Tag Archives: cookies
UK buyers willing to pay more for an eco home, research suggests
A large number of would be home buyers in the UK want to purchase an environmentally friendly home, with the majority willing to pay more to do so. Some 63% want to go green and 82% would be more for a home that allows them to fulfil an ambition of greener living, according to research from leading UK house builder Redrow. The survey found that participants ranked lower energy bills as more important than a garden, parking space, amenities, external appeal/design of home, and fittings and appliances, when choosing a home and more than a quarter were willing to pay at least a 6% premium for a home with sustainable features. The research has challenged the long held claim that consumer demand for greener living is limited and 78% agreed the purchase of a sustainable home was likely to have a positive environmental impact and more than two thirds believed that 'significant others' in their lives would approve of the decision to opt for a greener home. ‘Our findings challenge the long claimed, but previously under researched, belief that there is limited customer demand for sustainable homes,’ said Redrow Homes' sustainability manager Nicola Johansen. ‘As a responsible business, reducing the carbon footprint of our developments is a priority. However, we also recognise it's important to listen to our customers so we can build the homes they really want to live in and help them to make a lifestyle change for the better. This research helps us to fully appreciate what purchasers are looking for from their home and their home builder,’ she added. With 60% of respondents agreeing or strongly agreeing that they would be more likely to buy a new home from a company building sustainable homes, the evidence suggests that constructing more environmentally friendly properties, and promoting their credentials, could be a wise business choice for developers. The study also highlighted some areas where home builders can help their customers by providing more information about the eco credentials of properties that are already on the market. While the majority of home buyers, 65%, were confident an 'eco-home' would save them money and 65% that it would be a more comfortable home, a quarter indicated they thought it would be difficult or very difficult to buy such a home and almost half of respondents weren't confident of how sustainability features work. ‘This helps us build on our knowledge of what our customers are looking for from their home so we can provide them with the relevant information to inform their purchasing decisions,’ said Johansen. Redrow builds a wide variety of homes and designs take on issues such as being more airtight, making them 54% better at reducing heat loss than a typical 1970s' home. The firm says it’s homes also deliver improved energy efficiency through low energy lighting, appliances that are 'A rated' or above and energy efficient boilers to keep carbon emissions low. Redrow also offers customers solar panels as optional extras,… Continue reading
Cost of getting on the rental property ladder in UK set to soar, research suggests
With many private rental sector landlords in the UK requiring a deposit of four weeks’ rent getting on the rental ladder could present similar challenges in terms of cost as buying a home, new research suggests. It says that the cost of the average rental deposit is estimated to grow by 40% by 2026 to £1,111, more than the growth of the average monthly rent which is estimated to increase by 28% over the same period. This will mean that the average monthly rental deposit will be 70% of the average monthly salary, however there will be considerable regional variations, according to the research carried out on behalf of financial comparison website money.co.uk by the Cebr (Centre for Economics and Business Research). In London for example, the average rental deposit is predicted to rise to £2,733 by 2026, amounting to 120% of the average monthly salary, up from 99% in 2015. Deposits are predicted to rise sharply across the whole of the South of England. In the South East the average deposit is estimated to hit £1,469 in 2026, representing 83% of the average monthly salary at £1,761, up from 72% in 2015. In the South West the average deposit is estimated to represent 80% of median monthly earnings at £1,437 by 2026, up 14% from 66% of the average salary in the region in 2015. The research also suggests that based on recent trends, by 2026 an estimated 68% of all deposits requested will be at least six weeks’ rent. This means landlords will be demanding a lot more money from tenants before they sign a tenancy agreement. Average monthly rent is due to increase by 28% by 2026, some 8% higher than the increase in average salaries over the same period which are set to grow by 20% by 2026. The largest increase in rents between 2015 and 2026 is estimated to occur in London with close to 39% growth. Other regions with high estimated growth are the South West and South East where rents are predicted to grow by 32% and 34% respectively over the same period. The lowest increase in average rent is estimated to be in Yorkshire and the Humber with a 17% price rise between 2015 and 2026 and overall monthly salary growth is not expected to keep pace with the rental market Between 2015 and 2026, the average monthly salary is predicted to rise by an average of 20% or £267 to £1,576. This increase is lower than the estimated increase in both monthly rental costs and rental deposits which could mean many individuals will find the cost of renting just as unaffordable as buying. This is despite the fact the financial outlay required to rent is significantly lower than getting on the property ladder. ‘The rapid rise in deposits as well as rents is a double blow for everyone on the rental ladder. With the forthcoming changes to tax legislation and crackdown on… Continue reading
Budget announcements set to boost India’s residential property market
India’s residential real estate market is set to see a boost with moves that will increase the supply of properties for sale and demand. Experts point out that change announced in the 2016/2017 Union Budget will see a reduction for first time buyers of INR 50,000 on interest repayment for loans up to INR 35 lakh where the cost of a house is INR 50 lakh and this will boost the demand for housing at the lower end of the market. This move is also likely to benefit purchasers in tier II and tier III towns such as Surat, Nagpur, Lucknow, Vadodara, Jaipur, Pimpri-Chinchwad, Indore, Chandigarh, Gurgaon, Rajkot, Bhopal, Kanpur, and Thane, according to Shishir Baijal, chairman and managing director of Knight Frank India. On the supply side, a 100% tax exemption on profit for developers and an exemption from service tax for the construction of houses up to 325 square feet in metro areas and 650 square feet in other cities will encourage supply in the affordable housing segment. The budget has also increased the limit of deduction of rent paid under section 80GG which provides for deduction of house rent paid, provided that a deduction for payment of House Rent has not been claimed under any other section of the Income Tax Act, from INR 24,000 per annum to INR 60,000 per annum, thus providing relief to those who live in rented houses. For investors, the abolition of the dividend tax (DDT) means that there will be no barrier to launching REIT schemes. ‘Removal of REITs from DDT will also make this type of investment more appealing to retail investors. In the long run higher transparency levels will ensure that the cash strapped real estate sector will get easier access to funds at a reasonable cost,’ said Baijal. A focus on improving infrastructure and rural development is also expected to give a much needed fillip to the real estate sector. This includes a significant outlay on improving roads, railways and developing smaller airports to improve regional connectivity. Additionally, incentives to MSME, Make-in-India will get a further boost that will benefit the real estate sector in the long run. ‘Additionally, the government’s focus on digitization of land records is a step in the right direction, especially in more rural areas. The move will also lead to higher transparency levels in the real estate sector,’ Baijal added. There is also likely to be more demand from overseas investors with the forthcoming Indian Property Show in London in April expected to be well attended by Indian expats seeking to invest in real estate. They are expected to be interested in smart gated communities which are being developed in major cities such as Delhi NCR, Mumbai, Hyderabad, Chennai, Bangalore, Pune and Kolkata. According to Srividya Rajan, general manager for sales and brand engagement at Sumansa Exhibitions, the Indian Property Market is affordable compared to other international investment destinations and capital appreciation on real estate in India… Continue reading
