Stamp tax – Arab Center Mon, 21 Nov 2022 07:03:51 +0000 en-US hourly 1 Stamp tax – Arab Center 32 32 Inside Housing – Commentary – Five points from the fall statement Mon, 21 Nov 2022 07:03:51 +0000

Rents, rents, rents

Mr Hunt confirmed that the increase in social rents in England will be capped at 7% in April.

This is good news for social landlords compared to the government’s preferred option of 5% during the consultation, and it means they will not suffer as much of an impact on their rental income as they feared. .

However, it is still a reduction in real terms of these revenues, which will put pressure on investment in their inventory and services as well as on the remuneration of staff.

At the same time, the value of the affordable housing program funding is reduced by inflation and even greater increases in construction prices.

“The rent settlement is bad news for tenants who do not receive housing benefit, as they will now face a bigger increase than they would have hoped for, even if it is not the full of the 11.1% implied by the rent formula”

The Department for Levelling, Housing and Communities’ capital spending plans remain as they were in the spring statement, but a £1.2billion underspend last year was not postponed. After 2025, capital expenditure will only be increased in terms of cash.

The rent settlement is bad news for tenants who do not receive housing benefit, as they will now face a bigger increase than they would have hoped for, even if it is not all of the 11.1% implied by the rent formula. Owners should keep in mind that the cap is “up to” 7%.

Tenants on Housing Benefit are less at risk of having their benefits capped thanks to the above decision, but the higher rent increase means the Department for Work and Pensions will now save less on Housing Benefit .

Curiously, the Treasury’s estimates of savings from a 7% cap are much lower than those that accompanied the consultation. The background papers for the autumn statement estimated them at £630m over the next five years, while the impact assessment estimated savings of £3bn over the same period.

Part of the difference could be due to other good news for registered providers – their supported accommodation will be exempt from the 7% cap and they will be allowed to raise their rents by the full Consumer Price Index plus 1% .

Well, this wasn’t part of the fall statement as such, but there was some good news for condo owners soon after, as the National Housing Federation announced that housing associations would also be capping their rent increases to 7%.

Without it, many faced increases double those for leases tied to higher retail price inflation.

Real estate market fears

Two fall statement announcements suggest that the Treasury has already priced in a significant downturn in the housing market over the next two years.

First, the supposedly permanent stamp duty reduction announced by Mr Kwarteng will now be temporary. Threshold increases will now only last until the end of March 2025, saving nearly £4billion over the next three years.

“A borrower who contacted me on Twitter said it only covered £160 of his monthly mortgage interest payments, leaving him to find £350 of his benefits”

Unlike the permanent cut, this at least makes some sort of sense and goes back to the familiar playbook of a stamp duty holiday supporting the market during a downturn by driving trades forward.

There was also help for homeowners who will struggle to pay off their mortgage. Support for mortgage interest loans (SMI) will now be available after three months instead of nine, and the government will abolish the zero income rule to allow them to continue receiving help while working and on universal credit.

However, this help only goes so far. In previous recessions, the SMI was a benefit rather than a loan and it is still paid on a standard interest rate of 2.09%, which is well below actual mortgage rates. A borrower who contacted me on Twitter said it only covered £160 of their monthly mortgage interest payments, leaving them with £350 of their benefits.

The Office for Budget Responsibility has predicted that house prices will fall 9% over the next two years. Given that mortgage rates are also expected to be much higher than in March alongside a recession, a decline in living standards at the fastest pace on record and the highest tax burden in over 70 years, this seems a surprisingly small drop. That’s less than half the rise in house prices seen since the start of the pandemic, for example.

“Rents are certainly not the bills that worry tenants the most”

However, as former Special Advisor No. 10 Toby Lloyd pointed out on Twitter, it also points to a depressing conclusion for first-time buyers: Homes won’t get much cheaper, and mortgages are sure to get more expensive. Although a recession represents an opportunity for some, it will not last very long.

Needless to say, the tax increases didn’t include any of the property tax reforms I dragged into my pre-fall column that could have helped improve a system that seems rigged against young people without access to family wealth in same time as they generated income.

Be careful at the edge of the cliff

Rents are certainly not the bills that worry tenants the most.

Under the energy price reduction guarantee, a typical household will now pay £3,000 a year instead of £2,500 from April, saving the government £14billion.

This will be accompanied by renewed support for the most vulnerable households, including a cost of living payment of £900 for households on means-tested benefits, £300 for pensioners and £150 for people receiving disability benefits.

However, many vulnerable people will still be left behind. The National Energy Action has pointed out that those who do not receive cost of living payments face an effective 40% increase since the energy bill support program paid to all households this year does not is not renewed.

This leaves many households facing a precipice of support as they lose all support once they earn £1 more than what qualifies them for means-tested benefits and cost-of-living payments.

Many of them will also be social tenants facing the full 7% rent increase and private tenants whose LHA does not cover their rent.

Isolate, isolate, isolate

Some hope on energy bills has emerged from the Chancellor’s announcement of a target to cut energy consumption by 15% by 2030, to be led by a new energy bills task force. efficiency and £6 billion in new funding from 2025 to 2028.

At first glance, this is a welcome sign that the government is finally taking energy efficiency seriously. Yes, this is long overdue, given the drop in home insulation since green energy programs were scrapped in the 2010s, but at least it represents progress.

A report on Bloomberg has suggested that millions more households in homes in municipal tax brackets A through D will soon be eligible for insulation subsidies in signal of further announcements to come.

