Tag Archives: industry
UK housing sales set to jump by a fifth by 2020,
The number of property transactions in the UK could rise by over a fifth in five years to reach almost 1.5 million in 2020, according to new research. This will happen if first time buyers are given greater access to high loan to value lending, says the study commissioned by mover conveyancing services My Home Move. The increase in annual property transaction figures from the 1.23 million recorded in 2015 to the projected 1.49 million in 2020, a rise of 21.1%, is based on an econometric forecast of property transaction volumes. This includes a 6.6% rise in property sales in 2016, compared to 2015. The independent research uses a forecast model that draws on the historic relationship between property transactions and three variables that have had the greatest impact on property turnover: average mortgage rates, unemployment figures and the average first time buyer percentage deposit. The forecast of transaction levels is based on the OBR prediction for unemployment which is expected to fall slightly to 5.0% this year before rising slightly to 5.3% by 2020 and the OBR prediction for Bank Rate which is expected to rise gradually from early 2018 to reach 1.0% by the end of 2020. As part of the research, the average percentage deposit for first time buyers has been independently forecasted. This has been modelled to fall from the current 17.1% to 10% by late 2019 as more high LTV mortgage products come onto the market helping to make homeownership more affordable. As property transactions provide one of the most important measures of the overall health of the UK’s housing market, the research highlights a positive future for the market as transactions are set to advance strongly. ‘Although house prices have improved since the economic crash, property transaction levels, which are a key indicator of market health, are yet to return to their peak of 2007,’ said Doug Crawford, chief executive officer of My Home Move. ‘This report highlights the critical importance of unlocking access to high loan to value mortgage products for first time buyers, if we are to see transaction volumes grow and the health of the market remain,’ he explained. ‘The forecast shows that the number of home purchases could see a dramatic improvement if access to home ownership for first time buyers is nurtured. In particular, we need more lending to those with smaller deposits so that average deposit sizes for first time buyers fall to 10%,’ he pointed out. ‘However, reaching this would require a coordinated effort from across the industry sooner rather than later from house builders to ensure the supply is there, from lenders to provide the high loan to value lending that first time buyers depend on, and from those of us who support first time buyers with their purchase to ensure that buying a home is as easy as it can be,’ he added. ‘It couldn’t be clearer how important first time buyers are in… Continue reading
UK home buyers most concerned about prices and mortgages
Financial worries dominate the thinking of today's generation of prospective home buyers in the UK with prices and getting a mortgage the biggest concerns, new research shows. The survey from the Home Builders Federation (HBF) also highlights the change in attitudes to home buying between young and old, showing that whilst 84% of 18 to 34 years olds still want to own their own home, there are huge financial obstacles to realising their dreams. Indeed, some 73% cited the difficulty of saving for a deposit, for 69% it is property prices and 53% the difficulty of getting a mortgage. The survey also found that one in four 18 to 34 year olds are totally unaware of any government support available to them, such as the 5% deposit Help to Buy equity loan scheme or the Help to Buy ISA aimed at helping young people save for a deposit. And overall younger people today are more concerned than their elders about the running costs of homes with 67% of 18 to 24 year olds taking this into account when considering whether to buy compared to 40% of 35 to 44 year olds. Younger people are also much more likely to consider buying a new build, which are up to 50% cheaper to run than some second hand homes with 55% saying it is likely they would consider buying a new build compared to just 23% of over 45s. It also identifies the huge amounts of money second hand home buyers spend on their properties with 47% of people spending over £10,000, and more than half incurring the expenditure associated with replacing bathrooms or kitchens. Some 13% of people spent over £40,000 upgrading their home and the HBF estimates it costs around £45,000 to upgrade a second hand home to the standard of a new build. The HBF also believes that there are a number of misconceptions about new build homes. With 34% of people polled saying they have never visited a new build or a show home and a further 18% saying they hadn't for at least 10 years, it points out that the industry faces a huge challenge engaging with the public to explain the many benefits of today's modern, high quality new build homes. Some 84% of 18 to 34 year olds that don't already own their own home aspire to do so and when buying a new home, the most important factors house hunters consider are price and location, both cited by 80%. However a greater proportion of younger house hunters, some 67% of 18 to 24 year olds, take into consideration the running costs of a property, compared to 55% across all age groups. The main obstacles for first time buyers trying to get on to the property ladder are saving for a deposit at 73%, property prices at 69% and getting a mortgage at 53%. Similarly, the main put-offs to buying a home for everyone is the deposit for 72%… Continue reading
New £2.7 million initiative launched in UK to help tackle housing shortage
Over 45,000 new home building workers will be trained by 2019 to help tackle the UK’s housing shortage through a £2.7 million initiative announced by the Construction Industry Training Board (CITB) and Home Builders Federation (HBF). The first of its kind, the Home Building Skills Partnership, working with research on their needs from some 40 UK home builders, will bring together firms of all sizes to ensure that the industry has the skills it needs to build more homes. This will include initiatives to promote collaboration on skills across the supply chain, so that the industry can better plan for its future needs and the partnership will support over 3,500 construction businesses and, by 2019, train 45,000 new entrants and 1,000 experienced workers with the new homebuilding training qualifications. It comes at a time when the house building industry has delivered unprecedented increases in house building over the past two years. The latest figures show that 181,000 new homes were provided last year, up 25% year on year, with the largest companies increasing their output by 50% since their troughs. With the industry looking to meet Government ambitions to increase output still further, whilst maintaining high levels of build quality and customer service, it is imperative industry capacity is increased. The aim is that the new partnership will use industry insight to understand skills needs and develop new training and qualifications ideally suited to the modern home building sector and create long term skills solutions to meet the government’s target of one million new homes by 2020. It will be overseen by a Board that will be chaired by Redrow chief executive officer John Tutte and include a range of senior industry representatives and CITB. ‘The number of new homes is up 25% in the last year because the country is building again and delivering the homes the nation wants. That’s why the Home Building Skills Partnership is an important initiative and will help deliver the training of skilled workers we need to get the job done and to improve quality across the industry,’ said Housing and Planning Minister Brandon Lewis. ‘Construction offers an exciting and rewarding career and we need to build a new generation of home grown talented, ambitious and highly skilled construction workers,’ he added. Initiatives throughout the four year programme will include research led by the HBF and employers, to get a better understanding of the barriers faced by the home building sector and the design and delivery of a new Home Building Training and Developmental Needs Analysis tool to ensure the right training is delivered to ensure the sector’s skills needs are met, now and in the future. There will also be the establishment of a framework that will set common standards for skills and training in the home building sector. This will deliver a more relevant and valued curriculum and ensuring the safety and satisfaction of homebuilders and their customers. ‘The industry… Continue reading
