Nine out of 10 higher-rate and every lower-rate taxpaying landlords who sell will see their capital gains tax (CGT) bill rise in April, analysis from Hamptons reveals.

The hike comes due to the annual personal allowance being cut from £12,300 in 2022/23 and £6,000 in 2023/24 to £3,000 in 2024/25.

SPRING BUDGET

For most higher-rate taxpaying landlords who sell the cut will offset the CGT rate cut from 28% to 24% announced in the Spring Budget.

Those landlords will see their CGT bill rise by £454 or 4% in April while the average lower-rate taxpayer’s bill will increase by £1,674.

Aneisha Beveridge, Hamptons

Aneisha Beveridge, Head of Research at Hamptons, says: “Although the Chancellor made it clear he was hoping to encourage landlords to sell up and add new housing supply into the market for first-time buyers, the reality is that the capital gains tax changes taken as a whole will likely act as a disincentive. Most landlords leaving the market this year will end up paying more tax than two years ago, not less.

She adds: “Recent changes to CGT will hit landlords making the smallest gains hardest. Typically, these will be newer millennial investors who have seen less price growth, or those selling cheaper homes in less expensive parts of the country. Meanwhile, older investors who’ve been landlords for longer and have accumulated bigger gains are much more likely to benefit from the tax cut.”

WORSE OFF

The lower personal allowance coupled with lower tax rates means any higher-rate taxpaying landlord reporting gains of less than £68,000 will find themselves worse off.  Meanwhile, those reporting larger gains will find themselves better off.

Beveridge adds: “The Chancellor’s changes to CGT rates only apply to higher-rate taxpaying landlords with homes in their own names.

“Meanwhile, the growing number of investors with homes held in companies pay corporation tax on their sale proceeds after costs instead.

“While tax efficiency has been the major draw of a company structure, increasingly it’s also the certainty and stability it offers. Chancellors’ have generally proved less likely to tinker with company tax rules than individuals.”

The latest Hamptons Lettings Index also reveals rental growth continued to cool in February with the average rent on a newly let home in Great Britain rising 7.1% year-on-year.

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A lacklustre Spring Budget with no direct help for first-time buyers or mortgage market innovations has slowed buyer demand although the number of sales being agreed is now 13% higher than this time last year, latest data from Rightmove reveals.

While demand may have eased it’s still 8% above last year and average asking prices have risen 1.5% (+£5,279) to £368,118 – higher than the historic average March increase of 1.0% and the biggest for 10 months.

But the average time to find a buyer is 71 days, the longest at this time of year since 2019 with over-optimistically priced sellers are taking longer to find a buyer.

Tim Bannister, Rightmove

Tim Bannister, Rightmove’s Director of Property Science, says: “The stronger than usual price growth this March indicates that new sellers are feeling much more confident.

“Despite the above average price increases in this opening three months of the year, asking prices are still £4,776 below their peak in May 2023.

For those who can afford to buy and have yet to take action to move this year, this may provide a window of opportunity to buy as we now seem to be past the bottom of the market.”

But he warns: “We know from last year how quickly the picture can change with some negative economic news or surprises.

“Buyer affordability remains stretched and higher mortgage rates are an ongoing challenge. With the market still sensitive to pricing and external events, some caution and willingness to negotiate is advised for sellers who are keen to find a buyer in the Spring market.”

INTERSTING TRENDS

Jeremy Leaf, north London estate agent and a former RICS residential chairman, says: “Although these are asking or aspirational prices, rather than selling prices of new listings, this data reflects some interesting market trends, which we’ve also seen on the ground.

Jeremy Leaf

“More listings mean buyers are often spoilt for choice, so are not rushing to take the plunge. Some were holding back from making offers in expectation of Budget giveaways or further mortgage rate cuts which have not really materialised.”

For months, people have taken a hit on their property prices.”

Nathan Emerson, Chief Executive of Propertymark, says: “Following three years of economic turmoil, Propertymark is hopeful that we are now witnessing a positive trend towards increased prosperity in the housing market.

Nathan Emerson, Propertymark

“For months, people have taken a hit on their property prices in order to find an affordable middle ground to enable a home move.

“Now that balance is being better struck and with interest rates remaining stable, we are seeing signs of normality and strong overall indicators now is an attractive time to buy or sell property.

