Bank of England holds rates steady at 0.5%

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Breaking News – Interest Rates likely to Rise:

The BoE’s Monetary Policy Committee (MPC) held rates at 0.5% at their meeting Thursday, but Governor Mark Carney warns that earlier and larger interest rises are likely in the coming months due to the need to damp-down the inflationary effects of a stronger global and UK economy.

The pound responded positively to a bullish quarterly inflation report that made it clear that inflation above the BoE’s 2% target will not be tolerated for the next three years.

In his letter to the Chancellor, Governor Carney, going off the bank’s latest forecasts, said: “monetary policy would need to be tightened somewhat earlier and by a somewhat greater extent over the forecast period than anticipated at the time of the November report”.

Following this BoE report the expectations are that the cost of borrowing will rise at the MPC’s next meeting in May.

Despite ongoing Brexit uncertainties, the BoE now seems increasingly confident that pay growth is already picking up in a tight labour market, with low unemployment and the prospect of higher UK productivity growth.

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Base Rate stays at 0.5%, but rises may come sooner than forecast

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The Monetary Policy Committee (MPC) voted unanimously to keep the Bank of England Base Rate at its current level of 5%.

However, the sting in the tail is that excess demand is predicted to exacerbate the ongoing cost lead inflation levels of 3%.

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Annual consent to sublet not specified in agreement?

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When I bought my flat in an apartment block I applied for consent to rent it out. For a fee of £200 the freeholder granted that consent. However 3 years later the freeholder’s agent now tells me that this consent has to be renewed (and paid for) annually.

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Introduction to High Court enforcement webinar Q&A

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On 18th January we hosted a webinar on an introduction to High Court enforcement, we had over 127 people attend. We’ve compiled the Q&A from those who attended.

If a defendant has moved after judgment, do we have to notify courts officially first?

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I know where the tenant has gone, can I use the info?

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Monday this week we had a tenant abscond owing rent. Much more than the deposit. (yes, they past references etc.)

The (now) ex-tenant point blank refused to give forwarding details. As is their right.

It turns out the move was very local.

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Leasehold purchase and ground rent fear?

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My daughter is about to exchange on the purchase of a new flat within a converted house.

The ground rent is £300 per annum increasing every 10 years by the prevailing inflation rate at the time.

I am aware of the scandal surrounding leases with ground rents doubling every 10 years as high lighted by our  friend Patrick Collins

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Which earnt more in 2017 – you, or your house?

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Buy-to-Let Earnings:

According to research CRJ Lettings, house prices have increased by more than the average salary in more than a quarter of districts across the U.K. Whilst many of these areas are in London, it goes to show that lots of property owners will find that their home (or buy-to-let property) has earnt more than they have in a year!

Here in Chichester, average sold prices rose from £352,386 at the end of 2016 to £387,573 by November 2017 – an increase of £35,187. This is indeed more than both the national average salary (£27,600) and local average salary in Chichester (£27,926).

All that creates a problem for those trying to save for a deposit to buy their own home; seeing as how ever much they saved they are now likely to be further away from their dream.

What is also striking is the relatively low average salary locally in Chichester compared to house prices, versus the rest of the country. Consider that the average property price in the U.K is £226,071, which is a little over eight times the average annual salary.

Here in Chichester though, property prices are 71% higher than the U.K average, and yet the local average salary is only 1.2% higher than the national average! This means that property prices in Chichester are nearly 14 times the local average salary, which is why Chichester is often cited as one of the least affordable places to live in the country.

This was highlighted in August 2009, with Chichester being labelled the second least affordable place to live in the country. Since then though, property prices in Chichester have risen 52%, compared to 38% nationally.

And in August 2013 Chichester was labelled the “worst” place to buy because it had become the least affordable area of the country. Since then, Chichester’s property prices have defied the naysayers by rising 34%, compared to 28% nationally.

It seems therefore that Chichester has a history of outpacing the rest of the country in regards to property price growth, with homes becoming ever more unaffordable for local workers.

Of course, if you’re already a homeowner or landlord in Chichester you will have profited from these price rises. An ever-strengthening demand from tenants who have been outpriced in the local market will also underpin returns, and I don’t see the strong capital appreciation of homes in our area slowing down any time soon either.

Article provided by CRJ Lettings, Chichester – https://www.crjlettings.co.uk

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Which earnt more in 2017 – you, or your house? | LandlordZONE.

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