Tag Archives: credit
A third of people in UK renting a home have put buying plans on hold
One in three people in the UK renting have put their plans to buy a home on hold and remained in rented accommodation longer than planned, according to new research. It suggests that 1.66 million tenants in the private rented sector are actually frustrated first time buyers and the research from credit check firm Experian also gives an insight into why. Some 18% don’t believe they would be accepted for a mortgage so feel renting is their only option, while 10% have struggled to raise a deposit and consequently been forced to delay their plans to buy. A further 5% have had to prolong their time renting as they’ve been held up in securing a mortgage. Despite making regular payments for their housing, private renters don’t see this reflected on their credit report in the same way mortgage payers do, the firm explains. ‘Many would be first time buyers face the challenge of saving for a deposit on a home while paying rent each month,’ said Jonathan Westley of Experian. He pointed out that the research also shows that a significant amount of people are happy to rent in the long term, whether it’s because they enjoy a good relationship with their landlord or the flexibility of rented accommodation. Indeed, a third are content to rent and have no plans to buy a home of their own in the next five years. Some 25% of those surveyed intend to buy a place of their own sooner rather than later and the results show that 9% are currently saving for a deposit and believe they will be able to buy within the next 18 months, while 16% reckon they will need between two and five years to build up the required deposit. Would be first time buyers who have been frustrated in their attempts to get onto the housing ladder are more likely to be single parents or couples with children. These tenants either doubt they would get a mortgage or have had difficulty securing one, or have struggled to get a deposit together. The research also found that 74% would like to see rental payments contribute to their credit report. The greatest appetite for including rental payment data on credit reports is among people who are looking to buy in the next five years with 91% in this group recognising the importance of a good credit report and 83% would like to see rental payment data added to it. People who are happy to rent tend to live alone or only with other adults and are less likely to see rent as ‘dead money’ than private tenants as a whole and 26% of satisfied renters disagree when asked if renting is a waste of money compared to 16% of all private renters. Continue reading
London prime property prices still falling and expected to be flat in 2016
Prime property prices in London fell by an average of 0.8% in the final quarter of 2015 and are expected to remain flat in 2016 and into 2017, the latest residential index shows. The latest fall in the prime London homes sector leaves prices a marginal 0.5% above the levels seen at the beginning of the year, while prime regional town and city markets averaged 4.4% annual growth, according to the research by international property adviser Savills. The marginally positive average annual house price growth across all prime London is attributable to the performance of property below £2 million, which recorded growth of 2.2% over the course of the year, according to the report. However, over the course of 2015 prices fell in all of the submarkets above this price level in London. Prime central London has seen prices fall year on year by 3.4% and 1.5% quarter on quarter and are 6% below the peak of 2014. Overall in prime London prices are up 0.5% year on year, down 0.8% quarter on quarter and down just 0.9% since the peak. Prices have been affected by the stamp duty changes a year ago. In the under £2 million sector they are up 2.2% year on year and 1.7% above the peak but down 0.4% quarter on quarter while all other sectors have seen prices fall. In the £2 million to £3 million market prices are down 1.4% quarter on quarter, down 0.2% year on year and down 2.7% since the 2014 peak. In the £3 million to £5 million sector they are down 1.2% quarter on quarter, down 1.3% year on year and down 3.8% from peak. The higher end of the market is also affected with price growth down all round. In the £5 million to £10 million market prices are down 1.5% quarter on quarter, down 3.3% year on year and down 5.9% from peak. In the £10 million plus market prices are down 1.3% quarter on quarter, down 3.7% year on year and down 7.5% since peak. ‘This reflects a continued adjustment to a less hospitable tax regime and successive increases in stamp duty rates in particular. This is particularly impacting the higher value markets of prime central London,’ said Lucian Cook, the firm’s head of UK residential research. ‘Since the credit crunch, is has been common practice to index price growth in prime London to the previous peak of 2007/2008. It is now clear that 2014 is the new peak reference point for a market that has continued to adjust to higher taxation, introduced at a time when the market was already looking fully priced,’ he added. He also pointed out that while the prime central London market remains price sensitive, data from LonRes indicates that transaction levels in the first 11 months of the year were 75% of the levels seen in the year previous for stock sold for over £1million. ‘In addition,… Continue reading
Asking prices down 1.3% in England and Wales, but seasonal dip lower than usual
Asking prices in England and Wales fell 1.3% month on month but are still up 6.2% year on year, taking the average to £292,572, according to the latest index data. It is the smallest drop in new seller asking prices during the seasonal November slowdown since 2011, according to the Rightmove report and the online portal says that it is indicative of even higher prices next year. Prices fell in all regions with Wales seeing the biggest monthly fall of 3.7%, taking the average asking price to £196,471 and both the South West and the North East saw a fall of 2.3% taking the averages to £279,643 and £142,917 respectively. Yorkshire and Humber saw a monthly fall of 2.2% to an average of £167,343, in the North West there was a fall of 1.9% to £171,709, while the South East and the West Midlands recorded a decline of 1.1% to £384,001 and £196,471 respectively. There was a 1.6% fall in asking prices in Greater London taking the average to £619,866, a fall of 0.6% in the East Midlands to £187,148 and a decline of 0.3% in the East of England to £315,568. The report points out that sellers who come to market in the run-up to Christmas typically set lower asking prices as buyers are harder to attract at this time of year. However, this November’s price dip of 1.3% or £3,977 is much less marked than usual, and is the smallest seen at this time of year since 2011. According to Rightmove director and housing market analyst Miles Shipside this indicates a positive underlying outlook for the year ahead among home owners, with research by Rightmove showing them to be in a confident mood and largely unfazed by the risk of higher interest rates in 2016. Given these findings, and the likelihood that demand will continue to outstrip supply, prices look set to increase again in many locations in 2016. Shipside expects it to be a short lived dip in asking prices. High home owner confidence is demonstrated by Rightmove research, with a sample size of over 23,000, which reveals that the majority, 85%, don’t think their financial situation will worsen in the next year. Despite the possibility of a 2016 rate rise that could increase mortgage repayments for many, 41% of home owners said they thought their household’s financial situation would get better over the next 12 months. Another 44% said things would stay the same, with only 15% forecasting they would get worse. Some 69% were also of the opinion that property would continue to rise in price over the next 12 months, with only 7% expecting prices to be lower. ‘Home owners have had a smooth ride over the past six or so years with a 0.5% base rate, so you would think that more might have concerns about the extra drain on their financial resources when the base rate inevitably goes up. Whether in 2016 or early… Continue reading