However, on the face of it, this is more disappointing: there is an urgent need to make homes more energy efficient now, not in 2025, and the funding is just continuing what we have seen in this Parliament. Nor is there any sign of the urgent and comprehensive plan that the Climate Change Committee recently called for in a letter to the Chancellor.

Jules Birch, columnist, Inside Housing

Change of CGT tax – It could have been worse, say the agents… Fri, 18 Nov 2022 00:02:33 +0000

Almost all the agencies that commented on yesterday’s fall statement agree – changes to capital gains tax, inheritance tax and dividend taxes will affect the rental sector private, but overall it could have been even worse.

In summary, Chancellor Jeremy Hunt has promised to maintain stamp duty reductions until the end of March 2025, after which it will increase. Capital gains tax allowances will be reduced from £12,300 to £3,000 by April 2024, while inheritance tax thresholds will be frozen.

Tom Bill, Head of UK Residential Research at Knight Frank, comments: “The reduction in the CGT exemption is an additional drag on owners but, like other announcements in the autumn declaration, it could have been worse. This will disproportionately affect owners of lower-value properties, but CGT rates have not been brought into line with income tax, so a major drop in demand or a wave of sales is unlikely. . Landlords have had to deal with a series of tax hikes in recent years, but private rental property accounts for one in five English households. At a time when the cost of living is rising so rapidly, the policy should stay anchored in the economy, encourage landlords to stay in the sector and maintain downward pressure on rents.”

Bill Harvey of the London-based specialist agency Lurot Brand says: “The increased tax burden for homeowners and changes to capital gains tax were not unexpected. However, we expect market conditions to remain the same heading into 2023, with a lack of rental supply and healthy demand from tenants looking to secure a property immediately.

And Sylvie Harris, rental director at INHOUS, says: “For the many landlords who have planned to dispose of their rental assets due to the multitude of unfavorable tax laws and changes, the announcement of the halving of the capital gains tax exemption in 2023 will be a blow. This news will make the sale less favorable for landlords and they will likely continue to rent their properties until conditions improve. However, tenants will benefit as there is already a shortage of rental properties available on the market.

Dominic Agace, Managing Director of Winkworth comments: “The move to CGT is another negative move by successive Chancellors against rental landlords, many of whom are already leaving the sector due to increased taxation, regulation and rising interest rates. This is a government objective, as the private rental sector is the only place many people can find housing if they are unable to buy. With the lack of social housing supply and the need for young professionals to be highly mobile and able to move around London and other major cities, the role of the private landlord is more important than ever and needs to be encouraged. .

Emma Hayes, Managing Director of Platinum Property Partners, sees it this way: “The cut in dividend deductions and the already confirmed U-turn in the corporate tax cut will hurt the most limited business owners, who have restructured their businesses to fight the corporate tax cut.” the mortgage interest tax relief introduced in 2017. And the capital gains tax relief cuts to £6,000 next year and £3,000 the following year could be catastrophic for cash-strapped landlords selling unprofitable rental properties. The measures could cause a mass exodus of small owners in the coming months as they try to sell before the CGT cut takes effect, which will put downward pressure on prices but upward pressure. the rise in rents as supply decreases.

Nathan Emerson, Managing Director of Propertymark, says: “Our member agents say the raised stamp duty threshold has had a positive effect on the confidence of their buyers and sellers, so we are understandably disappointed that it will be phased out by 2025. Stamp duty is not not just a barrier to entry into the property market, it prevents downsizers from freeing up much-needed family homes for second steppers. moving.

Inside Housing – Commentary – In search of new tax revenue, Hunt should look more into housing wealth Tue, 15 Nov 2022 07:06:00 +0000

A land value tax (LVT), for example, could replace business rates and stamp duty (as recommended by the Mirlees review of the tax system in 2010) and help stimulate more productive use of land and resources. buildings therein, and hence the growth .

Capital gains realized by landowners could also be taxed more effectively. As John Muellbauer argues in FinancialTimes this week, the government could reform the system of land value capture and landowner compensation to address the high land costs that are at the heart of many of our problems. This could stimulate housing construction, infrastructure and economic growth.

Meanwhile, Fairer Share is a campaign supported by all political parties to replace council tax, stamp duty and tourist tax with a proportional property tax (PPT).

Under his proposal, tenants would pay no tax and landlords would pay an annual TPP of 0.48% of their property value – but he calculates that 77% of landlords would save money.

This idea is designed to be revenue neutral, but it could be modified to generate additional revenue and increase resources for cash-strapped local authorities while removing the tax incentives built into the existing system for people to buy the most expensive house. they can afford.

“Change is not impossible – just look at how mortgage tax relief was seen as politically untouchable in the 1980s but was eventually phased out by Tories and Labor in the 1990s and 2000″

The same arguments can be made in all advanced economies. In a report released this summer, the Organization for Economic Co-operation and Development found that “the way housing taxes are designed often reduces their effectiveness, fairness and revenue potential”.

He cited examples such as recurring property taxes based on obsolete property values ​​(such as council tax), transaction taxes that reduce mobility (such as stamp duty) and tax exemptions on capital gains (such as principal residence relief).

Property tax reform would be far from simple – but add it all up and the case looks compelling, with the potential to raise incomes, increase intergenerational equity and make our tax system work better. lodging.

The problem so far has been the overwhelming political arguments against even discussing taxes on the 65% of us who own our homes.

