Why is a single storey home not always necessarily a bungalow? Most people would think they are one and the same thing but this is not actually the case. Although the accommodation of many bungalows are set out on just one level and can therefore be correctly described as single storey homes, not all single storey homes are bungalows. It is difficult to precisely define the difference between the two, rather like what makes one property a cottage and another a house; it really comes down to style and design.
The word bungalow originates from India and the term ‘bangalo’ referred to a house built in the Bengal style which were usually small, detached, one storey and often with a wide veranda. Initially a term adopted by British sailors in the 1690’s to describe a hovel, as the British Raj expanded they became ever more extensive and rather grand homes used by officials who by the late 19th and early 20th centuries began replicating them on their return to these shores. Their numbers proliferated in Britain and America in both suburban and rural settings with their style amended to suit the vernacular and in this country were often designed to the Arts and Crafts style in vogue at the time. Bungalows and single storey homes still remain hugely popular today although they only account for around 10% of the UK’s housing stock.
A bungalow is not necessarily limited to being just a single storey high as in the case of chalet bungalows which have a second floor, albeit one that is smaller than the ground floor and built into the eaves. This is a particularly common form of construction in the USA where the various states have their own specialist designs.
Historically in this country, other than those properties belonging to the nobility, most homes were single storey, rather like crofters cottages in the Highlands or Ireland. If you look carefully at some old cottages, you can see that they were built at different stages, sometimes with stone elevations at ground level and a brick faced upper floor. This was because stone used to be widely available and cheap before the industrial revolution saw the advent of the mass production of brick.
Nowadays, single storey homes often tend to be either older buildings such as former agricultural barns that have been converted to domestic use or ultra-modern, contemporary homes built to a style that would not be associated with a bungalow.
Although normally known for selling more traditional country cottages and village houses, Rural View has recently agreed the sale of two single storey homes in the South Wiltshire area. One a former cow barn requiring updating near Sutton Mandeville whilst the other is a superbly presented property in Brixton Deverill that was once part of a range of bull pens. Both properties created terrific interest demonstrating the demand for this type of construction.
The recent budget has been described as one of the most progressive for years and one of the headline grabbing changes relates to the passing on of family homes and inheritance tax. From April 2017 if you own a property worth up to £1m you will be able to leave it to children or grandchildren completely free of inheritance tax. The following is taken from the Daily Telegraph’s report on the existing rules and how the new proposals will work.
In his budget speech on the 8th July 2015, Chancellor George Osborne announced that he will raise the inheritance tax (IHT) threshold from £325,000 per person to £500,000. This means that married couples and civil partners will be able to pass on assets worth up to £1m, including a family home, without paying any IHT at all.
Thousands of home owners have seen the value of their properties soar in recent years, particularly in London and the south east, thanks to a buoyant property market. This has raised concerns for many about the amount of tax their estate will incur after their death.
What are the rules now?
IHT is currently levied at a rate of 40pc on the value of an estate above the tax-free threshold, which has been frozen at £325,000 per person since 2009. Married couples and civil partners are entitled to double the allowance, passing on assets to their children or other relations worth up to £650,000 before a tax charge is triggered.
How will this change?
The Government will add a “family home allowance” worth £175,000 per person to the existing £325,000 tax free allowance from April 6, 2017. This means that individuals can pass on assets worth up to £500,000, including a home, without paying any IHT at all. For married couples and civil partners, the total is £1m. This additional allowance will be gradually withdrawn for estates worth more than £2m. The Conservatives first mooted its plan to raise the IHT threshold in 2007 and it was included in its 2010 manifesto. However the Liberal Democrats quashed any changed to IHT during the Coalition government.
What if I downsize my home?
Anyone who wants to downsize to a smaller property will be eligible for an “inheritance tax credit” so that even if they sell an expensive property they will still qualify for the new threshold providing the bulk of the estate is left to direct descendants. This is an attempt to encourage pensioners to free up larger properties for growing families.
How much will I pay?
Hargreaves Lansdown has calculated how these changes will affect you, depending on the size of your assets.
