Tag Archives: house
UK first time buyer home market resilient in first months of 2016
First time buyers in the UK are resilient despite a month on month dip in property sales to this group, according to the latest first time buyer tracker index. It shows that people buying their first home increased by 6.6% year on year but month on month fell by 1.4% between January and February 2016. The data from Your Move and Reeds Rains also shows that total monthly volume of first time buyer transactions was 21,100 in February but on a seasonally adjusted basis it is considerably higher at 25,900. According to Adrian Gill, director of estate agents Your Move and Reeds Rains, February is a traditionally quiet period for the first time buyer market but the figures demonstrate the strong, steady underlying growth that comes with growing first time buyer confidence. ‘This optimism may begin to reveal itself more clearly in March, when an Easter uplift may sweep away any residual doubts among some first timers. While the more general mismatch between buyers and sellers will continue to exert upwards pressure on prices, a combination of pluck and poise from first time buyers will ensure that this does little to impact the overall trend of growing demand at this end of the market,’ he explained. The figures also show that the costs of buying and owning a first home have remained broadly stable in February, with lower borrowing costs balancing larger prices and deposits. Average mortgage rates for first time buyers have improved, down 0.56% on a 12 month basis and by a much slighter 0.03% between January and February 2016. February’s average mortgage rate also represents the lowest mortgage rate for first time buyers in over five years. Similarly, the average LTV ratio remains high, meaning first time buyers have been able to borrow more against the value of the home they wish to purchase. February’s average loan to LTVs recorded in 2014/2015 and represents only a 0.1% fall on February 2015. While first time buyer property prices have risen significantly on an annual basis, mortgage lending levels have kept pace. In February, the average purchase price for a first time buyer home stood at £168,539, an increase of £21,320 or 14.5%, on February 2015’s average of £147,219. However, over the same 12 month period, the average size of a first time mortgage grew from £121,534 to £139,088, an increase of 14.4%. Larger deposit costs represent the other side to this balance of affordability, the report points out. In February the average deposit put down by a first time buyer stood at £29,451, an increase of 14.7% or £3,766, on an annual basis. The report suggests that this uptick has been a factor in the growing proportion of first time buyer income which is consumed by deposit costs. In November 2015, a deposit ate up 67.4% of an average first time buyer’s annual income, whereas in February of this year the average deposit consumed, on average 74.9% of their income. However,… Continue reading
Research reveals few homes for sale in London under UK average
Affordability is a major issue for Londoners with new research showing that more than a quarter of boroughs don’t have a single home for sale less than the country average of £191,812. Indeed, average London property prices currently stand at around £530,409 and in nine out of 32 London boroughs, 28%, it is impossible to find a property with an asking price under the Land Registry average. The figures from online estate agents House Simple show that Bexley is the only borough where you can buy a property for less than £100,000, with a studio flat currently on the market for just £94,995 while in Tower Hamlets there are no properties on the market for less than £250,000. The research also found that just four or 12.5% London boroughs have property where the buyer would not pay stamp duty with the threshold kicking in at £125,000. In almost half of the boroughs, the most affordable property for sale today is a studio flat, which are typically just 100 to 110 square feet in size compared to the average UK one bed flat which measures 495 square feet. ‘These figures reveal how desperate the plight is for ordinary Londoners on average salaries, hoping to buy their first property. How can they feasibly afford to buy when average property prices in the Capital are over £530,000?’ said Alex Gosling, House Simple’s chief executive officer. ‘Although this research reveals there are properties for sale below the UK’s average house price, the pickings are extremely slim and you’re getting very little square footage for your money. It’s a studio or nothing in many boroughs,’ he pointed out. ‘It’s not surprising that more and more people are starting to move out of London for value. Why pay £200,000 for a studio flat when you can buy a house for the same money just an hour commute away. It’s likely in the future we will see less and less people putting their first foot on the property ladder in London,’ he added. Continue reading
A beach view is voted top in UK poll
It is always said that location is important in the UK housing market and it seems that views are too and the most desirable is a beach, new research is found. But while 71% who took part in a new poll named a beach as the best possible view from their home, not all is lost for urban areas as 24% want to see bustling city life. Beach views came out top in the poll by curtains and blinds firm Hillarys, followed by coastal landscapes with 65% of the votes and small, picturesque village life with 54%. But one in 10 identified industrial city life as among their favourite views. Initially, respondents were asked to identify the views they would most like to have from their house and provided with a list of suggestions. In fourth place was farmland with animals, polling 46% if the vote, idyllic rural countryside with 39%, suburban community life with 36%, bustling city life 24%, landscaped gardens 23%, historic or heritage sites 22% and woodland 21%. In addition some 15% stated that they would like to have a view of ‘other houses’ from their home, while 9% felt that a view of ‘industrial city life’ would be ideal. When asked if they currently had their ideal views at home, just 19% stated that they did. The average respondent stated that they would pay an extra 20% for a house if it had access to their ideal view. ‘We have some incredible landscapes here in the UK. There is so much breath taking scenery, it’s easy to take it for granted and forget how lucky we are. The lush green countryside and quaint villages might be traditional, but it seems we have our hearts set on sandy white beachfront houses,’ said the firm’s spokesperson Helen Turnbull. ‘Although we may not be able to uproot our lives and relocate in to the scenery that our hearts desire, perhaps a jaunt to a well situated holiday home to soak up the atmosphere could be worth considering or try creating a nautical environment at home to give us that seaside feeling,’ she added. Continue reading