But change isn’t impossible – just look at how mortgage tax relief was seen as politically untouchable in the 1980s but was eventually scrapped by the Tories and Labor in the 1990s and 2000s.

Jeremy Hunt and Rishi Sunak probably won’t take the opportunity next week, but they should.

Jules Birch, Columnist, Inside Housing

NSW has brought a major change for first-time home buyers. Here’s what you need to know Sat, 12 Nov 2022 07:00:00 +0000
Strong points
  • First-time home buyers in New South Wales will soon have the option of paying annual property tax instead of stamp duty.
  • First-time home buyers who purchase property up to $1.5 million or vacant land up to $800,000 will be eligible.
  • The prime minister says the reform will allow buyers to save more and enter the property market earlier.
Stamp duty is often one of the biggest costs associated with buying a home.
For first-time home buyers in New South Wales, this may soon be a thing of the past.
On Thursday, Prime Minister Dominic Perrottet’s tax legislation was officially passed by Parliament. It will offer buyers the option of paying an annual property tax rather than a flat stamp duty.
The prime minister says the reform will allow buyers to save more and enter the property market sooner, but critics say it will create uncertainty and potentially lead to higher property tax rates.

So what is the reform, who does it apply to, and will widespread adoption really help first-time homebuyers?

How will the scheme work?

Currently, home buyers pay tax in the form of stamp duty when buying a property.
The one-time payment adds thousands of dollars to the overall cost of buying a property.
Under the new legislation, first-time home buyers will have the option of paying lower annual amounts.

To qualify, it must be the buyers’ first home and cost up to $1.5 million, or $800,000 for a vacant block of land.

New South Wales Premier Dominic Perrottet said the reform will allow buyers to “cut years off” the time it takes to secure a security deposit. Source: AAP / BIANCA DE MARCHI

Buyers could access the program by Saturday if Governor Margaret Beazley approves before then.

Mr Perrottet, who has long wanted stamp duty reform, said the policy would save people more money.
“For the first time, we’ll give first-time homebuyers a choice, helping thousands of people save about two years off the time it takes to save for a deposit,” he said.
“We know there is nothing more important than home ownership, especially for young families.”

According to Treasury assumptions, the break-even period between the initial stamp duty and the annual property costs would be 36 years for an $800,000 apartment, 28 years for a $1 million townhouse, and 26 years for a $1.25 million home.

What was the reaction?

Labor has vehemently opposed the program and has pledged to repeal the legislation if it wins government in the March election.

The party called the legislation a “Trojan horse” to introduce a broad-based property tax on families, which will rise steadily over time.

“Our concern is that future governments will increase the property tax rate,” Labor Party leader Chris Minns said on Thursday.
“If you’re already on this merry-go-round, you have to trust this prime minister, and all future prime ministers, not to raise the property tax rate on your family home.”
Green MP Abigail Boyd criticized both parties for their approach to the bill and proposed that it only come into force after the election.

“It seems like an incredible waste of time and money, as well as huge uncertainty for first-time home buyers, if we allow this bill to come into effect now, to be reversed. if Labor wins the next election,” Ms Boyd told AAP.

Those who choose the annual tax will pay the equivalent of the initial stamp duty after ages 21 to 63, depending on the purchase price, said Urban Taskforce chief executive Tom Forrest.
“These changes will make it easier for first-time home buyers to enter the market and the choice, for most, will be an obvious decision,” he said.
In June, after the policy was revealed in the state budget, the director of the Grattan Institute’s economic policy program, Brendan Coates, called the plan “disappointing.”

“It is true that avoiding stamp duty will reduce the time it takes a typical buyer to save a 20% down payment by about two years. But the increased purchasing power of buyers will also slightly increase real estate prices,” he said.

“What the government gives with one hand, the housing market will partly take away with the other.
“Disappointingly, Perrottet’s policy falls short of the more ambitious proposal he presented last year.”
He also expressed his disappointment at Mr Minns’ reaction, calling the situation “the worst of both worlds”.

“Instead of a bipartisan approach to major economic reform, we find ourselves in the worst of worlds, with an opposition pledging to oppose a policy the government hasn’t even pledged to adopt. .”

What is the situation in other states?

Each jurisdiction has its own version of stamp duty, with rates and systems varying across the country.

  • Queensland: In Queensland, stamp duty rates increase with the value of the property. The top rate for properties over $1 million is $38,025 plus $5.75 for every $100, or part of $100, over $1 million.
  • Victoria: For Victorian buyers, stamp duty rates start at 1.4% of the assessed value of properties under $25,000 and go up to $110,000 plus 6.5% of the assessed value over $2 million of dollars. First-time home buyers — as well as buyers in certain areas — may be eligible for a duty waiver or concession.
  • LAW: In the ACT, the transfer tax starts at $0.60 per $100 or part thereof up to $260,000. The highest rate in the territory is a flat rate of $4.54 per $100 applied to the total transaction value for properties over $1.455 million. Certain concessions and exemptions are subject to availability.
  • Tasmania: Property transfer tax rates vary, with the highest rates (for properties over $725,000) reaching $27,810 plus $4.50 for every $100, or part, by which the assessed value exceeds $725,000. Eligible first-time home buyers of established homes may be eligible for a 50% concession.
  • South Australia: In South Australia, stamp duty rates start at $1.00 for every $100 or part of $100 for properties $12,000 and under. The highest rate is applied to properties over $400,000 and is $21,330 plus $5.50 for each $100 or part of $100 over $500,000.
  • Western Australia: For properties under $120,000, buyers will pay an assessment transfer tax of $1.90 per $100 or part thereof. The rate increases gradually, with the higher rate applying to properties over $725,000 at $28,453 + $5.15 per $100 or part thereof above $725,000.
  • North territory: In the Top End, stamp duty is calculated based on price brackets, with a formula applied for properties up to $525,000. For properties over $500,000, buyers pay a fixed percentage of the property’s value. There are discounts and concessions available for first time owners, seniors, retirees and caregivers, as well as a primary residence discount.
Beware of property tax exchange Wed, 09 Nov 2022 17:24:44 +0000

