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Manchester Property Buyers, Manchester (2026)

03/11/2022

The interest rate has been raised to 3% – the highest level since the 2008 financial crisis.

The Bank of England’s 0.75% hike represents the eighth consecutive increase since December, pushing the rate to its highest level for 14 years.

It also marks the biggest single increase since 1989 and will have a big impact on the cost of living and people’s finances.

Mortgage holders, house hunters and savers will be affected by the Bank of England’s decision to increase the rate from 2.25% to 3%%.

Homeowners on Standard Variable Rates or tracker mortgages will be hit particularly hard in the short-term by the latest interest rate increase.

After a period of ultra-low rates, many homeowners are now facing the possibility of much more expensive monthly repayments.

The Bank’s rate hike from 2.25% to 3% means that those on a typical tracker mortgage will pay about £73.50 more a month. Those on standard variable rate mortgages would face a £46 jump.

Analysts suggest rates could reach 4.75% next year.

However, that peak is lower than predictions had suggested a few weeks ago, when the government was in some turmoil after its mini-Budget was badly received.
Industry reaction:

David Reed, operations director at Richmond estate agency Antony Roberts, commented: ‘First-time buyers, in particular, will be conscious of the impact a further rate rise on their mortgage payments. They may pause while they weigh up the feasibility of plans to buy before Christmas. They may even hold off until the Spring or Q2 and reassess the situation then.

‘A preference to continue renting instead of buying will further restrict the supply of rental accommodation coming to market at a time when availability is already acute in many areas.

‘The situation is very different for those buyers with a formal mortgage offer. For them, there is a rush to complete on a purchase before the bagged relatively attractive rate expires.

Resources:
propertyindustryeye-com

27/10/2022

Property purchases using a “granny annexe loophole” to cut their stamp duty bill risk being caught up in a crackdown from the taxman.

HM Revenue & Customs (HMRC) is currently targeting home buyers making false “granny annexe” tax relief claims.

According to a Freedom of Information request by accountancy firm RSM, the amount recovered by HMRC has increased by almost 400% in the last three years.
“They are going to war on granny annexes,” said Chris Etherington of RSM.

The loophole – officially known as “multiple dwelling relief” – allows buyers to pay less stamp duty if they are purchasing properties that are linked. This can include a portfolio of buy-to-let properties, or a house with an additional self-contained dwelling, such as a granny annexe.

The presence of an additional dwelling can save thousands in stamp duty. A buyer claiming multiple dwelling relief divides the total sale price by the total number of dwellings and pays stamp duty on the average cost.

A buyer purchasing a property for £1m would face a stamp duty bill of £41,250, but a buyer purchasing four linked properties for a combined £1m could claim relief and pay only £10,000 – a saving of £31,250. This is because the taxman would consider this as four homes worth £250,000, rather than one valued at £1m, resulting in less stamp duty being due.

But the system has reportedly become open to abuse. In one case, reported by The Telegraph, a purchaser acquiring a seven-bedroom house claimed that an en-suite bedroom qualified as a separate dwelling because it had a built-in wardrobe with an electric socket.

In the tax year ending April 2022, HMRC investigated 222 claims for multiple dwellings relief and recovered £5.8m in falsely claimed stamp duty relief.
This was a surge of 383% compared to the £1.2m recovered in the tax year ending April 2019, the last full year before the pandemic, when HMRC made 124 dwelling relief investigations.

HMRC has warned of a sharp rise in buyers and homeowners being targeted by tax reclaim agents and lodging incorrect claims.

Etherington told the press: “These reclaim agents trawl the Land Registry looking for larger property listings and then they put through spurious claims.”

Marc Selby, of the Chartered Institute of Taxation, a professional body, commented: “We are contacted by people saying they have received three or four letters from different reclaim agents and they want to ask for our opinion whether or not a claim would be legitimate. Sometimes they are a complete non-starter. These agents are often just firing off letters on the off chance.”

An HMRC spokesman said: “We want to help those eligible claim MDR while ensuring the right tax is paid. Our analysis indicates that up to a third of MDR claims are incorrect.”

Resources:
propertyindustryeye-com

14/10/2022

My name is Ian I specialise in 3-4 bedroom family homes in the Manchester area. If you want better than bank returns on your money then I can help. I have the time and experience to build great portfolios.

