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Truss to announce stamp duty cut – report

UK housebuilders rallied on Wednesday following a report that Friday’s mini-budget could include a plan to cut stamp duty.

According to The Times, prime minister Liz Truss will announce the move in the mini-budget in an attempt to drive economic growth. It was understood the PM and chancellor Kwasi Kwarteng have been working on the plans for more than a month.

Truss believes that cutting stamp duty will encourage economic growth by allowing more people to move and enabling first-time buyers to get on the property ladder, The Times said.

It cited two Whitehall sources as saying that cuts to stamp duty were the “rabbit” in the mini-budget, which the government is billing as a “growth plan”.

Under the current system, no stamp duty is paid on the first £125,000 of any property purchase. Between £125,001 and £250,000 stamp duty is levied at 2%, £250,001 and £925,000 at 5%, £925,001 and £1.5m at 10% and anything above £1.5m at 12%. For first-time buyers the threshold at which stamp duty is paid is £300,000.

During the pandemic, then chancellor Rishi Sunak lifted the stamp duty threshold to £500,000.

At 0910 BST, Persimmon shares were up 5.4%, while Taylor Wimpey and Barratt were up 4% and Berkeley was 3.5% firmer. On the FTSE 250, Redrow was 5.6% higher, while Bellway and Crest Nicholson were up 3.6% and 3.4%, respectively.

Tom Bill, head of UK residential research at Knight Frank, said: “Nobody can accuse the new government of lacking an economic vision. If its low-tax approach extends to stamp duty, recent history tells us it will trigger higher levels of demand in the housing market at a time when mortgages are getting more expensive, which will support social mobility.

To find out more about how we can assist you with your HMO Mortgage please click here

“Prices could move higher in the short term if supply initially struggles to keep up but more balanced conditions will return provided the cut is immediate and permanent.”

Neil Wilson, chief market analyst at Markets.com, referred to the potential stamp duty cut as “the old Tory trick of juicing the housing market in its heartlands to boost confidence (wealth effect) whilst doing not a lot for housing supply”.

“I’m not for concreting over the green belt at all, but there will be questions about the economic soundness of this policy, as there always is. However, with interest rates rising so quickly, an offset to the cost of buying a home would grease the wheels of the market -without higher rates could cause the housing market to seize up.”

He added: “Clearly a stamp duty cut is good news for housebuilders who can expect higher selling prices as a result.”

Sarah Coles, senior personal finance analyst at Hargreaves Lansdown, argued that a stamp duty cut could do more harm than good.

“Buyers are unlikely to be unhappy at the prospect of a tax cut, but if the government chooses to cut Stamp Duty in an effort to stimulate the housing market, there’s a risk it could do more harm than good.

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“It’s easy to see why the government is concerned about the housing market. We’ve seen demand fall consistently since May, when rocketing bills, rising house prices and ever-increasing interest rates started to take a toll on buyer enthusiasm. There’s a risk that if rate rises accelerate, pressure on buyers could reach a tipping point, where demand dries up.

“We know from very recent experience that a Stamp Duty holiday can stimulate demand. However, the only reason these holidays work is because people feel they have a small window of opportunity to take advantage, otherwise they’ll miss out. The point at which they think they can just wait for the next one, they will start to become less effective.

“Even if it does stimulate demand, it overlooks the fact that the real brake on the property market is a severe shortage of supply. With an average of 36 properties on each agent’s books, we’re still close to an all-time low in the availability of property for sale. Driving demand without addressing supply would risk more buyers chasing a tiny number of properties, which would push prices up.

“By ramping up prices at a time of rising mortgage rates, the end result would be higher monthly mortgage costs, which would be increasingly unaffordable. And the Stamp Duty holiday wouldn’t help on this front. This in itself could be enough to put buyers off, and if it deters enough of them, it could end up having the opposite impact to the one that’s intended.”

By Michele Maatouk

Source: Sharecast

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HMO Property Investment Services in the UK: What You Need to Know

If you’re looking for information on HMO property investment services in the UK, you’ve come to the right place. In this blog post, we’ll discuss what HMO investment services are, and how they can help you achieve your financial goals. We’ll also provide a list of resources where you can learn more about HMO investing and find professionals who can help you get started.

