With Brexit looming, is it a good time to sell a home? Buyers have less negotiating power thanks to lack of choice, Rightmove boss claims.

Antony Antoniou - Editor of the Northampton Property Post

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With Brexit Looming Is It A Good Time To Sell A Home

Both Labour and conservatives announced the intention to withdraw the Section 21, but what does this mean for you?

Labour has launched its general election manifesto, promising to “transform” the UK with what some commentators view as the most ambitious - and most costly - pledges ever made. 
The manifesto sets out plans for the private rented sector, which includes the introduction of open-ended tenancies, the scrapping of Section 21 and new rent controls, designed to restrict rent increases to inflation.
The party has also proposed the introduction of nationwide licensing as well as new minimum standards for the PRS. 
Although not all the proposals will be welcomed by landlords, Labour’s pledge to support landlords who let to tenants in receipt of benefits by ending the freeze on Local Housing Allowance (LHA) and realigning LHA to the 30th percentile of local rents is likely to prove popular. 
Landlords will also be pleased to see Labour promise to pay the housing element of Universal Credit directly to landlords, as well as end Right to Rent checks.
Looking at Labour’s wider housing policy, the party will aim to build 150,000 council and social homes annually, end the Right to Buy of council homes, launch a £1bn Fire Safety Fund to fit sprinklers in all high-rise council and housing association tower blocks. 
Labour will also introduce mandatory building standards and guidance, overseen by Fire and Rescue Service fire safety officers, end homelessness within five years, support restrictions on short-lets, tax properties used as holiday homes, and do more to support leaseholders.
David Alexander, managing director of Apropos by DJ Alexander Ltd, commented: “Everyone involved in the housing sector will welcome the Labour party’s plans to build more social housing. There is a growing need for social housing due to the rising population, the increase in the number of smaller households, and the ageing population so more homes are urgently required.”
“However, hostility to the private rented sector (PRS) is implicit in the Labour party leader’s policies.”
Alexander added: “The Labour manifesto seeks to vilify the private rented sector and blame landlords for all of the woes of the housing sector. The truth is that the PRS has stepped in and resolved a property shortage caused by successive governments lack of investment in social housing. Punishing this sector is not the way forward.
“The manifesto mentions rent controls, which generally don’t work and result in newer tenants paying more than their predecessors as initial rents are set higher to cover the fixed rents of the earlier tenants. Policies that aim to punish the PRS could result in large numbers exiting the market and if that happens, then Labour will have to build a lot more than one million homes in ten years.”

The Property Show Withdrawal Of The Section 21

Buy-to-let repossessions surge in Q3 2019


The number of private landlords’ properties being repossessed jumped by 40% year-on-year in the third quarter of 2019, figures from a trade association show.

There were 800 such repossessions of buy-to-let mortgaged properties in July to September 2019, up from 570 in the corresponding quarter in 2018, UK Finance said.

The increase in landlords losing their homes has happened despite continued low mortgage rates generally.

UK Finance said the recent increase in repossessions has been partly driven by a backlog of older cases being processed in line with the latest regulatory requirements.

But somewhat alarmingly, the data also shows that there were 4,550 buy-to-let mortgages in arrears of 2.5%  or more of the outstanding balance in Q3 ‘19, up 5% year-on-year. 

Meanwhile, the number of landlords in arrears of between 5% and 7.5% of the outstanding balance fell by 21% over the year, however, the number of those in more serious arrears of between 7.5% and 10% shot up by 9%. 

The number of landlords in arrears over 10% of the outstanding balance dropped by 1%, the UK Finance figures revealed. 

David Smith, of the Residential Landlords Association, told the press:  “Repossessions for mortgage arrears take place for many different reasons. 

“Mortgage interest relief changes, which are now almost fully implemented, the increasing cost of regulation and the ever increasing time to repossess a property are all major factors.'

“Since most repossessions of this kind lead to tenants being evicted it is vital that the next government actively supports the majority of landlords doing a good job to provide the homes to rent the country needs.

“If we want to develop long-term tenancy models we need also to support landlords to stay in the market long term.”

Buy - To - Let Repossessions Surge In Q3 2019

Jones Lang LaSalle is forecasting that the UK housing market is ‘coming to the end of a long period of uncertainty’


The UK housing market is showing signs of recovery following a prolonged period of uncertainty, according to JLL. 

The property firm forecasts that the residential property market will remain somewhat subdued in the short-term due to political uncertainty caused primarily by Brexit, but predicts a brighter future ahead once the uncertainty is out of the way. 