“Our member agents have reported an 80% increase in the number of new properties available and a 129% increase in the number of market appraisals undertaken, showing there is growing appetite amongst buyers and sellers alike.”

AFFORDABILITY

Marc von Grundherr, Director of Benham and Reeves, adds: “While mortgage affordability remains an issue, it certainly hasn’t dampened the appetite of London buyers and we’ve continued to see a high level of activity at all price thresholds, but particularly across the super-prime market.

Marc von Grundherr, Benham and Reeves

“Buyers at the very top end of the ladder are acting with great confidence, with the higher cost of borrowing not presenting the same obstacle as the average homeowner.

“As a result, we’re seeing high demand for super-prime stock and many more buyers circling due to a more constrained supply of suitable properties in this sector.”

Tomer Aboody, MT Finance

Tomer Aboody, Director of lender MT Finance, says: “Sellers appear much more confident than they have for some time, with more stock coming to market and stronger asking prices on the back of hopes that interest rates have peaked and will start coming down soon, as inflation continues to fall.

“The Budget was disappointing with a lack of incentives to boost the market and transactions. Perhaps the government is keeping its powder dry for later in the year and closer to a general election when it might take some action, such as reducing stamp duty.”

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Most agents believe the recent Budget was a wasted opportunity, and the Government doesn’t know how to help the property industry.

Findings from two major surveys reveal the discontent among estate agents with Chancellor Jeremy Hunt (main picture) and other ministers responsible for housing policy.

Inadequate

A poll of 833 property professionals, commissioned by GetAgent, found that the vast majority were disappointed with the lacklustre Budget.

More than a quarter (27%) described the Budget as ‘inadequate’, and a further 54% said it was ‘underwhelming’.

The industry had been expecting an announcement on a 99% mortgage, but this was scrapped just days before, a decision that 56% agreed with.

Stamp Duty

There had been hopes of another Stamp Duty reduction, and 71% believe this should have been included by the government.

Two thirds (67%) said there should have been a buyer incentive introduced to help kick-start the market, with 64% stating they would have liked to have seen more focus on housing supply.

And a massive 83% think more should have been done to improve the homebuying and selling process.

The Tory party may as well have ignored the property market altogether.”

Colby Short, Co-founder and CEO, GetAgent

Colby Short, Co-founder and CEO of comparison platform GetAgent, says: “During what is likely their last budget for years to come, the Tory party may as well have ignored the property market altogether.

“Despite predictions, or maybe hopes, that there may have been stimulii for the property market, none were forthcoming.”

Meanwhile, in a snap poll of 160 letting agents carried out by tenant referencing firm Goodlord, 75% of respondents said they didn’t think the Government understood the pressure facing the sector.

And a further 19% weren’t sure, with just 6% saying they thought the Government truly understood.

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North Berwick, East Lothian has scooped the The Sunday Times Best Places to Live 2024 – the first Scottish winner in the 12-year history of the guide.

The Sunday Times’ expert judges visited locations in all shapes and sizes across the UK from the tiny Scottish island of Kerrera and the remote Welsh village of Presteigne to big cities such as Belfast, Liverpool and London.

HIGH STREET

All were assessed on factors from schools to transport, broadband speeds to culture, as well as access to green spaces and the health of the high street.

But the Scottish seaside town topped the list of 72 locations and was picked for its combination of a great high street, a great school, the great outdoors and family-friendly houses.

Helen Davies, The Sunday Times

The judges were impressed by its easy connections to Edinburgh and the way life revolves around the town’s two beaches as well as the ‘wealth of activities whatever your age’.

They also highlighted the thriving independent shops as a sign of the positive effect that small businesses can have on a community.

Helen Davies, Editorial Projects Director and Best Places to Live editor, says: “This guide is a celebration of towns, cities and villages that are each a fantastic place to live in 2024, from Dunkeld to Knutsford, Falmouth to Leeds. Wherever you are on the property ladder, there will be somewhere to suit you.”

UPWARDLY MOBILE

And she adds:  “These are all places where you can feel grounded as well as upwardly mobile: they have a mature sense of community, lively, supportive high streets and an eye to the future, whether that is eco-friendly measures, transport and regeneration, or imaginative inclusion of new housing.”

