According to reports in the Daily Mail, ageing rocker Ronnie Wood has reduced the asking price on his Queen Anne house built c.1700 which directly overlooks the River Thames on London’s Cheyne Walk, SW10.
He first listed his property for sale in October 2009 for £6.5m, but recently reduced the asking price to £5.875million. It’s reported that he actually paid £7.25m for the property just over two years ago and that a hefty divorce settlement has led to the sale of the property.
We estimate the value of 103 Cheyne Walk, London, SW10 to be £10,138,631. This is higher than the average current value for homes on Cheyne Walk, SW10, which is £2,677,955. There have been 3 property sales on Cheyne Walk in the last 12 months, with the average price paid being £2,408,333.
Cheyne Walk has long been home to many a wealthy individual and has been dubbed “Rolling Stones Row” – Mick Jagger used to live at number 48 and Keith Richard at number 3 with Bill Wyman who, it’s believed is still living a stones (sorry) throw away on the Kings Road.
According to the selling agents:
“…the property extends to some 4,228 sq ft, the house has detailed planning consent for extension to provide approximately 7,300 sq ft of accommodation. The current consents, confirmed in November 2007, provide for a much extended house with basement, sub-basement and swimming pool. Various documents, elevations and plans are available upon request.”
If there’s one thing yesterday’s emergency budget proved, it’s how important an active property market is to the coalition. Chancellor George Osborne’s speech plunged the hatchet into many contentious and sensitive areas of the economy cutting benefits, big infrastructure projects and civil service pay and yet – along with booze and cigarettes – property survived largely unscathed.
But Osbourne is just outside that fence, watching. He is to review the Stamp Duty holiday for first time buyers purchasing homes up to £250,000 and tinkered with the fringes including a limit on housing benefit.
The big news from the budget was the immediate increase in Capital Gains Tax to 28 per cent for higher rate tax payers. There are currently approximately four million people in the UK who earn enough to pay the top income rate tax of 40% on incomes between £37,500 and £150,000 a year or, if you earn over £150,000, 50%.
For middle-income earners – namely those earning up to £37,500 – Capital Gains Tax remains the same.
So the higher CGT will only impact higher income bracket earners who are landlords looking to sell off their buy-to-let property now – which at any one time is thought to be approximately 50,000 (or 5%) of the UK’s one million buy-to-let investors with another 50,000 facing the new higher rate on sales of other, non-property assets such as shares.
But if they among this group and were planning to sell up then the tax-revenue argument kicks in. Too much tax and people avoid it by waiting until the tax goes down. So people will simply delay selling their buy-to-let properties, particularly as the rental market is strong at the moment.
But experts think Osborne has shut the stable door too late. Most of the country’s ‘reluctant’ landlords have already sold up and exited the buy-to-let market.
The most severe impact on the market may be to subdue demand for buy-to-let properties, particularly new builds. Investors wary of CGT remaining high for a prolonged period may decide property investment is not for them.
Lastly, the VAT rate hike is also unlikely to upset the market. New builds or conversions completed as a business projects are zero-rate – i.e. people can reclaim the VAT on building materials and services after the project is finished. So the only pain is that you’ll need to pay an extra 2.5% upfront in VAT before claiming it back.
Earlier today, George Osborne unveiled the biggest package of tax increases and spending cuts in a generation.
He called his Budget “tough but fair” and stated it was “unavoidable”.
Below are our reactions from our Commercial Director, Nick Leeming on the key points affecting the property industry – Capital Gains Tax, VAT, Stamp Duty review and holiday lets.
Capital gains tax up to 28%. The £10,100 per year CGT-free allowance remains.
Here’s an example:
This means that the typical second-home owner or buy-to-let investor looking to sell will now be faced with a capital gains tax bill of £31,802 as opposed to £20,444 before today’s announcement*. This assumes that they have owned the property for 10 years, over which period average house prices in the UK according to our figures have risen from £104,047 to £217,624, resulting in an average a gain of £113,577.