To borrow from Virgil’s classic poem on the Trojan War, Timeo politicos and dona ferentes. I fear politicians, even those who carry gifts.

Last month’s Commonwealth budget was a broad replication of more than fifteen previous budgets. Unruly spending was served, generously seasoned with trash and an election pork chop. But as bad as the Commonwealth’s debt and deficit levels are, state budgets are in even worse shape.

The New South Wales government is expected to double its debt to $106 billion over the four years to 2025. The Victoria government is only planning a 50% increase to $155 billion. Queensland is forecasting a similar 50% increase to $34 billion. These are on top of the Commonwealth’s projected gross debt of $1.091 billion in 2025. A billion here and a billion there and soon you will be talking real money.

Most disheartening is that this debt is sinking in an environment of rising interest rates necessitating higher servicing costs. But rather than undertake the fundamental work of spending reform, our governments are on a never-ending quest for more revenue.

In the four years to June 2021, total revenue for Commonwealth, state and local governments grew at a compound average rate of 3% per year, while expenditure grew by 8%. There is no fair share of tax that can ever close such a gap.

In response to this fiscal indiscipline, tax reform is regularly proposed. But whereas in the past tax reform aimed to improve the efficiency of the tax system by reducing and distributing the overall tax burden within a neutral or reduced revenue envelope, tax reform today is shorthand for tax increases .

Without irony, our governments want to improve the efficiency of the tax system to fund an increasingly inefficient spending system.

At the state level, property tax reform is the last frontier. The dream of state governments is to exchange a one-time stamp duty for a perpetual property tax. Presented as something from a measure of productivity to a measure of housing affordability, property tax reform is nothing more than a mechanism to levy ever more taxes.

Instead of tackling fraud and waste in NDIS and Medicare (estimated at a combined $14 billion a year), or tackling fraud and waste elsewhere, governments demand that more tax revenue is flowing into the ever-leaking bucket.

Property tax reform was recommended by the 2010 Henry Tax Review. Henry stated that “stamp duties are a very inefficient property tax, while property tax could provide an alternative and more stable source of income for the states”. The efficiency of tax collection and the stability of government revenue seem to take precedence over the general well-being and economic prosperity of Australians.

Proponents of a stamp duty for property tax exchange like to point to the ACT where it was implemented. In 2012, the ACT government launched a 20-year program to “modernize” its tax system. Several taxes have been promised to be abolished, including property transfer duties. It was also promised that the reform “would not increase the overall tax burden on the ACT community”. The current Commonwealth Finance Minister, Katy Gallagher, was the ACT Treasurer at the time.

Outside the halls of government, the test of the policy is what it delivers, not what it promises, and halfway through its plan, the ACT government collects double the amount of property taxes with full revenue from $0.6 billion to $1.2 billion over the ten years to 2021. And despite the commitment to abolish property transfer taxes, stamp duty revenues have increased by 25% no indication that they will ever be eliminated.

Meanwhile, the NSW Government has just introduced its Property Tax (First Home Buyer’s Choice) Bill to Parliament. If passed, this law would give first owners the choice of paying stamp duty upfront or a perpetual property tax. In his second reading speech, New South Wales Treasurer Matt Kean said “this legislation is based on a core value of this government – the freedom to choose”.

A particular focus on values ​​given some recent NSW government policies. Nevertheless, this bill would be a first step towards a “modernization” of the ACT-type property tax system.

In support of property tax reform, many compelling reasons are presented, but with little evidence. A common argument is that stamp duty is a barrier to labor mobility because high switching costs make it expensive for people to move to where the jobs are. Yet a 2020 OECD analysis studied the decline in labor mobility in the United States, a country with perpetual property taxes. The OECD concluded that “the decline in job mobility over time is mainly due to the hiring of non-employees (unemployed)”. Property and property taxes were not mentioned once.

With regard to the efficiency of collection, the property tax is also experiencing difficulties. Property tax is assessed on the unimproved value of land, but most Australians buy homes and not just land. To strike tax notices, an army of evaluators is needed, leaving the notices subject to the judgment and whim of individuals. This would be an invitation to corruption, political interference and a significant increase in judicial valuation disputes. Although mass assessments are currently used for pricing purposes, in a property tax system assessment disputes would likely increase significantly.

If good policy is good policy, then a stamp duty for property tax exchange is both bad policy and bad policy.

According to the New South Wales Treasury, “at present, owner occupiers own approximately 67% of the private housing stock in New South Wales”. The Treasury also estimated that a property tax for exchanging stamp duty “would increase ownership by about 6.6% in the long term”. Besides the shamelessness of such precision in modeling the behavioral impacts of a complex change, it misses the obvious. That 67% of homeowners, increasing to 74% “long-term”, who currently pay no annual property tax would be required to do so. As Sir Humphrey might suggest, a brave move.