What is a HMO investment?

A HMO investment is a type of property investment that allows you to purchase multiple properties under one roof. This type of investment can be beneficial for both investors and tenants, as it provides a way to reduce costs and increase profits. When done correctly, investing in a HMO can provide a steady stream of income and long-term capital growth.

Is HMO a good investment?

HMO property investments can be an excellent way to generate income and grow your wealth over time. However, there are some risks associated with this type of investment, so it’s important to do your research before getting started. If you’re ready to learn more about HMO investing, we recommend checking out the resources below.

What is a good ROI for HMO?

There is no definitive answer when it comes to what a good ROI for HMOs is, as it will vary depending on a number of factors. However, many investors aim for a minimum return of 15% per year. To learn more about how to achieve this, we recommend speaking with a professional HMO investment advisor.

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Where can I find HMO investment properties?

There are a number of ways to find HMO investment properties, including online listings, estate agents, and word-of-mouth. We recommend speaking with a professional HMO investment advisor in the area you want to purchase in to learn more about the best way to find properties that fit your needs.

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Things to consider when buying a HMO

HMOs, like any other financial investment, have advantages and disadvantages. It’s important to evaluate these factors and decide whether it’s the right option for you.

Pros

  • Strong rental yield when compared with buy-to-let
  • Lower risk of rental voids
  • As the rent is shared among several tenants, the impact of overdue payments is reduced.
  • If the location is right, tenant demand for low-cost housing is high.

Cons

  • Managing the property can be more difficult
  • Start-up costs can be higher if conversion is needed
  • Running costs can be higher
  • Arranging HMO finance can be tougher
  • What are regulations of HMOs?

HMOs must adhere to stricter rules and standards than Buy-to-Lets in general, especially when it comes to fire safety and planning permission. As a result, you’ll also find that the fines for non-compliance are greater. Speak to a good estate agent who specialises in HMO like Mistoria Group who are HMO experts and have helped many landlords successfully let these properties across the UK.

By LINDSEY BENSON

Source: News Anyway

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Plans submitted to create new five-bedroom HMO in Connah’s Quay

Plans have been submitted which could see a three-bedroom house in Flintshire converted into five bedsits.

The application would see the use of the property on Howard Street in Connahs Quay change to become a house in multiple occupation (HMO).

A letter submitted on behalf of the landlord states the proposals have been put forward due to the need for small housing units in the area.

Although concerns have previously been raised in Flintshire regarding the impact of HMOs, planning consultant Adrian Thompson said the development would make “efficient use” of the house.

He said: “The change in use safeguards the living conditions of neighbours and the character of the area.

“Granting permission will not lead to proliferation of HMOs in the area, because this is the only known HMO on Howard Street, and the nearest known HMOs are on another street. It is a semi-detached property.

“The original internal layout has been retained, with the first floor as it was and on the ground floor the lounge and sitting room re-purposed as bedrooms.

“The ground floor retains the kitchen, dining room, a downstairs toilet and a shower room.”
Questions have been raised in the past by councillors regarding the living standards provided to tenants in HMOs.

According to the documents, the smallest bedroom at the property measures 8.2 square metres, which is below the amount suggested by Flintshire Council in an advice note to developers.

But as the guidance has yet to be adopted formally, Mr Thompson said the indication that living quarters should measure at least ten square metres would carry little weight.

Comments are currently being invited on the application via the local authority’s website.
Planning officials are aiming to make a decision towards the end of June, but timescales are currently delayed due to the coronavirus pandemic.

By Liam Randall

Source: Deeside

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Plans for seven-bedroom HMO in Broughton backed for approval despite widespread opposition

Plans to turn a family home into a seven-bedroom House in Multiple Occupation (HMO) have been backed for approval despite widespread opposition.

About 50 objections have been submitted against proposals to convert the current three-bedroom property on Larne Drive in Broughton.

It comes amid concerns from residents that it would have a negative impact on the neighbourhood and lead to parking problems.

Broughton Community Council and local councillor Billy Mullin have also voiced strong criticism.

