Property Conveyancing Archives

Exchange and completion: Essential guide for home buyers and sellers

Posted on 7 March 202525 March 2025 by Sarah O'Sullivan

Buying or selling a house can be an exciting process but we understand there is a great deal of terminology involved which can be difficult to get to grips with.

Two such terms are ‘exchange of contracts’ and ‘completion’. Here is an explanation of precisely what these terms mean and answers to some commonly asked questions:

When buying a house, do you exchange or complete first?

Completion, as the name suggests, is the final stage of the conveyancing process. It is the day on which the purchase price is paid to the seller, and the buyer can collect the keys to their new property.

The exchange of contracts happens before completion.

What does ‘exchange of contracts’ mean?

The exchange of contracts is the point at which the sale or purchase becomes legally binding between the parties. It commits the buyer to purchase the property and the seller to sell it for the agreed price on the agreed completion date.

Can a buyer pull out between exchange and completion?

After an exchange of contracts, if a buyer pulls out of the purchase and fails to complete on the agreed completion day, the buyer will be in breach of contract. The contract will contain provisions for the buyer to forfeit, i.e., lose, their deposit to the seller, and other provisions for compensation for losses.

Before the exchange of contracts, either party may withdraw from the transaction without any legal consequences because no contract has been made between the buyer and the seller. There are a number of reasons why a party might withdraw. The conveyancing process in England and Wales allows buyers the opportunity to make a full investigation of the property before making a legal commitment to buy it.

Do I need to be present during the exchange of contracts?

The exchange of contracts is an entirely remote process. Your solicitor will have asked you to sign and return a copy of the contract in advance. This signed copy is held on file until the exchange of contracts takes place. You will need to be contactable either by phone or email on the day of exchange as your solicitor will request your express authority to proceed with exchange of contracts on your behalf, this makes sure you have not changed your mind and is an opportunity for any last-minute queries to be dealt with prior to committing you to the sale/purchase.

How does my solicitor prepare for the exchange of contracts?

If you are selling a property, your solicitor will prepare to exchange contracts by making arrangements for you to sign and return a copy of the contract.

If you are buying a property, your solicitor will need to have completed the following steps before proceeding with exchange of contracts:

Made arrangements for the buyer to sign and return the contract
Received deposit funds from the buyer (usually 10% of the purchase price)
Complete land registry checks to ensure nothing has changed on the title since it was provided by the seller

Whether you are selling or buying or both, your solicitor will contact you to request your express authority to proceed with exchange of contracts that day, we always want to make sure you have not changed your mind and are able to book your removals company before committing you to a contract.

How does my solicitor exchange contracts?

Exchange of contracts involves a telephone call with the solicitor representing the other party. The solicitors will read through the details of the contract to ensure the terms in each contract are exactly the same.

When the solicitors are satisfied that both contracts are identical, they will agree to date the contract which brings the contract into existence.

I’m in a chain; can we exchange contracts whenever we are ready?

If you are selling your current home and moving into a new one, you are part of a chain of transactions and exchange of contracts must align with all other parties in the chain, who must also agree the all-important completion date.

This can take some coordination and estate agents are well placed to bring the chain to an agreement that suits everyone involved.

Once the dates are agreed and all parties ready to exchange, the solicitors will ‘release’ the contract to the solicitor above them. The next solicitor in the chain does the same and this process is repeated until the top of the chain is reached and the top contract is exchanged. Confirmation is then communicated back down through the chain by each solicitor until the solicitor at the bottom is reached.

What happens between exchange and completion?

Between exchange and completion, the final administrative tasks are completed, such as requesting estate agent invoices and mortgage funds in readiness for completion.

What is a normal gap between exchange and completion?

Most lenders require 5 working days’ notice to arrange payment of mortgage funds, this usually determines the gap between exchange and completion however sometimes parties agree on a longer gap. Most clients are comfortable with a week before completion as it allows time to make final preparations for completion day such as notifying utility companies and arranging to forward post.

A shorter gap can also be agreed in certain circumstances. Your solicitor will check how much time is required between exchange and completion and ensure sufficient time will be allowed before proceeding with exchange of contracts.

It is also possible to exchange and complete on the same day if needed, this is known as ‘simultaneous exchange and completion’. This requires planning in advance and is usually only possible if there is no wider chain involved.

What does my solicitor do on completion day?

