UK Property prices rise after stamp duty cut, say Rightmove
The UK housing market is rebounding fast after a tax cut by the Chancellor Rishi Sunak, according to the property website Rightmove.
The number of sales agreed in England soared by 35% in the five days following Rishi Sunak’s announcement on July 8, Rightmove said.
The property market was showing signs of recovery, from a low in April, with agreed sales in England up 15% in June.
Sunak raised the threshold for paying the stamp duty tax on property purchases up to £500,000 until March 31, 2020.
Rightmove added that asking prices rose by 3.7% between June and July, with Estate Agents reporting increased interest and a shortage of property for sale.
However, mortgage lenders Nationwide and Halifax reported falls in house prices and mortgage approvals which slumped to the lowest on record in May, according to Bank of England data.
Rightmove said buyer enquiries across the UK since the start of July leapt by 75%.
Last week, Andrew Bailey, the Governor of the Bank of England, said there were signs of activity returning “quite strongly” in the housing market.
During the lockdown visits to Rightmove’s website fell by 40% and most agents were closed for business.
The news comes at a time when hardly a day goes by without another announcement of redundancies and losses by a major employer. As many as 9 million workers are still on furlough and the OBR said unemployment could reach 4 million if the economy does not bounce back quickly.
Mortgage shortage coming as lenders start to tighten their belts, due to Coronavirus
Mortgage loans are being squeezed as lenders reduce number of products
Banks have informed the Bank of England that the supply of credit will fall this summer due to coronavirus pressures.
Lenders are taking a cautious approach to offering home loans, which is understandable in the current market where borrowers face uncertainty over their jobs and income. Lenders fear the number of borrowers defaulting on repayments could rise again.
Borrowers are reporting long delays in getting mortgages agreed and processed as lenders deal with backlogs.
Is it still worth investing in buy-to-let property?
Investment in buy-to-let properties can still be profitable when done professionally. However, there are still many other opportunities to make money in property without the need for buy-to-let mortgages, large deposits or high rates of tax.
- Mortgages will become more difficult to obtain with less products
- Mortgages are more expensive and less competitive fixed rate offers
- Demand for new mortgages is down say lenders due to lockdown
- Government planning CGT ‘tax grab’ on buy-to-let property investors
- “No DSS” tenant blanket ban by buy-to-let landlords ruled ‘unlawful’ by Judge
- UK economy grew by 1.8% in May, 24.5% smaller than it was in ONS reports
- UK’s mobile providers will be banned from buying new Huawei 5G equipment
- Singapore’s economy plunged by 41% in the last quarter the largest fall ever
- Nationwide now lending 90% for first time buyers reversing previous change
- Stamp Duty slashed until 31 March 2021 by raising the threshold to 500,000
- Chancellor Rishi Sunak keen to boost the property market and “build build build”
- New planning rules will open up more opportunities to make money in property
- Opportunity is everywhere for everyone, especially in property! But you have ACT!
- Even the ‘Secret law of attraction’ requires you to get off your ass and TAKE ACTION!
- Homeowners will get vouchers of up to £5,000 for energy-saving improvements
- The poorest will receive up to £10,000 in £2 billion energy saving grant scheme
- Will your job be one of millions phased out by automation, innovation and AI?
- You don’t need your own money to create a second income in property
- Time to your economy or Uconomy started whatever the economy is doing!
- You can create a second income during the lockdown…and come out stronger
- Learn how to make money from property without deposits, mortgages or cash
Millions of people face a bleak future post-Coronavirus lockdown, as businesses disappear and the job furlough scheme eventually comes to an end. However, life doesn’t have to end because of lockdown! You can join thousands of ordinary people who have increased their income and added streams of new income during this period.
Are you ready to adapt to the new economic model?
As lockdown restrictions around the world are being eased, the economic model has subtly changed forever. How will you adapt to this new way of working and running a business, what obstacles and opportunities lies ahead? Will you be a participant or spectator in this revolution?
By Charles Kelly, Property Investor, Author of Yes, Money Can Buy You Happiness and creator of Money Tips Podcast.
There are more examples and practical steps to getting rich and being happy in my book, Yes, money can buy happiness, I cover the 3 R’s of Money Management, the Money B.E.L.I.E.F System and much more. Check it out on Amazon http://bit.ly/2MoneyBook.
If you’d like further information on how to survive the crisis and even quit the rat race, email me at Charles@CharlesKelly.net or send me a message through Facebook or my Money Tips Daily community. See more articles at www.moneytipsdaily.com