Tag Archives: london
UK buyers willing to pay more for an eco home, research suggests
A large number of would be home buyers in the UK want to purchase an environmentally friendly home, with the majority willing to pay more to do so. Some 63% want to go green and 82% would be more for a home that allows them to fulfil an ambition of greener living, according to research from leading UK house builder Redrow. The survey found that participants ranked lower energy bills as more important than a garden, parking space, amenities, external appeal/design of home, and fittings and appliances, when choosing a home and more than a quarter were willing to pay at least a 6% premium for a home with sustainable features. The research has challenged the long held claim that consumer demand for greener living is limited and 78% agreed the purchase of a sustainable home was likely to have a positive environmental impact and more than two thirds believed that 'significant others' in their lives would approve of the decision to opt for a greener home. ‘Our findings challenge the long claimed, but previously under researched, belief that there is limited customer demand for sustainable homes,’ said Redrow Homes' sustainability manager Nicola Johansen. ‘As a responsible business, reducing the carbon footprint of our developments is a priority. However, we also recognise it's important to listen to our customers so we can build the homes they really want to live in and help them to make a lifestyle change for the better. This research helps us to fully appreciate what purchasers are looking for from their home and their home builder,’ she added. With 60% of respondents agreeing or strongly agreeing that they would be more likely to buy a new home from a company building sustainable homes, the evidence suggests that constructing more environmentally friendly properties, and promoting their credentials, could be a wise business choice for developers. The study also highlighted some areas where home builders can help their customers by providing more information about the eco credentials of properties that are already on the market. While the majority of home buyers, 65%, were confident an 'eco-home' would save them money and 65% that it would be a more comfortable home, a quarter indicated they thought it would be difficult or very difficult to buy such a home and almost half of respondents weren't confident of how sustainability features work. ‘This helps us build on our knowledge of what our customers are looking for from their home so we can provide them with the relevant information to inform their purchasing decisions,’ said Johansen. Redrow builds a wide variety of homes and designs take on issues such as being more airtight, making them 54% better at reducing heat loss than a typical 1970s' home. The firm says it’s homes also deliver improved energy efficiency through low energy lighting, appliances that are 'A rated' or above and energy efficient boilers to keep carbon emissions low. Redrow also offers customers solar panels as optional extras,… Continue reading
Private sector tenants in London pay over 100% of asking rent
The average home in the UK is let for 99.9% of the asking rent, the highest such value since 2007, just before the global economic downturn, new research shows. Overall the average UK rent is up 3.2% to £926 per month but the rate of growth is down from February 2015, the latest Countrywide monthly lettings index shows. The report has identified a fall in tenants’ negotiating power when renting a new home. It has found that 12% of lets were agreed at more than the initial asking price over the last year, with the average tenant paying 99.9%. But this figure is highest in London where the average let was agreed at 100.9% of the asking price while it was lowest in Wales at 98.7%. One in five of those renting in London pay more than asked for to secure a home of their choice, far more than those outside of the Capital. This works out at an extra £94 a month over and above the asking rent against a UK average of £44 which, over the course of a typical 17 month tenancy, this equates to an extra £1,578 in rent for the average Londoner. London has seen the largest growth in rents anywhere in the country since 2007, with rents 34% above their pre-recession record compared to12% across the UK as a whole. Despite these increases, the proportion of lets agreed at more than the asking price has risen in every year since 2008 demonstrating the continuing balance of power towards landlords. In 2008 just 3.5% of deals were agreed at above the asking price while 23.5% of tenants were able to negotiate money off the asking rent. By 2016 the proportion of tenants able to renegotiate prices down has plummeted to 8%. As was the case in 2015, rents are growing at the fastest rate across the South of the UK. The South East saw growth of 5.8%, the South West up 4.8% and Greater London up 4.2%, all above the UK average. While the Midlands saw growth of just 1.1% and the North 3.8% with the report data also showing that there has been a slowdown in the top end as central London rents fell 8.4% year on year. ‘The combined effect of growing numbers of people renting and a lack of supply has seen tenants’ ability to negotiate diminish. Tenants are having to compete more often and with more people in order to rent the home they want, meaning they need to offer more money in order to push ahead of the crowd,’ said Johnny Morris, research director at Countrywide. Continue reading
Downsizing in UK could bring windfall of up to £200,000 on average
Nearly half of home movers in the UK plan to downsize in the next three years and on average realise up to £200,000 by doing so, according to new research. Some 46% plan to sell and buy a smaller property and by downsizing from a detached to a semi-detached home they could realise a windfall of £117,230 of £200,000 in London. Downsizing was cited as the single most popular factor for moving, according to data provided by Lloyds Bank with research showing that the popularity of downsizing has grown in recent years, buoyed by the anticipated returns. The figures show that average age for a downsizer is 53, at which point the greatest number, 37%, of downsizers had lived in their home between 11 and 20 years. The main reason people cite for downsizing is to move somewhere which better served their circumstances with 53% wishing to do so while 39% want to reduce bills or free up equity and 31% to provide extra cash for retirement. A fifth say that they are downsizing earlier than they had anticipated, citing reasons such as health, changes in relationship status and a need to be closer to better local amenities. A third also say that they are planning to move to a more affordable area. Some 72% of those downsizing said they expected to profit from their move, with 35% saying that they planned to reinvest their additional capital in a new property, 29% said that they would invest in other financial products, whilst 21% planned to invest in their pension or pass the earnings on to their family. ‘People may consider moving home for a variety of reasons, often tied to their next big step in life whether that’s getting married, starting a family or children growing up and flying the nest,’ said Mike Songer, mortgage director with Lloyds Bank. ‘We typically think of people moving to bigger houses as they move up the housing ladder, but people are increasingly looking to downsize their home because their circumstances or priorities have changed. Whilst financial gain may not be the main driver for those looking to trade down their property it is clearly a factor, with three quarters of downsizers expecting to profit from such a move,’ he explained. ‘There are definitely financial benefits to be gained from trading down, with an average potential windfall of £117,230 when moving from a detached home to a semi-detached house. Downsizing is also healthy for the market, as it helps keep it moving and frees up larger properties which could be perfect for young families about to take their next step up the property ladder,’ he added. A breakdown of the figures show that house prices in the capital mean that London home owners could make the most from downsizing, as they stand to free up an average of £201,052 from trading down from a detached to a semi-detached home. Downsizers from the South West saw the highest rise over… Continue reading
