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Money and stress are biggest concerns of people selling their home
Money, stress and time constraints are still the biggest fears for UK home owners when selling their home, new research has found. Despite home owners currently enjoying a very buoyant UK property market, securing the right price still tops the list of fear factors, according to a survey from online estate agent eMoov. Some 55% of those asked said not getting the price they wanted or needed was their primary fear when selling, with the stress of the selling process the second biggest fear factor for 46% of home owners. Time constraints completed the top three fear factors, with 43% of home owners afraid they wouldn’t be able to sell their home in the time they needed to. The survey also shows that 36% fear paying too much in estate agent fees, 22% finding a new property to live in upon selling, 14% dealing with the buyer, 12% picking the wrong estate agent in the first place, 10% getting a mortgage for their next home and 4% that their new property might drop in value in the future. ‘Price is always going to be the primary concern home owners and it is only natural that securing the best price will weigh heavy on a seller’s mind,’ said the firm’s founder and chief executive Russell Quirk. ‘Generally speaking, our home is the most expensive asset we are ever likely to own and for the majority of us, our home is our nest egg, setting us up for retirement when we do finally sell and downsize. So it’s understandable that it be the biggest fear during the selling process, as that couple of extra thousand gained or lost, can make a big difference in the grand scheme of things,’ he pointed out. ‘Our previous research found that selling your home is more stressful than your wedding day and so it doesn’t surprise me that this also ranks highly amongst UK sellers. When you add time constraints to an already laborious process, you can see why selling a home in the UK can seem a daunting task and evoke such feelings of fear,’ he explained. ‘I have to say I am a little surprised that paying too much in estate agent fees didn’t make the top three. High street estate agent fees have rocketed in line with house prices over the years despite no additional service being offered, some may argue the service has even declined, and so the dated commission fee structure is one of the biggest obstacles to moving home,’ he added. Continue reading
Over half of UK letting agents think buy let surcharge will push up rents
Over half of UK letting agents believe the new buy to let stamp duty surcharge from April will push up rent costs, new research has found. It could also trigger a decline in the supply of available properties coming onto the rental market, according to the report from the Association of Residential Letting Agents (ARLA). The report also points out that in February demand for rental properties grew to an average 37 per letting agent branch, the highest since February 2015, as supply increased marginally. Some 52% of letting agents reported an uplift in interest from buyers looking to invest in by to let properties before the stamp duty reforms come into effect, up from 47% in January. However, after the 01 April deadline some 63% predict that supply will fall as landlords are pushed out of the market. Some 57% of ARLA members agree rents will be pushed up once the stamp duty reforms have come in to effect, as increased costs for landlords are passed through to tenants. This is especially high in London, where 73% of letting agents expect to see this happening. ‘The stamp duty changes are now imminent, and as well as hitting small landlord’s, they will also impact institutional investors,’ said David Cox, ARLA managing director. ‘Although members are reporting a rush from landlords trying to snap up their buy to let investments now, it’s likely that we’ll see the buy to let market drop like a stone come April and probably not pick up again until next year. This will most certainly cause rents to increase, with supply dropping, as competition for the limited availability of properties intensifies,’ he explained. The report also shows that demand rose by 19% in February, with an average 37 prospective tenants registered per member branch. This is the highest level seen since February last year, when an average 40 tenants were registered per branch. Alongside growing demand, the supply of rental properties on letting agents’ books increased to 176 in February, a rise from 172 in January. ‘The demand for housing continues to intensify as supply remains an issue across most of the country. We are concerned that the government rhetoric of wanting to help people onto the housing ladder does not tally with their action of continuing to target the rental market with additional costs,’ said Cox. ‘Some landlords will simply withdraw from the market whereas others who can take the hit of the extra stamp duty will simply raise rents to cover the extra costs. The dream of home ownership will remain out of reach for many as we move closer towards becoming a nation of forever renters,’ he added. Continue reading
Scottish rents rise at two thirds the speed of England and Wales
Scottish rents are rising at just two thirds the speed of those in the rest of England and Wales with a rise of 2.1% year on year, the latest index data shows. This compares with a 3.3% rise in England and Wales and month on month in Scotland average rents have stagnated at £548 and some areas, such as the Highlands and Glasgow have seen rents fall compared with January. The figures from the latest buy to let index from lettings agent network Your Move also shows that while rental growth has seen a slowdown from 2.3% in the 12 months to January, it is an uptick from the 1.1% annual change recorded in February 2015. According to Brian Moran, lettings director at Your Move Scotland, it is ironic that Scotland is witnessing one of the biggest government interventions into the private rented sector, at a time when rents have been moving at a much slower pace than in other parts of the UK. But he pointed out that Scottish rents are still making incremental upwards progress but crucially, against a bedrock of stronger tenant finances. ‘Like in any market, affordability is a fundamental check on prices. Rental arrears are a great benchmark of affordability in the market, and their frequency is falling,’ he said. However, he also pointed out that the passing of the Private Tenancies Bill last week signals a paradigm shift in the private rented sector in Scotland, introducing a new artificial influence in the market, aside from regional supply and demand. ‘Intervention in the market has had negative side effects in the past, noticeably the abolition of tenancy fees in 2012, and it will be interesting to see how landlords recuperate and recover from this regulatory blow,’ he explained. ‘Anything that makes buy to let investment slightly harder to swallow, and managing property portfolios more of a painful process for landlords, risks cutting off the inflow of investment. Tenants will ultimately be the ones who feel the effect on their bottom line, if the supply of properties to let dries up, Moran added. A breakdown of the figures show that in the year to February 2016, three of five regions in Scotland have recorded positive annual growth in rents. Edinburgh and the Lothians is leading rent growth across Scotland, with the strongest year on year rise in rents, at a record speed of 7.7%. This is the fifth successive acceleration in annual rent growth and has taken average monthly rents in the region to a new peak of £644, up £46 from £598 in February 2015. Rents in the South of Scotland are also now standing at a record high of £515 per month, up from £498 a year ago. This 5.3% annual rise is the second fastest increase recorded in the year to February. In the Highlands and Islands, rents are now 2.5%… Continue reading