If you are selling a property, your solicitor waits to receive the purchase funds from the buyer’s solicitor. Once received, they will contact you to confirm this and check whether you are ready for the estate agent to release the keys to the buyer. The solicitor will also arrange to repay any outstanding mortgage on the property.

If you are buying a property, your solicitor will send the purchase monies to the seller’s solicitor and await confirmation of receipt. Once confirmed, they will contact you to confirm you can collect the keys from the estate agent. In the background, they will then arrange to submit your stamp duty return to HMRC and payment of the stamp duty owed. They will then attend to registration of your ownership of the property at HM Land Registry.

Can I do building work between exchange and completion?

Between exchange and completion the property still belongs to the seller. It is possible to do building work between exchange and completion but it must be agreed with the seller in advance via a ‘Key Undertaking’. This is an agreement to allow you access to the property to carry out specific pre-agreed works. It is usually agreed that you must return the keys to the estate agent at the end of each day.

Can things go wrong between exchange and completion?

It is very rare that things go wrong between exchange and completion but it can happen and certain things are beyond your solicitor’s control. For example, banking systems can go down which can affect the transfer of completion funds between solicitors. A key undertaking is sometimes agreed in such situations to allow buyers into their new properties before completion is finalised.

Call us for a conveyancing quote

When you’re ready to move, call us for a conveyancing quote. We work on fixed fees so you have additional peace of mind.

What’s happening to Stamp Duty Land Tax in 2025?

Posted on 23 January 202525 March 2025 by Sarah O'Sullivan

Stamp Duty Land Tax (SDLT) is a critical tax levied on property purchases. As we approach April 2025, notable changes to stamp duty will impact both buyers and sellers, altering the landscape of property transactions.

What is Stamp Duty Land Tax?

Stamp Duty Land Tax (SDLT) is imposed on the purchase of residential property or land in the UK. It is calculated based on the property’s purchase price or market value, whichever is higher. SDLT generates revenue for the government and helps regulate the housing market by discouraging property speculation.

Why is Stamp Duty Land Tax changing in 2025?

The Conservative Government introduced a temporary reduction in stamp duty in September 2022 which aimed at lowering the upfront costs of moving home. This initiative sought to support the housing market, safeguard jobs and businesses connected to it, and assist those aspiring to step onto the property ladder.

Although initially announced as a permanent measure, the Autumn Statement 2022 confirmed that the increase in the residential nil-rate threshold will conclude on 31 March 2025.

How is Stamp Duty Land Tax Changing in 2025?

From 1st April 2025, there will be several changes coming into effect:

The nil rate threshold, which is currently £250,000, will return to the previous level of £125,000.
The nil rate threshold for first-time buyers which is currently £425,000 will return to the previous level of £300,000.
The maximum purchase price for which First-Time Buyers Relief (a reduced stamp duty rate) can be claimed is currently £625,000 and will return to the previous level of £500,000.

Thresholds

The threshold is where SDLT starts to apply. If you buy a property for less than the threshold, there’s no SDLT to pay.

Stamp duty rates for main residents in England up to 31 March 2025

Property Value	SDLT Rate
Up to £250,000	Zero
£250,001 to £925,000	5%
£925,001 to £1.5 million	10%
Over £1.5 million	12%

From April 2025 the stamp duty rates are:

Property Value	SDLT Rate for main residence
Up to £125,000	Zero
£125,001 to £250,000	2%
£250,001 to £925,000	5%
£925,001 to £1.5 million	10%
Over £1.5 million	12%

Impact on First-Time Buyers

If the property you are buying is your first home, you can claim discount (relief). The discount depends on when you purchase the property.

First time buyers discount up to 31 March 2025

First home property value	SDLT Rate
Up to £425,000	Zero
£425,001 to £625,000	5%

If the property is priced over £625,000, you cannot claim relief. SDLT will be due as if you have bought a property before.

First time buyers discount from 1 April 2025

First home property value	SDLT Rate
Up to £300,000	Zero
£300,001 to £500,000	5%

If the property is priced over £500,000, you cannot claim relief. SDLT will be due as if you have bought a property before.

First-time buyers should seek professional advice to navigate these changes to stamp duty effectively. Our property solicitors can help you understand your entitlements, obligations, and the necessary steps to claim these benefits. At Tees Law, our experienced team can provide tailored advice to help you take full advantage of the new SDLT reliefs. Contact us today to discuss your property purchase.

