Press Round Up March 2024

Mon 15 Apr 2024

House prices rose in February, according to Nationwide building society. However, Jeremy Leaf, principal of Jeremy Leaf & Co, warned in The Guardian against focusing too much on property prices when calculating how the housing market is doing: “In our offices, more valuations, listings and viewings combined with fewer fall-throughs than this time last year are feeding through to agreed sales, mortgage approvals and exchanges.”

In his Spring Budget, Chancellor Jeremy Hunt announced a reduction in capital gains tax from 28 to 24 per cent on the sale of second homes. Michael Zucker of Jeremy Leaf & Co told The Evening Standard: “This is more likely to reduce rental stock further as those landlords on the brink of selling up will be encouraged to do so.” Jeremy Leaf expanded on this in Country Life: “This could further reduce the availability of rental property and push up rents, making it more difficult for tenants and young people in particular.”

Research shows that the high cost of moving means homeowners are staying put in the same properties for longer. Jeremy Leaf told Mail Online: “People living in houses often want to move and have good reason to do so but are deterred by various factors. It has a lot to do with economics and practicalities. The pandemic put lives on hold and accelerated trends which were already underway. With the race for space, and particularly outside space, those with houses with gardens felt there was no real reason to move. Also, these homes provided the opportunity for older children who were starting work the option to stay at home longer than they might otherwise have done. The situation has evolved and with more returning to work, once again those with larger houses are considering their options as lifestyle choices become more straightforward. It is certainly not cheaper to move home than it was a few years ago because prices have continued their rise upwards but we are seeing much more flexibility in choice of accommodation and more willingness to consider a move now so I would expect the picture to change gradually over the next few years.”

Average asking prices rose by 1.5 per cent in March, according to Rightmove. Jeremy Leaf told This is Money: “More listings mean buyers are often spoilt for choice, so are not rushing to take the plunge. Some were holding back from making offers in expectation of Budget giveaways or further mortgage rate cuts which have not really materialised. On the other hand, the market remains price sensitive, with only realistically-priced property attracting attention. Those sellers who appreciate that, if they receive enquiries in the early days of marketing, they are much more likely to find a buyer, are taking most advantage of increased demand.” He explained further in Forbes: “Although these are asking or aspirational prices, rather than selling prices of new listings, this data reflects some interesting market trends, which we’ve also seen on the ground."

If you live in a block of flats and want it run more cost-effectively, it may be worth acquiring the ‘right to manage’. Jeremy Leaf told The Telegraph: “Under current legislation, the ‘right to manage’ applies to leaseholders of a building containing a minimum of two flats. At least two-thirds of the flats must be owned by long leaseholders and at least half of the flats in the building held by long leaseholders must take part."