The annual guide also named 10 regional winners including Wivenhoe, Essex; Clerkenwell, London; Stirchley, Birmingham; Portstewart, Co Londonderry; Leeds; Stockport, Greater Manchester;  West End, Dundee; Folkestone, Kent; Sherborne, Dorset and Abergavenny, Monmouthshire.

Previous winners of the Best Places to Live in Britain title are Stamford, Lincolnshire (2013); Skipton, North Yorkshire (2014); Newnham, Cambridge (2015); Winchester, Hampshire (2016); Bristol (2017), York (2018), Salisbury, Wiltshire (2019), Altrincham, Cheshire (2020) Stroud, Gloucestershire (2021), Ilkley, West Yorkshire (2022) and Wadhurst, East Sussex (2023).

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Property consultancy Vail Williams has reported its best ever year, with increased revenues of £18.3 million, up 5%.

The results included the highest grossing single quarter since 1988 when the firm was founded.

‘People managers’

An internal reorganisation of how the firm’s 175 staff are managed played a part in the financial success, the firm says.

Matthew Samuel-Camps, Managing Partner, says: “We increased our team numbers, productivity improved, we did a lot more multi-disciplinary work and we continued to serve high-quality clients across a range of sectors.”

Nobody comes into this profession with the sole desire to manage staff.”

Samuel-Camps says a key contributor to success was introducing dedicated people managers into the business.

This move was the first phase of ‘decoupling’ people management from operational heads.

“Nobody comes into this profession with the sole desire to manage staff, so we have enabled them to get on with their jobs without distraction.

Specialist

“People are our most valuable asset and every time we put, say, a specialist surveyor or planner in charge of something else it is a compromise,” he says.

“We have a whole new learning and development philosophy being instilled into the business. We have expanded our training budget and are really focusing hard on training, personal development and inculcating expertise and experience throughout the business.”

New office

Vail Williams employs 175 people, of which more than 50 are partners, based across its 12 offices in the Midlands and south of England.

The firm recently opened a new office in Oxford in an extension of its Thames Valley region presence.

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The complaint

Rebecca Marsh, The Property Ombudsman

A landlord complained to a letting agent that they failed to correctly vet the tenants, ensure the upkeep of the property and correctly submit a rental insurance claim.

In November, the letting agent found tenants for the property and conducted referencing through a third-party company, deeming them suitable for the tenancy. The property was leased under an Assured Shorthold Tenancy for an initial six-month term at £1,650 per month, with a £1,903 security deposit protected by a deposit scheme.

The landlord instructed the letting agent to manage the property, agreeing to pay a monthly fee of £245.33, comprising 10% for management and 2.39% for rent insurance. The agent took out a rent insurance policy in their name, allowing the landlord to benefit from rent payments and legal costs in case of tenant arrears, with terms detailed in the policy documents.

The letting agent then served a Section 21 notice in July to end the tenancy and made a claim on the insurance policy.”

Six months later, the tenants started falling into rent arrears. The letting agent then served a Section 21 notice in July to end the tenancy and made a claim on the insurance policy.

The letting agent advised the landlord that the insurance claim had been declined. However, they assisted the landlord to regain possession of the property via court proceedings, of which the agent met the expense.

A property visit took place, revealing the property in poor condition. A claim was made against the tenants’ deposit for rent arrears, which was successful. The landlord received the property back through court proceedings.

The landlord made a formal complaint against the agent, alleging failure to vet tenants, maintain the property, and correctly submit a rental insurance claim. The agent responded to the complaint, rejecting compensation claims but refunding rent insurance fees and deposit deductions, a total of £791.45. Dissatisfied with the agent’s response, the landlord sought an independent review from The Property Ombudsman.

The Ombudsman’s findings

The landlord raised significant concerns about the agent’s failure to properly vet the tenants and communicate crucial information. Specifically, the lead tenant was found not to be occupying the property, and another individual residing there was not listed on the tenancy agreement. There were issues concerning selective licensing conditions set by the local council, which the agent failed to adequately address.

Although the agent instructed a third-party referencing company, the Ombudsman would have expected the agent to carefully consider the findings and follow up any discrepancies.

Furthermore, it was discovered that the tenants were allowed to pay rent in advance to satisfy affordability criteria.  Despite being recorded on the tenancy agreement, the Ombudsman was not satisfied that this was adequately disclosed to the landlord before the tenancy commenced. This failure to communicate crucial information resulted in the agent not meeting their obligations under Paragraph 11g of the TPO Code.

