Tag Archives: london
Half of over 40s think they will still have a mortgage or rent during retirement
Half of people aged over 40 believe they will still be repaying their mortgage or paying rent when they retire, new research has found. The figures from a study by specialist insurer Partnership shows that while people aspire to owning their own home, a significant amount will still be making mortgage repayments when they retire. Some 31% think they will still have a mortgage and 20% will be paying rent when they retire. In addition, with 35% of households in England living in social or private rental accommodation, a number of retirees will need to meet these costs in later life. As people age and either purchase property or repay their mortgage this changes the number who expect to be meeting these costs in retirement but 18% of 66 to 70 year olds still expect to need to make rental payments and 15% expect to be repaying their mortgage. A breakdown of the figures show that of those aged 40 to 50 42% expect to still be paying rent and 26% a mortgage. In the 51 to 55 age group 37% expect to be paying rent and 18% a mortgage while in the 56 to 60 aged group some 22% expect to pay rent and 15% a mortgage. In the 61 to 65 age group 21% say they are still paying rent and 16% a mortgage while in the 66 to 70 age group it is 18% and 15% respectively. In addition to meeting housing costs, these retirees are also likely to be put under financial pressure as they look to meet costs such as council tax, utilities and upkeep of their property. ‘Most people aim to own their own home by the time they retire but the trend towards remortgaging, purchasing later in life and being kept off the housing ladder by high house prices means that this is out of reach for almost a third of people,’ said Mark Stopard, head of product development at Partnership. ‘This may see some people taking advantage of the opportunity to work longer but for some people, especially those with health issues, this is simply not an option. While those in private or social rental accommodation need to focus on securing sufficient income to meet these costs, those who are still repaying their mortgage have more options,’ he explained. ‘Either they can use part or all of their pension to repay the borrowing, although this is likely to significantly impact on their later life income, or they can use equity release which can mean they will leave less to their families but face less financial pressure,’ he added. ‘When people consider their retirement, it is vital that they look to reduce their mortgage borrowing as much as possible. No one wants to worry about cutting back on essentials such as food and heating to meet housing costs when they should be enjoying retirement,’ he concluded. Continue reading
Majority of UK buyers and sellers have had problems with estate agents, new research shows
Nearly two thirds of buyers and sellers have experienced problems with their estate agent in the last five years, according to new research. Some 60% of home buyers and sellers faced problems with their estate agents but 39% did not consider whether agents were regulated, meaning their agent may not have been signed up to a code of conduct, according to the research from the National Association of Estate Agents (NAEA). Of the 60% reporting to have had issues with their estate agents over a third, 37%, admitted that these could have been avoided if their agent was better regulated. The biggest complaint from the UK’s property market was the fact that their estate agent had bad communication skills. Some 21% said this was not calling them back, or chasing them too much. A further 14% felt as though their agent didn’t care about them. An additional 13% claimed that their estate agent had not told them about known faults in properties they were looking at, whilst 11% said their agent made promises to them that they did not see through. Other problems reported by home buyers and sellers included 9% finding that their agent was unnecessarily over pricing, 9% finding them being dishonest and 10% saying that they over exaggerated property descriptions. Buying a property is the biggest purchase and financial commitment of your life, and can be an overwhelming experience. It takes a lot of hard work and research to ensure you are ticking all the right boxes, and no doubt people come across many challenges along the way. An estate agent should really be there to help this process, not hinder, and therefore the choice of which agent to go with is an important one,’ said Mark Hayward, director general of the NAEA. ‘With the extensive administrative tasks and processes involved in buying or selling a home, communication between agents and homeowners is essential. It’s the estate agents’ role to make these processes seem as pain-free and seamless as possible, which regulated agents endeavour to do,’ he added. The report also found that people in London are the most likely to encounter a problem with their estate agent, with 83% claiming to have had an issue. Some 34% of Londoners reported not being informed about known property faults, 16% cited bad communication and 14% feeling as if the estate agent didn’t care about them. Those in Scotland have had the easiest run, with only 35% claiming to have had a problem with their estate agent in the last five years. The study also revealed that almost half, 47%, of those who didn’t check whether their agent was regulated or not, said it didn’t even cross their minds. A further 16% assumed that all agents were regulated, whilst 21% simply chose their agent because they managed the house they wanted. ‘In such a lively market, it’s important… Continue reading
Average house prices in the UK fell by 1.1% last month, the latest data shows
Average house prices in the UK fell 1.1% in September but are still up 6.9% on an annual basis, according to the latest index figures to be published. During the month average house price stabilised at £203,135, but in London property prices fell 3.3% but are still up 19.8% year in year taking the average price in the capital to £507,967. The National Housing Market Monitor report from haart estate agents says that the market remains strong with almost 10 buyers chasing each new property instruction across the UK, up from eight two years ago. In London there are 16 potential buyers chasing each property instruction. The difference between the London market and the UK as a whole is also marked with it comes to new properties being put up for sale. They have increased annually across the UK by 2.8% but in London by 23.1%. The report from the independent agent which has a network of 200 branches across the country, also shows that the average property price for first time buyers has reached two year high at £160,218, up 4.1% on a monthly basis and 8.2% annually. ‘Although our data shows a small slowdown in house price growth on a monthly basis, this must be taken in the wider market context. Good mortgage deals are still very much on the table and interest rates aren’t going up for the foreseeable future,’ said Paul Smith, chief executive officer of haart. ‘We have 10 buyers chasing every new property instruction UK wide so sellers shouldn’t be concerned. They should be reassured that the UK property market is still performing well,’ he added. New properties for sale across the UK in September increased 2.8% annually but fell on the month. This is the fourth consecutive month in which property supply has increased on an annual basis. In contrast the number of new buyers is down 6.6% annually, again the fourth consecutive month in which the level of demand has fallen on an annual basis. Similar to new buyer registrations, the number of first time buyer registrations decreased 6.4% annually and 2.8% on the month. However first time buyers now make up a higher percentage of all mortgages written, 44.7% in September 2014, up from 41.1% last year. The average mortgage achieved by first time buyers is also up and now stands at £125,668, an increase of 11.1% annually and 3.9% on the month. Continue reading
