Docklands News

Around a quarter of first-time buyers are paying stamp duty as house prices have soared, analysis has revealed. The HomeOwners Alliance called for an urgent review of the tax, which applies in England and Northern Ireland. The organisation, which made its findings using provisional HM Revenue and Customs (HMRC) figures, said around 26% of first-time buyer transactions were liable for stamp duty in the first quarter of this year. This compares with around one in five first-time buyer transactions in the fourth quarter of 2017. Paula Higgins, chief executive of the HomeOwners Alliance, a property advice website, said: "It's clear that the stamp duty tax needs to be reviewed to ensure it's facilitating rather than fettering first-time buyers." 

The Independent (21/06/2022)  

Buy-to-let yields have hit a record low, fuelling fears that property investors will sell up. Nationally, gross rental yields are already at a record low of 4.38%, as house prices have climbed more quickly than rents. Research consultancy Capital Economics has forecast that by the end of 2022 yields will hit a new low of 4.26%. As interest rate rises push up land lords' outgoings, next year the margin between rental income and mortgage costs will become the most squeezed it has been since the financial crisis. 

The Daily Telegraph (18/06/2022)  

More than 2m households face increased mortgage payments after the latest Bank of England interest rate rise. The Bank rate has been increased from 1% to 1.25% as officials look to tackle rising inflation and borrowers who have variable mortgage rates will see their monthly repayments go up. Analysis by industry body UK Finance shows that those on standard variable rates will see an average annual increase of £191, while for tracker deals the figure is £303. The increase affects a quarter of mortgage borrowers, which translates to about 2.25m households. 

Daily Mail (16/06/2022)   Sky News (16/06/2022)   The Daily Telegraph (16/06/2022)   The i (16/06/2022)  

The Resolution Foundation has suggested the COVID-19 pandemic will have a lasting impact on the housing market. Researchers said house prices grew nearly twice as fast in villages and small towns as they did in major cities between February 2020 and February 2022, by 22% and 12% respectively. This has led to some balancing out of regional house price gaps as cheaper homes increased in cost at a faster rate than higher-value properties. However the report warned low-paid households risk being “priced out” of homes in areas traditionally overlooked by commuters but now more in demand, amid the rise of flexible working. The authors insisted greater supply is needed to prevent “worrying” consequences. “Unless more houses are built in response to this apparent extra demand, the long-run consequence may just be to reduce housing affordability in what are currently some of the lowest-paid parts of the UK,” the report added.

The Daily Telegraph (16/06/2022)   The Independent (16/06/2022)  

Demand from prospective home buyers fell in May, according to surveyors. The Royal Institution of Chartered Surveyors (Rics) said property professionals reported that new buyer inquiries fell in May, with a net balance of 7% reporting falls rather than rises. This was a turnaround from April when a balance of 8% reported rises in buyer inquiries rather than falls, and May's result brings to an end eight months in a row of positive results for new buyer inquiries. Looking over the next 12 months, expectations point to sales falling, with a net balance of 24% of professionals expecting falls rather than rises. New instructions to sell homes were also largely flat during May, and there seems to be little respite in terms of a lack of supply in the future, Rics said. A net balance of 73% of professionals reported an increase in house prices during May. 

Daily Mail (14/06/2022)   Financial Times (14/06/2022)   The Guardian (14/06/2022)   The Independent (14/06/2022)  

First-time buyers are often confused by the whole process and can feel too embarrassed to ask questions. The top 40 queries include "Should I offer less than the advertised house price?" and "How much deposit will I need?" say researchers. Charlotte Harrison, head of mortgage products at Skipton Building Society, which set up the poll, said: "Purchasing a home can seem daunting for the first time. The process can be long and complicated at times, made harder if you don't fully understand what needs to be done and by who." Eight in 10 buyers are too shy to ask things like "What is stamp duty?" and "When do I need to pay everyone for the work?" 

Daily Star (13/06/2022)