Tag Archives: family
Research reveals the downsize windfall possible in UK property market
In the UK an average of £121,686 can be potentially raised by downsizing to a semi-detached home with London the most lucrative place to do so, new research suggests. Downsizing to a bungalow is the most common option, with those moving from a detached house releasing an average of £103,715 and those moving to a semi-detached house standing to raise up to £121,686. The latest report from Lloyds Bank also shows that 52% of those looking to move in the next three years considering downsizing, and it continues to be the main reason to sell a home and downsizing in 2014 is nearly 10% more profitable than in 2004. For those trading down, the potential amount that can be raised by downsizing from a detached property to a bungalow has risen by 8% or £8,081 over the past decade. A downsizer today would receive an average of £103,715 compared with £95,634 in 2004. The potential amount of cash home owners could raise by downsizing their property from a detached home to a semi-detached stood at an average of £121,686 in 2014, an increase of 6% or £6,943 since 2004 Three in four expect to make money when they downsize. Of those, 43% will reinvest this money in a new property, 26% will invest in other financial products and 13% will invest in their pension or give to their family members. Some 26% are planning to move to a more affordable area, 5% less than in 2013. Some 63% said one of the main reasons for downsizing is to find a smaller property that better suits their current circumstances. After this, 40% are looking to downsize to help reduce bills and outgoings. Some 28% of downsizers are also looking to release equity from their property, and 25% are looking to help support their retirement plans. The research also found that 25% of downsizers are trading down earlier than expected and there are a variety reasons for this including health, change in relationship status and proximity to amenities. The average downsizer is 56 years old, with the greatest proportion having lived in their current property between 11 and 20 years, and having moved in to that property at the age of 39. ‘Downsizing is clearly still a major part of the housing market with over half of potential home movers considering a smaller property. The volume of downsizers is therefore helping to keep the market moving, freeing up larger properties for those making their way up the ladder,’ said Andy Hulme, mortgages director at Lloyds Bank. ‘Once people do look to trade down, the benefits are clear. Downsizing can generate significant amounts of money, on average over £100,000 in 2014. It also helps to lower the cost of household bills and frees up funds so that people can enjoy their retirement or invest their money for the future,’ he added. A breakdown of the figures show that downsizers in London stand to make the most in monetary… Continue reading
A year of two halves for the prime central London lettings market
It has been a year of two halves in the lettings market in prime central London with the supply and demand pendulum swinging towards supply in the latter half of the year, according to a new report. In the first half of 2014 supply levels in the lettings market dipped with flats down by 14% and house supply down by 27%, year on year. As a result rental values in the second quarter of 2014 were 5.1% higher than they were in the same quarter of 2013, the data from agency W.A. Ellis shows. However, the second half of the year has seen supply levels increase, most noticeably in flats priced between £1,000 and £2,000 per week. The firm said this is due to a combination of factors including an increase in buy to let investors and a rise in the number of new developments coming onto the lettings market. According to Lucy Morton, director and head of agency, the one bedroom market has remained buoyant throughout the year, as is historically the case and the family house market peaked, as usual, in July thanks to families wishing to move on prior to summer holidays. ‘We have been successful in some substantial lettings in the super prime market, which has been active throughout the year, like the family home market, particularly during the spring and summer months,’ she said ‘In terms of meeting tenants rising levels of expectations presentation and decorative condition continue to be paramount across all areas of the market. We are seeing growing number of landlords making considerable investment in refurbishing their properties to gain an edge in a rental market that is growing fiercely competitive,’ she explained. The firm has now merged with JLL and as a result is now advising on the lettings potential of more and more new developments across the capital. Morton said that these new build developments are becoming increasingly sought after as the city and skyline are set to evolve over the coming years. ‘These developments offer an exciting variety of investment opportunities for both British and overseas investors. They also offer a modern and convenient way of living for prospective tenants who often register for specific schemes,’ she pointed out. An example is the Nine Elms regeneration project, which is the largest redevelopment project in London since Canary Wharf, and is the size of the entire West End. It has thousands of new homes, luxury penthouses, high end retail, hotels, entertainment centres, the American Embassy and an underground station. Morton predicts that the area will create a new hub for London over the next few years. Continue reading
Cumbrian village named best place in UK to live due to affordable homes
St Bees, a coastal village in Cumbria, has been named as the best place for families due to low crime rates, excellent school education and affordable housing. The number of top 20 places in the Midlands and North of England has risen by 15% due to rising house prices in the South at a time of low increases in average salaries, according to the annual family hotspots report from finance firm Family Investment. The annual report, which was first launched in 2012, analyses postcode data across 71 different data sets from education, safety and childcare costs to local amenities, affordable property and green spaces to reveal the top locations for families. Located 50 miles from the Scottish border and with a population of just 1,800, St Bees in Cumbria earns the 2014 top spot. A newcomer to the report, it owes its success to a low crime rate and a lower than average house price of just £139,000. In second place is the market town of Wokingham in Berkshire, 33 miles west of London which was the top location last year but has gone down the rankings due to increasing house prices. An average two bedroom property now costs £254,000. Faringdon in Oxfordshire is third due to its excellent schools. The town, which is located in the Vale of the White Horse, also holds the accolade of being the first Fairtrade Town in the South East of England. ‘The rural village of St Bees is well deserving of its title as the best place in the UK for families. It has a heritage that stretches back over 1,000 years, the schools achieve excellent results and locals tell us that it has a small but very close-knit community making it a great location for families,’ said Steve Ferrari, head of customer insights at Family Investments. ‘Deciding where to live is one of the most important financial and lifestyle choices families will make in their lifetimes. Our report is designed to help people navigate this decision by showing them how areas of England and Wales score on some of the major factors that play a part in everyday family life whether that’s the quality of local schools or the area’s crime rates,’ he added. Four locations within the top 20 are positioned along the M6 corridor between Birmingham and Manchester, making them convenient for commuters to those cities: Sandbach in Cheshire, Hixon in Staffordshire, Holmes Chapel in Cheshire and Cheadle in Staffordshire. No London location makes it into the charts for 2014, largely due to the cost of property in the capital. However, the top three locations in Greater London are Bexley, Banstead and Epsom with no inner London locations made it onto the list. Continue reading
