News
Research reveals how many people find problems with their home after moving
Some 20% of British people feel that they have compromised when finding a new home with those renting more likely to be unhappy than buyers, new research has found. They feel they like their home less than when they moved in and the reasons include not liking neighbours, finding the property too small and finding the upkeep too much. The poll by AA Home Membership found that 29% discovered a lot of problems after moving in and the same number didn’t get on with their neighbours while 26% confessed they moved in as the property was affordable rather than because they liked it. The research also found that 25% found the property too small after living in it for some time and 21% found it needed too much upkeep while 13% found it no longer suitable as their circumstances had changed. The results also showed some big differences between homeowners and tenants. Some 26% of tenants said they’d grown less fond of their home compared to 17% of home owners. Tenants were more likely to live in homes which had unexpected problems and not get along with their neighbours. Home owners on the other hand, were more likely to struggle with the upkeep of a property and have changing circumstances such as children leaving home which made their property less suitable. The cost of the property was the most commonly re-evaluated aspect cited by 32% and 27% said they had to compromise on either the location or the size of the home they chose. Some 19% moved somewhere that needed more work doing to it than they had originally planned and 18% had fewer bedrooms than they wanted. A quarter of those who made a compromise were unhappy about having to do so. Those aged 18 to 24 were the most fussy with 31% of them saying they made a compromise begrudgingly. ‘It must be quite disheartening to find that your home is not all you hoped it would be. Some issues such as property maintenance and anti-social neighbours may only become apparent over time and may not have been a cause for concern when the householder chose the property,’ said Helen Brooker, head of AA Home Membership. ‘It’s pretty common for people to have to compromise when looking for somewhere to live as after all, not many people can afford their dream home. Even if you find your ideal property, the housing market is so competitive there’s no guarantee you’ll get it,’ she explained. ‘Others, particularly those who are looking for somewhere to live with a partner, may find that they have different tastes and opinions and may find it difficult to agree on what they want,’ she added. Continue reading
US pending home sales at highest for over nine years
Pending home sales in the United States continued to rise in May and are now at their highest level in over nine years, the latest index data shows. Gains in the Northeast and West were offset by small decreases in the Midwest and South, according to the Pending Home Sales index from the National Association of Realtors which is a forward-looking indicator based on contract signings. The index climbed 0.9% to 112.6 in May from a slight downward revision of 111.6 in April and is now 10.4% above May 2014 when it was 101.9. The index has now increased year on year for nine consecutive months and is at its highest level since April 2006. According to Lawrence Yun, NAR chief economist, contract activity rose again in May for the fifth straight month, increasing the likelihood that home sales are off to their best year since the downturn. ‘The steady pace of solid job creation seen now for over a year has given the housing market a boost this spring. It's very encouraging to now see a broad based recovery with all four major regions showing solid gains from a year ago and new home sales also coming alive,’ he explained. However, Yun warned that this year's stronger sales amidst similar housing supply levels from a year ago have caused home prices to rise to an unhealthy and unsustainable pace. ‘Housing affordability remains a pressing issue with home price growth increasing around four times the pace of wages. Without meaningful gains in new and existing supply, there's no question the goalpost will move further away for many renters wanting to become home owners,’ he added. The PHSI in the Northeast increased 6.3% to 93.9 in May, and is now 10.6% above a year ago. In the Midwest the index declined 0.6% to 111.4 in May, but is still 7.8% above May 2014. Pending home sales in the South decreased 0.8% to an index of 127.8 in May but are still 10.6% above last May. The index in the West rose 2.2% in May to 104.5, and is 13% above a year ago. Continue reading
Third of UK home owners can’t afford to move up the housing ladder
Some 34% of UK home owners looking to step up the housing ladder think it’s going to be difficult to move, new research has found. On average, current mortgage holders believe they need to save £10,549 before they can move and high house prices and the expense of moving are cited as the two main reasons people haven’t yet moved up the property ladder. The research from comparison website MoneySuperMarket found that 26% think it will be difficult to move up and a further 9% think it will be very difficult. This rises to 41% among those aged between 35 and 54 years who would find it tough to upscale their current property, while 28% of 18 to 34 year olds think the same. ‘There was a time when those in the 35 to 54 age group would have been looking to downsize, but now this is the age group where people are starting a family in some cases or still housing grown up children who are struggling to find their own way,’ said Kevin Mountford, head of banking at MoneySuperMarket. ‘Although they might have the earning potential to make that next step there is the constraint of mortgage term that comes with their age. Lenders will tend to fix the term of repayment to retirement age, so for those movers aged over 34 the repayments on increased value mortgages will be much higher as they’re paying it back over a shorter time,’ he explained. ‘For example a £250,000 mortgage on the leading two year fixed at 1.05% could be taken out by a 30 year old with a 30 year term and the monthly repayments would be £810. However for someone aged 45, the same mortgage over a 20 year term would have monthly repayments of £1,155, that’s £345 extra to find each month to make that next move,’ he added. Overall money is the main reason property owners would find it hard to move on up with 47% saying that house prices are so high they can’t afford to take the next step yet, while 43% simply can’t afford the cost of moving. Indeed, current homeowners think they’d need to save up £10,549 on average before they’d be able to move home while those in London estimate they’d need £12,946 on average to move, compared with £6,772 in the North East of the country. ‘Getting a foot on the property ladder in the first place can be hard work, but for many homeowners it’s just as difficult to take the next step. House prices have rocketed in recent years and tougher borrowing rules have made the search for a mortgage slightly harder,’ said Mountford. ‘It is vital for a healthy housing market that people are able to move up the property ladder otherwise the whole system can come to a grinding halt, leading to a shortage of property. As a result, second steppers can’t afford to be complacent when it comes to deciding… Continue reading