However, the application has been recommended to receive the green light by Flintshire Council’s chief planning officer.

In a report set to go before councillors next week, Andrew Farrow said the scheme was acceptable because it was in a residential area.

He said: “The dwelling is located within a row of similar properties upon a modern residential estate.

“Given the above, it is considered that the built nature of the proposal will not have a significant detrimental impact upon the character and appearance of the existing dwelling or streetscene in which it is located.

“There is a concern that the increased residential use of the HMO, would leave to an increase in the parking requirements above what would reasonably expected of a private dwelling.

“The proposed parking provision submitted shows the front of the property will accommodate three cars clear of the highway.

“A condition is imposed to ensure that the parking provision is provided and maintained on site, in perpetuity.”

It’s not the first time plans for a HMO in Broughton have caused controversy.

In December 2018, proposals to create bedsits on Gladstone Road were approved on appeal, despite originally being refused by the local authority following a protest by neighbours.

Worries have been raised that the latest scheme could lead to a rise in anti-social behaviour, but Mr Farrow said such claims had not been proven.

He said: “Concerns have been expressed that the proposals would cause noise/disturbance with the extensions also adversely affecting light and privacy upon existing neighbouring occupiers.
“Some of these concerns and fears relate to the future occupants of the development.

“Concerns that tenants could cause these problems are not unique to HMOs and there is no evidence to substantiate this is the case.

“Anti-social behaviour could equally apply to other forms of residential occupation.

“It is considered that all of the matters in the consideration of this proposal are acceptable and that planning permission should be granted.”

Proposals to extend the property to provide extra accommodation were approved in October last year.

The most recent application will be discussed at a meeting of the council’s planning committee at County Hall in Mold on Wednesday.

By Liam Randall

Source: Deeside

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Plans to turn Wrexham family home into HMO approved on appeal

Plans to turn a family home on the edge of Wrexham town centre into a house in multiple occupation (HMO) have been approved on appeal.

Councillors originally rejected proposals to convert the house on Salop Road into five bedsits in September because of the large number of similar properties nearby.

They said it would breach council guidelines which state the maximum amount of HMOs allowed within a 50 metre radius of any given location should be no more than ten per cent.

Permitting the application would have increased the concentration of bedsits in the area to 16 per cent.

However, their decision has now been overturned by an inspector appointed by the Welsh Government following a successful appeal.

In a report, Hywel Wyn Jones said he could find no proof of the planning committee’s claims that the scheme would have a negative social impact.

He said: “There is no substantive evidence before me to indicate that the existing presence of HMOs in this mixed-use part of the town is causing an over concentration that is affecting the social fabric or residential amenity of the community, nor that the scheme would be likely to create such problems.

“My visit did not reveal any of the physical manifestations that can arise from such developments, such as high numbers of letting signs, unkempt frontages, or household waste strewn along the street.

“As the ten per cent threshold is one provided in guidance to assist decision makers, it should not be slavishly followed as though it were an absolute limit.

“The mixed-use character of this edge of town centre location reinforces my view in this respect.

“Thus, on this main issue I conclude that the proposed use would not be harmful to the social fabric or residential amenity of the host community.”

The plans were also refused on the grounds it would cause an increase in demand for parking on the street, adding to existing problems.

While Mr Wyn Jones acknowledged there was pressure on the amount of spaces, he concluded the scheme would not give rise to an additional demand.

He added: “None of the matters raised in objection to the scheme lead me away from finding that it is acceptable.

“I shall therefore allow the appeal subject to the conditions suggested by the council and one to deal with cycle storage.”

By Liam Randall

Source: Wrexham

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Armley Park Road HMO application withdrawn

An application to convert a four-bedroomed house in Armley Park Road into a six-bedroomed house of multiple occupation (HMO) has been withdrawn, writes Keely Bannister.

According to a notice issued by Leeds City Council, the application was withdrawn following an e-mail from Michael Sunderland from DMS Architecture Ltd, who is the development’s agent.

Details of the e-mail has not been made publicly available.

Mr Carpenter lodged the application with Leeds City Council in July, with the notice to withdraw being placed in December.

