Kate on 5 Live - 35% house price crash to relationships!

publication date: Dec 5, 2018
author/source: Kate Faulkner, Property Expert and Author of Which? Property Books

House prices and relationship advice!

I had a great time last week on BBC radio 5 Live as the midnight expert, meeting the fabulous Johnny I’Anson for the first time!

We discussed a wide range of property topics including Mark Carney’s Brexit warning that house prices might drop up to 35% and plenty of questions about the complex subject of stamp duty. There was also time to speak about:

  • How to spot “up and coming areas” such as the Milton Keynes corridor
  • Whether buying is cheaper than renting
  • And…. even had time for a bit of relationship advice!

You can listen back to the show here, I’m on from 1 hour 35 minutes.

Q – Can you buy a house with deeds missing?

A – This used to be a much bigger issue than it is now. Nowadays you can access the majority of deeds online so if you contact the land registry you should be able to access a copy for a small fee.

Q – Should you buy a property for investment purposes now or wait for Brexit to see what happens?

A – You should ask what you expect to get out of the investment e.g income or capital growth. It is important to know the buy-to-let rules. Remember, this is a much a financial question as it is about property and you should be aware that if you are buying to let the money will be tied up for the next few years.

Always checkout independent financial advice prior to investing so you are aware of the tax impact.

Buy to let tax - Nicholsons

Q – How does a buyer protect themselves from poor new build houses?

A – The home builders federation run a really good customer survey which gives a rating for developers so it is worth checking that out.

The top 5* developers are:

  • Barratt Developments
  • Bellway Homes
  • McCarthy & Stone

Big developers with poor ratings include:

  • Bovis Homes
  • Persimmon Homes
  • Keepmoat

The best piece of advice I can give is to talk to people who have moved into similar new builds in the last 12 months to find out about their experiences. You should also talk to your legal company to find out what protection you have if the property isn’t built to the standard you expect and for whatever reason, this isn’t covered by the warranty. A final tip is to get a snagging survey done prior to completion and handing over your money – this will pick up on any key issues the property might have.

New build snagging - LABC Warranty

Q – I’m staircasing up my 25% shared-ownership property and my initial purchase was exempt from stamp duty last year due to the price being under £125,000. As I was a FTB at the time, will I still be exempt given the recent changes to shared-ownership FTB stamp duty announced in the budget?

A – The first thing to do is to talk to your legal company as they should be able to answer this and you can visit the .gov stamp duty calculator as it may well will depend on the amount you are paying. You also ought to clarify whether you are still classed as a first-time buyer when staircasing as this will affect the potential stamp duty owed.

Q – I’m looking to moving in with my long term partner will I pay tax when selling my current home?

A – You should only have to pay tax if you have rented the property out and made money from it, otherwise you don’t pay tax when selling.

Q – Are price increases in the MK corridor just for new builds or for existing homes too?

A –The first thing is it depends on the property and the impact of the changes to the area. I would talk to local agents and have a drive around the area, seeing where new builds and infrastructure changes are likely to enhance an area which could positively impact on existing home prices. If you then look at sold property price data, you can see where new builds have been built in the past how they have impacted on existing home prices nearby.

Q – Would I have to pay stamp duty on a self-build property with an estimated value worth £375k when built?

A – It is my understanding that you pay the stamp duty when you buy the land so it will depend on the cost of the land – this is one of the advantages of self-building.

You can read our self-build checklist and click here for more information about stamp duty for self builders.

Q – Three years ago my son purchased a house in Manchester for £160k and is now buying somewhere else bigger for almost double the price, should he pay stamp duty fully again?

A – Yes, you pay stamp duty when you buy a property based on the property value and current stamp duty rules.

All our information is brought to you by Kate Faulkner, author of Which? Property books and one of the UK's top property experts.
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