Tag Archives: london
Majority would pay more to buy or rent in a school catchment area
Some 95% of buyers and 81% of renters in the UK would pay up to 25% more to live in a home in close proximity to a school, new research has found. Also, 38% of buyers and 42% of renters would take a lesser property to be within desired catchment area, according to the survey from online estate agents Urban. Surveying both those looking for property to purchase as well as those looking for a rental home confirms how important the school catchment area is for parents when they move home. Indeed, the school catchment area was the top concern for tenants when choosing a property. Double the number of prospective tenants would put school catchment area at 30% over being in close proximity to a town at 15%, with this also ranking significantly higher than the desire to be near to a station at 17%. These results reveal that parents' needs are widely put on the backburner when compared to those of their children, with people often taking on a far longer commute to be able to ensure that their child has the very best education and shortest journey to school. With residing close to a school the prominent concern for many, the survey also asked those that were buying a property, whether they would consider renting if they cannot sell their own property with 52% saying that they would do so. ‘Quantifying the influence that being in close proximity to a school has on house hunters has been truly eye opening. The results of the survey show that most people would stretch their budget quite considerably, whilst many would also downgrade their property choice, for the sake of a school,’ said the firm’s founder Adam Male. ‘The results make for particularly interesting reading for those selling a property within a school catchment area. When marketing the property, these findings show that real focus should be given to the location of the property in relation to the nearest school, highlighting the benefits provided as part of the enrolment process and the ease of school run, for example,’ he added. Continue reading
Supply increases in UK private residential rental sector
The number of available private rented properties in the UK increased in July but at the same time demand dipped, according to the latest monthly report from the Association of Residential Letting Agents (ARLA). Agents managed an average of 189 properties per branch in July, compared to 178 in June and demand across the UK decreased slightly with an average 35 prospective tenants registered per ARLA branch in July compared to 36 in June. The report says that whilst this may be a result of the quieter summer months it is a step in the right direction for balancing supply and demand in the sector. However, demand in London has continued to rise, with 40 prospective tenants registered per branch in July, compared to 36 per branch last month. Some 35% of ARLA agents expect the supply of rental properties to continue increasing over the next five years. The East of England is most optimistic, with over half of agents in the region, 53%, predicting supply will continue to rise. However, only 15% in the south West and 16% in Yorkshire and Humberside predict continuing growth of housing stock for tenants. The report also reveals that letting agents are continuing to see increases in the cost of renting for tenants, with 37% reporting rents had increased between June and July, the highest number since tracking began in January, when levels were at 27%. The report also found tenants in the West Midlands have been affected by rent increases the most, with 64% of agents reporting rents had increased in July shortly followed by the East of England where 53% of agents witnessed rent increases. In comparison, only 21% of tenants in the North West experienced a rise. ‘To finally see a rise in available rental properties is definitely a step in the right direction; although with demand remaining the same, we still have a long way to go in achieving a balanced and stable private rented sector,’ said David Cox, ARLA managing director. ‘Following the changes to pensions made in April, the fact that a third of agents are predicting supply will continue to increase over the next five years could be a result of people releasing equity from their pensions to invest in the buy to let market,’ he pointed out. ‘It’s clear from this month’s findings that the growing gap between supply and demand is an issue still rife in the capital; which doesn’t look to be improving any time soon. With the cost of renting continuing to rise month by month, it’s a worrying state of affairs for those hoping to save for their first house and just pushing the aspiration of owning a home further out of reach,’ he added. Continue reading
UK mortgage activity improved in second quarter of 2015, CML data shows
The London property market saw increased mortgage lending in the second quarter of 2015 but levels were still down compared to the same quarter last year. The latest quarterly data from the Council of Mortgage Lenders shows that home owner house purchase activity in Greater London came out of the traditional seasonal dip to show growth in the second quarter by volume and value. First time buyer activity saw similar trends with an increase in levels on the first quarter of the year, but this sector was also down on the same quarter last year. Unlike house purchase activity, remortgage lending had quarter on quarter and year on year growth in both volume and value. ‘As in the UK overall, the London market came out of the usual seasonal dip in the first few months of the year and saw increased activity but volumes are still on the same period last year,’ said Paul Smee, director general of the CML. ‘Remortgage activity has shown quarterly and year on year growth after a period of stagnation. Borrowers appear to be taking advantage of competitive mortgage rates, ahead of a potential future interest rate rise,’ he added. In Wales house purchase activity saw large quarter on quarter increases compared to the first quarter of the year, but a slight decline in volume of loans compared to the second quarter in 2014. First time buyers increased significantly from the first quarter, but decreased in amount borrowed and number of loans compared to the second quarter of 2014. Home movers went up in volume and value quarter on quarter, and while number of loans remained unchanged year on year the amount borrowed by home movers increased. The data also shows that remortgage activity increased compared to the first quarter and on the same quarter last year. ‘House purchase activity appears to have woken up in Wales after traditionally slower levels in the winter months,’ said Julie-Ann Haines, CML chair for Wales. ‘The uptick in remortgage is, in particular, striking as levels had remained relatively identical over the previous four quarters. With the current low rates of interest unlikely to continue, it seems that borrowers are now taking advantage of competitive mortgage rates before a rise,’ she added. Continue reading
