UK rents rising by up to 18% a year

One in ten Scottish homes hit by stamp duty threshold

£1bn Swansea makeover announced

Rents mirror inflation while property prices soar

UK rents rising by up to 18% a year

The UK’s rental market is going strong with the buy-to-let sector continuing to thrive according to figures from the National Association of Estate Agents (NAEA) which show that from October to December 2006, rents continued to rise at an average of 1.5% each month. This is almost double the rate of rental growth recorded for the same time last year of 0.72% over the same period.

The research also shows there has been an extra demand for rental property due to increased immigration, particularly from Eastern Europe.

Additionally, the market has also benefited from potential first-time buyers staying in rented accommodation for longer periods as their typical buying age rises.

Jan Bartlett, lettings expert at the NAEA said “The market is looking particularly healthy, aided by rising property prices and increased immigration in 2006. Interest rate rises are a concern as many landlords may choose to sell and 'cash in' on their investment with the threat of increasing expenses.”

One in ten Scottish homes hit by stamp duty threshold

Bank of Scotland has estimated that 9% of home buyers in Scotland paid at least 3% stamp duty in 2006, compared with a bill of 1% in 2001. Home buyers in these transactions were faced with a stamp duty bill of at least £7,500.

Rising house prices and the lack of movement of the stamp duty threshold has greatly increased the tax revenue from property transactions.

Bank of Scotland estimates that 160,000 Scottish homes are now valued above the £250,000 stamp duty threshold, compared with 25,000 homes five years ago.

The higher stamp duty thresholds - £250,000 and £500,000 have been unchanged since their introduction in 1997 despite a 175% increase in the average UK house price over that period.

If the higher stamp duty thresholds had been increased in line with house price inflation since July 1997, the £250,000 threshold would now stand at £680,000 and the £500,000 threshold would be £1,360,000.

Tim Crawford, group economist, at Bank of Scotland, said: “Almost one in ten home buyers in Scotland faced a 3% stamp duty bill last year, compared to only 1% five years ago. Bank of Scotland calls on the government to increase the stamp duty thresholds in line with the increase in house prices since the mid 90’s and to commit to index linking all the stamp duty thresholds to house price inflation in the future.”

£1bn Swansea makeover announced

Swansea city centre is to undergo a £1bn re-development following the announcement of a strategy aimed at linking the city with its waterfront.

The development programme, announced today by the City and County of Swansea, the Welsh Assembly Government and the City Centre Partnership, is to begin with various schemes.

St David’s/Quadrant development – a retail scheme on 22 acres which includes the St David’s shopping centre, a Tesco supermarket and surrounding car parking space.

Paxton Street/County Hall development – a 7 acre site to include residential and office developments as well as pubs, cafes and restaurants.

Sail Bridge square - a 2.8 acre site that will include residential property and offices, a hotel, cafes and restaurants.

The development programme is expected to take 15 - 20 years. Donaldsons has been appointed as property and development consultants.

Rents mirror inflation while property prices soar