Tag Archives: housing
Homes in England near top performing schools cost an average of 16.6% more
The average value of a home within a mile of one the top 50 best performing schools in England is 16.6% higher than average values in the surrounding local authority area, new research shows. Overall Sevenoaks School has the biggest uplift in house prices among the 50 top performing schools, with sales prices in 2014 some 221% higher, according to the analysis from international real estate firm Knight Frank. On a regional basis homes near the best schools in the North East command the largest uplift at nearly 47% while the best value houses around the top 50 schools are found around Scarborough College, where prices of homes within a mile radius are 41%, or £70,094, below the average values in the local authority area. ‘When deciding on a location for their family, parents can place a great deal of focus on the level and quality of education that local schools can provide and as a result good schools can be an important driver of local property markets,’ said Oliver Knight, of Knight Frank’s residential research team. ‘Our research highlights this, showing that in general people are willing to pay a significant premium for a home close to some of the UK’s best schools. However, the size of the price uplift varies and it will be affected by the location and the type of housing stock on offer in a given area,’ he added. According to data from the Land Registry for actual achieved sales prices within a mile radius of Sevenoaks School in 2014, the uplift translates to a premium of £425,291 compared to the average house price in the wider local authority ‘As Sevenoaks School offers pupils the internationally recognised Baccalaureate, it has opened up the town to international buyers which has increased the demand for the housing stock beyond the traditional local and national market. An English education has world wide appeal,’ said Edward Rook, of Knight Frank in Sevenoaks. In London, where property prices tend to be higher and the frequency of public transport means accessibility and the daily commute is less of a factor, the uplift is 4.9%. In the East of England it is 33.5%, in the East Midlands 30.9%, in the North West 29.6%, in Yorkshire and Humber 27.8%, in the West Midlands 25.8%, in the South East 23.9% and in the South West 19.4%. Continue reading
Studies show more people in UK planning to downsize to fund retirement
Some 12% of the UK’s retired population are planning to downsize their property within the next five years, potentially unlocking an estimated £136.5 billion of housing equity in the process. This equates to 1.36 million people planning to move to help fund their retirement, according to the data from retirement income specialists MGM Advantage. The data also shows 18%, or 1.99 million retired people, have already downsized. By analysing house price data, calculating the amount of cash released through moving from a detached property to a bungalow, allowing for stamp duty and moving costs, MGM Advantage has worked out the UK average is £102,851. This figure represents an 18% increase in cash released compared to just a year ago when the average was £84,776, and is due to the relative increase in the value of a detached property compared to a bungalow. The data shows there are significant regional variations, with Greater London releasing the most cash at £295,593, while Wales didn’t fare anywhere near as well with a figure of £54,301 released after moving costs. ‘People often refer to their property as their pension, and these numbers show that many are considering downsizing to provide an income boost in retirement. However, the downsizing dream could turn into a retirement nightmare, as some areas of the country fare much better than others. This is simply a reflection of the housing market in the UK,’ said Andrew Tully of MGM Advantage. ‘Banking on your own home to provide an income in retirement does not come without risk. The old adage of all your eggs in one basket still holds true. Careful planning and consideration should be given before making the move, and with returns available from the cash released still very low, it is likely the capital will also be consumed over time,’ he pointed out. ‘If people want to stay in their homes to avoid the upheaval of moving, then solutions like equity release can provide an alternative route. A professional financial adviser will be able to help you navigate the retirement income maze and decide what is best for your personal circumstances,’ he added. Meanwhile, separate research from Baring Asset Management shows that 7% of non-retired people, the equivalent of around 2.5 million individuals, admit they are planning on selling their primary residence to fund their retirement. This is up 2% from last year. In total, 16% of people, nearly six million, say they are planning to rent or sell property to fund their retirement, up from 13% last year and the highest such figure since 2009. The survey found that the economic climate continues to have an impact on people looking to use property to fund some or all of their retirement: the number saying they now plan to sell or downsize a property to fund all of their retirement has risen to 4% from 2% in 2012. While the research found that a third (33%) of people that last year said they are planning on either… Continue reading
Majority of UK tenants rent as they can’t afford to buy, new research reveals
Almost 60% of tenants in the UK rent because they are priced out of the housing market but generally they have a positive relationship with their landlords, new research shows. Indeed the research by AXA Business Insurance challenges the popular image of a hostile tenant/landlord relationship but reveals serious concerns about energy efficiency and the safety of many rental properties. The biggest downsides of renting are finding properties in a dirty state on moving-in day and unfriendly landlords but tenants are most concerned about high energy bills as a result of poorly insulated properties and old heating systems. Gaps in essential repairs put tenants and landlords at risk, the survey suggests. Only 30% of landlords carry out the annual gas inspection required by law and 58% do not have a fire alarm fitted, among other safety failings. AXA’s survey looked at tenants’ motivations for living in a rented property. It found that there are those who have no choice. Some 59% told the survey they would prefer to buy, but quite simply can’t afford current house prices. At the other end of the scale, there is also a sizeable number of tenants, 17%, who say they choose to rent because they ‘prefer the freedom’. The deciding factor in choosing their current rental property was the size, notably the number of bedrooms, followed by price and being in a central location such as near work and shops and amenities. When asked which feature they would most appreciate added to the property, the top answer cited by 35% of tenant was an outdoors area, such as a patio, garden or balcony. Use of a garage was the second most desirable feature cited by a quarter of tenants. The biggest gripe among tenants was dealing with other people’s dirt and grime when they move into a property, the top complaint for 38% of respondents. Meanwhile, one in five tenants named décor issues such as peeling paintwork or a bad colour scheme, as their pet hate. The most detested colour for interior décor was brown, closely followed by avocado green and orange. Even black, in fourth place, was considered less offensive than these colours. It would also seem that the personality of the landlord makes a big difference to how tenants feel about a property. Some 15% of tenants said that an unfriendly landlord would deter them more than anything else. The improvement to their current rental demanded by most tenants was better energy efficiency through insulation, newer boilers, double glazing, green technologies etc. This concern is unsurprising given government estimates that one in five tenants live in fuel poverty. Tenants are not the only ones concerned about poor energy arrangements in rental properties: the government is also looking to introduce new energy legislation for landlords. For instance, by April 2016, landlords will be obliged to introduce any ‘reasonable’ energy efficiency measure like insulation, double-glazing, etc, that a tenant requests. Meanwhile, by 2018, it will be an offence to let a property in the lowest… Continue reading
