage approvals for property purchases during November reached its highest number since December 2009 and were up some 15 per cent on November 2010.
Mortgage Rate and Home Loan News
The mortgage advisory firm says that despite media reports of a subdued market place, purchase business for residential property and buy to lets is actually performing quite well and there is a glut of suitable products available.
Simon Collins, product and technical manager at John Charcol, said that it saw a ten per cent increase in the amount of mortgages agreed during October compared with the same month in 2010.
“Despite the approaching festive season, we have seen the number of good quality purchase enquiries hold up very well, so whilst the market’s not great, it’s not as bad as it’s being painted,” he stated.
Last week, the latest Mortgage Monitor from chartered surveyors e.surv found that mortgage approvals for property purchases during November reached its highest number since December 2009 and were up some 15 per cent on November 2010.
Mortgage Rate and Home Loan News
Friday, December 09, 2011
Refurbished Queens Park Apartment for Sale
Hartland Road, Queens Park, London, NW6
A newly refurbished ground floor one bedroom flat within this period terraced period house in the heart of Queens Park.
The property is situated along a popular tree lined street just a short walk to the Bakerloo and overground stations at Queens Park and the plethora of local cafes, restaurants and shops along Salusbury road.
The accommodation comprises of a reception with wood floors, high gloss open plan fitted kitchen with appliances, double bedroom with an en suite shower room and direct access to the communal rear garden.
Further benefits include a luxury fitted shower room with a heated towel rail and an extractor fan, double glazing, gas central heating, entryphone system and no upper chain.
The property has been completely refurbished and an early viewing is strongly advised to avoid disappointment.
Queens Park Apartment for Sale
Monday, December 05, 2011
Landlord and Tenant News: Landlords set to expand their portfolios in 2012
The coming 12 months look set to be a boom time for buy-to-let investors, with many looking to significantly increase their property portfolios.
Research conducted by specialist mortgage provider Paragon found that landlords are practically falling over themselves to invest further funds in bricks and mortar at present despite the traditional market being subdued.
Indeed, more than a fifth of those surveyed said they will be making more property investments in 2012.
While in contrast, less than one in ten landlords claimed that they will be looking to reduce the size of their buy-to-let portfolios in the 12 months.
Thanks in part to a loosening of lending restrictions from banks and building societies, the number of properties owned by rental magnates has risen to an average of 13 this year and will continue to rise further in the next year.
Terraced property remains the most popular choice for landlords with 65 per cent of respondents saying that they owned at least one.
This was followed by flats or apartments, which are owned by 58 per cent. Semi-detached homes made up part of 48 per cent of landlord's existing portfolios while 24 per cent own a House of Multiple Occupancy (HMO).
Of those questioned 77 per cent stated that they were positive about being a landlord, while 57 per cent said prospects for the rental sector in 2012 were either "good" or "very good".
"This is an interesting time for the private rented sector as landlords are experiencing very high levels of tenant demand as other areas of the housing market come under increasing strain," John Heron, Paragon Mortgages managing director, said.
"I am pleased to see that landlords are expecting to add to their portfolios as there is no sign that tenant demand is going to slow in 2012."
Iqbal Hussain, property consultant at Knight Knox International, recently said that now is the best time to buy for anyone wanting to dip their toe into the property rental market.
Property News Magazine
Research conducted by specialist mortgage provider Paragon found that landlords are practically falling over themselves to invest further funds in bricks and mortar at present despite the traditional market being subdued.
Indeed, more than a fifth of those surveyed said they will be making more property investments in 2012.
While in contrast, less than one in ten landlords claimed that they will be looking to reduce the size of their buy-to-let portfolios in the 12 months.
Thanks in part to a loosening of lending restrictions from banks and building societies, the number of properties owned by rental magnates has risen to an average of 13 this year and will continue to rise further in the next year.
Terraced property remains the most popular choice for landlords with 65 per cent of respondents saying that they owned at least one.
