Marlborough News April 2015 UK Inflation R ate The UK's inflation rate remained at a record low of 0% in March, according to the Office for National Statistics (ONS). Cheaper clothing and footwear, offset by a rise in petrol prices, helped to maintain the rate at 0% for a second month, meaning the cost of living is broadly the same as it was a year earlier. However, the ONS said that if the rate of inflation was calculated to two decimal places, prices were 0.01% lower than a year before - a first fall on record for the Consumer Price Index measure.
Are you Listed? Everyone's heard of listed buildings but did you know that they are called this because their details are entered on a list, officially called the National Heritage List for England. This also contains details of all scheduled monuments, registered historic parks, gardens and battlefields and protected wrecks. Central to Historic England's (HE) role is a duty to advise the Government on which buildings and sites should be added to the list and thereby given special protection in the planning system. They recently recommended 14 of the finest post war office buildings for listing. Sporting a new name – the Historic England Archive – HE have amassed an amazing collection of material including some of the earliest photographs dating as far back as 1855, which is now available for public view and purchase (online catalogue).
The value of the pound fell after the release of the latest UK inflation figures. The pound fell almost half a cent against the dollar on the news, dropping to $1.4611 at one point, before recovering slightly to $1.4629. Against the euro, sterling was down 0.24% at €1.3854. The lack of inflationary pressures suggests any interest rate rise by the Bank of England remains some way off, which is good news for anyone with a mortgage!
The Right of Light Mr Tim Hotchkiss, Solicitor, Awdry Bailey & Douglas What is a right of light? A right of light is a right to enjoy the natural light that passes over someone else’s land and then enters through defined apertures in a building, including windows, skylights and glass roofs. Once established, the right entitles the beneficiary to receive sufficient natural light through the aperture to allow the room or space behind the aperture to be used for its ordinary purpose. Rooms used for different purposes will be entitled to receive different levels of light, the classic example being a greenhouse. Acquiring a right of light A right of light must be acquired before it
Scottish ‘Stamp Duty’ The Land and Buildings Transaction Tax (LBTT) replaces UK stamp duty in Scotland this month. The new system uses a graduated tax rate, working in a similar way to income tax. Under LBTT, properties worth up to £145,000 will not attract any tax. For sales between £145,000 and £250,000, a tax rate of 2% will be applied, with the introduction of a new rate of 5% between £250,001 and £325,000. Between £325,001 and £750,000, the marginal rate will be 10%, with a top rate of 12% applying to all transactions above £750,000. The Scottish government has said nine out of ten taxpayers will be better or no worse off under the new system.
can be enforced. This can occur in various ways, including by formal registration, granting by deed or automatically by having a minimum of 20 years unobstructed enjoyment of light through a defined aperture without consent, openly, without threat and without interruption for more than a year. Development A development may be prevented as a result of a right of light even if planning permission has been granted. A ‘development’ in this respect includes a neighbour’s new shed, garden walls and extensions. If a new building limits the amount of light entering a defined aperture and the level of light inside falls below the accepted level, which then constitutes an obstruction.
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Remedies Unless a right of light is waived, you are entitled to take legal action against the neighbouring proprietor. Such remedies include compensation, remedial work to the development or a combination of both. In extreme cases, the courts will even award an injunction.
Help to Buy ISA: What is it? In many ways, the Help-to-Buy ISA will be like any other ISA as you can earn tax-free interest on any money you save there. • The big difference is that the government will also give you a 25% bonus when you buy a house. This bonus is capped at £3,000, which means you’d need to save £12,000 to get the maximum amount. • The initial deposit is capped at £1,000. Then you can pay in a maximum of £200 a month. That means the quickest you’d be able to get to the £12,000 is four and a half years – though you can claim the bonus on a balance of £1,600, gaining you an extra £400. • There’s a cap on the value of properties you can use the ISA for. In London they can’t cost more than £450,000. Elsewhere it’s a maximum of £250,000.
• It’s only for first-time buyers in the UK and you can only ever have one in your lifetime, although it’s not limited to one ISA per property. That means more than one person can combine their Buy-to-Let ISAs and bonuses when buying together. • You’ll also have to be over 16 years old. • These new ISAs will be available from autumn this year, and should be around for new customers for the next four years. Click here to get information from the Money Advice Service’s First Time Buyer Guide.
Treasury Tax Windfall from Pension Dr awout! Hundreds of thousands of people are being warned about a big tax bill, if they decide to cash in their pension early. Many people face paying tens of thousands of pounds in income tax, said the Institute for Fiscal Studies (IFS). Since Easter Monday, anyone over the age of 55 is free to cash in Defined Contribution (DC) pension savings. But apart from a tax-free lump sum of 25%, they will be liable for income tax on the remainder. Additionally, if the sum being taken out - when added to annual income - exceeds £42,386, they will pay tax at the higher rate of 40%.
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UK House Prices Rise by 0.4% The BBC reported that UK house prices rose by 0.4% in March compared with the previous month but the annual rate of property price growth slowed, according to the Halifax. This makes property around 8.1% higher than a year ago. This was slightly down on the 8.3% annual house price growth recorded by the Halifax in February.
Upfront Rental Costs – Be Prepared! These vary but as a general guide these are the main things to think about: • A month’s rent in advance • Deposit (this will usually be 6 weeks rent). If you’re in an ‘Assured Short hold Tenancy’ your landlord has a legal obligation to put your deposit in a protected deposit scheme. If they have not done so within 30 days of you moving in, it’s worth contacting ‘The Property Ombudsman’ to find out the next steps you should take. • Holding fee. This will be an upfront portion of the rest of your move-in costs – not an extra fee – but if you decide to drop out of renting the property before you’ve moved in, you won’t get this back. • You may also be charged letting agency fees. It’s always worth finding out the breakdown of what these include and questioning any fees you don’t understand. These charges usually include fees for: reference checks/ credit checks/ drawing up contracts and possibly for a professional clean: this is usually charged to you at the start of your tenancy or you’re expected to do it on checking out. Read your contract for more information. These are the main fees you can be expected to be charged, but other things could affect this e.g. if you have a pet or if there is more than one person moving in per room, you may incur additional charges.
However, Halifax's housing economist Martin Ellis said that rising house price and activity in the UK housing market should slow throughout the year as wage growth remained at a comparatively low level. At the end of the first year’s quarter, the lender is still predicting that annual house price growth will end the year at between 3% and 5%.
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Edward Hall t 01672 529056 edward.hall @smithsgore.co.uk
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Shona Ford t 01672 529057 shona.ford @smithsgore.co.uk