The ultimate results of property tax reform on the real estate market are uncertain, but not on income. A stamp duty for exchanging property taxes would make it considerably easier for future governments to raise revenue, as happened in the ACT. And increasing property tax revenue doesn’t just require increasing rates. Governments can quietly inflate land values ​​and revenues by means such as slowing land release, complex development requirements and increasing immigration.

Australians should be wary of politicians offering freebies. After all, we pay the bill.

]]> One year later, NMRDA has yet to sign PMAY rental deeds | Nagpur News Sun, 06 Nov 2022 23:27:00 +0000 Nagpur: Even though PMAY beneficiaries were granted possession of apartments more than a year ago, Nagpur Metropolitan Area Development Authority (NMRDA) did not sign a lease deed with them . This will add a financial burden of more than 64,000 rupees to them.
This is apparent from a letter written by BJP East Nagpur MP Krishna Khopde to Deputy Chief Minister Devendra Fadnavis a few days ago.
“Homeless people have been allocated apartments by the central government and state governments under Pradhan Mantri Awas Yojana (PMAY). The government also gave them subsidies. The beneficiaries – poor and mostly working people – face the daunting task of paying high stamp duty for the lease deed, which they cannot afford. Therefore, they should be facilitated by the lease deed at a nominal stamp duty of Rs 1,000,” Khopde wrote in the letter.
NMRDA and BJP state chairman Chandrashekhar Bawankule also wrote letters on May 14 and September 17, respectively, to the government asking for the same, Khopde’s letter said.
Stamp duty is charged approximately 7% of the total value of the apartment in the city. The total cost of a PMAY apartment is Rs9.15 lakh, hence the stamp duty amount is Rs64,050.
A few beneficiaries told TOI, “We had to borrow to pay Rs 6.65 lakh to NMRDA. The majority of us have obtained loans at higher interest rates and paying the equivalent monthly installments (EMI). Even though we paid a one-time maintenance fee of Rs 25,000, the possibility of incurring other such costs cannot be ruled out as the build quality is very poor.
“Even after paying the full amount, many facilities were not provided in the apartments. Gram panchayat asks us to pay a property tax of 1300 rupees. Nagpur Improvement Trust (NIT) has also issued a sight note asking for Rs 505 as land rent. We also have to pay for electricity and drinking water,” they said.
“The apartment scheme is located on the outskirts of town, so we had to buy two-wheelers for commuting and also spend on fuel. We are already in deep trouble and can no longer afford to bear any additional financial burden,” they said.
Beneficiaries had paid Rs1,000 to Rs2,000 as registration fees when submitting applications.
NMRDA officials say the government has been asked to exempt recipients from paying stamp duty. “We will follow any decision made by the government,” they said.
While granting property rights, the government had taken a conscious decision to exempt slum dwellers who set up slums by encroaching on land owned by the state or its agencies from paying any charges – cost of land , land rent or stamp duty. However, similar exemptions have been ignored in the case of PMAY recipients. ]]>
8 tax-free residences for first-time buyers Thu, 03 Nov 2022 10:50:56 +0000

Stamp duty reductions mean those who buy a first property in the new zero rate bracket now save up to £6,250. Photo: Connells

The combination of the rising cost of living, high mortgage interest rates and a substantial drop in the number of low deposit mortgages has created a perfect storm for first-time buyers.

However, the stamp duty reductions announced in the recent mini budget are partly making it easier for them to move up the property scale, as the pre-tax threshold which comes into force at 5% has been raised from £300,000 to £425,000. £ for first-time buyers (and £125,000 to £250,000 for movers), meaning first-time home buyers in the new zero rate bracket now save up to £6,250.

Two-thirds of properties in England are now exempt from stamp duty, including this selection for sale, according to Rightmove.

1. Grand Mongeham, Deal, Kent, £225,000

Great Mongeham, Deal, Kent, £225,000. Photo: Bright and Bright

This mid-terrace cottage could be a great choice for first-time buyers. Photo: Bright and Bright

If you’d like to buy a house but are convinced your budget won’t stretch that far, this characterful mid-terrace cottage will prove you wrong.

The front door opens into a comfortable living room, and there is a kitchen with seating and dining area, a double bedroom, an office/dressing room, a first floor shower room and an enclosed courtyard to the back.

Great Mongeham, Deal, Kent, £225,000. Photo: Bright and Bright

The front door opens into a comfortable living room and there is a kitchen with seating and dining area. Photo: Bright and Bright

Deal town centre, waterfront and Walmer and Deal stations are easily accessible. On the market through Bright & Bright.

2. Lumina, Camberley, Surrey, £262,500

Lumina Landscaped Gardens.  Photo: Berkeley Group

Residents have access to a private gym, a cinema room and a flower garden on the roof. Photo: Berkeley Group

Only one fifth floor one bedroom apartment remains in this completed town center project which is opposite the train station and minutes from Camberley’s shops, restaurants and bars.

A state-of-the-art business lounge with wifi, desks and meeting spaces makes it ideal for someone working from home, and residents have access to a private gym, cinema room and thriving rooftop garden. For more information, contact the Berkeley Group.

3. Worcester, £300,000

Worcester townhouse.  Photo: Allan Morris

This Worcester townhouse has been completely remodeled and offers plenty of space for a growing family. Photo: Allan Morris

Unique and convenient to the town centre, schools and train station, this beautiful red brick Victorian townhouse has been completely renovated and offers plenty of space for a growing family.

