Michael Gove faces pressure to reconsider health and safety regulations impacting homebuilders. Implemented two years ago, the rules mandate upper-floor windows in new homes to be at least 1.1 meters from the floor, resulting in gloomier properties. Critics argue these regulations hinder traditional architectural styles and compromise livability. A government review is underway, with optimism among critics that the rules will be amended or scrapped entirely.
The luxury property market in London is experiencing a significant downturn, with sellers reducing prices by up to 30% in prestigious areas of the city. Fatima and Eskandar Maleki sold their Mayfair mansion at a 33% discount, reflecting the challenging landscape. Similarly, a Kensington mansion sold at a 17% drop. This decline is attributed partly to a UK budget proposal eliminating tax advantages for wealthy foreign residents, deterring investors. The market's woes extend beyond London, impacting high-end country homes as well.
Homebuyers may qualify for Stamp Duty Land Tax (SDLT) refunds if they paid higher rates when purchasing their new home and sold their previous main home within three years. HMRC must receive refund requests within specific timelines, with exceptions for exceptional circumstances.
London's housing market has lagged behind the UK due to high property costs, post-pandemic trends, and rising mortgage rates. Data shows a 4.8% drop in London house prices in February 2024, contrasting with the UK's 0.2% contraction. Factors include affordability issues, Brexit, and changes in the mortgage market. The "race for space" post-Covid prolonged London's underperformance.
The Church of England warns of potential funding losses under Michael Gove's leasehold reforms. The proposed changes, including capping ground rents and abolishing marriage value, could detrimentally impact charities reliant on freehold income. The Church Commissioners anticipate significant reductions in income from properties like the Hyde Park Estate. Critics advocate for amendments to protect investors and businesses.
In summary, London's luxury property market faces challenges as prices decline, Gove reviews window regulations, SDLT refunds offer relief for homebuyers, London's housing market lags behind the UK, and the Church of England warns of funding losses under leasehold reforms.
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Farnaz Fazaipour 0:00
The prophecy bulletin by London property the home of super prime.
Outro 0:06
Pressure is mounting on Michael Gove to reconsider health and safety regulations impacting home builders, which are resulting in diminished window sizes in new constructions implemented two years ago by the government. The regulations mandate that upstairs windows and new build homes must be positioned at least 1.1 metres from the floor, purportedly to reduce the risk of falls. However, this requirement has led to the creation of homes described as gloomier and darker, with smaller windows that limit natural light and views. Concerns have been raised by experts and industry insiders who argue that these rules are counterproductive and inhibit the creation of homes in line with traditional architectural styles. Nicholas Boies Smith, chairman of the Create street Think Tank expressed apprehension that the regulations are incentivizing the construction of homes with extremely small windows impacting their livability and aesthetic appeal. Example of new homes adhering to these regulations showcase cramped upper storey windows, prompting calls for a review of the rules. Critics argue that complying with these regulations often leads to costly and impractical solutions, such as installing bars or ceiling windows shut, which detract from the overall quality of housing. While the government conducted a consultation with house builders last year to review the regulations, the outcome is eagerly anticipated. There is optimism among critics that the government will either amend or scrap the regulations entirely, recognising their practicality and adverse impact on housing, design and quality of life. As discussions continue, stakeholders await the government's response to the consultation, hoping for a reconsideration of the regulations to ensure that future homes are both safe and conducive to a high quality of life. Luxury London mansions and are fetching significantly lower prices, signalling a downturn in the high end property market. Wealthy sellers eager to close deals amidst the slump are slashing prices by up to 30% in prestigious areas of the city. Last year, a fatter man Iskander Maliki hosted a lavish party at their Mayfair mansion, hoping to attract buyers. Despite their efforts. They eventually sold the property to a buyer from the Middle East at a staggering 33% discount from its initial 14 million pound asking price. Similarly, a mansion in Kensington recently sold for about 30 million pounds, a substantial 17% drop from its original listing. These price reductions reflect the challenging landscape of London's luxury real estate market, now favouring buyers. The markets decline can be attributed in part to a UK budget proposal, aiming to eliminate tax advantages for wealthy foreign residents, deterring some investors. With property valuations