Housepresso: 21 Mar 21
All you need to know about the housing market this week in one quick hit
UK Housing market worth £7.56 trillion – how much is your house worth?
The latest research from Savills estimates that the UK housing stock is now worth £7.56 trillion, more than four times the value of the FTSE 100 – the biggest 100 companies on the London Stock Exchange. The value rose by £380bn during 2020, whilst most of the UK economy is down and out during the pandemic the housing market is going from strength to strength.
To find out how much your home is worth visit twindig.com
Capital Gains Tax Reform
Tuesday 23rd March is ‘Tax-day’ where he UK Government might signal a change in Capital Gains Tax rates, perhaps bringing them in-line with income tax rates, which would mean some hefty increases on the gains of buy to let properties. Capital Gains Tax exemptions may also be capped on primary residences and with house prices at record highs one can understand why the Government may be considering such a move
Property logbooks a step closer
The Government supported Home Buying and Selling Group launched its BASPI (Buying and Selling Property Information) form this week. The aim is for sellers to get sale ready by completing the form early in the sale process, to speed up the sale, so that buyers, agents, conveyancers and mortgage brokers have all the information they need to complete the purchase and sale. If it sounds like the ‘HIPS’ (Home Information Packs) from a few years ago that is because they are similar, but the current stamp duty holiday-induced bottlenecks have increased the desire by all involved to once again try to speed up the home buying and selling process.
95% LTV mortgages are back
Yorkshire Building Society (YBS) is the first lender to launch a 95% LTV Mortgage product since the start of the COVID-19 pandemic. The launch comes shortly after Chancellor Rishi Sunak announced he would launch a Government-backed 95% LTV mortgage guarantee scheme. The YBS product is not part of the Government scheme, but first-time buyers will be hoping it is the start of a competitive mortgage market for those with smaller deposits. The five-year fix is offered at 3.99% with a £995 fee.
YBS was quickly followed by the Bank of Ireland offering a 5-year fix at 4.05% with no fee. Expect more high LTV products to come in the coming days, weeks and months.
Land Registry going digital (again..)
Following on from the acceptance of e-signatures, this week the Land Registry introduced its first Digital Identity Standard meaning that conveyancers can use digital services to verify their client’s identities securely and safely on-line. With the shift to remote working and staying at home, this is a big and welcome step for such a paper-based institution.
Need a bigger housing market fix?
If this week's Housepresso has merely whetted your appetite rather than quenched your thirst for housing market news, you get get a fuller picture with Houselungo our longer look at this week's housing market news