The proposed development would have involved the lowering of the properties basement floor and the conversion of this space from storage into a living room and en-suite bedroom.

The ground floor living room would also have been converted into a bedroom.

As reported previously in The Dispatch, objections were lodged against the application with other residents on the street stating that the property was being “kept in a state of disrepair” and that the road is “already packed full of cars” which “packing in more renting tenants” wouldn’t improve.

Consultation was sought from the Canal and River Trust, who had no comment to make and the council’s Highways Team, who had no objection to the application, subject to a number of conditions around cycle and bin storage being met.

Source: West Leeds Dispatch

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Bid to turn Wrexham town centre house into HMO refused over parking issues

A bid to create a house in multiple occupation (HMO) near Wrexham town centre has been thrown out because of fears it will added to parking issues.

Proposals to turn a three-bedroom house on Oxford Street, which is close to Eagles Meadow shopping centre, into five bedsits were originally submitted in October.

Objections were raised ahead of the application being considered by councillors on Monday as a result of the lack of parking spaces on the road.

Local councillor Adrienne Jeorrett said the situation had become so bad that one resident who lives on the street was forced to return their disability car.

Addressing Wrexham Council’s planning committee, she said: “Whilst I accept the need for low cost housing, it’s a great disappointment to me that in 2019 adults are having to live in one room with a long term impact on health and wellbeing.

“In Oxford Street and the surrounding roads parking is a major problem for residents. This proposed HMO will add to that problem.

“To say that Oxford Street is near town does not mean that residents work in town.

“It does not mean that someone does not need a car, especially if they work somewhere where public transport no longer reaches.

“One resident in this street has already had to send back a disability car because they couldn’t park in the street.”

The local authority’s chief planning officer had recommended the scheme should be given the go ahead.

In a report, Lawrence Isted disputed claims that it would make the parking situation worse as the property was located close to the town’s bus and railway stations.

But the council’s highways department backed refusal because of the “significant” demand for parking in the area.

Highway development control engineer Peter Douthwaite said: “We’ve looked at it and the proposal is deemed to be increasing the level of parking requirement in an area already suffering from parking problems.

“We think it should be refused due to lack of parking provision.”

Councillors unanimously voted to reject the proposals at the end of the debate.

By Liam Randall

Source: Wrexham

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HMO plans for former bar and hotel submitted for a second time

Plans to turn a bar and hotel on the outskirts of town into a HMO have been resubmitted, despite being rejected last month.

The proposals for the former Soul Suite and Albion Hotel in Pen y Bryn include converting the three storeys into 11 bedrooms.

This would include four bedrooms on the ground floor, along with a living / dining room and toilet and shower facilities. A further three bedrooms and a communal kitchen area would be on the second floor and four bedrooms with en suite facilities on the fourth floor.

It is the second time such plans have been put forward for the building, with the applicants stating earlier this year that despite the ground floor being advertised to let since 2017, they had received little interest.

At the time the applicants said the development is “within close proximity to the town centre, public transport links, shops, a primary school and various bars and restaurants, which will also less residents’ reliance on cars.

“Based on the above assessment, we believe that the proposal will not have a detrimental affect on the parking around the vicinity of the proposed development site.”

However last month Wrexham.com reported that Lawrence Isted, the council’s chief officer of planning and regulatory had refused the application via a delegated decision.

In his findings, Mr Isted said that the development would be contrary to planning policy. However he added that the council would look “more favourably upon a less intensive scheme which retains the commercial use on the ground floor and creates quality residential apartments on the upper floors, more in keeping with the Pen y Bryn mixed use regeneration area.”

The resubmitted application will be considered for approval at a later date.

Source: Wrexham

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Plans to increase capacity of HMO refused amid parking and litter concerns

Plans to increase the capacity of a house in multiple occupation (HMO) on the outskirts of Wrexham town centre have been rejected because of concerns over parking and litter.

An application was entered in May to increase the amount of residents able to live at a property on Beechley Road in Hightown from six to eight.

It came as owner Andrew Shield said he wanted to allow couples to live in two of the rooms to meet the demand for accommodation in the area.

