Hudson Berkshire Experience http://hudsonberkshireexperience.com/ Sun, 02 Oct 2022 14:26:25 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://hudsonberkshireexperience.com/wp-content/uploads/2021/05/cropped-icon-32x32.png Hudson Berkshire Experience http://hudsonberkshireexperience.com/ 32 32 5 comforts that can kill your real estate business https://hudsonberkshireexperience.com/5-comforts-that-can-kill-your-real-estate-business/ Fri, 30 Sep 2022 08:31:32 +0000 https://hudsonberkshireexperience.com/5-comforts-that-can-kill-your-real-estate-business/

Comfort can be a killer if you’re not careful. In life, you either grow up or you die. Growth and comfort cannot coexist, says Jimmy Burgess. If you are comfortable in these five areas, it could be an omen that your business will decline.

Comfort can be a killer if you’re not careful. In life, you either grow up or you die. Growth and comfort cannot coexist. Comfort can often lead to complacency, and complacency almost always leads to a declining business.

Sometimes this comfort that we get used to can start to deteriorate our way of life, our life, our health and everything around us. If you are comfortable in these five areas, it could be an omen that your business will decline.

1. The comfort of a cheap

Good markets have a knack for making us look better than we are. But tough markets tend to make us look worse than we are. We’re on the back of two years where we’ve had one of the hottest real estate markets ever.

The past few years have the potential to blind agents to the fact that the next few years in real estate are likely to be tougher than the previous two years. Some agents won’t realize they need to adapt until it’s too late, but your recognition of market shifts gives you the opportunity to make changes.

The key to overcoming the comfort of a cheap market is to continually develop yourself and your business knowledge. Become a student of what agents in other markets are doing in this challenging new market environment to get things moving.

How creative are they in setting up deals when other agents wonder why they can’t make things work like last year? Do they incentivize sellers to offer closing cost credits to give buyers the opportunity to lower their interest rate? Are they hosting more open houses or getting into video marketing for ads?

Don’t let the convenience of a good market stop you from growing your business. Stay humble, hungry, and open to modeling your business after others succeed in today’s market.

2. The comfort of past successes

The comfort of past success can lead to an ego that tells you that success and continued business growth will happen automatically. Nothing could be further from the truth. What brought your past successes will not bring you to the next level of your business.

In times of frenetic markets, as we have experienced in recent years, success can seem easy. But during normal to tough market times, success comes through planning and execution.

  • Do you have a set of clearly defined goals for your business?
  • Does it involve measurable daily, weekly and monthly activities that indicate whether you are on track or not?
  • Do you track the number of conversations, dates, and other leading indicators of future success related to real estate?

The best way to combat the comfort of past successes is to set your 2023 goals now and start executing them immediately. Real estate operates on a 60-90 day cycle, so in other words, the activities we do today translate to sales in 60-90 days.

Most agents are coasting on the fourth quarter of the year, which is why agent cash flow problems mostly occur in January and February. Do not rest on your past successes. Develop your action plan and start executing it now to ensure continued success in the future.

3. The convenience of a large database

It is not the size of your database but rather the depth of your relationships that determines your future success. It can be comforting to know that you’ve built a great database, but unless you’re constantly adding value to the people in your database, it’s of little value.

Many agents rely on the belief that because they have amassed a large database of people, they will generate business simply by the size of that database. The belief that you can just tap into the database at any time and transactions will fall is naive.

The beauty of a large database is that even if you’ve been inconsistent in the past, you can start now and develop a plan to consistently add value in a way that will provide business opportunities. This plan should include several points of contact each month.

The basis of the plan is that each member of your database receives daily, weekly or monthly updates regarding which one they own or which one they would like to purchase in the future. You should have a weekly or monthly newsletter sent out to the entire database and nurturing emails that discuss your community or upcoming community events. There should be verification phone calls and text messages every few months.

By developing an action plan with consistent communication with your growing database, your business will continue to grow.

4. Comfort from a single source

This business is constantly evolving. If you build your business from just one source of leads, your business is at risk – not if, but when that source of leads dries up or becomes less effective.

Imagine the agent with unlimited short sales in 2007, still relying solely on short sales to generate business. Imagine the agent who could generate as many quality leads as they wanted via Craigslist posts in 2014 or highly targeted Facebook ads in 2018 (targeting at this level is no longer allowed today) still trying to grow your business solely through these strategies.

