Currencies

Renminbi strengthens further despite gains by dollar

The renminbi on track for a fourth day of firming against the dollar on Wednesday after China’s central bank once again pushed the currency’s trading band (marginally) stronger. The onshore exchange rate (CNY) for the reniminbi was 0.28 per cent stronger at Rmb6.8855 in afternoon trade, bringing it 0.53 per cent firmer since it last […]

Continue Reading

Financial

Sales in Rocket Internet’s portfolio companies rise 30%

Revenues at Rocket Internet rose strongly at its portfolio companies in the first nine months of the year as the German tech group said it was making strides on the “path towards profitability”. Sales at its main companies increased 30.6 per cent to €1.58bn while losses narrowed. Rocket said the adjusted margin for earnings before […]

Continue Reading

Property

Spanish construction rebuilds after market collapse

Property developer Olivier Crambade founded Therus Invest in Madrid in 2004 to build offices and retail space. For five years business went quite well, and Therus developed and sold more than €300m of properties. Then Spain’s economy imploded, taking property with it, and Mr Crambade spent six years tending to Dhamma Energy, a solar energy […]

Continue Reading

Currencies

Nomura rounds up markets’ biggest misses in 2016

Forecasting markets a year in advance is never easy, but with “year-ahead investment themes” season well underway, Nomura has provided a handy reminder of quite how difficult it is, with an overview of markets’ biggest hits and misses (OK, mostly misses) from the start of 2016. The biggest miss among analysts, according to Nomura’s Sam […]

Continue Reading

Banks

RBS falls 2% after failing BoE stress test

Royal Bank of Scotland shares have slipped 2 per cent in early trading this morning, after the state-controlled lender emerged as the biggest loser in the Bank of England’s latest round of annual stress tests. The lender has now given regulators a plan to bulk up its capital levels by cutting costs and selling assets, […]

Continue Reading

Categorized | Property

Public backs stamp duty change, says poll


Posted on April 22, 2016

An estate agent arranges a "Help to Buy" sign amongst a display of residential properties up for sale in London, U.K., on Monday, Dec. 30, 2013. U.K. house prices rose in December and will extend gains in 2014, led by London and southeast England, Hometrack Ltd. said. Photographer: Simon Dawson/Bloomberg©Bloomberg

The stamp duty surcharge on buy-to-let and second homes has won strong public support, according to a poll that suggests people believe it will help first-time buyers compete for homes against property investors.

Asked whether they supported or opposed the three percentage point extra levy introduced on April 1, nearly half of respondents (47 per cent) said they were in favour of the tax, compared with 18 per cent against.

    Landlord groups have attacked the tax, claiming it will drive up rents by reducing the number of available homes in the sector. Solicitors, meanwhile, have complained about its complexity, which puts a greater burden on them to verify the property interests of buyers.

    Paula Higgins, chief executive of HomeOwners Alliance, said the survey demonstrated public support for the view that homes should not be the target of speculative investment: “The stamp duty surcharge might be bad for landlords but it will allow more young people to realise their dream of owning the roof over their head,” she said.

    “This is why we initially called for the tax system to differentiate between aspiring homeowners and property investors.”

    The survey, which quizzed over 2,000 adults, was conducted by YouGov for campaign group Homeowners Alliance and BLP Insurance.

    The findings come as data from HM Revenue & Customs showed a dramatic spike in transactions ahead of the stamp duty change tax as buyers rushed to beat the deadline. The number of residential transactions in March was 75 per cent higher than in February and 77 per cent up on the same month last year.

    The scale of the stampede was underlined by data, also published on Thursday, from the Council of Mortgage Lenders, which estimated that gross mortgage lending reached £25.7bn in March. This was 43 per cent higher than February, 59 per cent higher than March 2015 and the highest March figure since 2007.

    House prices also rose sharply, according to the Hometrack UK Cities House Price Index, which found house price inflation in British cities rose 4.2 per cent over the first three months of 2016 — the highest quarterly rate of growth for 12 years.

    Serious money

    Does stamp duty really have to be so complex?

    No wonder confusion reigns — even with 29 pages of guidelines

    Lucian Cook, head of residential research at agent Savills, said the data confirm a “frenzy of buying activity” in the run-up to the stamp duty change — but warned of a subsequent drop-off in sales. “This is clearly a one-off event and such volumes are unsustainable against a backdrop of economic uncertainty and the prospect of an increased regulatory environment for buy to let borrowing.”

    Mohammad Jamei, CML economist, said the distortion the levy caused was larger than under any previous stamp duty change.

    “As a result, we expect there will be about 10,000 fewer mortgaged transactions each month in the second quarter of 2016 than would otherwise have been the case, offsetting the increase in activity seen in March,” he said.