Send us a text

1. Private Rented Sector (PRS) Challenges
   • A workshop by Pegasus Insight, with input from Zoopla and others, highlighted the instability in the rental market due to constant government policy changes.
   • PRS landlord ownership has shifted—single-property landlords fell from 78% in 2010 to 45% in 2024.
   • Concerns over the Renters' Reform Bill and potential capital gains tax changes have alarmed landlords.
   • Many landlords plan to raise rents (62%) and be more selective with tenants (81%), with only 5% looking to expand their portfolios.
2. Housing Supply and Demand
   • Demand for PRS housing is projected to rise by 150,000 households annually until 2036, but only 45,000 new units are being added each year.
   • Calls for stability in taxation and legislation to sustain investment in the sector.
3. Vatican Property Dispute
   • The UK court ruled that Italian financier Raffaele Mincione "let down" the Vatican in a failed luxury London property deal, leading to a €140 million loss.
   • Mincione sought legal declarations of good faith but was found to have fallen short of expected communication standards.
4. Leasehold Reform Concerns
   • Government leasehold reform efforts must balance protecting homeowners while ensuring financial stability, as many freeholds are tied to UK pension funds.
   • Labour argues against retrospective ground rent caps, warning they could shift wealth to foreign investors and undermine UK property investment.
5. Stamp Duty Increases
   • January 2025 saw a £40m increase in stamp duty receipts due to buyers rushing before April 1, when the nil-rate threshold halves from £250,000 to £125,000.
   • Experts warn higher SDLT costs could deter buyers, but falling interest rates might offset the impact.
6. Later Living Housing Crisis
   • The UK faces a shortage of homes for over-65s, with demand for 30,000–50,000 new units annually but only 7,000 being built.
   • Government and private sector involvement are needed to expand age-friendly housing and reduce pressure on healthcare systems.
7. Short-Term Rental Surge in London
   • Some landlords own over 20 properties each, with short-term lets making up 3% of London’s housing stock (40% in Westminster, 35% in Kensington & Chelsea).
   • Westminster Council warns of affordability issues, while Labour-led councils push for stricter regulations.
   • Airbnb argues that short-term lets benefit tourism, contributing £1.5bn to the economy.

Authorities are expected to introduce tighter controls to balance housing needs with the tourism industry.

PROPERTY WEALTH - Transforming challenges into opportunities with specialist knowledge and reach. Explore the complexities of the London property market with us—insights, advice, and connections at your fingertips.

Join the conversation! Share your thoughts and questions in the comments below.

Don't forget to follow us for the latest updates and expert advice! https://www.londonproperty.co.uk/en/link-in-bio/

#PropertyWealth #LondonProperty #RealEstate #PropertyMarket #Investment #HomeBuying #HomeSelling #PropertyAdvice #RealEstateTips #PropertyInvestment #LuxuryLiving