The scheme was given the backing of Wrexham Council’s chief planning officer ahead of a meeting on Monday to decide the plans.

However, members of the local authority’s planning committee refused permission after being told about the lack of parking and issues with overspilling bins on the street, which is already home to several HMOs.

Speaking at Wrexham’s Guildhall, local councillor Graham Rogers said: “The proposed development would result in an over-concentration to the detriment of the social fabric of the area.

“Beechley Road currently has six HMOs within a 50-metre radius, and I consider the likelihood that the proposed suggestion to increase from six to eight occupants will result in an increase in parking demands.

“For those reasons I am requesting that the approval be refused for the proposed development, which does not make adequate provision for the parking of vehicles.

“The current HMO on Beechley Road carries an increase in the amount of refuse with bins being overused, resulting in litter over spilling onto the footpaths and carriageway. On most weekends I’m having to clear litter with the aid of the community payback team.”

Members of the Beechley Road Residents’ Association also wrote to planning committee members to highlight issues with noise from the HMO properties.

It came after they previously campaigned against a separate bedsit application on the same street.

The latest scheme was recommended for approval by the council’s chief planning officer, who said it was unlikely to lead to an increased demand for parking spaces.

In his report Lawrence Isted said: “I have considered the concerns of the residents in regard to parking and noise nuisance.

“With regard to parking, I appreciate that there are a significant number of vehicles that park on the carriageway with no provision for parking on site.

“Highways have no objections to the proposed development on the grounds that the proposed development is unlikely to result in parking demand compared with its current residential use.

“Noise nuisance can be addressed by public protection.”

Despite his recommendation, councillors chose to refuse permission because of the impact on parking with 15 votes against the plans and two abstentions.

By Liam Randall

Source: Wrexham

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Plans for shared house in Brighton attract opposition

Neighbours have the support of their area’s councillors in opposing plans for a shared house.

St Peter’s and North Laine councillors Pete West and Lizzie Deane sent a joint letter against plans to turn a four-bedroom house into a five-bedroom shared house or HMO (house in multiple occupation) in Crescent Road.

The plans are recommended for approval when they go before Brighton and Hove City Council’s Planning Committee next week.

In their 25 letters of objection, neighbours raised concerns about the number of shared houses in the Roundhill area, as well as noise from the roof terrace and the loss of a family home.

Crescent Road is in an area where limits are placed on new HMOs.

No more than 10 per cent of homes within a 50-metre radius of any proposed HMO should already be a shared house.

Calculations by the council show that there are 84 properties within 50 metres and seven of these are shared houses, under the limit.

One anonymous neighbour’s objection said: “The property is in a conservation area and adding more residents and a roof terrace would detract from the character of the area, which is one of single dwelling houses. The conversion to HMO does nothing to enhance the conservation area.

“Many family homes in Brighton have been lost to similar HMO conversion, and this would reduce the supply of much-needed family homes.”

Another objection said: “Crescent Road is already oversubscribed with HMOs.

“The proposed roof terrace is inappropriate and not in keeping with the conservation area. It also constitutes a noise nuisance to the neighbours and surrounding area.”

Councillor West wrote: “The HMO density in Crescent Road is already approaching saturation and this HMO cannot therefore be permitted.

“I note it has been pointed out that not all existing HMOs in Crescent Road have been recognised on the map.

“Questions have also been raised over the adequacy of provision for refuse storage and impact on parking and traffic in the area.

“I believe this proposal will adversely affect the Conservation Area, have a detrimental effect on property value, impact residential amenity by increasing noise (and) represent overdevelopment.”

The Roundhill Society also objected, saying: “Numbers 26 (and) 28a Crescent Road already are operating as HMOs.

“If 22 Crescent Road is allowed, then the family living in 24 Crescent Road will be ‘sandwiched’ within a row of HMOs with all the noise and negative impact on family life (that) a large student occupied house would have.

“This would be entirely inappropriate. The density of HMOs in this area is already excessive.”

The Planning Committee is due to meet next Wednesday (6 November) at Hove Town Hall. The meeting is scheduled to start at 2pm and should be open to the public.

By Sarah Booker-Lewis

Source: Brighton And Hove News