The UK housing industry is facing serious headwinds, both immediate and long-term, says property firm Jones Lang LaSalle.
The firm says ‘the straitjacket imposed by the lack of finance has been firmly tightened and economic conditions are unsupportive’.
In its latest piece of residential research, the Jones Lang LaSalle report hits out at Stamp Duty rates, which it says are stifling activity. The firm calls for a reduction across the board, with a progressive marginal rate replacing the current slab structure, by which Stamp Duty jumps as soon as the purchase price reaches certain levels.
The report says that this year’s Budget has pushed much of the London housing market into limbo, with continuing uncertainty over changes in tax for owners of £2m-plus properties. London’s high rental prices have also had to come down, because of tenants baulking at paying them.
The report also says that more needs to be done to stimulate house building, including a new planning class for ‘build to rent’ schemes.
The firm is forecasting 0% house price growth for the UK this year, and warns that the continued mortgage lending squeeze and demands for high deposits will push more and more people into the private rented sector.
The firm says: “The main questions are where the stock will come from, who will invest and what happens when buying becomes more viable?”
Neil Chegwidden, residential research director at Jones Lang LaSalle and author of the report, said: “We believe further measures and more innovative solutions are needed if serious inroads are to be made into the obvious, fundamental and medium-term problems within the UK housing industry.”
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Comments
number 10 get loads of letters everyday most of which get a standard reply...anyone who thinks they have an important point that the pm is keen to discuss is mad a s a hatter!
I wrote to someone...they replied...therefore I am important
"I recently wrote to the PM about this. Apparently my letter has been forwarded to The Treasury to answer.
This article is bang on the money and more agents and property professionals should write to their MP and the PM to make the point." .............Yeah you do that . After all you will have a lot of spare time on hands in the coming months. Like the Government are really going to take seriously a load spotty, poorly educated urchins in a polyester suits.
It's that pesky 'lack of finance' again eh?
Not the pesky 'house prices are too high for the next generation to have a hope of buying'.
If only the banks would start lending 300k to every young couple things would be absolutely fine again.
Pesky banks. And pesky savers too. Why don't people save more so the banks can lend more? Okay, you only get a couple of poxy percent on your savings, you lose money in real terms but think of the good you're doing. Helping youngsters to get their heads in the debt noose is something we should all surely aspire to.
Muppets.
what people have forgotten is that the REASON interest rates were reduced to 0.5% is because things were so very very bad
In fact they are worse than anyone can imagine...similar to greece
Its only a matter of time before the whole thing unwinds
p.s.there is always demand for property,but there is a lack of demand for credit at this level of prices together with an increase in lenders criteria
some flats are already unmortgageable(over 3 floors,rear entry over shop etc etc
".......The firm calls for a reduction across the board, with a progressive marginal rate replacing current slab structure, by which Stamp Duty jumps as soon as the purchase price reaches certain levels....".
The 'slab structure' is the most stupid system, is unfair and distorts the market. The government should change it immediately.
If the Government would only listen, but it won't so there we are. High taxes are the norm mow.
They need the money more than house buyers do, so there you have it
There is no lack of finance. We are in a depression and there is a lack of demand for credit. Nobody wants it. At times like this people generally want to pay down debt not take on more.
“We believe further measures and more innovative solutions are needed if serious inroads are to be made into the obvious, fundamental and medium-term problems within the UK housing industry.”
And yet there's no mention in this article of the most obvious problem. Head still firmly buried in the sand.
forget writing to your mp...the fact is that houseprices are way way too high as much as 50%...thats why lenders want large deposits and 'the best candidates'
we are in a porperty bubble that is bursting
when prices really start falling turnover will accelerate and when prices fall 30-50% banks will start lending 90-100% mortgages again
p.s
the government are not the slightest bit interested in anything the people have to say
I recently wrote to the PM about this. Apparently my letter has been forwarded to The Treasury to answer.
This article is bang on the money and more agents and property professionals should write to their MP and the PM to make the point.