United Kingdom Real Estate: Demographics and Statistics - Term Paper Example

 United Kingdom Real Estate Demographics and Statistics Demographics and statistics are records of the people in an area. This is in terms of age, sex, marriages, immigration and immigration. Most world cities have increasing population which gives an indicator that national governments ought to plan more since the land size does not increase. Such towns usually have different people from different backgrounds; whites (majority), Africans and other people of mixed races form the minority. This information is appreciated by the government for various reasons. However, it is also worth noting that the different people from the different nationalities speak different languages. In the same setting, the office of National Statistics usually uses this information for its own budgeting. Given that the different categories of people in the town are not there because they are citizens or natives, they have their own reasons for existence ranging from education to asylum seekers and other reasons. It also helps the government to map out their different needs and allocate the required state funds for their existence depending on the different areas they reside. London has a very important role that it plays in the international trade and the different demographic statistics give the idea of the level of hospitality that is supposed to be accorded to these people. As a commanding centre for international trade, the city demographics are of greater importance to the world as they are to the government itself. In the case of London, several demographic bases are presented and these are important in helping define the whole idea of demographics and statistics. Private or Public Restrictions on Ownership London does not have laws that restrict buying and selling of property in it as a town. What does this mean to people who would wish to take part in activities involving land use in the town? The national bureau of statistics indicated that land owners in London as a city were of the ratio 1:4 in foreigners to locals respectively. When there is little or no rule regarding land, a city is bound to be dominated by foreigners as opposed to the local people. This is a cause for concern because different people come with different cultures and these are bound to affect the general performance of the town in terms of economic ability and viability. One way of regulating the land use by foreigners is by putting up laws that are related to the stamp duty. This makes it hard for the private owners to purchase land in the place on demand. With the ratio of land owners between 2005 and 2009 reducing drastically, there is every reason to believe that the city would one day turn to be a place for foreigners. The duty as a procedure for land ownership has been levied on companies, individual (natives and foreigners). The increment in the stamp duty is meant to make it possible for the private owners to or companies to continue owning property in the city. Different taxes vary for different entrepreneurs. The people who live below the lower income limit are given lower tax rates than those above the income limit. These varying rates are usually set to make sure that there is equal opportunity for property ownership in the city both for the low income earners and the high income earners. Government Powers All land in most countries is said to belong to the government. Therefore it is the government that regulates the rates of the stamp duties imposed on land. The UK national statistics indicate that the stamp duty has been increased by the government from 5% to 7% for the reasons given above. Asset valuation is also done by the government. Moreover, it also has a control over the relationship between tenants and landlords. These three issues have a very strong significance in the operations of land issues. They simply indicate that land is operated by the government, right from valuation to payment of rent. Valuation is done through valuation agencies so that people may not escape payment of rates as required by the central and local governments. The land control in London is quite specified. All matters dealing with land are under the operational right of the government meaning that there is relayed a platform that is viable and good for all to deal in land business. Royal Institution of Chartered Surveyors (RICS) makes it possible for the government to monitor payment of taxes and rates by all the land owners in the country. Deeds/Title As a proof of ownership of land in the city of London, every property owner is supposed to own a certificate of ownership of land. This is equivalent to land title deeds in other places. Whether a piece of land will be owned by an individual or a company, there is supposed to be a solicitor that takes care of these transactions. Given that the owner of the property that is to be sold has to produce a certificate of identity, there is assurance of security for the buyer about the validity of the documents that involved. Certified brokers are also allowed into the market so that they can act as links between the sellers and the buyers of the properties. This is important because in most cases, the buyer may not have the information on the availability of the property for sale. Their role therefore is unequivocal in making sure that the link is completed. The process of land transfer is procedural. The procedure is so long but that also serves the purpose of creating validity in which some fraudulent sellers may want to use the market to be richer. The selling process is also done through marketing agencies in the city so that there can be knowledge of the property by potential buyers. The brokers and agencies usually benefit by taking a percentage of the sold property as their commission. This is important in that it keeps them in business and also, as stated, keeps the market connected. The process is done through a comprehensive negotiation process which may also be brokered by the agencies and individual agents in the city. Preparation of the final statement is however done through the solicitor who makes sure that there is a high status signing of the required documents to make sure that cases of ingenuity in the whole process are eradicated. Since the final issue is monetary, there is then transfer of the money from the buyer to the seller’s account. The categories of ownership in the city are divided into groups; private, corporate, public or crown ownership. These types of change of property allows for ownership and possibility of having the best options for all the people in the market. It has to be noted that these individuals may be for a local or foreign owner. The private owners are individuals who are able to purchase the property and convert it into personal; use. The personal use may be in of the idea that it is a business or other more personal uses. Corporate ownership entails ownership of property by registered firms either in or off the city. This means that the property can be owned by any group of company within or without the city so that there is universal ownership of the land. This leads to more development in the city due to the expanded ownership. Public ownership is where the land is owned by the government. Ownership by the government is usually very vital given that this land is used by the whole public for different uses. This is used for construction of public facilities that would be used by