Stamp Duty relief Extended Until end 2009

The Stamp Duty Land Tax (SDLT) of residential property sales up to £175,000 is to be extended to 31 December 2009. The SDLT threshold will revert to £125,000 (£150,000 in disadvantaged areas) from 1st January 2010.

This is good news for potential buyers as it was due to end in September this year. Unfortunately, as mortgage lending has been so restrictive, few people have been able to benefit – especially first-time buyers. However this extension gives a bit more time for lending restrictions to ease and hopefully more people will be able to take advantage.

UK Property News: First upturn in house price index

UK Property News: First upturn in house price index

Tenants in Arrears

The National Landlords Association (NLA) has published research revealing 37 per cent of landlords currently have tenants in arrears.

44 per cent of landlords have experienced rental arrears in the last 6 month. This goes some way to explaining the significant rise in repossessions and why a growing number of landlords are having problems meeting their mortgage repayments.

When faced with arrears, only 50 per cent of landlords attempted to recover the loss of earnings through the courts.

David Salusbury, Chairman, NLA, commenting on the rise in this significant rise in rental arrears, said:

"This is becoming a serious problem for landlords all over the UK. Paying the rent has to be right at the top of tenants' priorities as even one month's arrears, in this climate, could be the straw which breaks the camel's back. The mortgage has to be paid and the vast majority of landlords do everything in their power to make sure this happens.

First upturn in house price index

March 2009 - Nationwide has reported the first increase in house prices for 16 months.

The house price index showed an increase of 0.9% in March 2009 The annual rate of house price falls is now 15.7% This may yet turn out to be an anomaly. In January Halifax showed an increase in house prices, only to be followed in February by a substantial reversal again.

That still puts them average house prices at around five times average earnings which by historical standards is a lot above the average income multiple that prevailed between 1950-1980.

Perhaps a more reliable indicator of the general state of the housing market is the number of loans actually taken out by home buyers. The Bank of England said the number of loans taken rose by 19% in February, with 37,937 loans approved during the month, leading to suggestions that activity in the market may have bottomed out.

Spring traditionally is a very busy time in the housing market and so what happens over the next 2 - 3 months will give a much clearer indication of whether we are nearig the bottom of the housing market, or if this just a flase dawn.