Single person
| Value of family home | Value of other assets | Value of the estate | IHT liability now | IHT liability from April 2017 |
| £175,000 | £175,000 | £325,000 | Nil | Nil |
| £200,000 | £300,000 | £500,000 | £70,000 | Nil |
| £250,000 | £400,000 | £650,000 | £130,000 | £60,000 |
| £400,000 | £600,000 | £1,000,000 | £270,000 | £200,000 |
| £750,000 | £750,000 | £1,500,000 | £470,000 | £400,000 |
| £1,000,000 | £1,000,000 | £2,000,000 | £670,000 | £600,000 |
Married couple
| Value of family home | Value of other assets | Value of the estate | IHT liability now | IHT liability from April 2017 |
| £175,000 | £175,000 | £325,000 | Nil | Nil |
| £200,000 | £300,000 | £500,000 | Nil | Nil |
| £250,000 | £400,000 | £650,000 | Nil | Nil |
| £400,000 | £600,000 | £1,000,000 | £140,000 | Nil |
| £750,000 | £750,000 | £1,500,000 | £340,000 | £200,000 |
| £1,000,000 | £1,000,000 | £2,000,000 | £540,000 | £400,000 |
To misquote Albert Arkwright in Open All Hours, so far it’s been a funny old year. Speaking to property buyers, sellers and agents up and down the country, broadly speaking, most seem to share our experience of the housing market over the course of the first half of 2015 in that it’s been something of a mixed bag.
We at Rural View were busy with viewing appointments right from the start of the year, even back in January and February when the housing market is usually in a state of hibernation. The spring and early summer months saw our diaries particularly full with appointments although lately this has been a little more erratic with some days being fairly quiet whilst with others it has been a job to fit in all the viewing requests.
However, rather than viewing numbers, what is more relevant to the agent and their vendor clients is whether they generate offers and subsequently; sales. Depending on prevailing market conditions, the desirability of the individual property and its pricing policy, one would normally expect around 8-10 viewings to generate an offer. This statistic certainly did not apply in the early part of the year and up until May as despite all the viewing activity, buyers appeared reluctant to commit to making purchases. Since then it has been a different story and the last two months has seen a marked increase in the number of offers being made and accepted.
It is perhaps a little too easy to explain the pattern of house buyer behaviour so far in 2015 as being down to the political uncertainty in the lead up to the general election and it’s outcome as there was plenty going on prior to the 7th May. It does appear however, that the election did play its part in influencing prospective purchasers’ decision making but there are other factors as well. These include simply the time of year with the late spring/early summer period traditionally being one of the most active periods, a hint of an easing of the stringent mortgage lending restrictions and the general vagary of the ebb and flow of market activity which defies logic and analysis.
The other side of the demand for property coin is of course supply. Other than a number of homes that had been ‘rested’ over the winter becoming available again, there was the usual slow start to the year for new properties being put up for sale followed by a flurry of new instructions in April and May. June in contrast has seen a shortage of homes coming to the market even though there are a good number of motivated buyers actively house hunting.
Normally a favourite newspaper and dinner party topic, there has been little to talk about regarding house prices so far this year mainly because they have remained pretty stable.
So what of the remaining six months of 2015? All I can say is that the housing market will continue to be predictably unpredictable and that sellers of sensibly priced and proactively marketed homes in the best locations will, as ever, be sure of attracting good interest.
For the second year in succession, Rural View has been recognised for our outstanding customer service by the ESTAS, the largest and longest running award scheme in the UK residential property industry.
THE ESTAS determines the best estate & letting agents in the country through research carried out amongst customers. This year’s competition saw 25,000 surveys completed and Rural View have been shortlisted to receive an award for Best Estate Agent in the Southern Region of Wiltshire and Gloucestershire.
We are thrilled to be recognised yet again for all our efforts and quality of service. Last year we scooped ‘Best Agent in Wiltshire’ and it would be tremendous to be able to repeat this success in 2015.
We sell, let and manage village, rural and market town property over a wide area and have become well regarded for our success. The criteria for shortlisting is high and we have been selected along with six other Agents to represent the whole region.
It just shows that you don’t have to be a large multi-office agent to do the job well. We provide a very good, lean and efficient service and we are delighted that our clients feels the same way.
