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Research finds many UK home owners not investing in the outside of their homes
Over half, some 55% of UK home owners live in areas with unattractive features such as untidy gardens, spaces used as dumping grounds and overflowing bins, yet many are failing to invest in their own home’s exterior or garden space. The Britain at Home report from Lloyds Bank Insurance reveals the most common neighbourhood afflictions identified by home owners. Some 34% identified untidy gardens or outdoor areas, 18% buildings in disrepair and 18% outdoor spaces used as dumping grounds. As a result of living in poorly maintained neighbourhoods, 61% of home owners are suffering negative feelings about where they live, including being irritated, upset and uncomfortable. Lloyds Bank Insurance makes the point that taking care of properties is not just for aesthetic purposes but helps prevent maintenance problems. For those living in unsightly neighbourhoods, containing overflowing bins, vandalism and rubbish, the problem is so bad that 20% are even considering moving house. Concerns over unsightly neighbourhoods are also having an impact on community relations, as 36% of home owners believe the issue is dragging the area they live in down. In turn, this is leading to financial worries as 12% think the value of their home will decrease because of its surroundings. This may be a valid concern, as the some 55% of house hunters believe that a well a property that is well maintained on the outside is important and 53% want a nice neighbourhood. ‘It is disturbing to see how many people are unable to love where they live, and that many homeowners are so affected by their neighbours that they are considering a permanent move,’ said Allison Ogden-Newton, chief executive of Keep Britain Tidy. ‘It is clear that while people in the UK acknowledge a widely held desire to live in a pleasant environment, this is often not being achieved, and with huge consequences. There are things we can all do to improve our external spaces, which will increase well-being and even reduce crime, therefore making our neighbourhoods better places to call home,’ she added. Despite criticising the upkeep of their neighbours’ homes, the research shows that people are failing to invest in their own outdoor spaces. Annual spend on outdoor areas is just £714, compared with the £3,579 spent indoors. Some 16% of those who hardly spend or would like to spend more on their outdoor space put this down to a lack of time and 14% prioritise upgrading indoors over outdoors, but for 56% the primary obstacle is that they cannot afford to improve this space. Many home owners also fail to ensure they have the right protection in place with only 38% of home owners confident that all the items in their outdoor space are insured while 24% revealed that they haven’t spent any money to keep their outside areas safe and secure, for example investing in locks, alarms or security lights. … Continue reading
UK housing market activity robust despite looming EU referendum
Housing market activity in the UK is robust despite the forthcoming referendum on the future of the country in the European Union, according to new research. Valuation activity in May rose by nearly a fifth on an annual basis with the total number of housing valuations carried out in May 2016 some 18% higher than in May 2015. The data from the latest monthly report from Connells Survey & Valuation also shows that month on month valuation activity in May decreased by 1% compared to April this year. John Bagshaw, corporate services director of Connells Survey & Valuation, believes the market is looking remarkably resilient ahead of June’s vote and he believes that the slight month on month cooling could still be a result of stamp duty changes that came into effect at the start of April. ‘However once that stamp duty related instability has passed, there appears to be a steadier annual growth and a more positive outlook for the housing market. Even if the EU referendum does have a measureable impact, one thing is clear, any slump hasn’t happened yet,’ he said. The report also shows that the first time buyer and remortgaging sectors continue to be stand out areas of activity, as the key driver of annual growth in May’s valuation market, up by 37% and 42% respectively, when compared to May 2015. However, on a monthly basis, May’s first time buyer valuation activity fell back 8% compared with April, whereas remortgaging activity increased by 3% over the same period. The buy to let sector experienced the sharpest year on year decline compared to other sections of the market, down by 38%. However when compared to May 2015, the number of valuations for buy to let purposes has also seen the greatest percentage growth compared to April, up by 8%. ‘Remortgagors are leading the market, underpinned by lenders offering a new set of favourable interest rates for existing homeowners. But first time buyers are also on the up. Factors such as low inflation, rising wages and government schemes are all helping new owners onto the property ladder,’ Bagshaw explained. ‘Even for the much downplayed buy to let industry, May was a good month. Valuations on behalf of landlords have been leading the housing market since April. Annual growth is likely to stay negative for buy to let activity, but the most recent signs are positive,’ he added. The report shows that there has been a relative steadiness of activity among home movers. The number of valuations for existing owner occupiers seeking to move home in May grew by 9% over the 12 months since May 2015 and contracted by just 1% compared to April 2016, in line with figures for total valuations activity. ‘Home movers have had a stable month and appear confident in the strength of the housing… Continue reading
UK rents continue upward trend but growth slowing
Rents in the UK continued to rise over three months to May 2016, although increases slowed more in line with house price growth, according to the latest index report. Average rent in the UK, excluding Greater London, is now £771 per month, some 4.4% higher than a year ago while the average rent in London is £1,563, up 6.2%. The data from the HomeLet rental index also shows that Scotland leads the way with rents rising faster than in any other part of the country. The report said that the figures provide some encouragement for both landlords and tenants. Landlords may have been expecting some impact from the increase in the supply of rental property in May, as those who rushed to complete buy to let property purchases before higher rates of stamp duty came into force in April 2016 began offering their properties to tenants. But HomeLet’s data suggests landlords continue to enjoy healthy rental yields after costs. As for tenants, they will be encouraged to see the pace of rent rises now beginning to moderate, particularly compared to a year ago. While an average rise of 4.4% means increases are still running ahead of inflation, there is some evidence of moderation of the long term trend, perhaps as affordability ceilings are approached. The slowing of the pace of rent rises in May is broadly in line with a similar cooling in the rate at which house prices are rising and may be part of a broader story about economic uncertainty ahead of this month’s referendum on the UK’ s membership of the European Union. Nevertheless, the May 2016 HomeLet rental index reveals that rents continue to rise in almost every area of the country, with 11 out of the 12 regions surveyed seeing an increase over the three months to the end of May. In Scotland, rents are currently rising faster than anywhere else in the UK, with new tenancies costing 10.6% more than in the same period a year ago. However, the East Midlands with a rise of 8.3% in rents compared to last year, is also showing strong gains. London’s rental market, where the average rent on a new tenancy is now £1,563, up 6.2 per cent, also continues to see rents rise more quickly than in most other areas of the country. The rental market is characterised by steady growth in rents as the number of tenants looking for property runs ahead of the supply in the market, according to Martin Totty, chief executive officer of Barbon Insurance Group, HomeLet’s parent company. He pointed out that this remains the picture in most regions of the country. ‘While this growth has begun to slow, which tenants will welcome, landlords will also be encouraged by the vote of confidence in the sector evidenced by the increase in buy to let completions in the past few… Continue reading