I am looking for investors with 40K who would like superb cash flow today and great long term growth. Do you know anyone like that?

Call 01615197318 or direct message me here

13/10/2022

Despite the worsening economic outlook, the Bank of England’s chief economist, Huw Pill, still believes that there is a major need for a “significant” base rate rise next month.

Speaking at the Scottish Council for Development and Industry in Glasgow yesterday, Pill, who joined the MPC just over a year ago, also reiterated the Bank’s commitment to returning inflation to its 2% target.

He said: “At present, I am still inclined to believe that a significant monetary policy response will be required to the significant macro and market news of the past few weeks. But I will see when we get to November how events have evolved in the meantime.”

Pill also said that new independent forecasts from the Office for Budget Responsibility, which will be released alongside the chancellor’s budget plans on 31 October, will “bolster the credibility of the process, thereby helping to add stability in what is a volatile environment at present”.

The lack of an independent assessment by the fiscal watchdog was a key reason why Kwasi Kwarteng’s recent mini-budget of tax cuts sparked turmoil on financial markets, and in the mortgage market.

The UK central bank has already hiked interest rates at each of its last seven meetings, with the bank rate currently at 2.25%.

It has also brought quantitative easing (QE) to an end, and started to run down its holdings of gilts accumulated for monetary policy purposes.

Reflecting on the Bank’s decision to intervene in the bond markets two weeks ago, he added: “In the face of dysfunction that has emerged in some specific market segments in recent weeks, the Bank is conducting a set of temporary and targeted financial stability operations to support the gilt market. Their goal has been to permit an orderly deleveraging of positions held by so-called liability driven investment (LDI) funds, which became vulnerable in the volatile market conditions we have seen of late.

“In taking this action, the Bank has sought to prevent the emergence of a self-sustaining vicious spiral of collateral calls, forced sales and disappearing liquidity from emerging in a core segment of the financial markets. Restoring market functioning helps reduce any risks from contagion to credit conditions for UK households and businesses.”

Resources:
propertyindustryeye-com

12/10/2022

Liz Truss has within the past few minutes confirmed that the government is not backtracking on their plans to scrap Section 21 so-called ‘no fault’ evictions and will press ahead with the policy.

The Tories have returned to Westminster in an unsettled mood following the break for the party conferences, and MPs on all sides of the House had plenty of questions for the prime minister on a wide range of pressing matters, including housing.

During PMQs, which started at midday today, Graham Stringer, Labour MP, commented on reports that the government does not plan to proceed with Rental Reforms, including the scrapping of Section 21 eviction notices.
He said: “Going back on commitments to end no fault evictions is an act of extreme callousness.

“Can the prime minister reassure the 11 million private renters in the country that she will carry out the commitment to get rid of no-fault evictions?”
Truss replied succinctly: “I can.”

The Times reported this week that the government is expected to U-turn on plans to abolish Section 21 evictions, which caused outrage among some people. See below.

The government published its Fairer Private Rented Sector White Paper in June with plans to ban Section 21 evictions, alongside other proposals.
But the newspaper claims to have been told that the plans are no longer considered a priority and could be killed off entirely, despite being a manifesto commitment.

Steven Swinford, political editor at The Times, tweeted: “Liz Truss is shelving Michael Gove’s plans to end no-fault evictions, which were due to be introduced in this Parliamentary session.

“The Times has been told that they are not considered a priority and could be killed off entirely, despite being a manifesto commitment.”

However, Truss has now confirmed that is not the case, and it would appear that the plan will now be introduced in this parliamentary session.

Resources:
propertyindustryeye-com

11/10/2022

House prices look set to fall sharply in the coming months, with several leading analysts predicting a double-digit drop in average prices as a result of the sharp rise in mortgage rates.

The latest economist to warn that property prices will ‘inevitably’ fall, after average fixed-rate mortgage deals climbed to over 6% last week, is Roger Bootle.
With lenders continuing to push up rates in response to the rapidly rising cost of borrowing, Bootle, one of the City’s leading economists, says that averting a 1990s-style slump in the housing market is now near impossible.

In his latest column for The Telegraph he sheds light on how the UK and world economies are performing and the challenges facing the world’s policymakers.
Bootle said that as mortgages get more expensive, the impact on property prices would become more severe.