Do you believe that the only source of lead you have today will be as effective as it is today, forever? How long has it been since you tested a new lead source? Diversification of lead sources is essential for long-term success.

I suggest having at least four different lead sources for your business at a time. Think of your business as a table and your lead sources as table legs. The more legs on the table, the more stable the table will be. It’s the same with lead sources. The more lead sources you have, the more stable your business will be.

5. The comfort of more money than you’ve ever had

The past few years have been an incredible time to be in real estate with record sales and record selling prices. You may be reading this with more money in the bank than you ever had. Having that money in hand is a good thing, but don’t let that comfort of money lull you into thinking your financial situation can’t change.

When we make more money than we have ever made, we tend to improve our lifestyle. This means your mortgage payment, car payment, and overall living expenses are shifted to a higher monthly cost of ownership. But what happens when the market changes and your income is lower next year than it was this year? The second your expenses are more than your income; financial storm clouds loom on the horizon.

Adjust your finances to positive cash flow as soon as possible. Reduce your expenses or find ways to increase your income. Make sure the comfort of having more money than you’ve ever had hasn’t turned into a false sense of security that your finances are bulletproof.

Enjoy the fruits of your labor and celebrate your successes. But never let your comfort rise to a level that leads to future pain. The success you experienced in the past is still available today. Keep growing and your business can only follow.

Jimmy Burgess is the Director of Growth for Berkshire Hathaway HomeServices Beach Properties of Florida in Northwest Florida. Connect with him on Facebook or Instagram.

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Home price growth stagnates month-over-month in September https://hudsonberkshireexperience.com/home-price-growth-stagnates-month-over-month-in-september/ Fri, 30 Sep 2022 07:03:23 +0000 https://hudsonberkshireexperience.com/home-price-growth-stagnates-month-over-month-in-september/ House price growth stagnated month-over-month in September, but property values ​​were still 9.5% higher than a year earlier, an index showed.

Estate agents have said there could be renegotiations amid rising interest rates – and if that turns into a trend, it could drive house prices down.

In the UK, the average house price in September was £272,259, the Nationwide Building Society said.

Real estate values ​​rose 0.0% month over month, following a monthly increase of 0.7% in August.

The annual price increase of 9.5% was slightly more modest than the 10.0% annual increase recorded in August.

Robert Gardner, Nationwide’s chief economist, said: “In September, annual house price growth slowed to single digits for the first time since October last year, although at 9.5% , the rate of increase remained robust.

“Prices remained unchanged over the month from August, after taking into account seasonal effects. This is the first month not to record a sequential rise since July 2021.

“There have been further signs of a market slowdown over the past month, with the number of mortgages approved for home purchases remaining below pre-pandemic levels and investigators reporting a drop in mortgage applications. new buyers.

“Nevertheless, the slowdown to date has been modest and, combined with a shortage of inventory in the market, this means that price growth has remained firm.”

Stamp duty cuts were made in last week’s mini-budget.

However, many mortgage products have been withdrawn in recent days due to economic uncertainties and lenders have priced their mortgages higher, leading to higher costs for borrowers.

Mr Gardner said: “By lowering transaction costs, the stamp duty reduction may provide some support for activity and prices, as may labor market strength, assuming it persists, with the unemployment rate at its lowest level since the early 1970s.

“However, headwinds are strengthening, suggesting that the market will slow further in the months ahead. High inflation is putting significant pressure on household budgets, with consumer confidence falling to historic lows.

“Housing affordability is increasingly strained. Deposit requirements remain a major hurdle, with a 10% deposit on a typical property for a first-time buyer equating to nearly 60% of annual gross income – an all-time high.

“Furthermore, the significant increase in prices in recent years, together with the significant increase in mortgage rates since the beginning of the year, have pushed the typical mortgage payment as a share of take-home pay well above the long term average.

Nationwide also released quarterly house price figures showing movements across the UK.

Mr Gardner said the South West of England remains the best performing region ‘even though annual house price growth has slowed to 12.5% ​​from 14.7% in the (second quarter) “.

He added: “Wales saw annual price growth slow to 12.1% but remained the best performing country.

“Price growth in Northern Ireland slowed to 10.1%. Meanwhile, Scotland saw a further slowdown in annual growth to 7.8%, from 9.5% last quarter.

Nathan Emerson, chief executive of estate agents and lettings body Propertymark, said: ‘Our own data from our estate agent members across the UK shows that the number of new homes and buyers arriving on the market is rising year by year, underlying stability.

