Falling house prices dominated a lot of today’s papers, with the Telegraph, Independent, Evening Standard and the Daily Mirror reporting on the latest Land Registry data.
Of course, part of this may be attributed to stamp duty changes and market confidence. The latest Land Registry data for March 2016 has indicated falling house prices in all regions, but only outside of the East of England and London. In addition, overall house prices in England and Wales fell 0.5% in March 2016, which now takes the average purchase price to £189,901. There were variations across the country, and the biggest drop was in Yorkshire and Humberside, which showed a drop of 2.6%. In contrast to this, house prices in the capital showed a modest 0.2% rise to £534,785. In addition to Land Registry’s reporting, the latest data from Nationwide indicated the annual pace of house price growth has slowed to 4.9% in April 2016, compared with 5.7% in March. Robert Gardner of Nationwide is quoted as saying: “”It may be that the surge in house purchase activity resulting from the increase in stamp duty on second homes from 1 April provided a temporary boost to prices in March.””
In news elsewhere, the Guardian and the Daily Mail reported that DIY spending is on the up as homeowners prefer to stay put rather than moving house. It is reported that homeowners are spending up to £50,000 to stay put and improve their properties rather than move home. Research by Nationwide found that Londoners typically borrow £48,700 to do up their homes, while those in the North borrow less than half that amount. The average age of homeowners taking out a further advance for home improvements has dropped from 44 in 2013 to 41. Separate figures by credit card provider MBNA show spending by the under-30s on DIY had fallen by a third since the mid-90s. MBNA said Generation Rent is usually barred from making home improvements by clauses in their tenancy agreements.
With regards the latter however, one key aspect is that wear and tear allowance has now been abolished, which was a vital claim for landlords. This has now been replaced with a system whereby the cost of replacing furnishings may be claimable, with the initial cost not being allowed against rental income.
For any of your property tax needs, please do not hesitate to contact RITA4Rent on Freephone 0800 1 22 33 57 or via email by clicking here.