Tag Archives: homes
New research reveals the rapid growth of the private rented sector in the UK
Over two million homes have changed tenure in the last decade when taking into account all property sales between owner occupiers and landlords, according to new research. Some 1,550,000 properties have gone from being lived in by their owner to being lived in by a tenant, while 550,000 have moved the other way, from the private rented sector into owner occupation. This has resulted in an extra million homes being occupied by a tenant rather than a home owner, equivalent to the number of households in the North East of England, says the research from property group Countrywide plc. Homes transferring from owner occupation into the private rented sector accounted for half of the growth in the number of privately rented homes over the same period. Most of the remaining growth in the private rented sector has come from landlords buying new build homes. The research also found that some 700,000 new homes built since 2005 have found their way into the private rented sector. The remaining homes changing tenure have come from social housing and residential conversions. Despite this, homes are only around half as likely to change tenure as people. First time buyers end up buying 65% of the homes that leave the private rented sector, and last year 45,000 first time buyers bought their home from a landlord, the highest number since the market downturn in 2008. This equates to 15% of all those who got onto the housing ladder for the first time. With first time buyers and landlords tending to look for homes which are smaller and cheaper than average, they often find themselves in competition. As a result, both groups are disproportionately likely to sell homes to one another. The research explains that given the private rented sector is largest in London and the South East, this is where first time buyers are mostly likely to buy their home from a landlord. One in five new buyers in London, and one in six in the South East, bought a home which had previously been rented out. It is in these two regions where the difference between what new buyers paid when buying from a landlord and those that didn’t is greatest. Those buying from a landlord paid on average 8% less than those that didn’t. ‘The rapid growth of the private rented sector has to come from somewhere, while the tenure may change, the physical home remains,’ said Johnny Morris, director of research at Countrywide. ‘The sector has been growing since 2005 but the number of home owners has fallen in each of the last 10 years. This scale of shift in tenure shows that the current push from the government to increase the number of homeowners is unlikely to be enough to reverse the decline,’ he explained. ‘Although landlords and first time buyers might not appear natural bedfellows, because they tend to look for similar types of homes they do end up selling to each… Continue reading
A good haggle helps home buyers pay less, new research shows
When it comes to buying a new home the majority of UK buyers are prepared to haggle and usually save money as a result, new research has found. Which? Mortgage Advisers asked people who had bought a property in the past five years what their initial offer was, whether they negotiated and what they eventually paid. The survey found that 73% of home buyers initially offered below the asking price for their property, and as many as 66% were successful in securing their property for less than the advertised price. Home buyers in Wales and the Midlands were the happiest to negotiate, with 79% and 78% respectively initially offering less than the asking price. In comparison, only 60% of home buyers in London initially offered less. Buyers in Wales, Birmingham and Manchester had the most success when negotiating, with 74% in Wales and 69% in Birmingham and Manchester securing their homes for less than the advertised price. Those that paid the asking price or more cited a number of reasons for doing so, but generally they were motivated by the stiff competition for properties. Indeed, some 25% who paid the asking price or above said that this was due to competition for their dream home, and 21% said that they were involved in a bidding war. ‘Don't be afraid to haggle, even if you've already set your heart on a property, as unless you're in a very competitive market, it will be expected. Having knowledge of the seller's position and the local market is a good idea and can often help secure the property for less,’ said David Blake from Which? Mortgage Advisers . ‘Today's property market has become incredibly fast paced and so for those requiring mortgages, seeking advice early will put you in a strong position to move quickly,’ he added. Continue reading
Property prices in Australia up the most in Sydney and Melbourne
Property prices in Sydney and Melbourne continue to be the highest in Australia although the two cities are seeing growth ease slightly, the latest index shows. Prices increased by 0.3% in Sydney and 0.6% in Melbourne in October compared with a national average of 0.2%, according to the CoreLogic RP Data index. Overall prices increased by 1.4% quarter on quarter and are 10.1% higher year on year although the combined capitals index has been easing since July this year when the index was rising at 11.1% per annum. According to CoreLogic RP Data’s head of research, Tim Lawless, a range of factors are contributing to the slowdown. ‘It’s not just the fact that mortgage rates have recently risen outside of any lift in the cash rate. We are also seeing approximately a 30% premium on investment related mortgage rates, tighter lending standards and borrowers generally requiring a larger deposit,’ he said. ‘Gross rental yields at record lows and affordability constraints are acting as a further disincentive, particularly in Sydney where the median unit price is equal to, or higher than the median house price in every other capital city,’ he explained. ‘Additionally, new housing supply is moving through record levels which should help to ease the upwards trajectory of home values,’ he added. He pointed out that since the end of 2008, the Sydney housing market has recorded a cumulative capital gain of 77% while Melbourne values have moved a cumulative 66.6% higher over the same time frame. Based on the median selling price at the end of 2008, Sydney home owners have accrued approximately $316,000 in gains from the housing market compared with around $246,000 in Melbourne. ‘While the rate of growth is significant, it is important to remember that this growth is across two cycles. Dwelling values were broadly tracking backwards during both the 2008 calendar year and between late 2010 through to the middle of 2012,’ said Lawless. The only capital city where home owners have seen the value of their homes move lower since the end of 2008 is Hobart where the CoreLogic RP Data index is down 0.4% since the end of the global financial crisis. The weakest housing market conditions continue to be found in Darwin and Perth where values are down 3.7% and 3.6% respectively over the past 12 months. According to Lawless, the slowdown in resources related infrastructure spending has caused ripples of economic weakness that are likely to persist for some time. ‘Capital expenditure relating to the mining and resources sector has fallen substantially which means tougher labour conditions and little in the way of migration which has previously fuelled housing demand in these areas,’ he said. Continue reading