This was followed by flats or apartments, which are owned by 58 per cent. Semi-detached homes made up part of 48 per cent of landlord's existing portfolios while 24 per cent own a House of Multiple Occupancy (HMO).
Of those questioned 77 per cent stated that they were positive about being a landlord, while 57 per cent said prospects for the rental sector in 2012 were either "good" or "very good".
"This is an interesting time for the private rented sector as landlords are experiencing very high levels of tenant demand as other areas of the housing market come under increasing strain," John Heron, Paragon Mortgages managing director, said.
"I am pleased to see that landlords are expecting to add to their portfolios as there is no sign that tenant demand is going to slow in 2012."
Iqbal Hussain, property consultant at Knight Knox International, recently said that now is the best time to buy for anyone wanting to dip their toe into the property rental market.
Property News Magazine
Friday, December 02, 2011
International Students Demand Luxury Letting Property
Cash rich students from overseas are increasingly looking at the more luxurious end of the rental market.
Jonathan Moore, director of EasyRoomMate.com, said that while student homes still often have the reputation of being far from grandiose, students are becoming more choosy and those from overseas in particular are looking for properties in more affluent districts.
"With the increase of demand from international students with bigger budgets, we are seeing a niche luxury lettings market emerge in many university towns, with investors targeting higher rents - albeit from a bigger investment," he said.He added that, despite this, changes in the HMO [house in multiple occupation] licensing requirements mean that all property let to students is now of a decent standard.
Research conducted last month by specialist mortgage provider Paragon found that student lets still offer a landlord the highest possible yield, with an average of 7.62 per cent.Properties let on a shared basis by professionals was the second best performer at 7.56 per cent.
Landlord and Tenant News
Jonathan Moore, director of EasyRoomMate.com, said that while student homes still often have the reputation of being far from grandiose, students are becoming more choosy and those from overseas in particular are looking for properties in more affluent districts.
"With the increase of demand from international students with bigger budgets, we are seeing a niche luxury lettings market emerge in many university towns, with investors targeting higher rents - albeit from a bigger investment," he said.He added that, despite this, changes in the HMO [house in multiple occupation] licensing requirements mean that all property let to students is now of a decent standard.
Research conducted last month by specialist mortgage provider Paragon found that student lets still offer a landlord the highest possible yield, with an average of 7.62 per cent.Properties let on a shared basis by professionals was the second best performer at 7.56 per cent.
Landlord and Tenant News
Thursday, December 01, 2011
Her Majesty’s Revenue & Customs is Declaring War on Stamp Duty Avoidance.
It is to mount a court challenge to determine the legality, or otherwise, of stamp duty tax avoidance schemes.
Central to the challenge will be the use of limited companies to buy properties, and then sell them to individuals – something which does appear to be completely legal.
Essentially, the purchaser sets up a Special Purpose Vehicle, a company or a trust with a property as its sole asset. The purchaser then buys shares in the company and is subjected to a tax rate of just 0.5%.
There are many companies offering stamp duty tax avoidance: a Google search yielded over 3,200 results.
The taxman’s move follows this year’s Budget when Chancellor George Osborne announced that he would be clamping down on stamp duty avoidance, whilst law firms have also warned that HMRC is on the prowl.
HMRC estimates the tax avoidance schemes have cost it millions in lost revenue. It is investigating 1,200 people it suspects of having underpaid stamp duty by a collective total of £35m, whilst it will also go after others who have avoided the tax altogether.
The many schemes that claim to legally exploit stamp duty loopholes frequently charge fees of around half the amount that would have been paid in tax.
It is thought that a number of property investors have set up a limited liability company to buy the property to sell back to the individual.
An HMRC spokesperson said: “The schemes rely on an interpretation of law that produces an outcome different from that envisaged when the law was enacted, and that HMRC does not accept.”
Central to the challenge will be the use of limited companies to buy properties, and then sell them to individuals – something which does appear to be completely legal.
Essentially, the purchaser sets up a Special Purpose Vehicle, a company or a trust with a property as its sole asset. The purchaser then buys shares in the company and is subjected to a tax rate of just 0.5%.
