Tag Archives: green
Supermarkets can add an average of £22,000 onto the price of a home
Living close to a well-known supermarket chain can add an average of £22,000 to the value of a home, new research has found. The report also reveals that premium brands can add even more to nearby house prices, with properties close to a Waitrose store receiving an average boost of £38,666 or 10% than the wider town in which they are located, according to the research from Lloyds Bank. In addition to Waitrose, properties near a Sainsbury’s, Marks and Spencer, Tesco or Iceland also command the highest house price premiums of £27,939, £27,182, £22,072 and £20,034 respectively. The lowest house price premiums are in areas with an Asda, Lidl or Aldi stores with premiums of £5,026, £3,926 and £1,333 respectively. ‘Our findings back-up the so called Waitrose effect. There is definitely a correlation between the price of your home and whether it’s close to a major supermarket or not,’ said Mike Songer, Lloyds Bank mortgage director. ‘Our figures show that the amount added to the value of your home can be even greater if located next to a brand which is perceived as upmarket. Of course, there are many other drivers of house prices beyond having a supermarket on your doorstep, but our research suggests that it is a strong factor,’ he added. A breakdown of the figures shows that homes in the same postal district as Waitrose command the highest price premium compared to other areas in the same town in seven out of ten regions of England and Wales. The largest premium is in the North West where the average house price in an area with a Waitrose is £73,629, some 39% higher than in the surrounding areas. Other regions with a high premium are the West Midlands at £57,539, Yorkshire and the Humber at £36,376 and the South East at £31,681. At a local level, Chiswick in West London commands the largest average house price premium when compared with the surrounding area, at £476,738. The average house price in Chiswick, which offers residents a Waitrose, Sainsbury's and Marks and Spencer, is £961,564, almost double the average for Hounslow at £484,826. Golder’s Green, which has a Sainsbury's and Marks and Spencer, has the next largest premium in cash terms at £423,180, followed by Belsize Park and Hampstead at £313,166. Outside of southern England, the largest average price premium is in the Cheshire town of Wilmslow, where shoppers are catered for by supermarkets including Waitrose, Sainsbury's, Marks and Spencer, Tesco and Lidl. Buyers can, on average, expect to pay a price premium of £277,028 for a home in Wilmslow. In the Ponteland area of Newcastle, the average premium is £206,401 with a Waitrose, Sainsbury's and a Co-op store. The also data shows that this ‘supermarket bounce’ is not necessarily just confined to those areas which have a Waitrose, Sainsbury's or Marks and Spencer's located in them. There are several locations with a discount supermarket store where average house prices trade at a premium…. Continue reading
UK tenants can now request energy improvements to their rented property
Tenants in the UK now have the right to request energy improvements to the homes that they rents and landlords need a good reason to refuse. From the beginning of April they can request consent from their landlords to make energy saving improvements for the properties they rent and landlords will not be able to refuse their consent without good reason. But tenants will need to ensure that they have a way of funding improvements at no cost to the landlord, unless otherwise agreed. This may prove difficult, as it was originally expected that the Green Deal, which was closed down in July last year, would provide much of the funding for this initiative. Making these improvements can be beneficial to both tenants and landlords, saving on costs and having a positive impact on the environment, according to the National Association of Landlords (NLA). It pointed out that a property that is energy efficient can also be an attractive prospect for potential tenants. Indeed, according to a recent NLA survey some 35% of tenants said they considered the energy efficiency of a property to be an important factor when choosing a place to live. ‘We encourage all landlords to think about how they may benefit from making energy efficiency improvements, as many can be made with little or no upfront cost, and can have a positive impact on the lives of tenants, their lettings businesses, and the environment in general,’ said Richard Lambert, NLA chief executive officer. ‘Lower fuel bills and more comfort mean that tenants may be inclined to stay for longer, thus reducing void periods,’ he added. He also pointed out that the NLA offers various ways for landlords to improve their property and has access to different Government funding incentives to provide financial support. Continue reading
Nonstandard UK home borrowers now more likely to get a loan
More mortgage borrowers are seeing their applications for mortgage loans given the green light as new products emerge to support ‘non-standard’ circumstances, according to new research. Some 26% of brokers reported having no problems sourcing a mortgage for any type of borrower in the second half of 2015, the highest proportion in the post Mortgage Market Review (MMR) era, and a clear sign of improving lending conditions. According to the Intermediary Mortgage Lenders Association (IMLA) report it represents a significant jump from the proportion of brokers experiencing no problems both in the first half of 2015 when it was 15% and the second half of 2014 when it was 16%. However, some areas beyond the ‘mainstream’ mortgage market have been less well-served since 2008/2009, with new regulations introduced to govern lending criteria and fewer products on offer tailored to meet the needs of smaller and less mainstream consumer segments. This includes products to support borrowers seeking lending into retirement, products designed for borrowers with past adverse credit records, and those tailored for self-employed borrowers or those with irregular incomes. However, the IMLA’s research shows fewer brokers are now experiencing problems with sourcing a mortgage for clients in all of these areas, with the most significant improvement seen in sourcing loans for interest only borrowers. The proportion of brokers having difficulties helping this type of client has fallen 15 percentage points year on year to 39%. Similarly, the proportion of brokers unable to source a mortgage for ‘lending into retirement’ borrowers has dropped seven percentage points to 43%. The picture has also improved for self-employed borrowers, with just 40% of brokers reporting problems over the last six months, down six percentage points from a year ago. The most common circumstances where brokers were unable to source mortgages in the second half of 2015 continue to be adverse credit at 46%, lending into retirement at 43%, self-employed at 40% and interest only borrowers at 39% although in each case, the picture has improved. The report points out that these product types are becoming increasingly important, in context of the changing UK demographic. More first time buyers are taking out mortgages with longer terms to spread out their repayments, with 60% now opting for terms that last more than 25 years, meaning more borrowers could be left paying off their debt in retirement. Meanwhile the trend towards more working flexibility alongside sluggish wage growth has boosted self-employment levels in the UK, and 15% of the workforce are now self-employed. Looking ahead, both lenders and brokers identify first time buyers as the market area with the best overall growth prospects for 2016, ahead of other segments. However, when asked about the prospects for product availability, IMLA’s research suggests further improvements could be on their way for other borrower types. More than half of lenders forecast an improvement in mortgage availability for retirement borrowers, near prime borrowers, those who are self-employed or with irregular incomes, and interest… Continue reading