*We have not included the £10,100 allowance, as people may spread this across a range of assets
“The government’s decision to change the CGT rate is likely to cause disruption in certain sectors of the property market. Locations popular with second-home owners such as seaside towns are likely to suffer from a fall in demand as well as university towns where parents will now be far more reluctant to purchase property to house their children whilst studying. The impact will also likely be felt in the market for flats in London, which have been popular as an investment for families and those with long commutes. Almost 14% of the population resides in private rented accommodation. Higher taxation will only discourage buy-to-let buyers in a rentals market which is already suffering from a shortage of investment and may lead to upward pressure on rental levels. There are a lot of further, unanswered questions about the impact on this sector. The introduction of the higher CGT rate without indexation or taper relief incentives to reward long-term property investors is likely to be very damaging for the private rented sector and risks leading investors to abandon the property market, leading to a shortage in the supply of rental properties.
VAT will rise from 17.5% to 20% from 4 January 2011.
“The increase in VAT is also bad news for the property sector, especially for those involved in the home-moving process. The rise will mean homeowners and buyers will have less money to spend on improving and renovating their homes and businesses that rely on activity in the property sector, such as removal firms and tradesmen, will likely take a serious hit.”
Holiday lets tax reprieve
“The latest available government figures show there are around 272,000 second home owners in England. The return of the holiday lettings tax break is positive news as many of these second homes are used as furnished holiday lets, meaning they are available for others to enjoy and beneficial for the tourism industry. The appeal of this reform and the lower-than-expected increase in capital gains tax will lead to fewer investment properties being put on the market for sale than anticipated.”
Pledge to review the stamp duty land tax relief for first time buyers
“The government announced in the Budget that it will review the stamp duty relief introduced recently for first time buyers. Putting an end to stamp duty assistance must be avoided at all costs. Restrictively high mortgage rates and deposit requirements from lenders already make it virtually impossible for first time buyers to get onto the property ladder, without further obstacles in their way. A stamp duty saving of up to £2,500 may not appear a huge sum in relation to the overall cost of buying a house, but it is not an insignificant sum to first timers – and sufficient to cover mortgage payments for several months. The proportion of first time buyer purchases has now dropped to 35% of all transactions – the lowest share since 2007 – which should act as a clear warning for the government and mortgage lenders. More assistance must be given to first time buyers, who are absolutely critical to the continued recovery in the property market.”
Have your say below, we want to hear it.
The full Emergency Budget Report can be found here:
…and the section on Housing
With the oldest tennis tournament in the world starting today and a fantastic story circulating about how Roger Federer could net Oxfam a £100,000 windfall from a bet placed from beyond the grave if he defends his title at the Championship, we bring you all the property related figures you need to know about Wimbledon.
|Average property value for Wimbledon||£511,990|
|Average property value for UK||£217,624|
|1 year ago||£36,726 (9.78%)|
|2 years ago||-£14,214 (-3.33%)|
|3 years ago||-£10,527 (-2.49%)|
|Average house price paid in last 12 months||£502,261|
|Number of property sales in last 12 months||471|
In this week’s LIVE Zoopla.co.uk Auction we’ve spotted two fantastic opportunities to purchase farmhouses.
One of which would make an ideal renovation project and the other is a more modern ‘farmhouse’ requiring little work.
Both come with vacant possession.
Starting bid: £220,000,
Address: Wickenlow Farm, Plantation Road, Edgworth, Bolton, BL7 0DD
Description: A Grade II Listed detached stone farmhouse; together with a self-contained annex; dating to the 17th Century. In need of complete renovation; the house offers a number of interesting features retaining stone mullioned windows; exposed beams and open fireplaces. The name ‘Wickenlow’ loosely translates to ‘Mountain Ash Hill’. The property benefits from four reception rooms; conservatory; four bedrooms; master suite has en suite facilities; 2 further bathrooms. There is also a 1 bedroom annexe included in the sale along with an area of land the area of which is to be determined.
Location: Occupying an elevated rural position 1 mile from Broadhead Road the property is well placed for Bolton or Blackburn centres together with the M65 motorway at Darwen.
Occupancy Status: Vacant
More pictures here
Market overview for BL7 here
Starting bid: £360,000
Address: Sunnyhurst Farm, Waxy Lane, Freckleton, PR4 1HQ
Description: Individually designed detached residence offering extremely spacious family sized accommodation over 3 floors and being situated on this quiet lane with panoramic views to the front & side.
Location: Excellent area with access to good road links within walking distance of local village centre and amenities. Within a mile of a BAE systems.
Occupancy Status: Vacant
More pictures here
Market overview for PR4 here
More about the Zoopla.co.uk LIVE online auctions here.