Impact on Second Home Purchases and Investors

Stamp Duty Land Tax (SDLT) on second homes and investment properties is subject to a higher rate than that applied to primary residential properties. However, the forthcoming rate changes will lead to increased tax costs, with mid-range property values—often a focal point for investors—being particularly affected.

For example, on a property purchase at a price of £700,00.00, the SDLT up to 31 March 2025 will be £57,500.00. This will increase from 1 April 2025 to £60,000.00, potentially leading to a smaller return on investment or increases in rental charges.

Stamp Duty Rates for additional property in England up to 31 March 2025

Proportion of property value	SDLT rate for additional property
Up to £250,000	5%
£250,001 to £925,000	10%
£925,001 to £1.5 million	15%
Over £1.5 million	17%

Stamp Duty Rates for additional property in England from 1 April 2025

Proportion of property value	SDLT rate for additional property
Up to £125,000	5%
£125,001 to £250,000	7%
£250,001 to £925,000	10%
£925,001 to £1.5 million	15%
Over £1.5 million	17%

Alternative investment options like property funds or Real Estate Investment Trusts (REITs) can provide tax-efficient structures and diversification.

Understanding the 2025 stamp duty land tax changes, assessing their financial impact, and implementing strategies to manage increased costs are crucial for investors. By staying informed and proactive, investors can navigate the evolving landscape successfully.

2024 Property trends: Sales, demand, and 2025 outlook

Posted on 6 January 202525 March 2025 by Sarah O'Sullivan

As we approach the new year, Zoopla has highlighted trends in the UK property market in 2024.

It is expected that, by the end of the year, there will have been 1.1 million sales completed – 10% more than last year. Meanwhile, January was the busiest month for visitors to the Zoopla site, followed by March and February. Interestingly, 80% of potential buyers were looking at the floorplans of a property before the photos, highlighting that pictures aren’t everything.

As for sellers, May was the most popular month to put a home up for sale – just in time for the summer, which is typically the busiest period for house moves. August saw 104,740 completions – the busiest month of the year according to HMRC. It took the average homeowner 33 days to sell – a slight reduction on 34 days in 2023. The most popular property type this year was a three-bedroom semi-detached house.

The top five fastest moving markets in the UK were all located in Scotland – Falkirk took the top spot with an average of 15 days to sell. In Scotland, properties are listed with a valuation and survey upfront, thus speeding up the sales process.

Where has buyer demand increased?

Comparison site GetAgent has revealed the levels of buyer demand in cities across Britain.

The report highlighted the areas with the strongest growth in buyer activity this year. Out of 21 major cities, Sunderland came out on top; half of all homes on the market have currently found a buyer – 10% more than the start of the year. Leicester was second on the list with a 9% increase in buyer demand, followed by Liverpool (8%), Newcastle (7%) and Leeds (6%).

Aberdeen saw the lowest increase, with only a +0.2% change in buyer demand this year. London was also near the bottom of the list, with a 3.3% increase in activity. Although some increases were marginal, it is promising that every major UK city did see some growth in buyer demand in 2024.

What’s in store for residential property investment?

2025 is expected to be a good year for residential property investment despite recent policy changes.

Labour’s target to build 1.5 million new homes during this Parliament is likely to encourage investment in the residential property market. Capital Gains Tax on residential property remained unchanged in the Chancellor’s Autumn Budget, which came as a relief for many. However, those buying a second home are now subject to a higher rate of Stamp Duty Land Tax.

Following the Budget, the Bank of England warned that inflation could rise again, causing interest rates to fall at a slower pace. There was concern that this could make the UK less appealing to European investors, who could play an important role in achieving the government’s housing target. The impact remains to be seen; however, the Bank still hopes to reduce interest rates in 2025.

It is important to take professional advice before making any decision relating to your personal finances. Information within this document is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor. No part of this document may be reproduced in any manner without prior permission.

All details are correct at the time of writing (18 December 2024)

Tees welcomes new Residential Property expert Legal Director

Posted on 9 December 202429 March 2025 by Sarah O'Sullivan

Tees is pleased to announce the arrival of a new Legal Director in the Residential Property team.

Simon Cooper brings a wealth of experience from his time as a Partner in the Cambridge office at a Top 60 UK law firm, where he had led the Residential Property team in Cambridge, having previously also been a Partner in another long-established Cambridge-based practice.

