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Valuation Request

Persimmon

Persimmon has become the latest builder to benefit from the country's chronic housing shortage after reporting a sharp rise in annual profits.
Higher selling prices and a rise in the number of homes sold, driven by a lack of supply on the market, pushed sales up by 13pc to £2.9bn in the year to the end of December, while pre-tax profits jumped by more than a third to £638m.
The good result means the FTSE 100-listed house builder will pay out more cash to its shareholders than previously announced. It will pay a 110p dividend to investors on April 1, significantly higher than the planned payment of 10p per share.
The additional windfall means shareholders are now on track to get a cash return of £2.76bn, or £9 a share, by 2021, a 45pc increase from the original plan set out in 2012 to pay out £1.9bn by 2021, or £6.20 a share.
The average selling price of Persimmon's homes increased by 4.5pc to £199,127 last year, while the number of homes it sold rose 8pc to 14,572 . It also acquired a further 20,501 plots of land to add to an already robust pipeline of potential development sites.
Since 2012, the number of homes that Persimmon has sold each year has increased by almost 50pc.
The group attributed its success to a “confident housing market” in the UK, buoyed by stronger employment levels and an improvement in disposable household incomes.
The company also said the government’s Help to Buy scheme, which assists first-time buyers in getting on the property ladder, was helping to support the mortgage market.

Goals

It is important to have your goal clearly defined from the outset of your investment journey. The most compelling reason for investing is to achieve an early and comfortable retirement and to leave a good inheritance for your children. Financial freedom is a key player in our lives and something that we all aspire to. Your goal should be 'smart' but it can change over time, allowing you to adjust your approach and plan accordingly.

Whether you’re a seasoned investor

Whether you’re a seasoned investor, or brand-new to property, you need to have a plan and strategy when looking to build a portfolio. Before you make any decisions you need to ensure you have thought about all the areas that are important including your main goals and current situation. Assetz have put together a quick guide to help you answer some questions, many of which you may not have considered.

Stamp Duty

Stamp Duty

98% of home buyers are paying less due to stamp duty reform.

The 3% surcharge on second homes and BTL properties will go ahead.

​Treasury confirms purchasers will have 36 rather than 18 months to either claim refund from higher rates or before higher rates will apply.

​He said that receipts would go toward helping people get on the housing ladder in the south west of England

Commercial stamp duty will have a 0 rate band on properties up to £150K.

New commercial property SDLT rates:

​0% rate on up to £150k, 2% on next £100k, 5% over £250k.

Comes into affect at midnight tonight.  Transitional rules will apply to existing transactions.

key announcements

Here are the key announcements of importance to landlords and property investors:

Deficit down by two thirds falling each year.

The British economy is stronger and is growing.  It is resilient.

We face such a challenge now.  The outlook for the global economy is weak.  A dangerous cocktail of risks.  We must act now rather than pay later.

Britain is not immune to slow down and shocks.  We have a choice how we react, and this budget puts stability first.

In this Budget, we choose the long term. We choose to put the next generation first.  Lower taxes on business and enterprise. Improvement of schools.  Improvement of infrastructure.

We now have one of the strongest economies in the world.  This budget is to ensure Britain is "fit for the future".

The world economy outlook has been down-graded.  A list of countries with negative interest rates is given.  

U.K. productivity growth has been down-graded by the OBR although they admit it is uncertain.

This country will react quickly to economic changes.

The IMF have warned of global instability this week.  Britain is among the best prepared countries for challenges that may lie ahead.

The economy is growing.

The OBR forecast says that GDP will grow by 2% next year.

International forecasts say Britain will have the fastest growing economy of any country in the world.  Forecasts are based on Britain remaining in the EU.  

The OBR say "a vote to leave" the EU may damage the U.K. economy and put the U.K. into a period of potentially disruptive uncertainty.  George Osborne said Britain will be stronger, safer, and better off in the EU!