The accommodation is spread over three floors – plus a cellar – and comprises a glazed lounge, Shaker style kitchen/dining room, study, four bedrooms and a practical storage room with its own entrance which could be adapted to be used as a a desk. Learn more about Allan Morris.

4. The Ridings Longridge, Lancashire, from £310,000

Constituencies Longridge, Lancashire.  Photo: Prospect Homes

This new build is part of a development of three and four bedroom family homes in a rural Lancashire market town. Photo: Prospect Homes

For the ultimate in hassle-free cushions, check out The Cavendish, a new four-bedroom home that happens to be a show home and is being sold fully furnished.

All bedrooms are double and there is a spacious lounge, kitchen/breakfast room with bar, adjoining utility room, main bathroom, shower room, cloakroom and integral garage.

It is part of a development of three and four bedroom family homes in a rural market town considered the gateway to the scenic Ribble Valley and Forest of Bowland, an area of ​​outstanding natural beauty. Through Prospect Homes.

5. Montgomery Place, Market Drayton, Shropshire, £363,500

Montgomery Square, Drayton Market, Shropshire.  Photo: Tilia Houses

This four bedroom home is located in a subdivision just outside the town center and close to several schools. Photo: Tilia Houses

You won’t need to increase the size any further if you buy this brand new double fronted detached house, as it is spacious enough to be your forever home.

Situated in a development just outside the town center and close to several schools, it comprises four bedrooms, en-suite and family bathrooms, a dual aspect kitchen/diner, lounge with double doors leading out to on the garden, an office, a laundry room and a cloakroom. .

Book by November 30 to get your mortgage paid off for a year. From Tilia Homes.

6. Holbeach, Lincolnshire, £399,950

Holbeach, Lincolnshire.  Photo: Fine & Country

This traditional Lincolnshire country house has already been renovated and extended. Photo: Fine & Country

All the hard work has been done for you in this traditional country house, as it has been renovated and extended and is bright and light throughout.

The ground floor consists of a living room with a wood stove, a dining room, a kitchen/dining room with an island and a laundry room, and upstairs three bedrooms and a shower room.

Holbeach, Lincolnshire.  Photo: Fine & Country

The ground floor consists of a living room with a wood-burning stove, a dining room, a kitchen/dining room with an island and a utility room. Photo: Fine & Country

There is also a sunny garden, parking for several cars on the gravel driveway and an electric car charging station. By Fine & Country.

7. Telegraph Hill, London SE14, £400,000

Telegraph Hill, London SE14.  Photo: Winkworth

This one bedroom apartment could be a perfect choice for first time buyers in London. Photo: Winkworth

A beautiful one bedroom apartment on the ground floor of a converted period house in a tree lined street between Nunhead and Brockley, just south of New Cross.

Telegraph Hill, London SE14.  Photo: Winkworth

The property has a large open plan kitchen/living/dining room with integrated appliances and exposed brickwork. Photo: Winkworth

It has a large open plan kitchen/living/dining room with integrated appliances and exposed brickwork, fitted wardrobes in the double bedroom, a contemporary bathroom and a private part of the garden. Learn more about Winkworth.

8. Coventry, bid over £400,000

Berkswell Hall.  Photo: Connells

This two bedroom house is set in a former stable on the grounds of Berkswell Hall, a stately 19th century stack that has been converted into apartments. Photo: Connells

As starts, this one is a bit larger than most as it is in a former stable in the grounds of Berkswell Hall, a stately 19th century stack that has been converted into apartments.

Features include an open plan kitchen/diner and living room with patio doors to the private garden.

Berkswell Hall.  Photo: Connells

As boot pads go, this one is a bit larger than most. Photo: Connells

There are two double bedrooms and two bathrooms – one with a roll-top bath – and high ceilings, sash windows and wonderful countryside views. Contact Connells.

Watch: How much money do I need to buy a house?

RBA set to impose another rate hike; 162nd Melbourne Cup underway; voters divided on wage reform; Iran steps up crackdown on women’s rights activists Mon, 31 Oct 2022 23:08:49 +0000

To announce the news now, and the Victorian government will enter caretaker mode from 6pm (AEDT) ahead of this month’s election.

It comes as the Deputy Premier of Victoria says she is not worried about the number of undecided voters. A recent poll revealed that 27% of voters had not made a decision.

Victorian Deputy Prime Minister Jacinta Allan.Credit:Justin McManus

Jacinta Allan told the ABC RN breakfast that Victorian Labor is focusing on growing the economy, supporting teachers and nurses and building infrastructure projects.

“A lot of people hold their decision formally until they get closer to the day, so it’s probably not that surprising, and I’m sure we’ll see that number go down,” she said.

The Deputy Prime Minister was also asked about Visit Victoria’s decision to sponsor Netball Australia despite the state’s $9.7billion deficit.

“I think it’s a great investment,” she said.

ABC presenter Patricia Karvelas explained to the Deputy Prime Minister why the government chose to intervene on the matter after Gina Rinehart withdrew her $15million sponsorship deal with Netball Australia.

Here is the response from the Labor frontbencher:

The visitor economy is a big part of the Victorian community and way of life and is a big supporter of employment. And diamonds are our global [netball] team, having them proudly display the Victorian logo and Victorian branding showcasing Victoria to the world and in turn continuing to support jobs in this very important part of our economy.