JLL’s UK and London Residential Forecast Report, ‘Living with 2020 Vision’, projects that house prices will increase by an average of 14.8% over the next five years, with growth in regions such as London, Yorkshire & Humber and East of England set to outperform the national average.  

JLL predicts that the private rented sector will experience ‘renewed energy and vigour’ following a slow five years. 

Across the UK, JLL expects rental growth to improve by an average of 12% by 2024, with fundamental population changes, such as shrinking family size, longer life expectancy and demand for flexible, urban living space supporting the growth of renting.

The positive outlook for the housing market matches the forecast for the national economy, with GDP growth estimated between 1.7-2.0% pa.


As one of the fastest growing, dynamic and innovative cities in the world, London is set to lead the way in terms of growth. 

Far outshining the rest of the country, annual GDP growth in the capital during 2021-2024 is predicted to grow between 2.3-2.5% pa. 

Regardless of the anticipated exit from the European Union in early 2020, the London economy will, according to JLL, attract renewed business investment and confidence, catalysing growth overall.

Nick Whitten, director of UK Living Research & Strategy, JLL, said: “We’re coming to the end of a long period of uncertainty and 2020 marks a key moment in time for all of us to reassess and firm up the infrastructure and economies that will support the UK’s future success.

“As we approach the General Election, we expect housing to ride high on the political agenda, as society faces fundamental social changes our towns and cities will see the highest housing demand. 

“We are seeing an ever-increasing connection between living and technology, as well as growing climate and social awareness, and it is vital that the key political and economic stakeholders, investors and developers embrace these new opportunities to ensure the UK economy and housing market can achieve the momentum we predict for the next five years.”

UK Housing Market Is Coming To The End Of A Long Period Of Uncertainty

Cautions, Charges & Usufruct

What Is a Usufruct?
A usufruct is a legal right accorded to a person or party that confers the temporary right to use and derive income or benefit from someone else's property. It is a limited real right that can be found in many mixed and civil law jurisdictions. A usufructuary is the person holding the property by usufruct.


A usufruct combines the two property rights of usus and fructus. Usus refers to the right to use something directly without damaging or altering it, and fructus refers to the right to enjoy the fruits of the property being used – that is, to profit from the real property by leasing it, selling crops produced by it, charging admission to it, or similar.

Usufruct is usually conferred for a limited time period. It can be granted to the usufructuary, or person holding usufruct, as a way to look after property until the death of a property owner and the estate can be settled if the property owner is in ill health. While the usufructuary has the right to use the property, they cannot damage or destroy it or dispose of the property. A usufructuary does not have full ownership of the property, because they do not enjoy the third property right, abusus, which refers to the right to consume, destroy, or transfer ownership of the property to someone else.

How a Usufruct Works
In usufruct, a person or group has the right to use the property of another. They do not own it but have a contractually sanctioned interest in it. There are two types of a usufruct: perfect and imperfect. In perfect usufruct, the usufructuary can use the property, and can profit from it, but cannot change it in a substantial way. For example, if the owner of a business becomes incapacitated and gives usufruct to a relative to run the business for him or her, the usufructuary can run the business, but can’t sell it or tear down the building and rebuild it. In an imperfect usufruct system, the usufructuary does have some power to alter the property, such as when a landowner grants usufruct to a piece of land for agricultural use. The usufructuary may have the right to produce crops from the land and to make improvements to the land that would aid in that endeavor. However, the usufructuary does not own these improvements; when the usufruct ends, they belong to the original owner or to his or her estate.

Usufruct is only recognized in a few jurisdictions in North America, such as Louisiana. As an example, if a party has a usufruct in a real estate property, they have the full right to use it or rent it out and collect the rental income without sharing it with the actual owner, as long as the usufruct is in effect.

Usufruct Example
For example, Bert has been granted usufruct over Helen's property. Helen's property is a bed and breakfast with a large yard that needs tending. Helen is in ill health and can no longer tend to the property and run the business. Bert, as the usufructuary, has the right to use the property and run the business on Helen's behalf for the time the usufruct is in effect. The usufruct may be in effect until Helen's death when the estate will be settled and the property will be passed on per act of law or the directions in the estate.

