Tag Archives: asia
People staying in their first home longer due to costs of moving up the housing ladder
Some 37% of first time buyers in the UK are staying in their first property for longer than planned despite improvements in wages in real terms, according to new research. The situation is most acute in London where 49% had not bought a second property within the timescales they had initially intended, the survey from Clydesdale and Yorkshire Banks shows. This is in contrast to the East of England where only 23% of first time home owners had stayed in their property longer than they had expected. The research also found that first time buyers plan to stay in their first home for an average of seven years and nine months although a quarter plan to stay for more than 10 years. Those in the North East plan to stay in their first property for the longest length of time at almost 11 years whilst first time buyers in London have hopes of moving up the property ladder after six years and three months. ‘The step between the first and second property remains a challenge for some and increasing moving costs are also adding to the difficulty of raising a sufficient deposit to afford a larger home,’ said Steve Fletcher, director of retail banking. Clydesdale and Yorkshire Banks have launched a new mortgage to help these kind of borrowers who are struggling to take the next step up the property ladder. The Home Mover Mortgage allows borrowing between 90% and 95% LTV. It comes with a three year fixed rate of 4.49% and is designed to support those who can afford larger mortgage payments but are struggling to save the required deposit. The Clydesdale and Yorkshire Banks Home Mover Mortgage comes with no arrangement fee and one free standard valuation. Continue reading
Farmland values in England down almost 2% in final quarter of 2015
English farmland values fell by almost 2% in the final quarter of 2015 to end the year at £8,165 an acre, according to the latest index report. The data from the Knight Frank Farmland Index shows that it was the first quarterly fall since December 2012. However, the average value of bare agricultural land still rose 4% in the first half of the year and 3% overall during 2015. This compares with a rise of 1% for prime London residential property and falls for the FTSE 100 of 5% and gold down 7%. Looking over a wider period of time farmland in England has increased in price by 41% over five years, by 196% over 10 years and by 5,089% over 50 years. The Knight Frank report suggests that there are a number of reasons why values have come back. ‘The continuing run of low commodity prices had to have an impact on buyer confidence at some point. Feed wheat is worth just half of what it was fetching just a few years ago and many dairy and livestock businesses are struggling to remain profitable,’ said Andrew Shirley, head of rural research at Knight Frank. ‘The fact that land values have held up so well indicates that commodity prices are far from the most important driver of the land market,’ he explained, adding that uncertainty about the outcome of the European Union referendum, likely to be held this year, will also be holding back some potential buyers concerned about the potential impact of a Brexit. The delayed payment of agricultural subsidies to some farmers and a potential hike in interest rates will also have dampened spirits. Currently Knight Frank is not predicting that the fourth quarter fall presages a long run of prices drops. ‘Indeed, assuming the UK votes to remain in the EU, it is entirely possible that 2016 could see prices rise slightly,’ said Shirley. ‘Many farming businesses, particularly those with profitable renewable energy schemes, remain cash generative and are looking to expand. There are also a significant number of farmers who have sold land for development or via compulsory purchase and are looking for agricultural property to reinvest into,’ he pointed out. ‘The market will continue to be extremely localised. Large blocks of investment grade land which were achieving prices of over £13,000 an acre last year may see values come off as investors await the outcome of the EU referendum, but where there is competitive bidding from local farmers, values will remain firm,’ he added. Continue reading
Half of landlords in England unaware of start date for right to rent rules change
Half of UK landlords are not prepared for the Right to Rent legislation set to come into force on 01 February with some thinking they had another two years to wait. Indeed some 20% believed that they had until April 2017 to prepare for the changes, while 3% believed they had until 2018 to get ready, the research from online estate agent Urban shows. The new legislation, already implemented in the West Midlands, will soon require all landlords and agents in England to check a tenant’s immigration status or ‘right to rent’ in the UK. A failure to prepare could leave landlords at serious financial risk, with potential fines of £3,000 if they do not comply. The survey report also found that only 10% of landlords provide the correct information to tenants at the start of a lease and 90% were unable to identify the characteristics of a House in Multiple Occupancy (HMO). Some 16% were putting themselves at serious financial risk by failing to provide a valid contact address on tenancy agreements; an action which could see contracts being deemed as null and void. One reason to explain the lack of industry knowledge could be due to the rise in accidental landlords who rent property due to circumstance beyond their control such as having inherited property, according to the firm. ‘There has been an influx of new legislation relating to the rental market made in recent years and we know that UK landlords are struggling to keep on top of these changes. Despite knowing many of the basics, many find it difficult to navigate the minefield of changing renting rights and wrongs and this is particularly so for accidental landlords,’ said Adam Male, Urban cofounder. However, despite a lack of understanding in some areas, reassuringly, the majority of landlords were abreast of most other rental fundamentals. For instance, 77% were aware of the need for an up to date Energy Performance Certificate (EPC) and 95% of landlords correctly identified their gas safety responsibilities, 76% also knew the need for a smoke alarm on every floor and 7% even put one in every room. The Landlord Knowledge League Table, a map which ranks the most knowledgeable regions in the UK according to the survey results, found that the most knowledgeable landlords let property in Southampton, while those in Newcastle-under-Lyme were unaware of many key landlord responsibilities. ‘It is great to hear that knowledge about things such as gas safety is a widely understood and implemented landlord legislation, however, there is still a long way to go in educating landlords about the varying aspects of renting,’ said Male. ‘New regulations such as the Right to Rent have the potential to stop back door lettings and create a better environment for all, however, this will only happen if the scheme is communicated to landlords properly. We as an organisation want to do our bit to clean up the industry and help landlords protect… Continue reading
