Mr Cable's comments are a reaction to the growing concerns being voiced about the cost of housing in the UK and the suggestion that many young people cannot afford to get themselves a place on the property ladder because too many homes being are snapped up by wealthy foreign buyers, apparently. Boris Johnson backed a similar tax on foreign buyers just a few days before. 

Speaking of the proposed tax, Sir Vince said that the UK "must end the stranglehold of oligarchs and speculators in our housing market”. He added that making sure people in the UK have more access to homes will become a major part of his party's agenda behind its opposition to Brexit. 

“I want to see fierce tax penalties on the acquisition of property for investment purposes, by overseas residents,” he added, while speaking at a party conference in Bournemouth. He added that in the future, housing will be a bigger part of the Liberal Democrat agenda, apparently he foresees a “new generation of garden cities and garden villages” nationwide. Sounds idyllic but who will own them?

Back in the real world, we found the residential lettings market in September to be busy whilst the sales market remained slow – prices have hardened and intending purchasers are wary of over-paying in a market where confidence in the economy is weak.

The market is price sensitive so in order to receive an updated market valuation for your property please contact our Sales Manager Nigel Richards by calling 020 7619 6589 or by email NR@stadiumresidential.com – alternatively for rental values and advice please contact Alex Giraldin on 020 7619 6590 or email AG@stadiumresidential.com

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Hot Property News - September 2017

Here is a summary of the key changes and news in the mortgage and housing market for the month of September 2017.

The Bank of England voted 7-2 to keep the base rate on hold, as revealed in the minutes of the meeting released recently. With most experts noting the increase in the split to raise rates and the increase in the inflation figures, there is more “noise” on the chances of a base rate rise. This forecast has now been revised from “in the next 12 months” to imminently in many quarters. With the Brexit negotiations and the recent upturn in the EU economy, the UK will still have to look competitive, so the Bank of England may be forced to increase the base rate soon.

TSB have announced a new range of rates, following price reductions across the range. 5 year fixed rate have been cut by 0.10% - 0.25% and this includes some rates with no fees. An example of this is a 2.14% 5 year fixed for those borrowers with 25% deposit. This is a good move from TSB and also could start the other lenders moving to review rates soon.

Barclays have launched its lowest ever 2 year fixed rate offer to borrowers.  At 1.09% with £999 fee, borrowers with a 40% deposit, are able to take advantage of some great rates at the moment. With an anticipation that Autumn could be a busy period for mortgage lending before a possible base rate increase, this is another lender keen to increase their market share.

Clydesdale Bank have announced its lowest ever rate through brokers. On offer at the moment is a 2 year fixed at 1.24% and a 5 year fixed at 1.89%. Both rates are at 60% loan to value ratio and for a lender that has some unique and flexible lending policy, this is a good addition to the current range. This is also a good sign that banks are still keen to lend, even those that have not always looked at price as a strategy to increase business.

The political parties are in the midst of their party conferences which usually throws up a few gems at this time of year.

In Jeremy Corbyn’s speech at the recent Labour party conference he committed the party to introducing rent controls if they were elected, he told delegates “We will control rents, when the young generation’s housing costs are three times more than that of their grandparents. That is unsustainable.”

“Homes should be for the many not speculative investments for a few.”

“Rent controls exist in many cities across the world and I want our cities to have those powers too and tenants to have those protections”

Andrew Gwynne, Labour’s general election co-ordinator suggested that open market rents have soared under an unregulated rental market and action is needed to bring the costs down which will be fleshed out in a Green Paper in due course which should be interesting reading. I love creative literature.

No further details of how rent controls would work precisely were given in the speech, presumably the magic wand needed to be recharged.  However, Andrew Gwynne later said “if New York has them (rent controls) then London can have them.” New York has five boroughs, Brooklyn, Queens, Staten Island, the Bronx, and the best-known of all, Manhattan and as far as I am aware rents are not controlled in Manhattan so how would it work here? Rents controlled in Brixton but not Bayswater?

Also on the offensive, Vince Cable, the leader of the Liberal Democrats, has called for a new "fierce tax" on UK property investments made by overseas buyers in a bid to reduce the flow of money from other countries coming into the UK residential property market. I don’t know why because European buyers have been conspicuous by their absence since the Brexit vote.

Mr Cable's comments are a reaction to the growing concerns being voiced about the cost of housing in the UK and the suggestion that many young people cannot afford to get themselves a place on the property ladder because too many homes being are snapped up by wealthy foreign buyers, apparently. Boris Johnson backed a similar tax on foreign buyers just a few days before. 

Speaking of the proposed tax, Sir Vince said that the UK "must end the stranglehold of oligarchs and speculators in our housing market”. He added that making sure people in the UK have more access to homes will become a major part of his party's agenda behind its opposition to Brexit. 

“I want to see fierce tax penalties on the acquisition of property for investment purposes, by overseas residents,” he added, while speaking at a party conference in Bournemouth. He added that in the future, housing will be a bigger part of the Liberal Democrat agenda, apparently he foresees a “new generation of garden cities and garden villages” nationwide. Sounds idyllic but who will own them?

Back in the real world, we found the residential lettings market in September to be busy whilst the sales market remained slow – prices have hardened and intending purchasers are wary of over-paying in a market where confidence in the economy is weak.

The market is price sensitive so in order to receive an updated market valuation for your property please contact our Sales Manager Nigel Richards by calling 020 7619 6589 or by email NR@stadiumresidential.com – alternatively for rental values and advice please contact Alex Giraldin on 020 7619 6590 or email AG@stadiumresidential.com

02.10.17 - Selling
By Graham McKee
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