Tag Archives: finance
New research reveals what UK residential tenants want
Nearly half of tenants in the UK would be prepared to travel for between 15 and 30 minutes, or between 30 and 45 minutes door to door to reach their office or place of work each morning, according to a new survey. In Wales, some 44% of tenants would prefer to commute for less than half an hour, while in the North East, the proportion is 37%. But in London the majority of tenants, 43%, are happy to travel for between 45 minutes and an hour to the office each day. The survey by YouGov for real estate firm Knight Frank also shows that the majority of tenants outside London commute by car, while in the capital 52% use the London underground for part or all of their journey. Two fifths of respondents said that the ability to store their bike in their rental property was important to them, although this rises to 46% of those aged 35 to 44 across the country. A third of respondents said they would be willing to pay extra in rent to keep a pet in their property as sometimes landlords charge more to cover the cost of the extra refurbishment needed after a tenant who has had a cat or dog vacates the property. Indeed, 4% of those in the private rented sector already pay extra to have their pet live with them, and this rises to 7% for those aged over 55. The results of the Tenant Survey also show that, for the majority of respondents, their ideal length of tenure is up to one year, and this is particularly true of younger tenants, highlighting a preference for increased flexibility in the sector. breakdown of the figures shows that 69%) of tenants aged between 18 and 24 said they would prefer a tenancy agreement of up to a year, with 61% of 25 to 34 year olds saying the same. Respondents said that their preferred timeframe for a break clause, which would allow tenant or landlord to end the lease early, is six months. Some 38% of tenants have lived in five or more rental properties. While the majority of respondents had moved within a mile of their previous property, 19% had moved more than 60 miles, indicating a relocation for work or study, highlighting the flexibility of the private rented sector a tenure. The survey also found that 24% of Londoners are prepared to pay 50% as a maximum amount of their gross annual income on rent, up from 22% last year. A quarter of tenants do not want to, or don’t know if they want to buy a home in the future. Of those that express a desire to eventually buy a home using a mortgage, less than half are currently saving towards a deposit. The research found that a quarter of those living in the private rented sector live alone, while 34% live as a couple without children. Some 43% of 18… Continue reading
Latest index shows slight dip in UK house price growth
House prices in the UK in the last three months were 1.4% higher than the previous three months, the smallest rise since December 2014, according to the latest index figures to be published. Month on month they decreased by 0.2% but are 9% higher in the three months to November than in the same three months than a year ago, taking the average price to £204,552, the data from the Halifax shows. Martin Ellis, Halifax housing economist, pointed out that the annual rate of price growth eased from 9.7% in October but said solid economic growth, rising real earnings and falls in already very low mortgage rates have combined to stimulate housing demand this year. He explained that the increasingly acute imbalance between supply and demand is causing prices to rise at a robust pace and this is a situation that is unlikely to reverse significantly in the short term. Neal Hudson, associate director at Savills research, pointed out that monthly figures can be quite volatile so it is always best to look at the longer term trends. ‘These show continued annual price growth in excess of underlying incomes, driven primarily by increased mortgage lending into the sector but compounded by relatively low levels of stock available,’ he said. ‘Short term indicators have weakened, with house price growth on a three month basis slowing, but we may well see these seasonally adjusted figures revised in coming months,’ he added. He also pointed out that the figures reflect a regular pattern in house price growth emerging over the last couple of years, with strong price growth in the first six months followed by static prices in the final six months on the year. ‘Savills expects this trend to continue next year with a national house price forecast of 5% and so the seasonally adjusted growth currently reported may well be revised upwards in coming months,’ said Hudson. Mark Posniak, managing director of Dragonfly Property Finance, also expects prices to keep rising in 2016 due to the imbalance between supply and demand. ‘The worry is that there is no concerted long term strategy for tackling supply. The lack of properties being put up for sale remains an enigma given that mortgage rates and the cost of living are so low and consumer confidence, overall, is high,’ he said. ‘Talk of imminent interest rate rises has been going on for a year or two now and it may be that people want more clarity on the speed of rate rises before they commit to a purchase. It's hard to believe that 2016 will see any change in the ongoing narrative of low supply, strong demand and rising prices,’ he explained. According to Jonathan Hopper, managing director of the buying agents Garrington Property Finders, while a halving of the pace of quarter on quarter price rises might appear dramatic given the market’s consistent growth this year, it is the first time in… Continue reading
Less than a third of people with mortgages know what interest they pay
One in three mortgage holders in the UK have no idea what rate of interest they are paying, despite market speculation that an interest rate rise is on the horizon which could increase their repayments. The research from consumer organisation Which? Mortgage Advisers has found 32% of mortgage holders were unaware of the rate of interest on their mortgage with just 29% sure of their exact rate. Some 89%of home owners who knew their exact interest rate felt informed about the impact of a potential rate rise on their finances, yet this fell to only 58% for those who didn't know their mortgage rate. With widespread market and media speculation about a potential increase in interest rates, more and more mortgage lenders are offering fixed rate deals which enable consumers to take advantage of current low rates. Separate analysis by Which? Mortgage Advisers found a 55% increase in the number of fixed rate deals on the market over the past two years, with fixed rate deals now making up 77% of the products on the market. Seeking independent mortgage advice is crucial to finding the best deal for your individual circumstances and there could even be potential savings to be made. According to our survey, 34% of home owners are currently on a standard variable rate mortgage, the default mortgage rate once a fixed rate deal ends. The analysis shows that those people could be in line for a saving of up to £123 a month if they switched to a two year fixed rate deal. ‘With interest rates so low, we have seen a significant increase in the number of fixed rate mortgages available and a surge in households looking to take advantage of these deals ahead of any potential rise,’ said David Blake from Which? Mortgage Advisers. ‘That said, it's important to remember that fixed rate deals typically have higher rates than trackers, for the time being at least, but fixing now could potentially save you money in the long term. Now is the time to seek independent mortgage advice if you are concerned about the impact a rate rise might have on your finances,’ he added. Which? Mortgage Advisers top tips include knowing your interest rate so that you'll have a better idea of how much your repayments could change in the event of a change in the Bank of England base rate. Also, understanding your mortgage deal by making sure you know if you are on a fixed term deal, tracker, or standard variable rate as an increase in the base rate will mean different things for you depending on the type of deal you're on. People should check how long is left on their mortgage deal and if your mortgage is a fixed term deal, check when this rate will end as you will most likely default onto a standard variable rate, generally at a higher interest rate, once it does. It also recommends look at options… Continue reading