Cautions, Charges & Usufruct

January Market Report,

House price growth reached 4% in the year to December 2019 despite pre-election jitters, Halifax’s House Price Index found.
Prices rose by 1.7% on a monthly basis, bringing quarterly growth back up to 1.0%.
Jeremy Leaf, north London estate agent and a former RICS residential chairman, said: “On the back of the largest monthly increase for the year in November, prices are up even more in December on a monthly and annualised basis.
“But price rises are reflecting more of a shortage of stock at the moment than significant increases in        demand and not widely in London where affordability is most stretched.”
Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “The housing market surged in  December, according to Halifax, with the biggest monthly increase in prices all year.
“Several factors were responsible – the Conservative victory in the general election, finally giving them a mandate to get on with Brexit and lenders concentrating on year-end and offering cut-price deals.
“It also helped that buyers and sellers who have had enough of all the delays decided to just get on with their transactions.
“The signs are encouraging for 2020 with lenders keen to lend and plenty of money available to do so. It is a good time to be a borrower, less so a saver.”
The typical UK house price now stands at £238,963.

Property prices should rise by 2% in 2020 now the Conservative Party has secured a majority, Rightmove has forecast.  It added that sellers’ pricing power will be enhanced by a lack of choice for potential buyers, with the proportion of estate agent stock that is available for purchase at its lowest for over two years. Miles Shipside, Rightmove director and housing market analyst, said: “The greater certainty afforded by a majority government gives an opportunity for a more active spring moving season, with some release of several years of pent-up demand.
“Given the Brexit track record to date, further political twists and turns should not be ruled out, though with a large majority there is a higher possibility of an end to the series of Brexit deadlines, and the prospect of an orderly resolution.
“Rightmove measures the prices of 95% of property coming to market, and we predict that buyers and sellers will on average see a 2% rise in those prices by the end of 2020.
“While this is over twice the current annual rate of 0.8%, it’s still a relatively marginal increase as it’s a price-sensitive        market.”
Shipside added that there will be regional variations. London is apparently showing tentative signs of bottoming out, while a more modest of increase of 1% is expected in Southern regions. Sales numbers agreed so far in 2019 are down by 3% on 2018, while number of properties coming to market have fallen by 8%.
Josef Wasinski, co-founder of Wayhome, said: “Aspiring homeowners will be waiting to see how their route to homeownership might be impacted by the new government. “A whole host of political issues and challenges face the Prime Minister and high on the agenda should be the homeownership crisis – which is a chronic problem.
“The reality for many is that buying a home is only possible with the help of friends and family.
“Thousands of reluctant renters will continue to be ignored without radical change from the Conservative party and we     welcome any efforts to address this long-standing issue.”

January Market Report

« Volume of portal listings carrying virtual viewings surges during pandemic
Propety Q&A 15th May 2020
Video Player


00:00
15:44


Propety Q&A 15th May 202
 

In this episode, I respond to the following questions:

Elena Haniotis
Hi, do you know if there are any 85% LTV mortgages available? The mortgage I had a decision in principle on before the lockdown was withdrawn, but the house I'm after is still available, but I only have 15% deposit.

Colin Chapman
Hi Antony, my wife and I had an offer accepted just before the lockdown, if the property market is volatile at the moment, do you think we should withdraw our offer?

Mark Jeffries
Wonderful topic Antony Antoniou. I'm trying to work out the best way to hand over my home to my children, to avoid any complications in the future, but my wife is concerned that she could be bullied out of her home if anything happens to me, as she is their step-mother. I've enquired about trusts, but they seem expensive and I'm not completely convinced that she will be safe. Have you had any similar cases? Any suggestions?

Michael Bateman
Hi Antony, we had our eye on a beautiful home, but our sale stalled due to the lockdown. I'm now concerned that we won't sell in time to buy this house, do you have any suggestions please?

If you have any questions about property, please feel free to comment or contact me directly.

Any suggestions I make are purely suggestions, you should always seek professional advice on any financial matter

Property Q&A 15th May 2020

Today's question:
I am thinking to move up and take advantage of the low interest rates, but I am worried about a property crash and interest rates rising, what are your thoughts?


For further information, valuations, marketing, help finding your next home, or if you would like further information on BUYING, SELLING, INVESTING, OR RENOVATING, please feel free to contact me directly.

Antony Antoniou
Office: +44(0)1604 807308
Mobile  +44(0)7564 161436
property@antonyantoniou.com

Property Q&A Interest Rates

The Northamptonshire property market has enjoyed a lot of interest over the last few months, with the majority of property on the market, being SSTC.
The ratio of to property SSTC to property available is 66.6% which is up by over 14% over the last 2/3 months.