On his appointment, Simon commented: “I am excited to be joining Tees, who are on an ambitious growth journey.

I followed my father into residential property work and its collaborative nature has always appealed to me. I love working as part of a team to try and solve problems and navigate a way through potentially tricky situations.

I work hard to get to know my clients, as they expect me to provide a balanced assessment of risk and a nuanced approach that reflects their needs, particularly in time-sensitive cases.

I am passionate about building those connections as ultimately, I’m convinced it makes me a better lawyer. I very much look forward to start working with Tees.”

Simon predominantly works for high-net-worth individuals who are either moving home themselves, or trading investment properties and want a bespoke level of advice and service.

Executive Partner of the Residential Property team, Anne Elliss, said: “I am delighted that Simon has taken the decision to join Tees.

It’s an exciting time for us here and we are delighted to have his wealth of experience and strategic thinking which will certainly elevate our residential property offering.

Simon will undoubtedly have a positive impact on our clients and the firm.”

Simon joins Tees in December 2024, having previously worked at HCR Law and brings a network of connections and breadth of experience in conveyancing for houses which sit on the upper end of the market. Simon will be predominantly based in Tees’ Cambridge office but will be assisting clients all over England and Wales.

Tees’ property conveyancing lawyers always act in the best interests of clients and aim to give robust and independent advice so that clients can make informed choices. The lawyers are members of the Law Society’s Conveyancing quality scheme and will cover everything from organising the local searches, checking contracts and making sure financial arrangements are in order, through to legal completion and clients receiving the keys.

What to expect from your Conveyancer: A complete guide to property transactions

Posted on 2 October 202425 March 2025 by Sarah O'Sullivan

Buying or selling a property is a significant milestone, but it can often feel overwhelming. That’s where a conveyancer comes in – to navigate the legal complexities and ensure your transaction is seamless.

What is a conveyancer?

A conveyancer is a legal professional specializing in property transactions. Their expertise ensures the legal transfer of property ownership is conducted efficiently and correctly.

Key responsibilities of a conveyancer

A conveyancer handles all the legal aspects of your property transaction, including:

Drafting and reviewing contracts
Conducting property searches
Liaising with mortgage lenders
Ensuring all legal documents are accurate
Managing the transfer of funds
Registering the property with the Land Registry

Why you need a conveyancer

Property transactions are often the largest financial investments people make. A conveyancer’s legal knowledge helps prevent costly mistakes and protects your interests. If you are using a mortgage, most lenders will also require a conveyancer to ensure their loan is properly secured against the property.

Who else is involved in a property transaction?

In addition to your conveyancer, other professionals may play a role, including:

Mortgage Brokers: Help secure a mortgage with favorable terms.
Surveyors: Assess the property’s condition to identify any structural issues.
Estate Agents: Represent sellers by marketing the property and negotiating terms.

Ensure any agreements made with third parties are confirmed with your conveyancer to ensure they are legally binding.

Risks of not using a conveyancer

Without a conveyancer, you risk legal oversights that can lead to severe consequences, including:

Title discrepancies
Boundary disputes
Uncovered restrictive covenants
Complications in property registration

A conveyancer provides a vital safety net, identifying potential issues before they become costly problems.

The conveyancing process: Step-by-step

Understanding the process can ease some of the stress associated with property transactions. Here’s what to expect:

1. Initial consultation

Your conveyancer will explain the process, gather key information, and outline the expected timeline. This is your opportunity to discuss any concerns or special requirements.

2. Drafting and reviewing contracts

For buyers, your conveyancer will review the draft contract pack from the seller’s solicitor. For sellers, they will draft the sale contract. Your conveyancer ensures the contracts are fair, clear, and protect your interests.

3. Conducting searches and raising enquiries

Property searches, including local authority checks and drainage reports, are essential to uncover any legal or environmental issues. Your conveyancer will also raise enquiries to clarify any concerns identified in the searches.

4. Exchanging contracts

Once both parties are satisfied and all legal requirements are met, contracts are exchanged. At this point, the transaction becomes legally binding, and the buyer usually pays a deposit (typically 10% of the purchase price).

5. Completion

On completion day, funds are transferred to the seller, and the buyer receives the keys. Your conveyancer will handle final legal formalities, including registering the property and paying any Stamp Duty Land Tax.