And regarding the question you asked about [budget] numbers that came out yesterday…we’re on track to be back to surplus in three years. We’ve had a very big job to do over the past few years where we’ve had to make sure that, during the most difficult times of the pandemic, Victorian businesses and households were supported.

‘PAA pushes Punjab to bankruptcy’: Congress slams state government for heavy borrowing Fri, 28 Oct 2022 17:30:27 +0000

Punjab Congress Speaker Amarinder Singh Raja Warring has slammed the AAP-led state government for running up Rs 11,464 crore in debt over the past six months.

Chandīgarh,UPDATED: October 28, 2022 10:59 PM IST

Punjab Congress Speaker Amarinder Singh Raja Warring said there was a sharp decline in revenue collection in terms of sales tax and stamp duty, two important indicators of economic and business activity. (Picture: Twitter)

By Lalit Sharma: Punjab Congress Speaker Amarinder Singh Raja Warring has warned the Aam Aadmi Party (AAP) against fiscal profligacy, which can push the state into bankruptcy.

Pointing out that the AAP-led government in Punjab has already incurred debt of Rs 11,464 crore in the past six months, Warring said the total borrowing will exceed Rs 1 lakh crore in five years.

In September, the AAP-led government of Punjab collaborated with the World Bank, under which the international monetary institution is set to lend $150 million for the Building Fiscal and Institutional Resilience for growth (BFAIR) project. ).

Warring said there was a sharp decline in revenue collection in terms of sales tax and stamp duty, two important indicators of economic and business activity.

The collection of additional revenue shown under the heading excise was due to the posting of a security amount by alcohol entrepreneurs. “It’s just a juggling of numbers, when in reality there is no increase in revenue,” alleged the congress leader.

Read also | Punjab Excise Department brings in over Rs 4,000 crore in six months for first time

Warring said that despite such a precarious financial situation, the state government was shamelessly spending money on advertisements and that too in outlying states such as Gujarat and Himachal Pradesh. “You will have to account for every penny you waste that should otherwise be spent for the welfare of the people of Punjab,” he said.

Warring warned against such reckless spending of borrowed money. “You are pushing Punjab towards bankruptcy,” he said, while criticizing the government for presenting the borrowed money as “income”.

Autumn Statement: what’s next for London’s ‘nightmare’ property market? Wed, 26 Oct 2022 10:59:20 +0000

he political and economic chaos raging in the UK is boiling over into the London property scene as chains collapse, buyers put plans on hold and the capital’s housing market regresses into a pre-Covid state of malaise.

London’s estate agents had been waiting for September to come to get stuck into a busy autumn selling season, but the mini-budget at the end of the month set off a roller coaster of events that sent interest rates and mortgage repayments soaring and triggered the turn of the housing market.

Britain now has its third prime minister in seven weeks, and Monday’s fiscal statement has been postponed to November 17 — making it possibly the most highly anticipated Autumn Statement of all time.

Jamie Durham, chief economist at PwC, believes the quick appointment of Rishi Sunak as prime minister could have a stabilizing effect but will not bring interest rates back down to the historic lows of the past decade.

The four Chancellors of 2022 — so far (lr: new PM Rishi Sunak, Nadhim Zahawi, Kwasi Kwarteng, Jeremy Hunt)

/ PA

“One thing is for certain,” he says, “interest rates over the medium term will be materially higher than those since the global financial crisis of 2008, which will have an inevitable impact on the housing market and people’s ability to borrow and spend.

“People will ask, ‘Do I feel financially secure enough to buy a new home?’ and for many the answer will be, ‘No.’”

Haunted by the Nineties

Most people don’t foresee a return to the dark days of the 1990s, rather a flashback to post Brexit-vote stagnation.

Those who need to move might buy a smaller property or one without a garden. This would reverse some of the buyer behavior of the pandemic era, during which house prices in the capital have risen 14.4 per cent — almost £70,000 — on average between September 2020 and last month, according to the Land Registry.

Durham does not expect a wave of distressed sales (when homeowners are forced to sell off their properties cheaply and quickly) or a crash.

He does predict that prices will go back to what they were three or four years ago — before the 2019 Conservative general election win and subsequent “Boris bounce” — when London house prices were slowly declining and had dropped 1.4 per cent in a stagnant market shrouded by Brexit uncertainty.

“There will be fewer people chasing each property and less overbidding. In all, the market is likely to move much more slowly than we have seen over the last three years,” Durham adds.

‘Trying to sell is a nightmare’

Bex Burn-Callander is trying to sell her flat in Lewisham but hasn’t had a viewing in two weeks

/ Adrian Lourie

Author Bex Burn-Callander, 39, is feeling the real effects of this turbulence. She has always lived in London but is now trying to sell her £550,000 three-bedroom Lewisham flat with roof terrace to buy a multi-generational house in Yorkshire.

Burn-Callander is a carer for her mother, who lives in Pimlico on the other side of London, so with her husband Patrick and their two small children, they are moving north to buy a bigger place all together.

“The plan is to sell both our homes and buy a place together around York, which has great schools and is midway between London and Whitley Bay—where Patrick is from,” the author says.

First, they must sell the two flats, in very different parts of the capital, which has got harder since the mini budget.

“It’s a nightmare. We listed our property more than two weeks ago and haven’t had a single viewing. Our estate agent, Sebastian Roche, says the market is extremely challenging,” she says.