He wrote: “The last couple of weeks have seen alarm building in the mortgage market, with gathering consequences for the housing market. The latest RICS survey of surveyors; views of the market, released on Wednesday, will give us an up-to-date snapshot. How dire could things get?

“It is vital to put current developments in context. Many people will blame the government’s botched mini budget for today’s mortgage market travails. It is true that the announcement of large net tax cuts made the likely future level of Bank Rate higher.

“Also, the loss of confidence caused by how the mini-Budget was presented resulted in longer-term rates being higher than they needed to be.
“But the fundamental truth is that higher interest rates were on the way in any case. You only have to look at what other countries, led by the US, have been doing.
“And, at the bottom of it all, is a surge of inflation which has to be overcome and a tight labour market which needs somehow to be loosened up.”

Bootle reflects on the fact that the recent hike in interest rates has “shocked” a number of people because they have got used to an ultra-low level “which is without precedent in the whole of our history”.

He also pointed out that before the recent cycle of rate rises began in December last year, Bank Rate was 0.1%.

He continued: “Until recently variable rate mortgages were available at 1.5% and two-year fixed rate mortgages were at 1.1%. These mortgage rates were also without precedent.

“You didn’t need to be John Maynard Keynes [a renowned economist] to realise that this was an aberration and the medium-term risk was all one way.
“Similarly, house prices have been rising relentlessly now for many years. Since 2012, they have risen by 66%, well in advance of the overall increase in consumer prices.

“In real terms, house prices have increased by over 30%. This dramatic growth has been reflected in a record level of the ratio of average house prices to average earnings. It currently stands at 7.8, above the previous peak of 7.5, registered in 2007. The long-term average is 5.1.

Resources:
propertyindustryeye-com

07/10/2022

My name is Ian I specialise in 3-4 bedroom family homes in the Manchester area. If you want better than bank returns on your money then I can help. I have the time and experience to build great portfolios.

I am looking for investors with 40K who would like superb cash flow today and great long term growth. Do you know anyone like that?

Call 01615197318 or direct message me here

06/10/2022

Private rents have dropped in real terms over the last seven years, according to analysis of the latest official data from the Office of National Statistics by DJ Alexander Ltd.

In the seven years since January 2015 up until August 2022 private sector rents in Northern Ireland have increased by 25%; in England 15%; in Wales 9.2%; while in Scotland 8.2%. Over the same period inflation has increased by 23.15%.

Consequently, rents across the UK have fallen in real terms with the exception of Northern Ireland where they have increased by 1.85% above inflation.

Since July 2021, however, rents have increased in Scotland and rose by 3.6% in the 12 months to August 2022 (down from 3.7% in July). In England rents rose 3.4% to August 2022; were up 2.5% in Wales; and increased by 8.4% in Northern Ireland over the same period.

Although the Scottish annual rate has been higher than England and Wales each month since July 2021, over the long term since January 2015, rents in England, Northern Ireland, and Wales have risen at a higher rate than Scotland.

The Scottish agency says that rents north of the border have seen a real term cut of 14.95%.

David Alexander, the chief executive officer of DJ Alexander Scotland, commented: “It is not surprising to find that rents are rising at record levels across the UK. With inflation in double figures, it is inevitable that rents will need to rise at a much higher level to keep up.”

“Demand across all sectors of the housing market in Scotland remains strong. We are continuing to experience much stronger volumes in rentals than we have had for many years.”

He continued: “The rental market is extremely buoyant in Scotland with some areas, such as Edinburgh, extremely popular. Workers are returning from the EU, and the jobs market is booming so the demand for homes in the private rented sector is busier than ever trying to meet this demand.

“The private rented sector remains the biggest supplier of homes to workers from outside Scotland, so it is essential that it remains viable if we are to provide homes for these essential workers as they return to live and work here. The demand in the private rented sector is likely to continue for the rest of this year and into 2023 as the economy emerges from the downturn caused by the pandemic.”

“However, it is important to remember that although rents are increasing at a higher rate in Scotland, they have for many years been rising at a lower rate than the other countries of the UK. In a sense the Scottish rental market is only now catching up with the other parts of the UK. Indeed, the official ONS data highlighting a real term fall of nearly 15% in private rents over the last seven years is quite shocking.”

Resources:
propertyindustryeye-com

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