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UK second steppers want a four bed detached home, new research has found
Detached houses are now the property of choice for home owners moving up from their first property, new research shows. In 2010, three bed semi-detached properties were the preferred next step but now they are increasingly looking to move to a bigger four bedroomed detached house, according to the latest report from Lloyds Bank. The research also shows that second steppers spend 19 months longer in their first home than they expected, 37% are increasing their savings and 41% are overpaying their mortgage to fund the £58,000 jump to their next home. In 2010 when three bed semi-detached properties were the preferred option some 60% said that they were looking to move to a semi-detached house, with 48% also saying detached properties would also be an option. Fast forward to 2014 and 54% of Second Steppers stated they would be looking to next move to a detached house, now the most preferred option, with semi-detached properties reducing to 51%. Three bed properties remain the preferred size of house in 2014 at 45%, although this has reduced by 10% since 2010 while four bed properties seeing a significant increase in this time. Some 31% now say they are looking for a four bed house, an increase of 7%. Second steppers are becoming increasingly prepared for their next move and taking their time to make the jump up to a family home. On average, they are spending 19 months longer in their first property than they expected as they continue to save and build up equity. Overall, the average second stepper spends four years and five months in their first home. Only 6% of these people intended on staying put for over six years, however in reality, some 36% have done this. The research also found that 37% have increased their monthly savings in the last year, and 41% are overpaying their mortgage. As a result, the proportion of people concerned about the size of deposit they require to move also fell in the last year, from 50% of second steppers in 2013, to 37% in 2014. This suggests that changing behaviours and increased levels of equity are allowing people to put more towards their next deposit and save for bigger homes. The findings also show that second steppers may be delaying having a family until they can move into a suitable property. Those moving as result of needing more room to start a family have reduced by nine percentage points in two years, to 22%, from 31% in 2012. Value for money remains a key driver for purchasing a property, with 46% of second steppers saying so. This is down 6% in the past year. Finding a nice area to live in is growing in importance and has seen the greatest year on year increase. In the past year, the number of respondents selecting this has risen by 6% to 38%. Both of these changes in the past 12 months suggest a more long term perspective for second steppers looking… Continue reading
Public land could deliver as many as two million new homes in England
Up to two million new homes could be delivered on public sector land holdings in England to help with the current housing crisis, according to a new analysis from real estate adviser Savills. The firm’s estimate is based on detailed analysis of public records of the Central Government Estate and the land holdings of the Greater London Authority (GLA) as well as market knowledge of the potential for development on NHS and Local Authority land. It is widely recognised that England is facing a housing crisis and that surplus or underused public land could play a vital role in delivering new homes, which are currently being built at only half the rate needed to accommodate the country’s growing population. However, the analysis report points out that a lack of transparency regarding the totality of these assets remains a major drawback in assessing the full potential, despite huge progress by the Government in this area, and limited public data currently makes it impossible to conduct a comprehensive analysis of all public land. The public estate held by central and local government in England is worth £370 billion according to figures from the Cabinet Office, but there is little clarity regarding what form these assets take. The Savills residential research team has conducted detailed analysis of 250,000 hectares of land held by the Central Government estate in England, for which data is available. The team estimates that 13,000 hectares (5%) are most suitable for residential development and that these sites could deliver 600,000 homes. Further analysis of assets held by the Greater London Authority (GLA) shows there is space for at least an additional 100,000 homes, bringing the known potential to 700,000 homes. However, these sites are only part of the public land story. A lack of data means that large parts of public land holdings are impossible to measure. NHS and Local Authority land, which Savills was not able to include in its analysis, has significant potential. In the absence of public records, the capacity of Local Authority land is not clear, but the firm estimates that this might be around one million, if assets are actively managed and estate densities are increased. Similarly, little data is available regarding NHS Land. However, based on market experience the firm knows that these sites include many prime developable locations with scope for intensification. Hence Savills best estimate for the number of additional homes that could be delivered through the reconfiguration and intensification of operational sites within the NHS estate could be 300,000. NHS Property Services, which controls just 11% of the whole estate, released 24 hectares of surplus land between April 2013 and July 2014 alone. ‘Big strides have been made to provide data on Central Government holdings but we urgently need to achieve a similar register of assets held by Local Authorities and NHS bodies,’ said Robert Grundy, head of housing, Savills housing division. ‘Only then will we be in a position to accurately assess the full potential both for… Continue reading
UK group suggests special help for oldies to downsize and free up family homes
A group of politians in the UK have called for older home owners to be given support to help them move home so that more properties can be made available for families. According to the All Parliamentary Group on Housing and Care for Older People a Help to Buy style equity loan scheme and stamp duty exemption would encourage older people to downsize. The claim follows an analysis revealing a third of over 60’s would downsize if it was easier, but up to half of older home owners are priced out of local retirement housing. Their report argues that a Help to Move equity loan would help older homeowners with lower value properties ‘bridge the gap’ between the value of their home and the purchase price of a new retirement property. It also said that many older people cannot easily access mainstream mortgage lending, even when they can afford the repayments. The report goes on to argue that exempting older people purchasing homes worth up to £250,000 from stamp duty would reduce their transaction costs, while leading to a net gain for the Treasury because of the consequent moves in the property market. It also points out that the ‘guidance guarantee’, to be brought in with new pensions freedoms next year, as well as a new duty on local authorities to provide care advice, should be wrapped into a comprehensive package together with housing advice, helping older people make decisions about where and how they live after retirement. The report cites analysis by the think-tank Demos revealing 58% of over 60s, equal to around eight million people currently living in seven million homes, are interested in moving. A third of over 60s specifically wanted to downsize, while a quarter said they were interested in buying a retirement property. If ‘Help to Move’ encouraged all those wanting to downsize to move home researchers calculate that 4.3 million family homes would be freed up, easing the pressure on the housing market. However, between 40 to 50% of older home owners aren’t able to afford to downsize in their local area as their family home is not worth as much as new retirement housing, making additional financial support crucial for many older people in lower value properties. The group points to land prices, an overall lack of supply, and limited availability of ‘shared ownership’ options as reasons why retirement housing is unaffordable for many older people. ‘More and more people in their extended middle age are thinking about downsizing. This can mean much reduced fuel bills and maintenance costs, perhaps the release of some capital, and can prevent a forced move in later life. But down-sizing is not easy,’ the group’s chair Lord Best. ‘Our report recommends a Help to Move package of Stamp Duty relief, financial advice and mortgage support like the Help to Buy assistance for younger purchasers to generate the demand that will get more high-quality homes built for this age group,’ he added. Claudia Wood, chief executive of the… Continue reading