“As interest rates rise, we could start to see renegotiations if mortgage deals expire during the disposal process, which currently takes over 17 weeks on average.

“A renegotiation trend would begin to soften house prices as these final sale prices are used by agents to create comparable evidence for the valuation of new properties entering the market.”

Mark Harris, managing director of mortgage brokerage SPF Private Clients, said: “So much has changed even since early September.

“Lenders have pulled fixed rate mortgages left, right and center as the volatility of swap rates makes them extremely difficult to value.

“A lot of smaller lenders in particular are waiting to see what the market does before they relaunch.”

He added: “Borrowers concerned about their mortgage should seek advice from a broker as to the options available and plan ahead as much as possible.”

Gabriella Dickens, senior UK economist at Pantheon Macroeconomics, said: “The latest data from Nationwide suggests that skyrocketing mortgage rates are finally starting to weigh on buyer demand.

“Raising the stamp duty property tax threshold to £250,000 from £125,000 will do little to offset the affordability problems caused by the upcoming spike in mortgage rates.”

Tomer Aboody, director of property lender MT Finance, said: “We will see a shift in sentiment and a shift to a buyers’ market, rather than sellers calling the shots.

“Prime properties, particularly in the London area, should hold values ​​as overseas buyers seek to take advantage of the weak pound.”

Andrew Montlake, managing director of mortgage broker Coreco, said: “The days of double-digit growth may not return for a long time.

“The level of uncertainty in markets and felt by consumers is out of this world. The brief surge in sentiment sparked by the stamp duty announcement on Friday has been wiped out by the tsunami of market volatility since.

“There is no doubt now that many potential buyers will either have to consider smaller homes due to the sharp increase in mortgage rates they are currently considering, or abandon their plans altogether and wait for there to be more clarity and things have calmed down. .

“Prices will no doubt come under real pressure now, but the steep declines that some have predicted are unrealistic given the lack of supply. Prices are much more likely to stall than cross the floor.

Ross Boyd, founder of mortgage comparison platform Dashly.com, said: “After last week’s chaos, the level of uncertainty in the real estate market is beyond scale.”

Here are the average home prices in the third quarter of this year, followed by the annual increase, according to Nationwide:

– South West, £321,725, 12.5%

– East Midlands, £241,699, 12.3%

– Wales, £213,684, 12.1%

– West Midlands, £247,120, 12.0%

– North West, £212,998, 11.3%

– East Anglia, £289,266, 11.2%

– Yorkshire and Humber, £209,261, 11.0%

– Outer South East (includes Ashford, Basingstoke and Deane, Bedford, Braintree, Brighton and Hove, Canterbury, Colchester, Dover, Hastings, Lewes, Fareham, Isle of Wight, Maldon, Milton Keynes, New Forest, Oxford, Portsmouth, Southampton, Swale, Tendring, Thanet, Uttlesford, Winchester, Worthing), £353,276, 10.4%

– Northern Ireland, £183,960, 10.1%

– Outer Metropolitan (includes St Albans, Stevenage, Watford, Luton, Maidstone, Reading, Rochford, Rushmoor, Sevenoaks, Slough, Southend-on-Sea, Elmbridge, Epsom and Ewell, Guildford, Mole Valley, Reigate & Banstead, Runnymede, Spelthorne , Waverley, Woking, Tunbridge Wells, Windsor and Maidenhead, Wokingham), £435,709, 8.3%

– North East, £159,309, 8.1%

– Scotland, £184,496, 7.8%

– London, £534,545, 6.7%

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10 Markets Where Sellers Are Cutting Home Prices the Most https://hudsonberkshireexperience.com/10-markets-where-sellers-are-cutting-home-prices-the-most/ Thu, 29 Sep 2022 10:00:00 +0000 https://hudsonberkshireexperience.com/10-markets-where-sellers-are-cutting-home-prices-the-most/

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Fed officials call for more rate hikes to fight inflation | app https://hudsonberkshireexperience.com/fed-officials-call-for-more-rate-hikes-to-fight-inflation-app/ Mon, 26 Sep 2022 22:16:37 +0000 https://hudsonberkshireexperience.com/fed-officials-call-for-more-rate-hikes-to-fight-inflation-app/

WASHINGTON (AP) — The Federal Reserve will have to keep raising its benchmark interest rate to a point that raises unemployment and lowers inflation from unusually high levels, two officials said in separate remarks Monday.