How long does the conveyancing process take?

While timelines can vary, the process typically takes 8 to 12 weeks. Factors like property chains, legal complications, or mortgage approval delays may impact this timeline.

Why Choose Tees

Choosing an experienced independent conveyancer can make all the difference in ensuring a smooth and successful property transaction. From legal protection to peace of mind, our support is invaluable. Whether you’re buying or selling, having our dedicated legal professional by your side will help you navigate the property market with confidence.

If you’re ready to take the next step, reach out to today to our qualified conveyancers to guide you through your property journey today.

First time buyer: What you need to know before purchasing a home

Posted on 18 September 202426 March 2025 by Sarah O'Sullivan

Buying your first home is an exciting milestone, but it can also feel overwhelming. Our Residential Conveyancing experts at Tees are here to provide you with practical advice and valuable insights to make your journey smoother.

Assess your financial position

Committing to a mortgage and home ownership is a significant step. Beyond your mortgage payments, consider additional costs like maintenance, insurance, council tax, and utilities. Use online mortgage calculators to estimate your expenses and create a sustainable long-term budget.

Understand your credit score

Your credit score plays a vital role in obtaining a mortgage offer at a competitive interest rate. You can check your credit score online for free. If your score needs improvement, consider steps like:

Paying bills on time
Reducing outstanding debt
Limiting the number of active credit cards

Save for a larger deposit

The bigger your deposit, the better your mortgage options will be. If you have a Help to Buy ISA or a Lifetime ISA, be mindful of their restrictions. Always check the terms and conditions before using these for your purchase.

Get a mortgage agreement in principle

Speak to a mortgage broker to understand how much you can borrow. They can advise on fixed-rate, tracker, or variable mortgages based on your financial circumstances. Factor in additional costs like:

Survey and mortgage application fees
Land Registry fees
Property searches
Stamp duty
Legal fees

At Tees, we can provide a transparent quote for legal services to help you budget accurately.

Choosing the right property type

Freehold

Full ownership of both the property and the land
Indefinite ownership period
Responsible for all maintenance and repairs

Leasehold

Ownership for a fixed term (typically 99 to 999 years)
After the lease expires, ownership returns to the landlord
Service charges and ground rent may apply
Properties with fewer than 80 years on the lease may be harder to mortgage

Shared ownership

Purchase a percentage of the property and pay rent on the remainder
Opportunity to buy more shares over time (staircasing)
Typically sold as leasehold

Finding the right property

Consider factors like proximity to schools, amenities, and transport links. Evaluate the property’s condition and budget for any necessary repairs or renovations.

Research local property prices: Use platforms like Rightmove and Zoopla to compare property prices.
Negotiate smartly: Make offers subject to survey results, and be prepared to renegotiate if issues arise.

Understanding the purchase process

Once you find a property, instruct a solicitor to ensure the legal title is clear and all necessary paperwork is in place. At Tees, our experienced solicitors conduct searches, investigate titles, and guide you through every step.

Your lender will conduct a valuation to confirm the property’s worth before issuing a formal mortgage offer. While not mandatory, we recommend a survey to uncover potential issues. Investing in a survey can save you money in the long run by identifying necessary repairs.

Why choose Tees?

At Tees, we specialise in helping first-time buyers navigate the complexities of purchasing a home. Our expert legal team provides clear, practical advice tailored to your needs, ensuring your experience is as smooth and stress-free as possible.

Ready to take the next step? Contact Tees today for personalised legal support on your home-buying journey.

Bank of England cuts interest rate for first time in four years

Posted on 2 September 202425 March 2025 by Sarah O'Sullivan

The Bank of England has reduced Bank Rate for the first time in more than four years.

The rate is now 5%, having been held at 5.25% since August 2023, after 14 consecutive increases. The Monetary Policy Committee (MPC) marginally voted in favour of reducing Bank Rate, by 5 votes to 4. Many major mortgage lenders had already reduced their rates in anticipation of the cut and more are expected to follow suit. Despite this, the reduction is not expected to make a significant difference to mortgage affordability overall, however it is hoped to be the first of more cuts which should alleviate some of the financial pressures on homebuyers.

Matt Smith, Rightmove’s mortgage expert, commented, “While those looking to take out a mortgage soon shouldn’t expect to see drastically lower mortgage rates, we would expect the downward trend we’ve started to see continue.”

