Tag Archives: real-estate
First time buyers numbers remained up in 2015, new data shows
The number of first time buyers in the UK remained buoyant in 2015 at just over 300,000 for a second year in a row, according to new data. First time buyers accounted for almost half of all house purchases made with a mortgage in 2015 and more than a quarter are now opting for a 35 year mortgage, according to the annual first time buyer review report from the Halifax. Overall it show that number reached 310,000 and the lender says that although this represents a marginal decline of 0.5% from 311,700 in 2014, the number has grown by 60% since 2011, from 193,700 to 310,000. T It also says that the marginal decline in first time buyers is in line with general residential house purchases, and is partly due to lack of supply. The data also shows that the average price paid by first time buyers increased by 10% in 2015 from £172,563 to £190,180, taking the price above the previous peak in 2007 of £174,994 for the first time. The average deposit paid by a first time buyer at £32,927 was 13% higher than a year ago and 88% higher than the average deposit in 2007 which was £17,499. The report says that is was the higher house prices paid by first time buyers during the year has resulted in an increase in the average deposit paid. In the South East the average deposit paid rose by 24% in the past year, from £35,582 to £44,024 while the highest is in Greater London at £91,409, some five and a half times more than the lowest which was £16,578 in Northern Ireland. Whilst a mortgage term of 25 years has been the norm for some time, many first time buyers are increasingly taking out mortgages where payments are spread over a longer period. In 2007 the proportion of first time buyers taking up a 35 year mortgage was 16% bit in 2015 that grew to 26%. Over the same period, the share of mortgages with a 20 to 25 year term dropped from 48% to 30%. ‘For the second year in succession, the number of buyers getting on the first rung of the housing ladder has reached 310,000. Although the average price of the typical first time buyer home has grown by 10% in the past year, the number of buyers taking that first step onto the housing ladder has been supported by favourable economic conditions; namely, record low mortgage rates, rising employment and real pay growth,’ said Craig McKinlay, mortgages director at the Halifax. The research suggests that first time buyers are an increasingly important part of the housing market and accounted for 46% of all house purchases made with a mortgage in 2015, the same as in 2014. However, this share has grown from 36% at the start of the housing downturn in 2007. Based on the average price paid by first time buyers, most regions have benefited from the Stamp Duty… Continue reading
Dubai to get more affordable homes
Dubai is usually associated with luxury property that fits with the glitz associated with the celebrities and wealthy property owners in the emirate but several new announcements now suggest otherwise. One developer is to build a series of affordable homes in Dubai while over 200 dilapidated villas that were lying empty are to be demolished. The moves show a different side to the emirate’s real estate market and is a reminder that not all properties are luxury apartments for the well off. Danube Properties has unveiled an affordable housing project that will allow home owners to turn one room into two. The Ritz Project at Al Furjan includes 452 fully furnished apartments, comprising of studios, and one a d two bedroom units. The rooms features a bed which can be tucked into the wall during the day, thus creating a larger living room space. At night it can be lowered to transform the accommodation into a bedroom. The Ritz also includes retail space and a gym, together with an outdoor running track and swimming pool, tennis and badminton courts and a basketball area. ‘We are bringing the latest home technology to our customers at a time when consumers are looking for more with less,’ said Rizwan Sajan, founder and chairman of Danube Group, who added that the homes are aimed at new couples and small families. The launch comes at a time when the luxury part of the property market is experiencing a softening, but Sajan pointed out that some 18,000 new homes are needed in the emirate over the next five years. ‘Real estate is a long term business and I am a firm believer in the long term sustainability of Dubai’s economy, which is very resilient. The current supply of 12,000 to 13,000 homes per annum falls well below the anticipated demand. Besides more than 80% of Dubai’s population live in rented homes,’ he explained. ‘With property prices coming down to a more realistic level we see the possibility of a large scale migration to home ownership from rental homes,’ Sajan added. Meanwhile, around 250 dilapidated villas across Dubai which are regarded as posing a public health risk are to be demolished. According to Dubai Municipality many of the properties are caught up in inheritance disputes between family members and the rightful owner has neglected them, making them a threat to security and public health. ‘There is a possibility that these houses are used as a den for crimes and as a hiding place for illegals and fugitives,’ said Khaled Mohammed Saleh, head of the buildings department at Dubai Municipality. It is estimated that there are 713 abandoned houses across Dubai of which 303 have already been demolished and a further 154 have been renovated by their owners. The Municipality will now issue orders to the owners for the houses to be demolished and if they fail to comply the properties will be taken down and the owners charged. Continue reading
Buying and selling a home is second most stressful life experience
Buying and selling a house is one of the most stressful life experiences, more so than having a child and second only to going through a divorce, new research for UK consumer organisation Which? has found. As many as seven in 10 people considered buying or selling stressful, according to the survey which asked people to rate how stressful they found each of life's major events, ranging from going through a divorce to buying a new car. While going through a divorce came out on top of the list of life's stresses, with 78% considering it stressful, buying and selling property followed closely behind, with 69% and 70% respectively finding either process nerve wrecking. Buying or selling a property was considered more stressful than arranging care for an elderly relative, having a child, changing jobs or getting married. The research also found that women found both buying and selling a property more stressful than men. Some 75% of the women found selling a property stressful compared to 66% of men. These figures were mirrored when it came to buying a property, with 73% of women finding the process stressful as opposed to 67% of men. Which? Mortgage Advisers says that buyers and sellers can reduce the strain. It advises people to be realistic about timeframes as buying and selling may involve being part of a chain. When it comes to finance, while seeking assistance from mortgage advisers may cost it is likely to save money in the long run and it adds that choosing a mortgage isn't just about finding the lowest rate, it's about finding a mortgage that's right for personal circumstances. It advises that when choosing a lender buyers should consider their reliability, range of products and the overall costs, rather than just the initial cost alone and invest in a quality conveyancer or property solicitor. While often online companies are cheaper, they don't always offer a full service. It also suggests building a good relationship with the property professionals involved as this helps gain a knowledge of what needs to be done and when and buyers should try not to over stretch themselves for that 'dream property'. If you end up in arrears, you may have financial trouble for many years. ‘We're a nation obsessed with home ownership, but when it comes to buying or selling, our research shows that it can be an incredibly stressful process. Thankfully there are a number of things you can do to reduce the strain, including speaking with a mortgage adviser early on to get your finances in order,’ said David Blake at Which? Mortgage Advisers. ‘Investing in good mortgage advice will ensure you find the best mortgage for your personal circumstances. To help avoid unnecessary stress when you're getting a mortgage, do ask about the reliability and service levels of any lender you're considering,’ he added. Continue reading