The Ombudsman was not satisfied that this was adequately disclosed to the landlord before the tenancy commenced.”

The landlord said the agent failed to adequately maintain the property, resulting in its poor condition upon return. Concerns included a lack of regular property visits and delayed reporting of maintenance issues, such as a roof hole, which cost approximately £2,800 to repair, and the need for extensive cleaning and replacements totalling £7,166.

The Ombudsman found the agent’s records indicated periodic property checks, timely reporting to the landlord and maintenance issues dealt with.

Mishandled claim

 The landlord said the agent mishandled the rent insurance claim, seeking compensation for the payments he would have received if the claim had been successful. The agent admitted responsibility for the claim’s failure, citing an error they made, leading to the insurer’s decision to decline it. However, the agent argued that they were not liable to the landlord as the policy was between them and the insurer.

The Ombudsman said the policy was inextricably linked to the service the agent provided and had the agent wished to restrict, or place conditions upon their liability they should have clarified the extent of their liability in their terms of business and drawn the landlord’s attention to this so he could make an informed decision whether to proceed. This would have been in accordance with the Consumer Protection from Unfair Trading Regulations 2008.

It was deemed fair and reasonable to compensate the landlord as if the claim had been successful.”

Given their acknowledgment of their error and failure to clarify policy terms, it was deemed fair and reasonable to compensate the landlord as if the claim had been successful.

Conclusion

Based on the outlined reasons, it was concluded that the landlord was entitled to compensation equivalent to what he would have received if the rental insurance claim had been successful. Additionally, compensation of £1,000 was awarded for undue aggravation, distress, and inconvenience caused by the agent’s failures. The proposed decision upheld two of the complaints and concluded the dispute with a compensation award of £10,264.50.

For more information on redress, go to The Property Ombudsman Scheme.

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What’s amazing when you look at property price data is the huge differences between regions, but that within those regions, the towns and cities also perform at different rates.

Over time, out of the 30 cities we track, since 2005, property prices have only risen above the average annual 3.8% inflation rate in only seven cities/towns. These include:

• Manchester
• Bristol
• Cambridge
• Oxford
• Brighton and Hove
• London
• Edinburgh

Milton Keynes property prices are on a par with the average annual rate of inflation.

All the remaining towns and cities have seen their average property prices grow at less than inflation – which is not something anyone would realise if they took their understanding of property prices trends from the media.

The following towns and cities price growth ‘on average’ are performing well below inflation:

• Newcastle
• Belfast
• Aberdeen
• Southampton
• Nottingham

Price growth charts according to Land Registry and Hometrack

From a year on year basis, Edinburgh, Manchester and Oxford appear to be performing well historically and also year on year. Meanwhile Brighton and Hove appears to have lost some of its historic steam, along with Cambridge and London.

E.surv commentary
“In December 2023, only 11 of the 111 Unitary Authority areas in England and Wales were recording house price gains over the previous twelve months, which is 8 fewer authorities with price rises over the year than in November 2023.
“The area with the highest annual increase in prices in December 2023 is Gwynedd in Wales, up by 6.4%. In Gwynedd, prices for both detached and semi-detached homes have increased over the last twelve months, with the most significant increase on a weight-adjusted basis being detached properties, up from an average £345k in December 2022 to £370k one year later.

“By way of contrast, the area with the largest fall in prices over the last twelve months was – perhaps ironically given its proximity to Gwynedd – Denbighshire. In Denbighshire, prices have fallen by 16.1% over the year, with the largest fall in average values being detached properties, down from an average £310k in December 2022 to £245k in December 2023. However, it is perhaps likely that this had more to do with the attributes of the individual houses sold in the period, as opposed to a collapse in the housing market.”

Appendix: City/town property indices price tracking

For city/town tracking, we use Land Registry (government data) and Zoopla/Hometrack. The Land Registry data is useful because we can analyse how property prices have changed over time and this helps us to put today’s price information into context.

The Zoopla/Hometrack data is useful as they take into account the change in mix of property transactions during the pandemic to houses away from flats. This has meant the likes of the Land Registry and other indices have over exaggerated price changes year on year.

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On Thursday 7^th March 2024, the Women in Estate Agency (WiEA) committee hosted their highly-anticipated second annual conference.

