Tag Archives: crisis
Research reveals how home moving costs have soared in a decade
The additional costs of moving home in the UK have increased by more than half over the last 10 years and are now £11,844, according to new research. However, prospective home buyers expect to spend only £6,895 and some 84% underestimate the cost of moving, which included agent fees and conveyancing costs, the study from Post Office Money shows. It also reveals that estate agency fees have increased by 61% over the last decade while house prices have risen by 39% on average and all these extras are on top of the £90,889 the average buyer needs to find for a deposit. The figures, by the Centre for Economics and Business Research (Cebr) for the Post Office, shows that costs were just £7,475 in 2004 and increased by 20% in the last year alone. People hoping to buy in the next three years expect to spend just £6,895 on moving costs, just 58% of what they should actually be budgeting. ‘With prospective home buyers' attention firmly fixed on saving for a deposit, the additional costs of moving can often come as an afterthought, particularly for first time buyers,’ said John Willcock, head of mortgages at Post Office Money. ‘Although house prices may continue to rise there are steps buyers and movers can take to reduce the amount they pay on top of this. Planning ahead is essential and potential homebuyers should be setting aside savings specifically for these costs. These extras should be considered as part of the overall cost of buying or moving home,’ he added. One of the most significant moving costs to increase over the past 10 years is the fee charged by estate agents. This cost has jumped by 61% since the end of 2004 from £3,229 to £5,214 in 2014 compared with a 39% increase in house prices over the same period as estate agents seek to keep up with changing house prices. Other fees to consider when moving to a new home include conveyancing costs and surveyors' fees which have increased by 37% from £1,039 in 2004 to £1,419 in 2014, and 51% from £402 in 2004 to £607 in 2014, respectively over the last decade. Even renters who move between properties are not exempt from moving costs. The amount charged by the average removals service has increased by 21% over the past 10 years from £855 in 2004 to £1,034 in 2014. Those hoping to move in the South East have been hardest hit by these increases with costs jumping by 97% in the last 10 years from £8,907 in 2004 to £16,510 in 2014. However, London remains the most expensive place to move home with an average cost of £27,946. Continue reading
UK landlords expect rent rises to slow by next year
UK landlords expect annual rent growth to slow to 1.7% by next year, down from 3.7% currently, according to the latest sentiment survey. However, a quarter want to buy more rental properties this year and 60% thing it is a good time to invest in the buy to let property sector, the survey from UK lettings agent network Your Move and Reeds Rains. Overall it suggests that after a recent spurt of rent growth, landlords anticipate that rent rises will taper off over the next 12 months, seeing a sharp slowdown from the current rate of annual rent growth to a steadier trajectory. According to the latest buy to let index from Your Move and Reeds Rains, average residential rents across the UK climbed 3.7% in the year to March 2015, the fastest pace for two years, but that is set to change. Indeed, the proportion of landlords who will not raise their rents in the next 12 months has increased from 56% in September 2014 to 60% currently. Only a minority of 40% intend to increase their rental prices before March 2016. The research also shows that over the last six months some 45% of landlords have witnessed an increase in tenant demand, rising from 41% of landlords in September 2014. There has been a boost in lettings activity recently, with new tenancies agreed across England and Wales climbing 6.9% in the month to March 2015. As a result, the proportion of landlords who expect tenant demand to grow further now stands at 63%, up from 56% in January 2014. Only 3% of landlords currently anticipate demand for rental properties to fall within the next two years. However, strong demand for homes to let is a considerable factor encouraging further investment into the private rented sector. Some 60% of landlords now believe that it is a good time to invest in buy to let, a rise from 54% of property investors in September 2014. The main reason underpinning this increase in confidence is that buy to let offers better capital returns compared to other forms of investment, cited by 54% of landlords who think it is a prime time to purchase a rental property. Meanwhile 40% of property investors perceive now to be an ideal time given that current market conditions offer the opportunity to buy properties at more attractive prices, as price growth has stabilised. Some 18% of landlords have already expanded their buy to let portfolio in the last year, and a further quarter of landlords expect to purchase another rental property in the next 12 months, an uplift from 22% in September, in a sign of rising optimism in buy to let as an investment. According to Adrian Gill, director of Your Move and Reeds Rains, demand for homes to rent isn’t going to dissipate. ‘First time buyers have been thrown a lot of floating aids in the past year, most recently the reform of stamp duty… Continue reading
UK Home Counties prime property rents see highest quarterly increase for four years
Prime residential rents in the UK’s Home Counties increased by 3.5% in the first quarter of this year, the highest quarterly growth in nearly four years, the latest index figures show. On an annual basis prime residential rents have increased by 4.7%, according to the Home Counties Rental Index from real estate firm Knight Frank which also shows that this strong growth in prime rents between January and March was underpinned by an increase in demand. The data also shows that in the three months to March 2015, the number of tenancies agreed across the Home Counties increased by 18% compared with the same period in 2014. Meanwhile, the number of viewings rose by 26%, property inspections increased 37% and the total number of prospective tenants registering grew by 25%. Over this period, demand was strongest for family homes offered for up to £5,000 per month while three to five bedroom properties accounted for 55% of all tenancies agreed between January and March, a similar level to the average for 2014. Tenants have favoured towns with access to good schools, such as Beaconsfield, Ascot, Cobham and Esher. Though not prevalent, there is evidence to suggest that some tenants are renting before making a decision about purchasing in the area, a sort of try before you buy, the index report also suggests. Meanwhile, corporate demand from those relocating to the Home Counties for work also picked up in the first quarter. Interest from corporate tenants is expected to continue to increase as the summer months begin and this is when demand tends to be highest. In terms of nationalities, some 70% of new tenants in the first three months of the year were from the UK, followed by tenants from North America and Asia. Continue reading