Susan Collins, the new president of the Federal Reserve Bank of Boston, endorsed the Fed’s projections released last week that indicated its benchmark interest rate would rise to 4.6% by next year, in sharp rise from around 3.1% currently.

Lower inflation “will require slower job growth and somewhat higher unemployment,” Collins said in a speech to the Greater Boston Chamber of Commerce.

Later Monday, Cleveland Fed Chair Loretta Mester said the Fed’s short-term rate is likely to stay higher for longer than expected regardless of the uncertainties surrounding the economy, such as the invasion from Ukraine by Russia and ongoing supply chain difficulties.

“When there is a lot of uncertainty, it may be better for policymakers to act more aggressively, because aggressive action and preemptive action can prevent the worst outcomes from happening,” she said. declared.

Mester also said she expects higher interest rates to raise unemployment, but disagrees with Bank of America’s forecast that the jobless rate will rise to 5.5. %.

“I expect the unemployment rate to go up, but not that much,” she said.

The two officials’ comments added to an ongoing debate about how badly the Federal Reserve’s rate hikes — the fastest in more than 40 years — will hurt the economy. By raising its benchmark rate, the Fed is driving up the cost of a wide range of consumer and business loans, including mortgages, auto loans and credit cards.

Collins said that as concerns grow about a recession, “the goal of a more modest, albeit challenging, downturn is achievable.”

Also on Monday, stocks fell for the fifth day in a row and long-term interest rates rose amid growing fears of a global recession. The 10-year Treasury yield, which influences mortgage rates, jumped from 3.69% to 3.89%.

Fed officials are hoping their rate hikes will provide a “soft landing” by slowing consumer and business spending enough to bring inflation down, but not so much as to trigger a recession.

Yet many economists are increasingly skeptical of the likelihood of such an outcome. The Fed raised its key rate to a range of 3% to 3.25%, the highest in 14 years, even as the US economy has already slowed. This could cause a recession in the United States next year, economists fear.

In a question-and-answer session after his speech, Collins also said that inflation, which hit 9.1% in June from a year earlier and has since fallen to 8.3%, “has maybe peaked.

But Mester said she had seen no such signs.

“Before concluding that inflation has even peaked, I’m going to have to see several months of falling readings,” she said.

At a policy meeting last week, the Fed raised its short-term rate by three-quarters of a point for the third time in a row. Hikes are usually a quarter point smaller. Fed Chairman Jerome Powell at a press conference after the meeting said “the chances of a soft landing are likely to diminish” as the Fed steadily raises borrowing costs.

“No one knows if this process will lead to a recession or, if so, how big that recession would be,” Powell said.

A challenge for the Fed is that last week it also released its quarterly economic and interest rate projections. They showed that Fed policymakers expect unemployment to hit 4.4% by the end of next year, up from 3.7% currently.

According to a rule of thumb discovered by economist Claudia Sahm, every time since World War II that unemployment has increased by half a percentage point over several months, a recession has followed.

Collins is one of 12 voting members of the Fed’s policy-making committee and is the first black woman to serve as chairwoman of a regional Fed bank. She was sworn in on July 1. Collins previously served as provost and executive vice president at the University of Michigan and served on the board of the Chicago Fed.

Atlanta Fed Chairman Bostic in an interview Sunday on CBS News’ “Face the Nation” also said “we need to slow down” to get inflation under control.

“But I think we’re going to do everything we can at the Federal Reserve to avoid deep, deep pain,” he added.

Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

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StepStone Real Estate to Make Significant Investment in Anchor Health Properties https://hudsonberkshireexperience.com/stepstone-real-estate-to-make-significant-investment-in-anchor-health-properties/ Mon, 26 Sep 2022 14:30:00 +0000 https://hudsonberkshireexperience.com/stepstone-real-estate-to-make-significant-investment-in-anchor-health-properties/

CHARLOTTESVILLE, Virginia and MEDIA, Pa., September 26, 2022 /PRNewswire/ — StepStone Real Estate (“SRE”), the real estate arm of private markets investment firm StepStone Group Inc. (NASDAQ: STEP), has made a significant strategic equity investment in Anchor Health Properties ( “Anchor”), a premier healthcare property owner, manager and developer across United States. The investment was made through a separate account managed by SRE on behalf of a large international pension fund client. Of the June 30, 2022SRE supervised US$168 billion in global real estate capital allocations for its sponsors and clients. Anchor intends to use this investment to fund the platform’s future growth, as well as improve its balance sheet and credit reserves. Anchor Health Properties continues to be the majority owner and managing member of the operating platform.

