Tag Archives: london
Huge boost to first time buyers in UK with new deposit savings plan
Thousands of would be home buyers in the UK will be able to fulfil their dream of owning a property after the government announced a new savings plan to help them get a deposit. Chancellor George Osborne is introducing a new Help to Buy ISA which will allow them to save up to £200 a month towards their first home whereby the government will add a £50 bonus for every £200 saved up to a maximum of £3,000 per person. In his Budget Day speech he pointed out that the government has already helped tens of thousands of people to buy a home with Help to Buy, which allows people to purchase a home with just a 5% deposit. Effectively a tax cut for first time buyers, it will be introduced in the autumn and this, coupled with the news that inflation rates will remain low, is good news for those struggling to afford to get onto the housing ladder. It will provide a significant boost to the ability of a first time buyer to save speedily and effectively, according to Mark Hayward, managing director of the National Association of Estate Agents (NAEA). ‘This is exactly what is needed to engage the first time buyer market, particularly as we have seen the current criteria under the Mortgage Market Reform constraining aspirations to buy a home,’ he said. He pointed out that it especially benefits couples who are buying for the first time as both are eligible to open a Help to Buy ISA and it is also timely, considering house price inflation out paces wage inflation, so this additional boost to first time buyers savings pots will help them at least keep apace rather than fall behind the inflationary curve. The move has been widely welcomed by the property industry at a time when first time buyers overcoming the constraints of saving for a deposit has been one of the biggest barriers to home ownership. First time buyers are needed to keep the housing ladder moving. Lucian Cook, Savills UK head of residential research, also explained that limiting the ISA to a £12,000 savings plan with a £3,000 government contribution should prevent a surge in house prices. ‘It is more likely to help get buyers over the deposit hurdle in the lower value, lower growth markets of the Midlands and the North than say London and the South East, where significant constraints remain,’ he said. ‘ It is also likely to be welcomed by parents and grandparents by making first time buyers less dependent on the bank of Mum and Dad and more inclined to contribute some top up savings when children come looking for assistance to get on the housing ladder. However, those first time buyers who are keen to lock into low interest rates and who have access to parental support are unlikely to commit to what is effectively a five year savings plan,’ he added. According to Adrian… Continue reading
Most UK regions see a rise in residential rents
UK new tenancy rents have increased by 1.7% in the last year taking the average monthly amount to £876, according to the latest data to be published. However, month on month rents saw a slight decrease of 0.8%, down from £883 per calendar month in January, the analysis from Countrywide shows. The majority of regions saw an increase in rent in February, with Greater London seeing the largest increase, up 8.4% year on year. Two and three bedroom newly let properties see the largest growth in rent, up 4.5% and 3% respectively year on year and two bedroom properties were the only property type to see a month in month increase in rent, up 0.7% to £816. One and four plus bedroom properties saw a 2.9% decrease month on month, followed by three bedroom properties down 0.4%. It is only the four plus bedroom properties that did not see an increase in rent year on year as rent decreased 6.9% from £1,345 to £1,306 in February. In the regions, the majority of the UK saw an increase in rent month on month, with central London seeing the greatest increase, up 2.5% to £2,629, followed by the Midlands up 1.7% to £652. Wales saw the greatest decrease in rent, down 7.5% to £616, followed by the South East, down 4.3% to £991. Year on year, Greater London saw the largest increase in rent, up 8.4% to £1,251pcm and the South East the greatest decrease, down 8.1%. The firm said this is due to a fall in demand for rental properties in the region, as more tenants move out of the private rented sector and into the owner occupier sector. The average UK rent for renewed tenancies in February is £841 per calendar month, an increase of 0.7% month on month and 1.9% year on year. One and three bedroom properties saw a decrease in rent, down 1% and 0.1% to £674 and £874 respectively, when compared to January 2015. Two and four plus bedroom properties saw an increase of 0.9% and 3% to £770 and £1,390 respectively. One bedroom properties were the only type to see a decrease in rent year on year, down 1%. Two bedroom properties saw a 2.4% increase, three bedroom properties a 2.6% increase and four plus bedroom properties an increase of 3%. Central London and the South East saw the greatest increase, up 3.2% and 2.6% to £2,543 and £1,036 respectively when compared to January 2015. The Midlands see rent stay flat for the month on January and the East of England, Wales and Scotland saw decreases of 2.2%, 2.2% and 1.1% respectively. The majority of regions have seen a slight increase in rent in February when compared to January. The greatest increase is in Scotland where rent increase 0.5% to £629 followed by Greater London up 0.4% to £1,142. Wales and Central London both saw a decrease in rent of 0.5% to £638 and £2,435 respectively. The data also… Continue reading
Property price growth in some rural areas catching up with cities
Property price growth in the English countryside is almost neck and neck with price rises in cities, according to the latest research. Overall home values in towns and cities across the UK have increased by 5.7% over the last year, but rural England has seen 5.1% annual property price growth in countryside areas over the same period. The research from Zoopla also shows that the average value of a rural home in England now stands at £264,338, some £51,737 or 24% higher than the typical urban property outside of London. Rural homes in the East of England have seen the biggest uplift in value over the past year, with prices up 6.5% or £17,098. This is closely followed by country properties in the South East, which have climbed in value by 6% or £22,157 in the last 12 months, meaning that home buyers in the region can expect to pay £66,100 more to live in a rural part of the South East, as opposed to a bustling town or city. The premium buyers pay to live in a rural location is highest in the West Midlands, with countryside properties costing £73,982 more than homes in a town or city while Gerrards Cross in Buckinghamshire is the most expensive rural area in England, with average homes currently worth £817,376, up from £773,726 a year ago. City properties ads in the East of England and South East experienced the strongest annual growth of 7.5% and 6.7% respectively, outpacing rises in London. But the most expensive urban location across the country is Kensington and Chelsea, with the typical pied-a-terre in W8 now valued at £2,654,512. ‘Urban areas had a head start in the housing recovery with demand propped up predominantly by employment opportunities. This drove price growth in these economic hubs and left countryside markets by the wayside,’ said Lawrence Hall of Zoopla. ‘Over the past year house price growth has spread and rural retreats which are commutable to the amenities and jobs of urban centres have become highly sought after. But they come with a significant premium to have the best of both worlds, with the extra outdoor space and seclusion that rural living gives you. Those looking for the good life in the country might want to escape the rat race sooner rather than later,’ he added. Continue reading