There are many companies offering stamp duty tax avoidance: a Google search yielded over 3,200 results.
The taxman’s move follows this year’s Budget when Chancellor George Osborne announced that he would be clamping down on stamp duty avoidance, whilst law firms have also warned that HMRC is on the prowl.
HMRC estimates the tax avoidance schemes have cost it millions in lost revenue. It is investigating 1,200 people it suspects of having underpaid stamp duty by a collective total of £35m, whilst it will also go after others who have avoided the tax altogether.
The many schemes that claim to legally exploit stamp duty loopholes frequently charge fees of around half the amount that would have been paid in tax.
It is thought that a number of property investors have set up a limited liability company to buy the property to sell back to the individual.
An HMRC spokesperson said: “The schemes rely on an interpretation of law that produces an outcome different from that envisaged when the law was enacted, and that HMRC does not accept.”
Monday, November 28, 2011
Landlord and Tenant News: Government pours praise on SAFEagent in new housing strategy.
Landlord and Tenant News: Government pours praise on SAFEagent in new housing strategy.
SAFEagent, the scheme launched this year to protect both landlords' and tenants' financial interests, has this week received glowing praise from the government.
In a statement released by Westminster detailing the government's new strategy for housing, SAFEagent, which launched to much acclaim in May, was described as a scheme which is driving up industry standards.
It was also stated that many landlords and tenants often do not realise the benefits of choosing a letting agent that is covered by the client money protection initiative.
“The SAFEagent scheme promotes consumer awareness of the issue and helps them to identify agents with protection, through the SAFEagent badge," the document noted.
“It shows how much can be achieved quickly and cheaply through simple and effective ideas driven by industry not the government.”
Since the scheme came into force, housing minister Grant Shapps has been extremely vocal in praising what SAFEagent is doing and has encouraged more letting and property management companies to sign up.
John Midgley, chair of the SAFEagent Steering Group, said that the governments continued backing was a "fantastic endorsement" of SAFEagent and he thanked Mr Shapps for his support throughout the past few months.
“We’re delighted that the government recognises that the industry can generate and implement proactive, innovative ideas which are in the interest of the consumer rather than relying on imposed regulations which would lead to further red tape and cost," he stated.
“SAFEagent is a simple and sensible approach to raising consumer awareness of Client Money Protection and it’s one that is working."
At present more that 1,600 agents and management firms have joined the scheme but Mr Midgley urged more to make a positive difference to the industry by joining up.
This September Lord Taylor of Holbeach, a Conservative peer and House of Lords whip, said he was "delighted" the government was endorsing SAFE and added that consultation is in place to make such protection initiatives a statutory requirement for all agents.
Landlord and Tenant News
SAFEagent, the scheme launched this year to protect both landlords' and tenants' financial interests, has this week received glowing praise from the government.
In a statement released by Westminster detailing the government's new strategy for housing, SAFEagent, which launched to much acclaim in May, was described as a scheme which is driving up industry standards.
It was also stated that many landlords and tenants often do not realise the benefits of choosing a letting agent that is covered by the client money protection initiative.
“The SAFEagent scheme promotes consumer awareness of the issue and helps them to identify agents with protection, through the SAFEagent badge," the document noted.
“It shows how much can be achieved quickly and cheaply through simple and effective ideas driven by industry not the government.”
Since the scheme came into force, housing minister Grant Shapps has been extremely vocal in praising what SAFEagent is doing and has encouraged more letting and property management companies to sign up.
John Midgley, chair of the SAFEagent Steering Group, said that the governments continued backing was a "fantastic endorsement" of SAFEagent and he thanked Mr Shapps for his support throughout the past few months.
“We’re delighted that the government recognises that the industry can generate and implement proactive, innovative ideas which are in the interest of the consumer rather than relying on imposed regulations which would lead to further red tape and cost," he stated.
“SAFEagent is a simple and sensible approach to raising consumer awareness of Client Money Protection and it’s one that is working."
