Tag Archives: house
Optimism returns to UK housing market after mid 2014 dip, says BSA
Regardless of potential uncertainties such as the forthcoming general election, optimism has returned to the UK property market after a dip in the middle of 2014, a new survey shows. Some 36% of respondents to the property tracker index from the Building Societies Association said they believe that now is a good time to buy a home. The rebound since September is particularly marked by a substantial drop in the number of people who think now is a bad time to buy. Taken together, the Property Tracker index has bounced back from a 9% low in September 2014 to 23%. It points out that the dip in 2014 coincided with the introduction of new mortgage regulations and the announcement by the Financial Policy Committee of actions to limit lending in the housing market. Results now indicate that transaction volumes may begin to slowly pick up after cooling off late last year. Despite average wages increasing and high levels of employment, raising a deposit is the greatest barrier to buying a home. Overall, 59% of those surveyed say that this is the biggest hurdle they have to overcome, up by three percentage points on December 2014. The future prospect of a rise in the Bank Rate is an issue for many. Over one in 10 borrowers say that they would be forced to miss a payment on a bill if interest rates rose by 1% over the year ahead. A further 12% said that making loan repayments would be a constant struggle. ‘Optimism in the housing market is back after a long, slow winter. Conditions in the mortgage market and the wider economy are improving and this confidence is driving consumer sentiment, especially those looking to purchase a home,’ said BSA head of mortgage policy, Paul Broadhead. ‘Consumers and providers are also cheered by the fact that house building is starting to increase, household finances are less squeezed and inflation has fallen to 0%. Even if deflation happens, provided it is short lived and is not generated by a fall in demand in the economy, it should not be damaging,’ he pointed out. ‘The Financial Policy Committee will keep watching property prices and sales volumes carefully. It, saw the need to act last year and now has a range of new tools at its disposal. A more sustainable cure for the affordability challenge is increased housebuilding,’ explained Broadhead. ‘Earlier this month we asked for a revolution in the provision of new housing in our discussion document Housing at the Heart of Government. Like millions of others, we now await the outcome of the general election to discover whether housing will sit at the top of the political agenda as promised,’ he added. According to Paul Smith, chief executive officer of haart estate agents, it should be remembered that the last two years have been full of very positive news, particularly for first time buyers. He pointed out that they have benefitted from the introduction of… Continue reading
UK home owners waiting longer than expected to move up housing ladder
Some 33% of home owners in the UK expected to be further along the housing ladder than they are now, according to new research, rising to 44% for first time buyers. The survey from Lloyds Bank also found that 83% believe home owners have to wait a lot longer to reach their long term family home than a decade ago while 36% of first time buyers hope to achieve their housing aspirations by the time they are 45. Despite recent improvements in the housing market, 40% still consider the housing market to be having an impact on aspirations, although this figure has fallen since 2013 when it was 47% and 2012 when it was 53%. Almost half, 48%, of first time buyers think that the housing market will have an impact on how long it takes them to reach their family home. Even with anticipated delays in moving up the housing ladder, 44% expect not to make any compromises and believe their long term home is a realistic achievement and 18% expect it to be a better property than their childhood home. ‘Many current home owners clearly still feel that they are not progressing up the ladder as quickly as they would like, with higher house prices in some regions meaning people are waiting longer to move into to their long term family home,’ said Andy Hulme, mortgages director at Lloyds Bank. ‘Despite this, almost two thirds still believe they’ll be in their long term home in less than five years, with the vast majority thinking this will only require one more move,’ he added. The research also shows that despite an increase in the number of people feeling they need a bigger property, the house that the majority of home owners in the UK aspire to own has three bedrooms with 43% seeking this kind of property. Some 24% want four bedrooms, with many people aspiring to have nice gardens, conservatories and high quality kitchens and bathrooms. Some 63% of home owners believe they will reach their long term family home in less than five years while 64% of those who are still waiting to be in their long term home think they will only have to make one more move to achieve their housing aspirations. Applicants for three bed properties, which are seen by many as long term homes, are on average 35 years old in London and the South East. This is a year older than the national average. These regions remain the least affordable in the UK for three bed houses, as a result of the high house prices. In contrast, long term family homes in the North and Wales are more affordable with the average three bed property costing £129,447 in the North and £135,070 in Wales. Average incomes of the applicants are lower at £38,606 and £36,390 respectively, but long term homes are still more affordable in both regions. Continue reading
TSI’s London Housing Market Overview
Over the past few years, the surge in house prices have been shocking Londoners from Shepherd’s Bush to Stratford. Many potential buyers have hoped that signs of a slowdown that emerged in the summer would continue, and so it has … Continue reading