Renters’ Rights Bill – what’s in it

The government has released notes on what to expect in the Renters’ Rights Bill, which is due to introduced in the autumn.

As promised in Labour’s manifesto, the Bill will include the end of ‘no fault’ evictions but will have clear possession grounds for landlords needing to reclaim their properties. Renters will also have improved rights enabling them to challenge rent increases. Plus, the government plans to end ‘bidding wars’ on rental properties, although property experts Rightmove commented that this may be difficult as there are currently 15 prospective tenants for every rented property.

Tenants will gain the right to request a pet, which the landlord must consider and cannot unreasonably refuse, however they can request appropriate insurance is purchased to cover any accidental damage. A Decent Homes Standard is also expected to be applied to the Private Rented Sector to improve the quality of rental properties.

The UK’s fastest selling homes

Research by Zoopla has revealed the homes that sell the fastest in the UK.

In England and Wales, almost half (49%) of homes find a buyer within 30 days of going on the market. This figure increases to 75% in Scotland where properties are valued and surveyed upfront, thus speeding up the homebuying process.

In Q2 of this year, the fastest-selling property type on Zoopla was two-bed terraced houses, which took an average of 27 days to sell. It then usually takes another four months for the transaction to be completed. These properties appeal to a range of buyers, from first-time buyers to empty-nesters looking to downsize. Notably, there is also more competition for this kind of home due to limited supply, as they made up only 7% of new properties listed in the last three months.

Interestingly, the slowest-selling properties are detached homes with at least four bedrooms, taking an average of 40 days before a sale is agreed. This is probably due to associated higher mortgage costs combined with a spike in supply of larger homes.

All details are correct at the time of writing (19 August 2024)

All details are correct at the time of writing (19 August 2024)

A new Labour government – what’s next for housing?

Posted on 31 July 202426 March 2025 by Sarah O'Sullivan

Residential property review June 2024 – The UK housing market continues to show modest signs of recovery, according to the latest data from Savills.

Despite some house price growth, a significant upturn is unlikely until mortgage affordability improves.

Buyer activity continues to improve, as the number of sales agreed in May was 10% higher than the 2017-2019 average, according to TwentyCI.

The rental market remains relatively consistent. Data from Zoopla shows that, in April, annual UK rental growth was 6.6% – slightly lower than the 6.7% recorded in the previous month. The region with the strongest annual growth was the North East (9.5%), followed by Scotland (9.3%). Rental growth is accelerating in locations close to large cities, such as North Tyneside and Midlothian – more evidence that the pandemic’s ‘race for space’ appears reversed.

New homes in the capital – demand outstrips supply

Demand for new buildings in the capital is increasing, but supply is limited due to high development costs.

Knight Frank data indicates confidence is picking up among London buyers. In April, the number of offers placed on new homes increased 9% year-on-year, while viewings rose 17%. Similarly, for mid-to-upper markets, the number of prospective buyers interested in purchasing a new build was 15 to 20% higher than the previous year.

Despite this growing demand, building costs in the capital have put off some developers. As a result, new starts fell by 20% over a 12-month period, and about 35,000 new homes are being delivered per year – over 30% lower than the Mayor of London’s target of 52,500.

How will the General Election affect the housing market?

Ahead of the 2024 General Election, new homes are the unanimous focus of the manifestos regarding housing.

If the Conservatives remain in government, Rishi Sunak aims to build 1.6 million new homes over the next five years – slightly more than the Labour Party’s target of 1.5 million and less than the Liberal Democrat’s promise of 380,000 new builds per year. Ed Davey stated that 150,000 will be social housing; Keir Starmer prioritises building new social rented homes.

The Labour, Liberal Democrat and Conservative manifestos pledge to fully abolish Section 21 ‘no fault’ evictions. Davey also pledged to create a national register of licensed landlords and make three-year tenancies the default.

If the Labour Party comes to power, they propose increasing the Stamp Duty rate for non-UK residents. Meanwhile, the Conservatives would abolish Stamp Duty for first-time buyers (FTBs) on homes up to £425,000. To further support FTBs, Sunak promised a new and improved Help-to-Buy scheme. Similarly, the Labour manifesto pledged a permanent mortgage guarantee scheme.

