Pulse & plus points of the early 2015 market

Once again, early year market activity has not disappointed. This is the fifth January in-a-row where the residential sales market has hit the ground running as soon as we returned to our desks.

To recap, 2014 was a year of two halves.The first six months saw strong activity right across price ranges – quite frankly, the starting gates flew open. But just as we were about to loosen the reins and push on into a full gallop, the Bank of England halted the momentum with its cautionary suggestion of an earlier increase in interest rates than predicted. Greater mortgage regulation helped slow the pace even more.

A long-term comfort to our market, however, is that Mark Carney so clearly adapts to market reactions. Latest predictions now expect the ‘new normal’ level for rates to sit at around 2-3% and, also, that the incremental increases may not start until Q4 2015 but, in all likelihood, in 2016. With low inflation, the crude oil price meltdown and weak wage growth, it looks like 0.5% may be banked upon for this present year.

The 2014 Autumn Statement announcement of stamp duty reforms was a surprise but it’s proving a good thing for the greater bulk of the market in that house purchases less than £937,500 will now face lower stamp duty charges. Above this threshold, the market is already beginning to absorb the changes and the higher cost of moving is now being consistently raised in our sales negotiations between purchasers and vendors.

The Christmas holidays are always an important decision-making time for both buyers and sellers. And, such is the pace of modern consumer demand, people seek immediacy as soon as the decision has been made to move. Hence we now advise vendors to launch to market as early as possible in the new year to, quite frankly, embrace and satisfy the “I want it now” mentality.

Marketing in the first three months of 2015 is more important than ever this year with the General Election bearing down on us on 7 May, as we anticipate a nervous pre-election lull in April. The mansion tax, or variations of it, favoured by both the Labour Party and Liberal Democrats is already having an unsettling impact on the prime markets both in and outside London. Should I put my money on it, I cannot visualise these pre-election manifesto proposals becoming post-election policies but who’s to say?...

So, the year has started with strong apres-Christmas pent-up demand, a renewed confidence in interest rates staying at 0.5% and continuing confidence in property as a non-volatile asset (unlike the recent performances of the stock market, currencies and commodities, not to mention oil). Average UK house prices are anticipated to rise by 3.5% in 2015 with ‘steady-as-she-goes’ growth over the next 5 years – some suggesting by 18%.

With the coalition government ‘consciously uncoupling’ itself into distinct blue and yellow rosette stances when it comes to views on housing market intervention, it is unlikely that the Spring Budget will see any significant policy initiatives which will have a direct impact on the housing market, such as Help to Buy or further SDLT reforms.

The only certainty about the General Election when it comes to the housing market is the date itself. So if you’re in the market for a move, we’re saying best make it now.

Caroline Edwards
Partner
Residential Sales, Long Melford
T: 01787 888622
E: caroline.edwards@carterjonas.co.uk

Lack of gas safety certification will have major consequences

British Gas has revealed that 14 per cent of landlords among their customers who took part in a survey knew nothing about gas safety regulations.


It would be nice to think they had just sampled the wrong customers but that’s not likely to be the case.

With recent prosecutions seeing several landlords fined heavily for not having gas safety certificates for their properties and the startling results of that survey, perhaps it’s timely to remind all our landlords that gas safety inspections are a vital part of being a responsible landlord.

Sometimes it’s easier to remember essential electrical safety checks just because the signs of the power source are so obvious with sockets and plugs in virtually every room.

Gas, though, especially when powering hidden equipment such as boilers, is less apparent and much easier to ignore. Sadly, when things do go awry it’s also more difficult to detect. True, straightforward leaks are apparent by the smell of the escaping gas but when a gas appliance malfunctions in its combustion or exhaust processes the resulting leak of CO, a highly toxic and invisible gas with no odour, can have disastrous consequences. Victims of CO poisoning can, at worst, drift totally unaware into a deep sleep from which they never awaken.

Every landlord should ensure that all gas supplies and appliances are checked and certificated every year without fail. Where we are instructed to manage your property, we will arrange this on your behalf.

Lisa Simon, 

Partner Head of Residential Lettings

T: 020 7518 3234 

E: lisa.simon@carterjonas.co.uk

Hot topic: Housing in rural areas

The provision of housing in rural areas in particular is always a controversial topic; landowners are often eager to see development on the edge of a village so they can profit from the development value of the land while neighbouring householders very often don’t want development “in their back yard”.

This can lead to prolonged and expensive planning applications and one of the tactics used by those protesting against development is to try to get the land which is the subject of the planning application allocated as a “Village Green”. Very many such applications appear to be spurious, but the cost of defending such a claim can be enormous and the claim may ultimately frustrate a development altogether.

However, this tactic has been recognised by government as not being in the wider public interest and they have amended the law accordingly. Thus under the Growth and Infrastructure Act 2013 landowners can now proactively protect their land prior to making a planning application so as to avoid a subsequent “Village Green” application.

The process involves the landowner depositing a statement and map with the commons registration authority (the County Council), effectively bringing to an end any period of use “as of right” for lawful sports and past times on the land to which the statement relates. The deposit of the statement will not prevent the start of a new period of recreational use as of right, but the landowner may deposit further statements to interrupt future periods of use.

This extends the protection which is already afforded to landowners in relation to linear public rights of way where a similar deposit can be made under the S31(6) of the Highways Act 1980 whereby the landowner can register those rights which exist so as to prevent new rights of way being inadvertently created.

So, if you are a landowner and wish to protect your land against a “Village Green” application or claim for a new public right of way it is suggested you should look in to depositing the appropriate statements and plans now because the relatively modest upfront cost of doing so could save you or your family a huge sum of money in the future.

James Stephen MRICS FAAV
Partner
Rural Practice Chartered Surveyor, Wells
T: 01749 683381
E: james.stephen@carterjonas.co.uk