(PRNewsphoto/Anchor Health Properties)

“SRE’s commitment to partner with Anchor will help us manage and accelerate future growth in the years to come.”

“Engaging one of the world’s largest institutional investors to partner with the Anchor platform will help us manage and accelerate future growth in the years to come,” said Ben Ochs, CEO of Anchor. “We believe Anchor and SRE share a similar cultural fit, long-term ownership mindset, appropriate risk-adjusted decision-making, and a vision to facilitate best-in-class healthcare services through our healthcare facilities. through United States. We are excited about this next chapter in Anchor’s growth as we continue to “pursue better healthcare through real estate solutions” across our three core service lines. »

James Schmidthe company’s chief investment officer said, “At the start of 2022, Anchor assessed the potential to improve the company’s balance sheet and prepare for the platform’s next stage of growth. We had the opportunity to meet a wide range of equity and debt capital investors across the world and assess the potential for partnering with strategic growth capital as we continue to expand our development, management and reach and capabilities well-positioned to take advantage of outsized returns for investors as these opportunities arise. Additionally, we are excited to benefit from SRE’s knowledge of global capital flows and dynamic approaches to investment. business execution.

John WatersSRE partner and Head of Investments, added, “We came to know Anchor while we were evaluating the best partners with whom to make a strategic investment in the U.S. healthcare real estate industry. We believe our recapitalization of Anchor will help them achieve their growth goals and significantly improve their operating platform going forward.”

Ted FlagSenior Managing Director of JLL Securities, facilitated a targeted investor process to help Anchor evaluate equity and debt options for investment in the platform during 2022. Mr. Flagg added, “JLL Securities is delighted for representing Anchor in finding the right investor for the platform’s long-term growth After reviewing a significant number of different and attractive proposals from domestic and international investors, JLL worked with Anchor to determine the best strategic fit with a partner who shared a similar approach to investing, including a long-term investing mindset and an ongoing commitment to providing exceptional healthcare real estate services.”

Anchor Health Properties was advised on the legal elements by Goodwin & Proctor LLP during the transaction process. SRE was advised by Latham & Watkins LLP. Jones Lang LaSalle Securities provided financial advisory services to Anchor Health Properties for the transaction.

About Anchor Integrity Properties

Anchor Health Properties is a full-service national healthcare real estate development, management and investment company serving investors and healthcare systems. Leveraging our collective experience and resources, our team of agile, thoughtful professionals develops and delivers customized, client-specific solutions to meet today’s healthcare challenges – thinking outside the “doctor’s office”. With over $1.5 billion development projects completed, nearly 9M square feet under management, and nearly $3 billion invested in stabilized healthcare facilities, Anchor continues to create a better healthcare experience for patients and a competitive advantage for our customers. Anchor has several offices nationwide and has more than 100 professionals in its ranks. Today’s healthcare demands not only new, more efficient ways of delivering healthcare services, but also a different kind of healthcare real estate company. For more information, please visit: www.anchorhealthproperties.com.

CONTACT: Rachael Hall, Anchor Health Properties
rhall@anchorhealthproperties.com; 434-293-8004

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SOURCE anchor integrity properties

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Building strength in oddly normal times https://hudsonberkshireexperience.com/building-strength-in-oddly-normal-times/ Sun, 25 Sep 2022 09:10:12 +0000 https://hudsonberkshireexperience.com/building-strength-in-oddly-normal-times/ You wouldn’t call an economy normal in a year where the nation and state saw a shrinking goods and services pie, but the unemployment rate fell from 5.3% to 3.7% and the budget government posted a surplus of $4.4 billion.

That’s the conundrum the winners of Hearst Connecticut Media’s Best Workplaces, and the rest of us, will face in 2022. Overall, for the winning companies, business is holding up pretty well. , they tell us. Many are growing, perhaps nervously – and if and only if they can find employees.

This is the universal challenge in 2022.
Splash car wash
, founded in Greenwich in 1981 and now headquartered in Milford, has grown aggressively, now with 19 locations in Connecticut and more than 50 including neighboring states. Splash is the #1 Best Workplace winner among midsize employers (150-499) for the second year in a row, having finished in the top three four times previously.

No, it’s not the boom of the 90s or early 2000s, but it’s certainly not a recession despite national warnings and lousy global growth reports. Bad things don’t happen, Mark Curtis, founder and CEO of Splash, tells me.

