Tag Archives: family
UK house prices dipped slightly in December, say latest ONS figures
UK house prices increased by 6.7% in the year to December 2015, down from 7.7% in the year to November 2015, according to the latest figures from the Office of National Statistics (ONS). Prices were up year on year by 7.3% in England, by 1% in Wales, and by 1.5% in Northern Ireland but fell by 0.2% in Scotland. The annual growth in England were driven by an annual increase in the East of 9.7%, in London by 9.4% and in the South East by 8.8%. Excluding London and the South East, UK house prices increased by 5.1% in the 12 months to December 2015 but on a seasonally adjusted basis, average house prices decreased by 0.2% between November 2015 and December 2015. The data also shows that in December 2015 prices paid by first time buyers were 6.4% higher on average than in December 2014 while for owner occupiers (existing owners), prices increased by 6.9% for the same period. Average mix-adjusted house prices in December 2015 stood at £301,000 in England, £175,000 in Wales, £193,000 in Scotland and £148,000 in Northern Ireland. According to Peter Rollings, chief executive officer of Marsh & Parsons, existing home owners have every reason to be in high spirits after the tenacious house price growth experienced in 2015 which saw average values break through the £300,000 barrier. He also believes that buyers climbing onto or up the property ladder are hitting the ground running, on the back of favourable mortgage deals and support schemes from the government. ‘In London, we’ve seen new buyer registrations in January increase 24% on last year, which bodes well for purchase activity in the opening months of 2016. Landlords and investors in particular will be in a hurry to secure their preferred property before the additional 3% Stamp Duty becomes liable on second homes in April,’ he said. ‘But with annual house price growth in London just shy of double digits, first time buyers and those trading up also can’t afford to hang about either. The prime central London market has been challenged and unsettled by steeper Stamp Duty, but in lower priced boroughs further out of the centre, high demand and low supply of properties coming up for sale are sustaining strong price rises,’ he added. Adrian Gill, director of Reeds Rains and Your Move estate agents, believes that the property market is developing into the strongest sellers’ market since the recession. ‘December may have weathered the first month on month stumble in house price growth for eight months, but on average, property prices are still increasing at more than twice the pace of earnings, which is certainly jubilant news for existing home owners,’ he said. ‘Potential sellers would be advised to get their property on the market now to take advantage of the spring surge that is already following these figures for December. But rising prices make it tougher for those still hoping to climb onto the… Continue reading
Home ownership still out of reach for many in UK due to buying costs
Home ownership in UK is still out of reach for many would be buyers as new research shows that the average first time buyers will have paid over £52,000 in rent. Indeed, a first time buyer purchasing their first house this year will have spent £52,900 on rent by the time they get on the first rung of the ladder, and future first time buyer can expect to spend 22%. The data compiled by the Centre for Economics and Business Research (Cebr) for the Association of Residential Letting Agents (ARLA) also shows that the average first time buyer in England in 2016 will have spent 16.4% of their total lifetime earnings on rent for all the years they were a tenant. Those buying a property for the first time this year in the North East will have spent £31,300 on rent, the lowest amount in England. Whereas in London, the average amount spent is more than double that, at £68,300. The South East is the only region other than London where the total lifetime rent spent is above the English average with the total rent expenditure equating to £55,900. Last year alone on average people in the UK spent 22% of their wages on rent, increasing to 30% in London. Those living in the East enjoyed the most affordable rents due to relatively high earnings in the region, yet rent still accounted for 18.9% of their disposable income. People that move out of their family home at the age of 18, will typically rent for 13 years before buying their first property. The report found those leaving home and starting to rent this year, will spend an average of £64,400 before they are able to buy their first property, some 22% more than current first time buyers getting on the housing ladder this year will be spending. Those leaving home and starting to live independently in London will continue to be worse off, as they will spend an average of £91,500 on rent before they can buy their first home, some £23,100 more than those buying in the capital this year. ‘The rising cost of rent in this country is a huge issue, and is preventing tenants from being able to save to buy a home. Our Cost of Renting report reveals that tenants are already spending a significant proportion of their income on rent, and therefore struggling to save any money,’ said David Cox, ARLA managing director. ‘However, as house price affordability worsens and interest rates start rising, more pressure will be put on renting with weekly rent likely to rise, so home ownership will remain out of reach for many,’ he pointed out. ‘Rents are becoming alarmingly unaffordable due to the lack of available housing; the North-South divide we’re currently seeing in the UK is a clear illustration of this. The London rental market is… Continue reading
British women say strict mortgage rules are discriminatory
A number of women who apply for mortgages in the UK believe that they have been discriminated against by lenders because starting a family would have an impact on their finances. Getting a mortgage in the UK has become tougher since new regulations were introduced in 2014 and applicants are now asked to fill in a form detailing their monthly outgoing, including things like gym membership, and how they would fair when interest rates rise. Now new research shows that 25% of women have intentionally not disclosed plans to start a family as they fear this would lead to their application being refused and 9% said they have been discriminated against by lenders over their plans to have children. Indeed, the research from comparison website uSwitch also found that 11% would delay having a child in order to secure a mortgage while 48% save up to cover payments during maternity leave. The research also found that the pressure of disclosing information for a mortgage application is having a significant emotional impact. Some 71% of women who concealed their family plans from lenders experienced high levels of stress and anxiety during the mortgage application process. Overall 27% of women think the current affordability criteria is out of step with modern family finances and many said savings should be taken into account. ‘There is a strong feeling that mortgage lenders, rightly or wrongly, may be penalising women for starting a family,’ said Tashema Jackson, money expert at uSwitch. ‘A worrying outcome is that some female mortgage applicants are feeling forced to withhold information from potential lenders. Not only can this have severe implications in terms of invalidating any mortgage offers, but it is causing stress and anxiety for home buyers at a critical time in their life,’ she pointed out. ‘While it’s vital that lenders help people only borrow within their means and ensure they can afford future payments, it’s not fair for lenders to make blanket assumptions. Those planning a family may be able to manage their repayments even with a drop in household income, thanks to careful planning or savings,’ she explained. ‘We believe lenders should be making decisions based on a broader picture of an applicant’s financial situation, including the amount that they have in savings, rather than on assumptions about a woman’s personal circumstances or intentions,’ she added. She also pointed out that anyone who feels that they may have been discriminated against for any reason should lodge a complaint with the mortgage provider and if there is no resolution they can go to the Financial Ombudsman Service. Continue reading
