Tag Archives: housing
UK retired home owners sitting on property wealth of £874 billion
Retired home owners in the UK have seen their property wealth grow by more than £12.5 billion in the past three months as house prices continue to climb, new research claims. It means that owning a property has earned the average pensioner nearly £900 a month, according to the retirement pensioner property index from over 55s financial specialist Key Retirement. Pensioners who own their homes outright have gained an average of £2,680 each from their houses in the past three months taking their property wealth to a new record high. In the five years since the firm started monitoring the housing wealth of the over 65s, in January 2010, total pensioner property wealth has increased by 12% or £93.85 billion which equates to £20,000 on average for every home owner. The index shows over 65 home owners now own property wealth of £873.77 billion outright with pensioners across almost all of the UK benefiting. The analysis from the report also suggests that the growth in property prices will drive expansion of the equity release market which enables home owners to release wealth from their homes. Retired home owners in London were the biggest winners gaining an average of around £16,260 each in the past three months, while home owners in Scotland are more than £8,650 better off and pensioners in Yorkshire and Humberside are £4,063 better off. However retired home owners in Wales saw a fall in housing wealth with average losses of £2,230 in the three months while the North West and West Midlands also saw house price falls. The figures show nearly a fifth of all pensioner property equity is owned by over 65s in London with total wealth of £173.683 billion. Nearly two thirds of pensioner property wealth is concentrated in London, the South East, the South West and East Anglia. ‘Retired home owners have huge assets in their houses with total property wealth hitting another all-time high of £873 billion highlighting the growing importance of housing for retirement planning,’ said Dean Mirfin, technical director at Key Retirement. ‘No matter what happens in the property market home owners will always have a major asset which should be considered as part of retirement planning. Innovation in the equity release market and the launch of pension freedoms are opening up more ways for homeowners to use their property wealth, he explained. ‘Retired home owners, and those approaching retirement, should take advice on how their property wealth can generate additional capital and/or income. Advisers and lenders need to focus on a holistic approach to retirement planning which ensures that property wealth is considered alongside pension savings and other investments,’ he added. Continue reading
Almost three quarters of UK first time buyers want a house, not a flat
The majority of first time buyers in the UK are seeking to buy a house rather than a flat, new research has found. Traditionally the way onto the housing ladder has been to buy a flat and then progress onto the second step with a house but today’s first time buyers think otherwise. The research from Clydesdale and Yorkshire Banks shows that currently 72% of first time buyers want a house and this figure is up considerably on last year when only 57% of first time buyers said they wanted a house rather than a flat. The 28% who said they preferred a flat this year is significantly down on 2014 when 43% of UK first time buyers were aiming to buy a flat rather than a house. ‘Our research has underlined the changing expectations of first time buyers and a combination of factors such as people entering the property market at an older age and homeowners staying in their home for a longer length of time is having an impact on the preferred type of home for first time buyers,’ said Steve Fletcher, director of retail banking. The research also highlighted that only Londoners are opting for flats when taking their first step onto the property ladder reflecting the high property prices, availability of housing stock and distinct challenges of buying a home in the capital. The London market shows a stark contrast to the 92% of those surveyed in Yorkshire and 90% in the Midlands who wanted a house rather than sampling apartment living. ‘We recognise everyone has their own particular needs and requirements and that’s why at Clydesdale and Yorkshire Banks we focus on helping customers find the best way to buy their dream property, leaving them to concentrate on what matters most to them such as the location and whether it is a three bedroom home or a one bedroom flat,’ added Fletcher. The banks have a range of competitive mortgages including a 90% LTV mortgage fixed at 3.59% for three years and a 95% LTV mortgage fixed at 4.89% for three years. Continue reading
Confidence in UK housing market continues, latest sentiment index shows
Households in the UK perceived that the value of their home rose in June and are more confident that they will continue on an upward trend, the latest house price sentiment index shows. Some 23.7% of the 1,500 households surveyed across the UK said that the value of their home had risen over the last month, while 4.6% reported a fall, according to the index from real estate firm Knight Frank and Markit Economics. This resulted in an HPSI a reading of 59.5, the twenty seventh consecutive month that the reading has been above 50. June’s reading is an increase on the 58 recorded in May and is the highest the index has been since October 2014, indicating that households believe that any uncertainty caused by the General Election has passed. The future HPSI, which measures what households think will happen to the value of their property over the next year, rose in June to 70.5, up from 70 in May and the index report also shows that households are now more confident that the value of their home will rise in the next 12 months than at any time since December last year. ‘Households’ expectations for house price rises have reached the highest level this year as the results of the General Election provide some clarity on the outlook for the housing market and household finances,’ said Grainne Gilmore, head of UK residential research at Knight Frank. ‘Interest rates remain advantageous, with mortgage rates hitting record lows for those who can clinch a new deal. However the future house price index still remains below levels seen last year as constrained mortgage lending and affordability affect the market,’ she added. According to Chris Williamson, chief economist at Markit, house price growth looks set to revive again after what appears to have been a lull due to the general election. ‘The resumption of political stability is clearly good for the housing market. At the same time, survey data shows that low inflation has meant home owners have pushed back their expectations of when interest rates will start rising, adding fuel to the bullish view on house prices,’ he explained. ‘Notable exceptions are Scotland and Wales, where devolution uncertainty seems to have led to marked falls in views on future prices in June following the election,’ he added. The index also found that some 6.6% of UK households said they planned to buy a property in the next 12 months, up from 6.4% in May. Individuals aged between 25 and 34 are the most likely to be considering buying a home in the short term, with 9.2% of such respondents saying they planned to purchase a home within the next 12 months, followed by those aged 35 to 44 at 9%. Continue reading