Attendees took to social media to describe the “emotional highs and lows” of the event, after witnessing passionate talks from key industry figures including Kate Faulkner OBE. In contrast to more formal conference settings, the dynamic line-up of speakers led raw and powerful discussions, combined with practical advice and insights, that touched on various aspects of the industry and the challenges faced by female professionals. The event even featured a surprise beatbox performance, adding an unexpected but energising element to the day.

Held at The IET, Savoy Place in London, the event attracted nearly 450 attendees, marking a significant rise from the 250 attendees last year. They also saw a remarkable shift in gender demographics with over 20% male attendance, a substantial increase from less than 10% previously.

Key highlights of the event included:

1. Inspiring Speakers: Attendees were moved by the stories and experiences shared by speakers, including Heather Staff of Street Group and Rachel Hanniquet-Brooking of Apo Group Ltd. From personal anecdotes to professional expertise, the talks resonated with attendees on a deep and emotional level.
2. Creating Community: WiEA emphasised the importance of collective action in effecting meaningful change. Through initiatives such as their growing Facebook group and webinar series, WiEA provides valuable tools and support to empower professionals at all levels in the sector.
3. Industry-Wide Support: The event was only possible due to industry support from a wide range of sponsors, including Rightmove, Moneypenny and Propertymark.
4. An Increase in Male Attendance: The substantial increase in male attendance reflects the growing need for gender diversity and inclusivity at all levels within the estate agency sector. WiEA aims to achieve a 40% male attendance by 2025, emphasising the importance of inclusivity and collaboration in driving industry-wide change.

Verona Frankish, WiEA Committee Chairperson, stated:

Verona Frankish, WiEA Chairperson

“The magic blend of incredible individuals sharing their personal stories, industry leaders sharing their business insights, thought-provoking panel discussions on topics that are never covered at industry events, mixed with an audience who checked their egos at the door and came to listen and learn with open hearts and minds.

The issue of workplace equality remains a significant challenge. It’s not merely about meeting quotas or ticking boxes; it’s about fostering an environment where every individual regardless of gender, race, ethnicity, religion, sexual orientation, or any other characteristic, can thrive and succeed based on their merits and abilities.

 The overwhelming response to Thursday’s event has been humbling and uplifting and demonstrates that our industry is ready for change. With so many legacy issues to address, this will not happen overnight, but WiEA are committed to being the credible voice for the change that is long overdue.”

 Attendee, Annalese Walmsley, Sales Director at Homebox, remarked:

 “How amazing, thought-provoking, emotional, inspirational and jaw-dropping was the Women in Estate Agency conference yesterday?!…Thanks to the phenomenal WiEA committee for a fantastically organised and executed event. It was a jam-packed agenda with some emotional highs and lows and I cannot wait to attend again next year.”

 Attendee, Abbey Brawn, Local Property Partner at Purple Bricks wrote:

“Yesterday, I listened to incredible women reflect on their trail blazing careers and overcoming challenges that you would have thought would be impossible, one after the other. They were the CEOs, the MBEs and the OBEs in my industry, the inspirational people you look at and wonder how they got there, and here is what I noticed…Firstly, their feminine energy and the strengths we associate with women were a huge factor in how they got there… The other common denominator I saw in all of these women was the joy they felt shining a light on the other women around them.”

 Attendee, Simon Leadbetter of We Are Unchained said:

“Yesterday’s Women in Estate Agency conference was exceptional. We heard so many personal, powerful, and moving testimonies and watched brilliant masterclasses in culture, brand, cyber-security, and motivation/resilience…I was inspired, touched, and utterly astonished.”

Jo Bourne of Impact CTMD Ltd, explained:

 “This community has given so many a voice, a safe place to talk, share their stories, ask for help, make new friends, be authentic and vulnerable and most of all to know how important it is to celebrate “being you”. Yesterday’s conference showcased and celebrated everything that Women in Estate Agency represents and I am sure that men and women up and down the country will be reflecting on what they heard, saw and were a part of and most importantly how together we can all be the voice of change.”

WiEA already have a date in the diary for next year’s conference, Thursday 6^th March 2025. They will share more plans for the group in the coming weeks as they strive to do more and be more for women in the estate agency industry.

WiEA also encourages individuals to explore the resources available on their website and to register for upcoming webinars to continue the conversation and momentum generated by the event.

For more information about WiEA and upcoming events, visit www.womeninestateagency.co.uk.

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