In our latest blog post, we provide you with a roundup of the latest property news from April 2016. Read on to find out the hottest stories and discover how they may affect you.
Changes to Tax – Government legislation
April sees the beginning of the new tax year. This year’s tax changes, which came into force on April 1st, requires buy-to-let home buyers and second home buyers to pay a 3% surcharge on stamp duty.
Lloyds Banking Reveals Surge in Buy-to-Let Lending – The Guardian
Lloyds Banking Group have revealed a surge in buy-to-let lending and second-home buying. The UK’s largest mortgage lender believes that the surge is down to people buying before tax changes, which came into force in April and are mentioned above.
This announcement follows a trend for 2016. Last month, the Council of Mortgage Lenders also revealed that there had been a 22% year-on-year rise to January in buy-to-let mortgages. It is now thought that this will slow in the run up to the EU referendum.
UK House Prices Edge Up 0.2% - The Guardian
April also saw house prices edge up 0.2%, with Nationwide placing the average value of a UK home at over £202,000, with the market confounding forecasts of a sharp drop.
The average price paid for a property during April was £202,436 and the £200,000 barrier was broken in March.
The monthly rise was the lowest since November and brought the year-on-year rate of increase down to 4.9%, down from 5.7% in March.
First Time Buyers Need £90,000 Salary to Pay off Help to Buy Loan in Five Years – The Telegraph
Research conducted by The Telegraph has revealed that in order to pay off one of the government’s Help to Buy loans within 5 years, a first time buyer would have to be earning £90,000 a year. The five year mark is significant because it marks the end of the interest free period.
Once the interest free period is up, the charges add up to thousands of pounds. This cannot be offset because as the property increases in value, so too the government’s share increases.
The loans are for people looking to buy properties to the value of £600,000 with a deposit of 5% and a 55% mortgage.
Housing Investors Sound Alarm Over Brexit – The Telegraph
A survey of global investors who pay billions of pounds on British properties has led to an alarm sounding over Britain potentially leaving the EU.
According to the survey, two thirds believe that Britain leaving the EU would damage the property market, leading to less inward investment.
A majority also thought that an initial period of uncertainty after Britain voted to leave the EU could be more damaging to the real estate market than a stable post-Brexit world.
The Paradise Island that Costs Less than a House in the UK – The Independent
And finally, The Independent discovered that you can buy an island just off the coast of Australia for just over £150,000. It’s located just off the coast of Tasmania and is accessible via a 10-minute boat trip.
The buyer will have to share the 1.5 hectare piece of land with three other families.
That concludes our roundup of the top property news for April. Be sure to check back in next month and see our property roundup for May.
Image courtesy of iStock.
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