Tag Archives: crisis
NAEA issues advice for selling a property in the cold, dark winter months
Selling a home in the UK in winter can be difficult but ensuring the garden looks it best even in these darker months can help, according to estate agents. For the best chance to sell your home it is important to make sure the property stands out and taking steps to make sure it looks welcoming, says the guide from the National Association of Estate Agents (NAEA). ‘Winter can be cold, dark and wet, which often means properties are unable to promote some of their best features. By incorporating a few simple tips, sellers can enhance their property’s look and feel and increase their chance of attracting an offer,’ said NAEA president Simon Gerrard. ‘Quite often, it is the smallest changes to a property that can make it stand out over others. A warm, inviting atmosphere in the dreary winter months is key. Simple things such as making sure a home is warm and well lit can improve saleability during the darker months and additions such as welcoming garden lights to enhance the entrance to your home can appeal to buyers’ imaginations,’ he explained. The NAEA said sellers need to realise that first impressions still count and 0utside is where the biggest impact of the bad weather will be and this is obviously the first sight a prospective buyer will have. Winter can make the front garden and paths look dull and dirty, so ensuring these are clean and clear of leaves will improve the attractiveness of the property. Home owners are advised to check the gutters and drain covers are properly cleared of dead leaves and other debris as leaky gutters and down pipes cause damage and are unsightly. Also, a messy garden can signal the need for too much work and thus detract buyers. If possible, vendors should clear patio furniture away, if not at least ensure they are securely covered. Fix or secure any loose fence panels or gates. It is also advisable to cut back overhanging branches as this will help brighten the property. People are urged to ensure the property is well lit. This means making sure all lights work, including the security lights. If a viewing takes place during the day, open all of the curtains and blinds to ensure as much natural light as possible can enter the home. Making sure the doorways, entrance, stairs or porch are clear of clutter can help create an inviting home. The NAEA also says it is important to make your house feel warm and homely. If a buyer enters a property that is cold they’re unlikely to stay long. Smell is also important. You are going to get a bad reaction from buyers if there is an odd aroma or damp smell hanging around. So freshen up, let some fresh air circulate and the old cliché of fresh bread or roasting coffee really does work. If you are going away for any period over the winter the heating should… Continue reading
Tenant finances getting worse in the UK private rented sector
Tenants in the UK have felt a financial setback with the number falling into serious rental arrears rising on an annual basis for the first time since 2012, according to the latest tenant arrears tracker report. The data from the estate agency chains Your Move and Reeds Rains, part of LSL Property Services, shows that in the fourth quarter of 2014 there were 68,100 tenants in severe rent arrears of more than two months, an annual rise of 7.2%. However, on a quarterly basis the setback is less severe, with 1,700 more cases of severe arrears in the quarter compared with the last quarter of 2013, a quarterly increase of 2.6%. Despite this recent deterioration, the longer term trend for tenant arrears remains positive, the report suggests as improvements seen in 2013 and at the start of 2014 remain overwhelmingly large in comparison. As a result, since reaching a peak of 116,600 tenancies in the third quarter of 2012 the number in severe arrears has dropped by 48,500 as of the fourth quarter of 2014, an improvement of 42%. In terms of the proportion of all tenants now in severe arrears, there was no significant setback in the last quarter. As a percentage of all tenants, 1.4% owed rent arrears of more than two months in the fourth quarter, the same as in the third quarter of 2014 and the fourth quarter of 2013. This leaves a remaining 98.6% of tenants who have consistently avoided serious rental arrears. A slight deterioration in the most serious rental arrears is consistent with figures for overall levels of late rent including shorter lapses on payments. According to the latest Buy to Let Index from Your Move and Reeds Rains, overall tenant arrears of any duration stand at 7.5% as of November, up from 6.6% of rent late in November 2013. However, as with severe arrears, even after November’s slight deterioration, rent arrears remain considerably lower than in previous years, since peaking at 14.6% in February 2010. ‘Escaping the worst deprivations of the financial crisis has taken half a decade and even now, for so many households every month is still a difficult month,’ said Adrian Gill, director of estate agents Your Move and Reeds Rains. ‘But just as the occasional setback is inevitable, the long term trend is increasingly clear. Since the sharpest pinnacle of tenant difficulties in 2010 the number in serious rent arrears has practically halved,’ he pointed out. ‘As rising wages start to combine with much lower levels of unemployment, the fundamentals of the economy have started to turn in favour of tenants. If that can continue, then so can the trend away from arrears, as renting becomes more affordable,’ he added. The report also shows that eviction rates have improved. In the third quarter of 2014 some 28,400 tenants faced a court… Continue reading
Number of first time buyers in UK rises for third year
The number of first time buyers in the UK increased by more than a fifth in 2014, the third successive annual rise, new data shows. The 22% rise was similar to the 23% rise recorded in 2013, according to the annual Halifax First Time Buyer Review. There were an estimated 326,500 first time buyers in 2014, up from 268,500 in 2013, the highest annual total since 2007 and was 70% higher than in 2008. The data also shows that first time buyers increased their share of all house purchases made with a mortgage, accounting for 46%1 in 2014, up from 44% in 2013. Mortgage affordability has improved significantly in recent years. The proportion of disposable earnings devoted to mortgage payments by a first time buyer stood at 32% in the third quarter of 2014, a substantial improvement compared with the summer of 2007 when this figure reached a peak of 50%. Record low mortgage rates have been a major contributing behind this improvement, the Halifax says. There has been a fall in the size of the average deposit needed by first time buyers to £29,218, some 7% lower than in 2013 when it was £31,582. It says that this decline was primarily due to the greater availability of loans requiring a relatively small deposit during the past year. Nonetheless, the average deposit is still £11,718 or 67% higher than in 2007 when it was £17,499. ‘First time buyers are vital for a properly functioning housing market. Improving economic conditions and rising employment levels have boosted confidence among those thinking about getting on to the housing ladder for the first time, contributing to the significant increase in the number of first time buyers in the past two years,’ said Craig McKinlay, mortgages director at the Halifax. ‘Record low mortgage rates and Government schemes such as Help to Buy have improved affordability, enabling more first-time buyers to buy their own property,’ he added. The research also shows that nearly six in 10 first time buyer purchases are now above the £125,000 Stamp Duty threshold. The proportion exempt from paying stamp duty fell to 41% in 2014 from 45% in 2013. Almost half, 47%, of properties bought by first time buyers were priced between £125,000 and £250,000. Nationally, only 13% of first time purchases were above £250,000 in 2014. There were, however, considerable regional differences with more than half of first time buyers in Greater London, 56%, paying more than £250,000. The recent changes to the stamp duty system have saved the average first time buyer £781, reducing the tax bill for the average priced property of £171,870 from £1,718 to £937. Larne in Northern Ireland is named as the most affordable local authority district in the UK with an average property price of £80,793, some 2.8 times local average gross annual earnings. East Ayrshire and Inverclyde are the next most affordable also 2.8 and seven of the 10 most affordable authorities for first time buyers… Continue reading
