Are changes to stamp duty and pension reforms bringing a bounty of new buyers to the market, creating a bumper year for North East property?
The announcement last year on the changes of Pensions are due to come into effect this April these will allow savers over 55 greater freedom to take their pensions as a lump sum, with a so called “silver landlords” likely to take advantage of the return on their investment offered by buy to let properties by buying homes to rent out pushing up prices.
Chancellor George Osborne also announced in December’s autumn statement the homebuyers that are purchasing properties with less than £937,000 will pay less stamp duty cutting £1000 from the cost of buying a North East home and encouraging more buyers into the market.
Expected delays and low inflation in lifting interest rates have also led to suggestions of a “mortgage price war” as several major lenders launch New Year “record low” fixed-rate deals.
Mortgage approvals, this week have hit a 17-month low and are 23% down on this time last year.
Ajay Jagota, founder and Chief Executive Officer of KIS lettings agents, nonetheless predicts a “bumper year” for North East property
“Despite what the doom-mongers might tell you, 2015 has all the makings for a bumper year for North East property. The ease of pension regulations will undoubtedly bring more purchasers to the market both as owner-occupiers and buy-to-let investors, rising up prices. At the same time, stamp duty changes will make it cheaper and easier to buy a home. The North East rental yields are as good as any in the UK and as rental returns rather than capital appreciation are key to making money out of property, out region stands to gain the most. As a result I think we can expect to see double digit house prices growth in the North East 10% seems a good bet with rents set to rise in the region of 6%
North East have all the correct conditions existing , low prices, high rental yields, strong demand, affordability of mortgages – means that if buyers and investors decide 2015 is a time to buy then self-fulfilling prophecy could raise prices just like they did in London.
As a result, bargain hunters need to strike early to get the best deals, and should stick clear of signing lengthy tenancy agreements if they’re renting at the moment and are looking purchase”