“It seems like no one is looking to buy now because mortgage rates are sky-rocketing — everyone is waiting for a bit of political stability.”

Her mother has just instructed an estate agent and is getting ready to list her Pimlico flat too.

As well as the sale, they are also watching mortgage rates closely. “We’re in a bit of a bind because we have to sell two properties before we buy our next home. If mortgage rates are ridiculously high at that point, we may need to rent for a year or so until they come back down,” she says.

“It is hard because I really want to take care of my mum and be closer to Paddy’s family. We have no control right now.”

Will the Autumn Statement help?

Chancellor Jeremy Hunt was scheduled to deliver the new Government’s financial plans on Monday — Halloween. The fiscal statement has now been postponed to November 17 and will be an Autumn Statement.

While estate agents, buyers and vendors all hope the Chancellor will keep the stamp duty reductions introduced by Liz Truss, the new system — which scraps the tax levy on homes for first-time buyers up to £425,000 — is a blunt tool without addressing the scarcity of mortgage products.

“We would like to see how the existing stamp duty cuts will be implemented and maintained to encourage buyers and stimulate the housing market and see the Government reveal plans to help first-time buyers through other incentive schemes,” says Simon McCulloch, boss of conveyancing Smoove website.

Jeremy Hunt is scheduled to deliver an updated fiscal plan on Halloween

/ PA

Just to rub salt in the wound for those who dream of owning their own home, the Halloween statement was due to happen on the same day as the Help to Buy deadline — the last chance for first-time buyers to purchase a property using the government loan equity scheme.

The programme, which has been running since 2013, enables first-time buyers to borrow a mortgage on a new-build home with a five per cent deposit.

Without it, they now face two hurdles: the 10 per cent deposit needed in London and the ability to make higher monthly mortgage repayments. McCulloch is calling for plans to incentivize mortgage lenders to re-introduce affordable rates or for the Government to extend Help to Buy.

“We could see bigger stamp duty cuts in certain areas of the country, or named investment zones, to help the leveling-up process,” says Lawrence Bowles analyst at Savills.

Headed for a house price horror show?

It is still too early to see sales and prices drop in the data. In September Rightmove recorded a two per cent increase in demand on the previous year and a 6.9 per cent increase in the average asking price to £695,600.

So far there have been fewer price reductions in London — 31 per cent of homes on Rightmove have been reduced in price compared with 33 per cent last year and 36 per cent in the muted market of 2019.

This reflects the deal flow of buyers who are close to exchange or completion and have already secured a good mortgage offer. But some sales are starting to fall through.

“We have already noticed a significant drop in inquiries since the mini-budget,” says north London estate agent Jeremy Leaf.

“Clearly many buyers, particularly those taking their first steps on the ladder, have pressed the pause button because they just aren’t sure how much their mortgage costs are likely to increase.”

Ahead of the Savills official house price forecasts next week, Bowles predicts a slowdown of the average annual house price growth by Christmas, from 5.4 per cent in September in London to around five, and a slide of 10.1 per cent to 7.5 per cent across the UK.

Chris Druce of Knight Frank concurs with research showing prices in London peaking last August.

Leading commentators are using the term price “correction” or “adjustment” which means falling house prices but to a lesser extent than a crash.

Existing homeowners shouldn’t be spooked

Estate agents are now basing their forecasts for the next year on the base rate peaking at below 5 per cent, markedly different to the close-to-zero we have been used to but still below the seven per cent expected.

There are already signs of stabilization in the mortgage markets for existing homeowners. Since the mini-budget when mortgage products (especially high loan-to-value) were pulled off the market to be re-priced there has been a recovery in the lower risk categories.

For those second- or third-time buyers who are moving house or whose contract is coming up for renewal, there are options such as switching to an interest–only mortgage temporarily; extending the term of the mortgage to bring the repayments down; or taking a mortgage payment holiday.

“There are a range of emergency options to help these people to avoid repossession or distressed sale which aren’t available to those taking out a mortgage for the first time,” says Bowles.

He also advises researching on where there are variable rate loans at 2.59 per cent (as of Friday, October 21) which is much lower than the two-year fixed rates of closer to 6 per cent.

“The bank rate would have to make very big jumps very quickly to get caught out,” he says.

Younger people unable to save for a deposit due to rising rents will move back to the family home (repeating the pattern of the pandemic) and more people will start to share accommodation to bring rents down (reversing the pattern of the pandemic), he says .

accidental landlords

Adrian Lourie

A slow sales market but hot rental market is going to push would-be sellers into becoming accidental temporary landlords, Bowles predicts.

Danielle Bennett lives with her partner in a top-floor, duplex apartment on the Tooting Bec Heaver Estate, a conservation area of ​​Victorian architecture.

The 37-year-old lawyer, who can work between the Manchester, Leeds and London offices, is planning to tear herself away from her “split-level, light and airy flat” to Harrogate to be closer to her family.

“I am incredibly sad to leave but I am starting a new chapter with my partner and want to be close to my niece, parents and grandparents,” she says.

Bennett is unphased by the economic turmoil, having bought the two-bedroom apartment in the middle of the pandemic, and she has had viewings for the £675,000 flat in the past fortnight.

However, if she cannot sell Bennett is also considering switching to a “consent to let” mortgage.

Rather than a buy-to-let mortgage at a higher interest rate, a consent to let agreement is for a short period of time only. She is also investigating Airbnb as a “plan C”.