The average UK property value went up by 3.9 per cent in April – the fastest price increase since 4.2 per cent month-on-month growth was recorded in October 2002. Still, a negligible return compared with some seaside property.
A beach hut in Dorset is up for sale at £225,000, outperforming even London prices. The 13ft by 13ft pied a terre in Mudeford Spit near Christchurch offers unrestricted sea views but is offered without a bathroom or electricity.
Average beach hut prices in the area are up by around 53 per cent in the last two years. In comparison, Land Registry figures for the same period for the City of Westminster, covering Mayfair, Belgravia and Marylebone, are up by 25 per cent.
The beach huts were sold in the 80s for around £7,000 – meaning their value has increased by over 3,000 per cent in just four decades (Greater London house prices were up by 780 per cent).
However, second home owners could face a substantial tax charge on gains made from the sale of their properties. The Treasury is now consulting on a change to stop individuals with more than one home ‘flipping’ their primary residences for tax purposes. Already, the grace period where owners must elect their main choice of abode has been cut from three years to 18 months.
Whether the new proposals get the green light from the powers-that-be remains to be seen; after all, the politicians would be the number one target for any ban on flipping properties.