At present more that 1,600 agents and management firms have joined the scheme but Mr Midgley urged more to make a positive difference to the industry by joining up.
This September Lord Taylor of Holbeach, a Conservative peer and House of Lords whip, said he was "delighted" the government was endorsing SAFE and added that consultation is in place to make such protection initiatives a statutory requirement for all agents.
Landlord and Tenant News
Friday, November 11, 2011
Overseas Property Searches
The United States is now the second most popular overseas property search destination in the world, according to the latest report from TheMoveChannel.
After a long running battle between France and Spain at the top of the chart, the US has unexpectedly turned the two horse race into a three way competition for top spot. The country rose by two places in the rankings, replacing the traditional runner up as the surprise second favourite for buyers in October.
America has always been one of the most popular places for foreign real estate investment, alongside France, Italy, Portugal and Turkey. But while Spain remains the country of choice for buyers, receiving 3% more enquiries than the month before, America saw an increase of 1.06% in enquiries last month.
That number may seem like a small increase, but interest in US property has grown by 3% over the past three months, indicating a consistent appetite from overseas buyers for the country’s heavily discounted property market.
France had 1.57% fewer enquiries last month, while interest in Portugal also waned, by 2.42%, perhaps a sign that the continuing Euro crisis is sapping interest in continental property markets.
America’s ascension was just one of several surprises, as Cyprus and Thailand both jumped several places to enter the Top 10 most popular destinations. Cyprus has been suffering from unemployment and economic woes in the years since the housing boom, but the country is now starting to claw back buyers, as property prices dropped for the sixth quarter in a row last month.
After a long running battle between France and Spain at the top of the chart, the US has unexpectedly turned the two horse race into a three way competition for top spot. The country rose by two places in the rankings, replacing the traditional runner up as the surprise second favourite for buyers in October.
America has always been one of the most popular places for foreign real estate investment, alongside France, Italy, Portugal and Turkey. But while Spain remains the country of choice for buyers, receiving 3% more enquiries than the month before, America saw an increase of 1.06% in enquiries last month.
That number may seem like a small increase, but interest in US property has grown by 3% over the past three months, indicating a consistent appetite from overseas buyers for the country’s heavily discounted property market.
France had 1.57% fewer enquiries last month, while interest in Portugal also waned, by 2.42%, perhaps a sign that the continuing Euro crisis is sapping interest in continental property markets.
America’s ascension was just one of several surprises, as Cyprus and Thailand both jumped several places to enter the Top 10 most popular destinations. Cyprus has been suffering from unemployment and economic woes in the years since the housing boom, but the country is now starting to claw back buyers, as property prices dropped for the sixth quarter in a row last month.
Monday, November 07, 2011
Manchester City Centre Investment Property for Sale
Building Land for Sale, Manchester
Piccadilly Village
Store Street
Manchester
Greater Manchester
M1
Gross Site Area: 7480 sq/ft*
£ 150,000
Freehold
The land is situated adjacent to Store Street on the edge of Manchester City Centre approximately 350 yards north east of Piccadilly Railway Station. Access to Store Street is from London Road (A6)
The plot can be found on the southern side of Store Street in the City Centre and is also near to the Grade II* listed Store Street aqueduct. The site is currently vacant and is approximately 3 metres higher than the level of Store Street (approximately 1 storey level).
The GSA is approximately 0.17 acres is landlocked on 3 sides with its fourth side fronting onto Store Street.
Planning permission had previously been granted for the construction of 16 luxury apartments in one block. That consent has now lapsed however details can be found at www.manchester.gov.uk (Ref: 070326/FO/2003/C3).
Investment Property for Sale, Manchester City Centre
Wednesday, November 02, 2011
West Hampstead Freehold Property Show Day
Kings Gardens, West Hampstead, London, NW6 £499.950
SHOW DAY SATURDAY 5th NOVEMBER
A well-proportioned three double bedroom flat, set on the ground floor of this attractive mansion block.