So it’s like, uh, normal? Not exactly. Most winning workplaces are working overtime to attract and retain employees as they go from strength to strength after two disrupted years.

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Your Weekend Read: The High Cost of Inflation Control Could Happen https://hudsonberkshireexperience.com/your-weekend-read-the-high-cost-of-inflation-control-could-happen/ Sat, 24 Sep 2022 11:30:08 +0000 https://hudsonberkshireexperience.com/your-weekend-read-the-high-cost-of-inflation-control-could-happen/

Central Banks of Ulaanbaatar in Pretoria and Washington in London triggered aggressive tightening to combat some of the worst inflation numbers in a generation. And the The blitz of rate hikes this week could be far from the last, with policymakers indicating they are willing to tolerate recessions in order to control inflation. (Meanwhile, the Bank of Japan shook currency markets by stepping in to support the yen for the first time. since 1998.) John Authors writes in Bloomberg Review that now that investors feel there will be no near-term Fed pivot, the question is how much damage the economy will take. The key point that Fed Chairman Jerome Powell wants to convey, says Authers, is that he is the second coming of Paul Volcker, a predecessor whose repeated rate hikes in the early 1980s are thought to have inflation killed.

Vladimir Poutine intensified his war against Ukraine, staging what has been widely condemned as sham referendums in Russian-occupied areas while ordering the conscription of hundreds of thousands of Russians. Darker, he and his deputies threaten to possibly use nuclear weapons to hold on to what may soon be annexed parts of Ukraine. Protests erupted around Russia and overseas flights sold out, developments which were followed by the announcement of some exemptions to the mass appeal. US President Joe Biden said Putin’s measures should make everyone “blood runs cold” as Washington decides how to deter any nuclear attack on Ukraine—or respond as appropriate.

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How will mini budget announcements affect UK households? https://hudsonberkshireexperience.com/how-will-mini-budget-announcements-affect-uk-households/ Fri, 23 Sep 2022 13:12:29 +0000 https://hudsonberkshireexperience.com/how-will-mini-budget-announcements-affect-uk-households/ Households will see their finances disrupted following the mini-budget presented by Chancellor Kwasi Kwarteng, including a series of tax cuts.

Here’s a look at what this could mean for you.

– Home movers

Permanent stamp duty reductions in England and Northern Ireland could encourage more people on or up the property ladder.

The ‘zero rate’ stamp duty bracket will be doubled from £125,000 to £250,000.

First-time buyers will pay no stamp duty up to £425,000. First-time buyers will be able to access the relief when they buy a property costing less than £625,000 instead of the previous £500,000.

The measures will reduce stamp duty bills for all movers by up to £2,500, with first-time buyers able to access up to £8,750 in relief.

But potential buyers still face hurdles from rising mortgage rates and soaring property prices, making it more difficult to collect a down payment.

Given all the recent Bank of England base rate hikes, a tracker mortgage now costs around £210 a month more on average than it did before the rate hikes started last December, according to figures from UK Finance.

(PA graphics)

A standard variable rate (SVR) mortgage now costs around £132 more per month.

Estate agents Savills said the main beneficiaries of the stamp duty changes are likely to be first-time buyers in London and the more expensive parts of south-east England.

The government said it would provide further details to increase housing supply in the coming weeks.

Government documents also say the Scottish and Welsh governments will “receive funds through the agreed budget framework to allocate as they see fit”.

– Taxpayers

A 1 pence cut in the basic rate of income tax will take place a year earlier than planned.

From April 2023, the basic rate of income tax will rise from 20% to 19% and will mean that 31 million people will be better off by an average of £170 a year.

The additional rate of tax will also be abolished from April 2023.

Also from April 2023 there will be a higher single rate income tax of 40%, instead of an additional 45% on annual income over £150,000.

This means that all annual income over £50,270 will be taxed at 40%, the currently higher rate of income tax.

The government has said high tax rates hurt the UK’s competitiveness.

But some argue the move could fuel inflation.

Infographic from the AP showing the basic rate of UK income tax
(PA graphics)

Sarah Coles, senior personal finance analyst at Hargreaves Lansdown, said: “Our research shows that top rate payers are much more likely to have wiggle room in their budgets, and significantly more likely to do so while we let’s get through the cost of living crisis. .

“So those who are least desperate for help will get the most.

“Put money in the pockets of high earners also increases the risk of inflation. If they don’t need that extra money to fill a hole in their budget, there is a risk that their expenses will increase, further driving up prices.

