Tag Archives: crisis
Online research becoming important for many UK buyers, survey suggests
The impact that technology is having on the estate agency sector in the UK is changing the property buying and selling landscape, it is claimed. With the explosion in popularity of buyers and sellers using portals such as Zoopla and Rightmove and the wealth of historic pricing data available, the internet has become the essential tool for the modern day house hunter. A survey carried out by online estate agent eMoov has found that the majority of buyers are well armed with information before they step through the door when viewing a property. Some 98% of respondents said they would take it upon themselves to do some research before attending a viewing in anticipation of finding the right property. The first step in the process is usually to visit the property details page and read the full property description, the starting point for 67% of those surveyed. For some this was as far as the research process went, however 41% would also like to view a floor plan. The research found that 36% would also compare a property to others listed in the area and 21% of buyers would research previous property sold prices. Consumers showed less priority to researching the surrounding area with 14% investigating changes to their commute and 11% taking school catchment areas in to account when digging for further information. Local authorities provide a wealth of information on school catchment areas and make it readily available online for prospective and existing parents looking to relocate. Zoopla also keeps potential buyers well informed showing the nearest schools as well as information on transport links and crime rates amongst others. Broadly speaking women would conduct more research than men when preparing to view, taking more time to consider the look, layout and practicality of a house. However their male counter parts did pip them to the post where value for money was concerned, with 40% of men looking at other listed properties in the area and 24% researching historic property prices in comparison to 33% and 18% of women respectively. With the internet only coming to full fruition over the past two decades those over the age of 50 fall under the label of technological novices. Using technology as relative beginners and adapting in comparison to their younger counterparts, or technological natives, for whom it has become second nature. However the rise of the silver surfer has very much risen with the elderly becoming a core demographic for surfing the net, they account for a large percentage of people using the internet to help them buy. Three quarters of those surveyed over the age of 50 would log on to read a full property description before viewing, a far greater number than those in the younger age brackets. This was also the case when checking floor plans, researching properties in the surrounding area and checking historic property values and potential new neighbours. However younger buyers are more interested in Google Street… Continue reading
UK house price sentiment moderates
Almost 20% of households in the UK perceived that the value of their home rose in January, according to the latest House Price Sentiment Index which reveals a downward trend in 2014. Some 19.5% of the 1,500 households surveyed across the UK said that the value of their home had risen over the last month, while 3.1% reported a fall, the data from Knight Frank and Markit Economics shows. This gave the HPSI a reading of 58.2, the twenty second consecutive month that the reading has been above 50. The index report points out that the HPSI was on a general downward trend for most of the second half of 2014. January’s reading of 58.2, the lowest in 14 months, was a continuation of this trend and well below the average reading for last year of 61. In spite of the month on month fall, households in all 11 regions covered by the index reported that prices rose in January, led by Londoners at 65.3 and households in the South East at 63, while, households in the North West at 53 and Wales at 53.9 perceived the slowest rates of price growth over the course of the month. In London, perceptions of house price growth moderated compared to the previous month and stand well below the previous high of 74.9 in April last year, suggesting that households are less confident that the value of their property has risen than previously. The future HPSI, which measures what households think will happen to the value of their property over the next year, fell in January to 69.5, down from 70.5 the previous month. This was the second consecutive monthly fall in house price expectations across the UK. The future HPSI stands well below its record high of 75.1, which was seen in May 2014. Households in London at 75.3 are the most likely to expect price rises over the next 12 months, followed by those in the South West at 75.1 and the South East at 74.9, the index shows. Expectations of price growth are highest among mortgage borrowers and those who own their home outright with readings of 75.8 and 71.3 respectively, followed by those living rent free at 66.8. ‘House price sentiment has slowed across the country despite the cut in stamp duty introduced by the Chancellor in December. Households in London and the South East signal slower annual rises in house prices this month than last month, an important development as these areas have been the engines of high house price growth over the last year,’ said Grainne Gilmore, head of UK residential research at Knight Frank. ‘Even the prospect of record-low interest rates being in place for longer than anticipated has not been enough to lift expectations for house price growth on a monthly basis in January, however this, coupled with an expected rise in wage growth will likely result in modest price uplifts over 2015,’ she added. Tim Moore, senior economist at… Continue reading
Legal firm gives lowdown on new energy standards for UK landlords
Residential landlords in the UK are at risk of financial penalties and being unable to let their properties if they fail to meet minimum energy efficiency standards (MEES) that come into play in 2018, it is claimed. Law firm Maples Teesdale has warned that the new standards equate to a ticking time bomb that could have a detrimental impact on rental income and property values if left unaddressed. The non-domestic minimum energy efficiency regulations for England and Wales will mean that by 01 April 2018, all relevant properties will have to be improved to a minimum energy efficiency standard before being let to tenants, except where certain exemptions apply. Additional Tenant’s Energy Efficiency Improvement Regulations must be in force by 01 April 2016 and will empower tenants to request consent for energy efficiency measures that may not unreasonably be refused by the landlord. ‘These regulations are likely to have a big impact on the private rented sector. They are presenting a straightforward ultimatum: bring your properties up to scratch in terms of energy efficiency, or risk losing income,’ said Neil Sagoo, partner at Maples Teesdale. The consequences for landlords who do not invest in bringing their properties up to minimum standards are likely to be severe, the firm warns. There will be financial penalties, possibly geared to the rent earned while the landlord is in breach, applied to those who fail to comply and, in extreme cases, a tribunal can force landlords to make the necessary changes. ‘This means that landlords can no longer pay lip service to energy efficiency. Whereas it was once a worthy aspiration, it is becoming is fundamental as fire safety or building regulations and is to be ignored at your peril,’ added Sagoo. Following a brief consultation at the end of last year, the Government has indicated that it aims to have the regulations in place ahead of the May general election. Implementation of MEES is likely to follow in stages, coming into effect on all new lettings from April 2018 and for remaining existing lettings from April 2023. Continue reading