The property is situated within easy walking distance of West Hampstead's Jubilee Line, Thames Link and North London Over Ground Stations.
The flat offers a bright reception room with wooden flooring, 15ft kitchen with a full range of fitted appliances, master bedroom with en-suite bathroom, two further double bedrooms and a bathroom comprising of a modern four piece white suite.
Further benefits include carriage drive way, recently redecorated block, porter, communal gardens, share of the freehold and no upper chain.
West Hampstead Mansion Block Property for Sale
Monday, October 31, 2011
Home Track House Price News for October
Reuters is reporting that the fall in house prices in England and Wales accelerated in October as consumers become increasingly worried about the outlook for the economy and shy away from buying homes, property data firm Hometrack said.
Average prices dipped 0.2 percent on the month compared to falls of 0.1 percent in each of the five preceding months, Hometrack said. House prices were 2.8 percent below the October 2010 level.
"Growing consumer concern over the outlook for the economy is beginning to impact directly on house prices," Hometrack Director of Research Richard Donnell said in a statement.
As in previous releases, the survey showed large regional differences, although prices stalled even in London after rising for seven months in a row.
"The evidence is clear that buyers are drifting away from the market in the face of weak consumer confidence and concerns over the prospects for the economy and their household finances," Donnell said.
Hometrack said that while demand eased, supply had grown by 11 percent over the past six months. "The balance between supply and demand is clearly shifting and points to an acceleration in price falls in the coming months," Donnell said.
Average prices dipped 0.2 percent on the month compared to falls of 0.1 percent in each of the five preceding months, Hometrack said. House prices were 2.8 percent below the October 2010 level.
"Growing consumer concern over the outlook for the economy is beginning to impact directly on house prices," Hometrack Director of Research Richard Donnell said in a statement.
As in previous releases, the survey showed large regional differences, although prices stalled even in London after rising for seven months in a row.
"The evidence is clear that buyers are drifting away from the market in the face of weak consumer confidence and concerns over the prospects for the economy and their household finances," Donnell said.
Hometrack said that while demand eased, supply had grown by 11 percent over the past six months. "The balance between supply and demand is clearly shifting and points to an acceleration in price falls in the coming months," Donnell said.
Thursday, October 27, 2011
Bootle Property With Planning for Sale
Merseyside Investment Property For Sale
Claremont Villas
Merton Road
Bootle
Merseyside
L20
GIA: 8866 sq/ft*
£ 185,000
Freehold
The property is located on Merton Road a predominantly business district which includes a number of government departments, Sefton Council, Sefton Town Hall and Sefton Magistrates Courts. Liverpool City Centre is approximately 3 miles to the south and Bootle Oriel Road Station is also with walking distance.
The property comprises of large office accommodation (8,866sq.ft) and was originally a pair of period semi detached houses which could be reinstated (STPP)
The property benefits from disabled car park, main reception, office suites, boardroom, kitchenette, male and female WCs, access leading to basement storage.
To the first floor there are further offices with male and female WCs and to the second floor there are further offices / storage, open plan meeting rooms, kitchenette.
At the rear of the building is a large garden providing parking for approximately 40 vehicles with potential for future development.
The property is offered for sale with vacant possession.
Freehold Development Property for Sale, Bootle, Merseyside
Tuesday, October 25, 2011
Kent Investment Property for Sale, Birchington
Kent Property With Planning
Birchington
The Square
Birchington
Kent
CT7
Net Saleable: 4879 sq/ft*
£ 340,000 Freehold
Birchington is a quiet popular Town located on the Kent North Coast. This development opportunity is situated at the rear of 8-10 Birchington Square and is a few minutes walk to the local shops, bus routes, railway station and local amenities.
Full planning permission has been granted for the conversion of existing outbuildings into 2 residetial dwellings and the erection of 4 new build houses.
All 6 houses will benefit from 2 bedrooms and off-street parking.
Net saleable approximately 4,879sq.ft
Kent North Coast Property for Sale
Subscribe to:
Posts (Atom)