House Price Surge Driven by London and South East
The ONS has released figures showing 7.9pc growth in house prices in January 2016, up from 6.7pc in December. It is the fastest rate of growth in the last 10 months.
Prices rose 8.6pc in England and 0.1pc in Scotland, taking the average property price to £292,000 in January.
Rightmove also released figures stating that the average asking prices for homes have passed the £300,000 in England and Wales for the first time.
If we take the London and South East growth out of the numbers, the 7.9 increase drops to 5.1pc, showcasing the huge disparity between these two regions and the rest of the UK.
Just a few months ago, London houses passed the £500,000 average. Today that figure has already risen to £551,000, compared with just £156,000 in the North East.
Crossrail 2 Gets Go-Ahead
George Osborne has confirmed plans to get Crossrail 2 ready for public use.
Also known as the Elizabeth line, Crossrail 2 will connect the North-and-South of London, from Wimbledon to Tottenham Hale.
The most Southerly locations will be Epsom, Shepperton, Hampton Court and Chessington South.
Broxbourne, Cheshunt, Waltham Cross and Ponders End are included in the Northern-most routes.
The government wants to build 200,000 homes along the routes.
Crossrail 2 will also benefit lines to the South like Cambridge, Woking and Southampton by freeing up mainline routes into Waterloo and Liverpool St.
Meanwhile, new trains will cut journey times from Edinburgh to London to just 4hrs by 2018.
House Prices Accelerating Highest in London
Property in the capital is rising in value faster in other regions, despite a downturn in the top of the market.
The next biggest increases were felt in the South East, East, Scotland and the North West.
Research by Markit showed that household sentiment is also strong – people expect their houses to rise in value.
25pc of 1,500 households claimed a price increase over the last month, and just 4pc said theirs had fallen.
Source: City AM
London Property Start Ups Benefit from Budget
Entrepreneurs Relief was changed in March’s Budget, allowing all external investors a maximum of 10pc tax when they sell shares from their investment. Profits up to £10m will be capped at 10pc if the investor sells their shares after a three year period.
Until now, tax obligations matched Capital Gains Tax, and investors had to be directors with at least a 5pc shareholding to qualify for the 10% tax break.
The long-term goal is to get foreign money involved in more smaller-scale property projects.
Cormac Marum, of Harwood Hutton, said: “It should encourage the construction of the type of low-cost housing London desperately needs.”