Tag Archives: news
Over half of UK buyers spend more than intended on a new home
More than half of British people spend at least 10% more than they intended when buying a new home and many end up with an extra bedroom, research has found. In a poll they confessed that they are influenced by their emotions over practical needs which results in spending more, according to the survey by Online Mortgage Advisor. When asked if they changed or widened their original budget some 64% said they did and 89% took into account properties that were more expensive than they originally planned to. Some 51% said they went at least 10% over budget, 18% stayed within 10% of their original budget, 13% were exactly on budget and 11% were within 10% or less. Only 7% bought a house for more than 10% less than they originally intended. Of those who spent more 68% said it was because they fell in love with a specific house and had to have it, 47% paid extra for the right location, 33% said their partner encouraged them to spend more, 25% bought a bigger house as it was better value for money and 29% said they were encouraged by an estate agent while 6% said it was down to their children. ‘Buying the right house within budget can be a really difficult task, especially in a growing market where property prices are still increasing in most parts of the UK. Often people will set out to buy based on price, but then check to see what they could get if “they just spent a bit more,’ said Pete Mugleston, director of Online Mortgage Advisor. ‘From then the decision becomes less about price and more emotionally driven, and often people will either come across their dream home or find it hard to go push the budget down again after seeing what they can purchase with a small increase,’ he pointed out. Continue reading
UK housing market activity robust despite looming EU referendum
Housing market activity in the UK is robust despite the forthcoming referendum on the future of the country in the European Union, according to new research. Valuation activity in May rose by nearly a fifth on an annual basis with the total number of housing valuations carried out in May 2016 some 18% higher than in May 2015. The data from the latest monthly report from Connells Survey & Valuation also shows that month on month valuation activity in May decreased by 1% compared to April this year. John Bagshaw, corporate services director of Connells Survey & Valuation, believes the market is looking remarkably resilient ahead of June’s vote and he believes that the slight month on month cooling could still be a result of stamp duty changes that came into effect at the start of April. ‘However once that stamp duty related instability has passed, there appears to be a steadier annual growth and a more positive outlook for the housing market. Even if the EU referendum does have a measureable impact, one thing is clear, any slump hasn’t happened yet,’ he said. The report also shows that the first time buyer and remortgaging sectors continue to be stand out areas of activity, as the key driver of annual growth in May’s valuation market, up by 37% and 42% respectively, when compared to May 2015. However, on a monthly basis, May’s first time buyer valuation activity fell back 8% compared with April, whereas remortgaging activity increased by 3% over the same period. The buy to let sector experienced the sharpest year on year decline compared to other sections of the market, down by 38%. However when compared to May 2015, the number of valuations for buy to let purposes has also seen the greatest percentage growth compared to April, up by 8%. ‘Remortgagors are leading the market, underpinned by lenders offering a new set of favourable interest rates for existing homeowners. But first time buyers are also on the up. Factors such as low inflation, rising wages and government schemes are all helping new owners onto the property ladder,’ Bagshaw explained. ‘Even for the much downplayed buy to let industry, May was a good month. Valuations on behalf of landlords have been leading the housing market since April. Annual growth is likely to stay negative for buy to let activity, but the most recent signs are positive,’ he added. The report shows that there has been a relative steadiness of activity among home movers. The number of valuations for existing owner occupiers seeking to move home in May grew by 9% over the 12 months since May 2015 and contracted by just 1% compared to April 2016, in line with figures for total valuations activity. ‘Home movers have had a stable month and appear confident in the strength of the housing… Continue reading
UK rents continue upward trend but growth slowing
Rents in the UK continued to rise over three months to May 2016, although increases slowed more in line with house price growth, according to the latest index report. Average rent in the UK, excluding Greater London, is now £771 per month, some 4.4% higher than a year ago while the average rent in London is £1,563, up 6.2%. The data from the HomeLet rental index also shows that Scotland leads the way with rents rising faster than in any other part of the country. The report said that the figures provide some encouragement for both landlords and tenants. Landlords may have been expecting some impact from the increase in the supply of rental property in May, as those who rushed to complete buy to let property purchases before higher rates of stamp duty came into force in April 2016 began offering their properties to tenants. But HomeLet’s data suggests landlords continue to enjoy healthy rental yields after costs. As for tenants, they will be encouraged to see the pace of rent rises now beginning to moderate, particularly compared to a year ago. While an average rise of 4.4% means increases are still running ahead of inflation, there is some evidence of moderation of the long term trend, perhaps as affordability ceilings are approached. The slowing of the pace of rent rises in May is broadly in line with a similar cooling in the rate at which house prices are rising and may be part of a broader story about economic uncertainty ahead of this month’s referendum on the UK’ s membership of the European Union. Nevertheless, the May 2016 HomeLet rental index reveals that rents continue to rise in almost every area of the country, with 11 out of the 12 regions surveyed seeing an increase over the three months to the end of May. In Scotland, rents are currently rising faster than anywhere else in the UK, with new tenancies costing 10.6% more than in the same period a year ago. However, the East Midlands with a rise of 8.3% in rents compared to last year, is also showing strong gains. London’s rental market, where the average rent on a new tenancy is now £1,563, up 6.2 per cent, also continues to see rents rise more quickly than in most other areas of the country. The rental market is characterised by steady growth in rents as the number of tenants looking for property runs ahead of the supply in the market, according to Martin Totty, chief executive officer of Barbon Insurance Group, HomeLet’s parent company. He pointed out that this remains the picture in most regions of the country. ‘While this growth has begun to slow, which tenants will welcome, landlords will also be encouraged by the vote of confidence in the sector evidenced by the increase in buy to let completions in the past few… Continue reading