All details are correct at the time of writing (19 June 2024)

It is important to take professional advice before making any decision relating to your personal finances. Information within this document is based on our current understanding and can be subject to change without notice, and the accuracy and completeness of the information cannot be guaranteed. It does not provide individually tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applied or proposed and are subject to change; their value depends on the investor’s individual circumstances. No part of this document may be reproduced without prior permission.

A new Labour government – what’s next for housing?

Posted on 31 July 202426 March 2025 by Sarah O'Sullivan

Residential property review July 2024 – Following the Labour Party’s landslide election win, what changes might be in store for the UK housing market?

In the Prime Minister’s introduction to the King’s Speech on 17 July, Sir Keir Starmer stated “Too many people currently live with the threat of insecurity and injustice, and so we will make sure everyone can grow up in the secure housing they deserve. We will introduce tough new protections for renters, end no-fault evictions and raise standards to make sure homes are safe for people to live in.”

Several key Bills relevant to the housing market were announced:

Renters’ Rights Bill – rent caps and longer-term tenancy agreements to stabilise the rental market
Planning and Infrastructure Bill – simplified planning procedures and infrastructure funding
Draft Leasehold and Commonhold Reform Bill – abolishment of ground rent and simplification of leasehold extensions and freehold purchases.

Housing market update

Completions and house prices rose in June, but buyer activity fell as the nation awaits a cut in Bank Rate.

The start of 2024 saw a boost in sales agreed, resulting in positive effects being seen in June, with the highest number of completed transactions since March 2023, according to HMRC.

However, a slight decline in mortgage approvals and sales agreed indicate that buyer activity has waned halfway through 2024. Savills report that supply of homes has continued to increase, thus widening the gap between supply and demand. Buyer confidence should be restored once mortgage affordability improves and is dependent on Bank Rate reducing, which Oxford Economics predict will happen in August.

UK annual rental growth fell to 5.8% in May according to Zoopla – down on the 6.6% recorded in April. Commuter belt regions continue to show the strongest growth, particularly in the north of England.

BTL landlords intend to raise rents

Many buy-to-let (BTL) landlords plan to raise their rents within the next year, according to a survey by Landbay.

Nearly 85% of respondents intend to increase rents over the next 12 months, with 37% of this group planning to put rents up by between 6% and 10%. Meanwhile, 36% said they would raise rents by up to 5% and a further 8% of BTL landlords will put them up by between 11% and 19%. The reasons cited for the increases included higher interest rates and increased operating costs.

According to the survey, half of the landlords raising rents self-manage their properties, 27% use an estate agent and a fifth rely on a professional management company. The survey also found that 42% of landlords have between four and ten properties, while 28% own at least 20 rental properties.

All details are correct at the time of writing (18 July 2024)

Equity release can take some of the stress out of divorce

Posted on 16 July 202429 March 2025 by Sarah O'Sullivan

Rose and James are getting divorced late in life. In this scenario, they use the release of equity in their jointly-owned home to help make splitting their assets easier.*

Both aged 73, Rose and James Heath are going through the stressful process of dividing their assets for the financial settlement of their divorce.

Rose wants to stay in the marital home, but James has agreed to move out and buy a new property. They have agreed to divide the value of their house evenly and have £100,000 in joint savings.

With their house valued at £375,000, Rose needs to access £140,000 of equity in the property via a lifetime mortgage, paying the remainder of the money owed to James from her savings.

By choosing a lifetime mortgage, Rose can remain in her home while retaining ownership, guaranteeing no negative equity, and have the option of monthly repayments. James can now access his finances and buy himself a property.

Things to consider

Before applying for equity release, weighing alternative options and looking at the possible effects on your finances is important. These include:

Downsizing and other forms of finance
Compound interest roll-up, if chosen
Early repayment charges
Long-term care and state benefits considerations
A lifetime mortgage may impact the inheritance you leave

Get in touch

Speak to our Wealth Specialist, Toni Chalmers-Smith or Senior Associate Solicitor Catherine Banks at Tees today.

*Examples of customer scenarios only. Every case will be different.

This material is intended for information purposes only and is not intended as an offer or solicitation for the purchase or sale of any financial instrument. It is not intended to provide and should not be relied on for accounting, legal or tax advice. Some information quoted was obtained from external sources we consider to be reliable.

Tees is a trading name of Tees Financial Limited, which is authorised and regulated by the Financial Conduct Authority. Its registered number is 211314.

Tees Financial Limited is registered in England and Wales, registered number 4342506.