The 1.25 percentage point hike in national insurance contributions, which took effect in April, will also be reversed from November. This means 28million people across the UK will keep an extra £330 a year, on average, in 2023/24, the government says.

– Savers

Those who would otherwise have been additional rate taxpayers will benefit from a tax-free personal savings allowance of £500 from April 2023, in line with higher rate taxpayers. This was not available to them before.

The Personal Savings Allowance allows people to earn certain amounts of interest without paying tax on it.

There could also be a dash for high earners to pile money into their pensions while they can still get 45% relief on the cost of saving for their retirement.

Former pensions minister Sir Steve Webb, who is now a partner at consultants LCP (Lane Clark & ​​Peacock), said: ‘There is likely to be a flurry of activity among the highest earners of Britain looking to make the most of the opportunity to get tax relief. 45% on their pension contributions.

– Energy bill payers

The Government has previously confirmed the Energy Price Guarantee, which will reduce the unit cost of electricity and gas so that a typical household in Britain is paying, on average, around £2,500 a year on its energy bill, for the next two years, starting October 1.

The £400 energy bill support scheme will be paid across Britain in six monthly installments from October, with additional support for particularly vulnerable households.

Together, the Price Guarantee and Support Scheme will save the typical household at least £1,400 for next year compared to the October 2022 price cap.

But charities have warned that many households are already struggling financially and struggling with bills.

– Workers

Plans include legislation to force unions to put pay offers to a member vote so that strikes can only be called once negotiations have completely broken down.

Universal Credit applicants who earn less than the equivalent of 15 hours per week at the National Living Wage will need to meet regularly with their work coach and take active steps to increase their income or face a reduction in their benefits.

The change is expected to bring an additional 120,000 people into the more intensive job search scheme, ministers say.

The government said average real wage growth in the UK had been broadly stagnant for 15 years, largely due to weak productivity growth.

He argues that the only sustainable way to raise living standards and fund vital public services is to unleash growth, including helping the unemployed find jobs and those in employment get better-paying work.

To support working families, the government has also said it will propose reforms to improve access to affordable and flexible childcare.

– Jobseekers

Job seekers over the age of 50 will benefit from additional time with work coaches from the employment centre, to help them return to the labor market.

Growing economic inactivity among the over-50s is contributing to labor market shortages, driving up inflation and limiting growth, the government has said.

– Bankers

The government has said removing a cap on bankers’ bonuses will encourage global banks to create jobs and invest, but critics say it will see the return of a ‘culture of greed’.

– Alcohol drinkers

Alcohol tax will be frozen from February 2023.

The tax cut will save the consumer 7p on a pint of beer, 4p on a pint of cider, 38p on a bottle of wine and £1.35 on a bottle of spirits, according to the government.

– Independents

Some self-employed people will again have to make sure they pay the right tax by determining their employment status themselves.

The Chancellor said he would scrap changes in 2017 and 2021 which shifted this responsibility to employers when a person provided services through their own business or another intermediary.

Changes to the IR35 rules would be repealed from April next year, the government said.

“From that date, workers providing their services through an intermediary will once again be responsible for determining their employment status and paying the appropriate amount of tax and national insurance contributions,” he said. .

“This will free up time and money for companies hiring contractors that could be spent on other priorities.”

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200,000 more people a year “will be exempt from paying stamp duty” https://hudsonberkshireexperience.com/200000-more-people-a-year-will-be-exempt-from-paying-stamp-duty/ Fri, 23 Sep 2022 10:42:49 +0000 https://hudsonberkshireexperience.com/200000-more-people-a-year-will-be-exempt-from-paying-stamp-duty/ Housing market activity could be boosted after the ‘zero rate’ stamp duty bracket was doubled from £125,000 to £250,000.

But increased demand could also mean higher house prices, unless there is a significant increase in housing supply, experts said.

Around 200,000 more people each year will be exempt from paying stamp duty, the government has calculated.

A typical family moving into a semi-detached property will save £2,500 on stamp duty, he said.

Chancellor of the Exchequer Kwasi Kwarteng said the stamp duty reduction would be permanent (Aaron Chown/PA)

First-time buyers, who have already paid no stamp duty on the first £300,000 of a property’s price, will see the threshold raised to £425,000.

The value of property on which first-time buyers can claim relief has also been increased, from £500,000 to £625,000.

