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Survey reveals the UK is a nation of property watchers
It is official, the UK is a nation obsessed with property as new research shows that 63% peruse real estate websites even when they are not looking to buy. Some 2.6 million browse at least once a day and 38% admit they checked the price of someone else’s home online in the last year, according to the poll from Direct Line Home Insurance. People say that they look at online property portals to keep a check on prices, look at design trends and also daydream about a future home. The most enthusiastic property browsers were in Sheffield where 74% admitted to window shopping for homes followed by 72% in London and 70% in Newcastle. The nosey one check out local properties with 52% looking at the price of neighbour’s homes, 38% looking at properties belonging to family member, 31% ‘snooping’ on close friends and 21% on work colleagues. The motivations for keeping such a close eye on property websites range from nosiness to fantasy. Some 60% said that they did so to keep a check on local property prices, whilst 40% were researching for potential areas to move to. Some 34% said it was all about day dreaming about homes they can’t afford, 29% said it was to check out interior design ideas and 26% were checking the value of their own home. ‘We are a nation of property obsessives with very good reason. Our homes are our castles and becoming a home owner or even climbing the ladder in the UK is a huge challenge and aspiration for many,’ said Katie Lomas, head of Direct Line Home Insurance. ‘Property sites are a source of information and inspiration and browsing these sites has become something of a past-time for millions of people. The flip side of this trend is that those who list on these sites exhibit their homes and belongings to millions of strangers every day,’ she pointed out. As a result she suggests that people selling their home should make sure the pictures online to do not show expensive personal possessions or personal information and even suggests that the full address should not be given. ‘If you are selling your home on a property website, make sure it is protected with a fully comprehensive home insurance policy,’ she added. The survey also found that people aged 18 to 34 were more likely to use property sites to window shop and snoop than any other age ranges. In fact, some 8% of this age group admitted to checking the price of a potential new partner’s home in the past year and 6% said their same about their ex. Men that use property websites were also more prolific users, the average male that window shops online does so the equivalent of nine times each month compared to the female counterpart who browses six times a month. Continue reading
Experts warn that new UK additional home property tax will result in rent rises
Rent prices in the UK will rise as a result of the new stamp duty rate being introduced on 01 April for additional properties as it will hit landlords of buy to let properties, it is claimed. The extra tax, which affects anyone buying an additional home, is seen as a huge burden for the UK’s private rental sector as a time when there is increased demand for rented homes. ‘We’re about to see supply nose dive, demand rocket and rent prices go through the roof. The introduction of the new stamp duty charges is set to push the private rental sector into a state of despair,’ said David Cox, managing director of the Association of Residential Letting Agents (ARLA). ‘Back in November, when the Chancellor announced an increase in stamp duty tax on buy to let properties we called this a huge kick in the teeth for the private rented sector. The news that larger investors will also have to pay the tax comes is an even bigger blow,’ he pointed out. The Chancellor had originally said that professional landlords who normally own more than 15 properties, would be exempt, but announced in his Budget a few weeks ago that they would not. ‘We are very likely to see the new tax discouraging landlords from investing in buy to let properties, which will of course mean supply falls. In order for landlords to be able to afford to own a buy to let property, tenants will begin to see the additional costs passed onto them, which means they could see less money spent on maintaining their property, and also an increase in rent costs,’ Cox pointed out. He also explained that a recent announcement over tougher rules for buy to let mortgages will not help the sector. ‘Whilst we recognise the need to look at the important issue of affordability, the proposed measures are far too tough and are yet another assault on the rental market,’ added Cox. ‘Something urgently needs to be done to make the prospect of being a buy to let landlord appealing again, or the vicious cycle of supply and demand is only going to get worse and worse,’ he concluded. Online property marketplace LendInvest has carried out research on the impact of the stamp duty change for those buying additional properties which shows that landlords in London and the South East will need longest to repay the higher tax while Darlington, Halifax and Doncaster are among the worst affected. Landlords in Inner London and Harrow will need the equivalent of 20 months’ rent or more to repay higher stamp duty and landlords in 13% of the country will pay it for the first time as there is no zero rating for additional homes as there is for first homes at £125,000. Towns like Sunderland, Blackburn, Wigan and Oldham could be particularly badly impacted as rental yields are comparatively good but average house prices are below £125,000 meaning stamp duty… Continue reading
House prices in UK cities up 11% year on year, latest index shows
House prices in cities across the UK increased by 11% year on year in February, taking the average value to £234,900, according to the latest index. This was up from 8.1% a year ago and the highest rate of growth for almost 18 months, the Hometrack UK cities house price index shows. The report says that there has been a notable and unseasonal acceleration in house price growth in the last three months across most large regional cities thanks, in part, to a temporary increase in demand from those looking to beat the stamp duty increase for second homes from April onwards. It also explains that increased demand from existing home owners in cities where the economic recovery has been less pronounced is an important underlying theme given that the majority of housing sales 80%, continue be driven by home owners. Some 16 of the 20 cities covered by the index have registered an increase in the annual rate of house price growth increase in the last year. Some regional cities are recording their highest growth rates for over a decade as the recovery in house prices gains momentum. Four cities have seen the rate of growth slow with the greatest slowdown in Aberdeen and a loss of momentum in Belfast where a modest recovery appears to have stalled with house prices still 45% down on their 2007 levels. The data also shows that in Portsmouth and Leeds house prices are rising much faster than earnings at between 8% and 9% per annum and Portsmouth, Nottingham and Birmingham are recording the highest rates of annual house price growth for over 10 years while Leeds and Glasgow have the highest growth rates for over eight years. All these cities have seen a continued pick up in house price growth since 2013 on economic growth, an improving employment outlook, earnings growth and low mortgage rates, the report adds. However, there are no consistent patterns as to the types of property driving higher growth in these five cities. In Portsmouth detached homes are rising at twice the rate of the city which is the same trend, with a lesser degree of magnitude, in Nottingham. In Birmingham the highest growth rate is being recorded for flats at 11.3% against 7% for the city while in Leeds terraced houses with growth of 11% are recording the highest growth compared to the city at 7.8%. The four high growth cities of London, Bristol, Oxford and Cambridge continue to record double digit rates of house price inflation but there are signs that the rate of growth is starting to slow. All these cities recorded a small drop in the headline rate of growth over February as affordability and sentiment factors impact pricing levels A closer analysis of the 46 local authorities that cover the London City area shows the average growth rate in the last quarter is approaching half the rate recorded, on average, over the last 12 months. The report suggests that… Continue reading