the whole public and in most cases is free. Crown land is very important in that it is pacified as ownership by the royalty. Therefore, these are very important groups of ownership that make it possible for all people to own land. Whoever owns the land therefore owns the title deeds of the land. Insurance, Licensing requirements and process Insurance of property in London is of great importance and most people in the city insure their property against all perceived forms of risks. A variety of coverage against different aspects of property is offered by the standard insurance scheme. For instance, there is dwelling insurance policy that covers the insured against the loss of household items such as electronics and furniture. In addition, there is loss of use cover and liability cover which are offered to cater for additional cost of living during repair or loss for damaging other people’s property respectively. On the other hand, the Land Registry is entrusted with the mandate of registration of properties in the city. For those properties that are left to the residential tenants, it is recommended to look for residential let property insurance. This has additional features not found in a standard building policy such as loss of rent cover in case of a claim. If the let property is for commercial use then a specialist commercial buildings insurance policy will be required. For properties that have an element of both residential and commercial let then landlord’s insurance policy may become the best suited for that matter. For holiday homes there are specialist holiday home insurance available which caters for the property being let for short periods of time and having periods of no occupancy. From this, it is apparent that UK housing insurance remains weak at times but it never falls below expectations. Agent Disclosure Requirements Various disclosures are supposed to be done when it comes to sale of property in London. Mortgage is very much part of property sale and purchases. Mortgages usually involve the sale of property through the use of loan items in which the actual value is settled later. Why are mortgages important? They are very vital because they are part of a low income people that require owning properties whose values are large and cannot be owned by direct and cash purchase. Several disclosures are supposed to be made so that there are no cases of disenfranchising. In this case, there would be situations of people carrying burdens that do not belong to them due to wrong assumptions about the sales of property. Agents are supposed to give some information about themselves and their viability in the business. The other essential elements of disclosure can be categorised as; existence of any lien about the property, details of existing lease and landlord agreements and other related issues. It is therefore important that these are disclosed because the transferable responsibilities of the buyer have to be taken into account. The owner of the responsibility is also given time to take care of the property issues that are under his care. In so doing, there will be a lot of transparency in handling the matters. This issue comes up because there are property owners that accumulate a lot of rates on their property and would like the buyer to offset the same. Moreover, there are also agents that have a record of lack of transparency in their operations. In this case, there will be some form of doubt on the agents about their ability to settle the matter as well as the sellers about the sufficiency of their property details. Tenants are part of the land and housing projects in the city of London. When there are outstanding balances on the rents and rates of any person, there is always a procedure of eviction. This procedure is made in light of fairness that has to be meted on both the landlord and the tenant having the house. For there to be an eviction, there has to be a notice to the defaulter. The notice serves to make the defaulter have knowledge of the outstanding amount and a date that he/she is supposed to settle it. Once the notice has been given, the landlord has to acquire a court order to evict this tenant. This is a procedural issue that sees to it that the tenant is given enough time to either clear the outstanding balances or look for alternative accommodation. This is on property that has been leased or rented out. Much as there are different lease terms and types, there are also freeholds. Freehold are leases that are almost indefinite in their operations and use. London as a city cannot belong to an individual forever and there are term leases that do exist. These exist to a maximum of 999 years use. Therefore on ability, someone can own a piece of land in London for as long as there are generations in the 999 years. As stated earlier, mortgages are available for low income stable earners who want to own property in the city of London. If someone earns a substantial income, then he/she can finance a mortgage and own the property at the earliest opportunity. Foreigners are also able to own property in London through foreign mortgage policies. People who are living outside the country and are also members of other countries usually own properties through this policy. This was a legislation that was passed to help develop housing projects in the city by including foreigners in the ownership. The number of individuals the number of individuals who own property in the city is minimal because corporate companies and bodies like banks are always ready to take the risks and given their financial viability, they are mostly the winners. Because of this financial difference, property companies have come up in a bid to try and create a link between the buyers and sellers. Therefore, it is possible to own property in London as long as one has gone through the required procedure and has the financial viability. Construction of New Property New property construction in London has shown a great growth due to increased high demand from both locals and foreigners. In fact new homes in London are being sold to overseas events before being advertised to local people. This has gone to an extent of threatening to freeze out domestic purchasers. The high rate of overseas sales underscores the growing use of off-plan sales whereby sellers sell their sites before properties are built on them to fund new development. This rewards the buyer with a slight discount compared to the price of a finished house. For most developers you must show that you can pre-sell enough to cover the cost of construction .Failure to do this then implies that the bank may not be in a position to finance you. It would be unreasonable to put thousands of pounds of your own money in to the ground without any value accruing from it. There were a total of 18,000 homes built in London last year which was about 15% of the entire UK total. This figure is suggested to fall by 40% if the sellers will be restricted to sell overseas. This surge of development in housing facilities has helped in reinvigoration of the country’s building industry. The construction activity peak hit three year highs in July this year. According to purchasing managers, house building was the best performing sub-sector. More so figures from nationwide UK showed that house prices rose from 3.9% in July to the highest rate since August in the year 2010 (Dijkman). References Dijkman, M. Europe Real Estate Yearbook 2007. London: Real Estate Publishers BV, 2007. Read More