Stamp duty applies in England and Northern Ireland, with separate property tax regimes in Scotland and Wales.

Announcing the measures, Chancellor Kwasi Kwarteng said the stamp duty reduction would be permanent and effective from Friday.

Soaring house prices and rising mortgage rates mean that people trying to move up or up the housing ladder face mounting costs.

There is also the obstacle of raising a deposit. According to property website Rightmove, first-time buyers typically need to find £22,409 for a 10% down payment on a home, up from £14,135 a decade ago.

The announcement came the same week as the Bank of England raised the base rate from 1.75% to 2.25% – the highest level since November 2008.

The move will add around £49 a month to the average tracker mortgage, according to figures from trade association UK Finance.

A previous stamp duty holiday, introduced by former Chancellor Rishi Sunak, ended last year. During the holidays, there were spikes in home sales as the holidays were scrapped and home prices hit a series of record highs.

Andrew Montlake, Managing Director of Coreco Mortgage Brokers, said: “The announced stamp duty change is thankfully effective today and a permanent change, rather than an unwanted holiday period which causes more problems than it does. solves it.

“This will indeed help many first-time buyers who have agreed prices now, but we need to be careful that, as usually happens, house prices don’t just rise further to eat away at potential savings and put homes out of reach for many people anymore, especially in an era of higher interest rates.

housing market
Experts say increased demand could also mean higher property prices (Yui Mok/PA)

Sarah Coles, senior personal finance analyst at Hargreaves Lansdown, said: “Rising mortgage rates and rising house prices form a toxic cocktail that has the potential to kill demand. For buyers facing thousands of pounds right now (the stamp duty reduction is) a welcome change.

“However, there’s every chance that the change isn’t draining the toxic cocktail, it’s just remixing it.”

She added: “The shortage of buyers is not the biggest problem facing the property market at the moment, the real drag on the property market is a severe shortage of supply.”

The Chancellor also announced that he would support home buyers by increasing the use of government surplus land to build new homes, thereby increasing supply.

Under the government’s plans, new ‘investment zones’ will attract business investment and free up land for new housing.

Brian Murphy, Head of Loans at the Mortgage Advice Bureau, said: “It hasn’t been long since we’ve had a stamp duty break, and these things tend to build momentum which causes a wave of activity followed by a period of slowing down.

“However, the permanence of today’s announcement could temper a sudden increase in activity and allow some control to be regained in the UK property market.

“Yet the crux of the matter is that any change in the stamp duty will not solve the main problem at the moment: a major supply shortage.”

Rachael Griffin, tax and financial planning expert at Quilter, said: “We only have to look back a few months to see what a transformational impact the stamp duty exemption is having on the market.

“However, increased demand also means higher prices unless more inventory is built, which will be bad news for many.”

Ben Merritt, director of mortgages at the Yorkshire Building Society, said: “Instead of just focusing on tax cuts, it is crucial that we look to find other solutions specifically for downsizers – those looking to move into smaller properties – to try and stimulate a shrinking market.

“Recent research we conducted shows that a fifth (19%) of owners looking to downsize see stamp duty as a barrier to moving, but almost a quarter (23%) say it is the insufficient supply of suitable housing that prevents them from moving.”

Lucian Cook, head of residential research at Savills, said: “The biggest beneficiaries of the stamp duty changes are likely to be first-time buyers in London and the more expensive parts of south-east England, where Proposed savings will make their deposit. the requirements seem a little less daunting.

“However, given the recent growth in house prices and rising interest rates, this will not magically lead to an increase in first-time homebuyer activity.

“Similarly, a maximum initial saving of £2,500 in stamp duty for other buyers is relatively small compared to the additional annual mortgage costs seen since the start of the year.

“And because the reduction is permanent, it is unlikely to bring the same urgency to the market as the recent stamp duty suspension.”

Jeremy Leaf, a North London estate agent and former residential chairman of the Royal Institution of Chartered Surveyors (Rics), said: “We would have liked to see additional help not just for first-time buyers but to encourage energy-efficient properties. energy and more investment in reducing energy consumption.

Nick Sanderson, chief executive of retirement village company Audley Group, said: “A reduction in stamp duty is a proven way to shake up the housing market.

“But it’s a short-term fix for a housing market with major flaws.”

Jason Tebb, managing director of property search website OnTheMarket.com, said: “First-time buyers are the lifeblood of the housing market, so it’s especially welcome to target them in particular with assistance that will help them climb. The levels.”

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