plummeting and sales dwindling, sellers are forced to cut prices to secure transactions. Even beyond the capital, luxury property markets are feeling the impact with high end country homes experiencing a similar decline in demand. While some remain optimistic about future market recovery, the current state reflects a significant shift in dynamics, with buyers now enjoying greater bargaining power and sellers facing tough decisions on pricing. Despite the challenges, London's view of affluent buyers endures, suggesting potential for a rebound once market conditions stabilise. London's housing market has lagged behind the rest of the UK for the past eight years, due to several factors including high property costs, post pandemic housing trends and rising mortgage rates. Official data reveals a 4.8% drop in London house prices in February 2024 Compared to the previous year, contrasting sharply with a nought point 2% contraction across Britain. This decline positions London as the worst performing region despite remaining the most expensive part of the country. The divergence in house prices between London and the rest of the UK has been consistent since 2016, mainly due to affordability issues in the capital and the pandemic's impact on urban migration, while UK house prices rose by 37% Between February 2016 And February 2024, London saw only a 10% increase, affordability constraints, Brexit and regulatory changes in the mortgage market have all contributed to London subdued performance. The trend of race for space post COVID, where buyers sought larger homes further prolonged London's underperformance exacerbated by the Bank of England's interest rate hikes, while rental costs are expected to stabilise opinions are divided on the future of house prices in London. Some analysts believe the city is becoming more affordable, while others anticipate continued underperformance in the near future. The Church of England has voiced concerns over the potential impact of micro NGOs leasehold reforms, cautioning that charities stand to lose significant funding under the proposed changes. In a statement delivered in the House of Lords. The bishop of Manchester David Walker highlighted the unintended consequences of the leasehold bill on charities reliant on freehold income. The proposed reforms include capping existing ground rents and eliminating marriage value, a charge typically applied to leases under 80 years old, are intended to protect lease holders. The church argues that these measures could detrimentally affect charities benefiting from marriage value. The Right Reverend Professor David Walker emphasised the disproportionate impact on charities pointing out that many leasehold has benefited from marriage value or wealthy individuals or overseas entities. He raised concerns about the potential diversion of funds from Charity purposes to affluent lease holders, characterising it as a river As Robin Hood's scenario, the church commissioners overseeing a substantial endowment fund predominantly invested in real estate anticipate a significant reduction in income from properties like the Hyde Park estate. If marriage value is abolished, this reduction would directly impact charitable activities supported by the Church of England. Additionally, other charities such as the John Lyons, charity and the Wellcome Trust, are expected to suffer substantial financial losses under the proposed reforms, further highlighting the potential adverse effects on the charitable sector. Critics advocate for amendments to the bill, including a grandfathering provision for existing leases under 80 years to mitigate the impact on freehold investors and protect British Property businesses. In response to Whitehall saw suggested a potential compromise to address concerns while achieving the bill's objectives. The church commissioners and other charitable organisations are lobbying for exemptions from the proposed abolition of marriage value, citing the detrimental impact on their ability to fulfil charitable missions. Despite the government's intention to reform the leasehold system to benefit millions of lease holders, concerns possessed over the unintended consequences on charities and private investors alike. If you paid higher rates of stamp duty land tax SDLT when buying your new home, you might qualify for a repayment after selling your previous main home. To apply, you must have sold your previous main home within three years of buying the new property unless exceptional circumstances apply. For property sold on or after 29th of October 2018 HMRC must receive your refund request within 12 months after the sale or 12 months after the filing date of the SDLT return for your new main home. For property sold before that date. The deadline is three months after the sale or 12 months after the filing date of the SDLT return for your new main home. In case of a delay in selling due to exceptional circumstances, you can still apply for a refund if you purchased your new home on or after first of January 2017. Once the reason for the delay ends, you must sell your previous home without further delay and provide an explanation to HMRC along with required information.
Farnaz Fazaipour 6:59
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