Tag Archives: social-bookmarking
A third of people in UK renting a home have put buying plans on hold
One in three people in the UK renting have put their plans to buy a home on hold and remained in rented accommodation longer than planned, according to new research. It suggests that 1.66 million tenants in the private rented sector are actually frustrated first time buyers and the research from credit check firm Experian also gives an insight into why. Some 18% don’t believe they would be accepted for a mortgage so feel renting is their only option, while 10% have struggled to raise a deposit and consequently been forced to delay their plans to buy. A further 5% have had to prolong their time renting as they’ve been held up in securing a mortgage. Despite making regular payments for their housing, private renters don’t see this reflected on their credit report in the same way mortgage payers do, the firm explains. ‘Many would be first time buyers face the challenge of saving for a deposit on a home while paying rent each month,’ said Jonathan Westley of Experian. He pointed out that the research also shows that a significant amount of people are happy to rent in the long term, whether it’s because they enjoy a good relationship with their landlord or the flexibility of rented accommodation. Indeed, a third are content to rent and have no plans to buy a home of their own in the next five years. Some 25% of those surveyed intend to buy a place of their own sooner rather than later and the results show that 9% are currently saving for a deposit and believe they will be able to buy within the next 18 months, while 16% reckon they will need between two and five years to build up the required deposit. Would be first time buyers who have been frustrated in their attempts to get onto the housing ladder are more likely to be single parents or couples with children. These tenants either doubt they would get a mortgage or have had difficulty securing one, or have struggled to get a deposit together. The research also found that 74% would like to see rental payments contribute to their credit report. The greatest appetite for including rental payment data on credit reports is among people who are looking to buy in the next five years with 91% in this group recognising the importance of a good credit report and 83% would like to see rental payment data added to it. People who are happy to rent tend to live alone or only with other adults and are less likely to see rent as ‘dead money’ than private tenants as a whole and 26% of satisfied renters disagree when asked if renting is a waste of money compared to 16% of all private renters. Continue reading
House prices in Scotland up twice the rate of England and Wales
House price growth in Scotland is outpacing that seen in England and Wales with values up 0.8% in November, twice the rate seen in the rest of the UK. This takes the average price of a home in Scotland to £169,850, up 2.4% compared wot November 2014, according to the latest index from Your Move. East Renfrewshire had the biggest upswing as new home developments lifted prices 5.2% since October and overall it was the strongest November for home sales since 2007 with transactions up 13% year on year. According to Christine Campbell, Your Move managing director in Scotland, the rise provides a welcome bounce back for home owners after a turbulent year but house prices are still below March’s record peak. The driving force behind this up and down has been the introduction of the Land and Buildings Transaction Tax (LBTT) last April which while lowering tax for the vast majority of buyers has hit the top end of the market. However, as high end housing stock starts to shift again, price rises are strengthening in more expensive areas but Campbell warned that the growth spurt may be short lived with the 3% surcharge on second home and buy to let property purchases coming into force in April. ‘If the impact of this tax increase mirrors the effect of the LBTT, we may see a sharp spike in values at the start of 2016 as buy to let buyers rush to avoid the tax hike, followed by a sudden dip after its introduction,’ said Campbell. ‘Investors may well be dissuaded from purchasing additional properties then, with a £250,000 home liable for an extra £7,500 in Stamp Duty once the tax is implemented. Sellers may find themselves having to subsequently reduce prices to make their properties more attractive, accounting for the higher surcharge for some buyers. There have been cases of some developers offering £10,000 contributions towards the LBTT in order to sell their units,’ she explained. The data also shows that on the back of strong monthly growth in October, East Lothian has now overtaken Inverclyde as the mainland region with the highest annual increase in property prices at 10.9%. ‘This region illustrates the recovery in the top end of the market with 30 sales of properties worth over half a million pounds in the last three months, a significant improvement on 18 sales in the same period last year,’ said Campbell. ‘The most notable of the sales was a nine bedroom property going for £2.6 million, the second most expensive property sold this year. This marks a clear turning point when you consider the drought of million pound home sales immediately after the introduction of the LBTT,’ she pointed out. She also explained that November’s home sales have defied the odds by avoiding the usual seasonal slowdown. Transactions increased 1.2% month on month in a period where there is usually see a 4% dip. South… Continue reading
Fewer Chinese and Russians buyers likely for prime central London market in 2016
There is likely to be fewer Chinese and Russian buyers in the prime central London property market in 2016 but a rise in interest from the Middle East, particularly Iran, is forecast. Overall there is unlikely to be much growth in this market which has been hit by increased property tax charges with more set for second home and buy to let buyers in April. ‘We are cautiously optimistic about 2016, however the market is unsettled and liquidity is down. We don’t expect much growth in the central London market as a whole, except for the very best stock which we believe will keep increasing in value,’ said Rory Penn of property agents VanHan. ‘Prices at the top end of the market may adjust to compensate for increased tax costs. We expect there to be fewer Russian and Chinese buyers in the market than in previous years; the strength of the pound means that London is not currently considered to be such good value for money,’ he explained. ‘It is expected that sanctions against Iran will be lifted next year, and we are already seeing interest from wealthy Iranians looking to buy property in central London but we expect to see a drop in demand for some new build developments, such as Battersea Power Station, as the market is becoming over saturated,’ he added. One area where the firm does expect to see continued demand is Mayfair. ‘There is a lot of development going on and a high level of interest from foreign buyers who are still attracted to the social aspect,’ said Penn. Sales were better than expected for the firm in 2015 with seven residential sales in the £10 million to £50 million with an average transaction size of £16 million which included a £50 million house in central London, one of the largest residential transactions in the area. But it also points out that it remains to be seen what effect property tax will have in the coming months. ‘The slowdown in the prime residential markets last summer had less to do with the election and more to do with the changes in taxes relating to buying and holding residential real estate, although this has had less impact at the very top end of the market,’ said Penn. ‘As the luxury market has become more saturated, discerning buyers are increasingly looking for a boutique, bespoke service. Sellers are increasingly looking to sell properties off-market,’ he added. Continue reading
