Tag Archives: real estate
UK buyers choose renovation properties to try to save money, research suggests
Some 35% of home owners in the UK who bought a property that needed renovation had to as it was the only way that could afford to buy a home, according to new research. Some 8% bought a home needing renovation but found that in reality they could not afford to do the work and 10% ended up living on a ‘building site’ for a year or more before starting the work. The research from price comparison site Confused.com also found that for those who persevere the hard work can be worth it 19% made a profit of between £25,000 and £50,000 from a successful renovation project. The sale prices of properties that need renovation are normally much lower than the prevailing market price in that particular locality. On average, home owners who have bought a renovation property have saved themselves £44,037. Home renovators are paying on average £152,792 for a property that needed some work done to it, compared to the average UK house price which is valued at £196, 829. Some 38% admitted to buying a property that needed some work as it saved them thousands of pounds compared to buying a home that needed no work. In fact, 40% of home owners admit they would buy a property that needed renovation if it saved them money. On average, home owners spent £33,089 on doing up their properties with 12% spending more than £50,000 renovating their home. Some 62% did work on the kitchen and 61% on the bathroom. However, renovating a property can often be more expensive than first anticipated with 45% of home owners saying they spent more than intended, with many spending £2,886 over their budget. Indeed, some 26% ended up going over their budget by more than £5,000 and 22% said that they would never buy a renovation project again. And the research also found that 41% who have carried out renovation work on their property have not let their insurer know. ‘As house prices seem to be continuing to rise, it would appear that more and more people are resorting to buying properties that need renovation. Deciding to renovate a property is a big decision and often more expensive than first anticipated,’ said Gareth Lane, head of home insurance at the firm. Continue reading
UK house prices dipped slightly in December, say latest ONS figures
UK house prices increased by 6.7% in the year to December 2015, down from 7.7% in the year to November 2015, according to the latest figures from the Office of National Statistics (ONS). Prices were up year on year by 7.3% in England, by 1% in Wales, and by 1.5% in Northern Ireland but fell by 0.2% in Scotland. The annual growth in England were driven by an annual increase in the East of 9.7%, in London by 9.4% and in the South East by 8.8%. Excluding London and the South East, UK house prices increased by 5.1% in the 12 months to December 2015 but on a seasonally adjusted basis, average house prices decreased by 0.2% between November 2015 and December 2015. The data also shows that in December 2015 prices paid by first time buyers were 6.4% higher on average than in December 2014 while for owner occupiers (existing owners), prices increased by 6.9% for the same period. Average mix-adjusted house prices in December 2015 stood at £301,000 in England, £175,000 in Wales, £193,000 in Scotland and £148,000 in Northern Ireland. According to Peter Rollings, chief executive officer of Marsh & Parsons, existing home owners have every reason to be in high spirits after the tenacious house price growth experienced in 2015 which saw average values break through the £300,000 barrier. He also believes that buyers climbing onto or up the property ladder are hitting the ground running, on the back of favourable mortgage deals and support schemes from the government. ‘In London, we’ve seen new buyer registrations in January increase 24% on last year, which bodes well for purchase activity in the opening months of 2016. Landlords and investors in particular will be in a hurry to secure their preferred property before the additional 3% Stamp Duty becomes liable on second homes in April,’ he said. ‘But with annual house price growth in London just shy of double digits, first time buyers and those trading up also can’t afford to hang about either. The prime central London market has been challenged and unsettled by steeper Stamp Duty, but in lower priced boroughs further out of the centre, high demand and low supply of properties coming up for sale are sustaining strong price rises,’ he added. Adrian Gill, director of Reeds Rains and Your Move estate agents, believes that the property market is developing into the strongest sellers’ market since the recession. ‘December may have weathered the first month on month stumble in house price growth for eight months, but on average, property prices are still increasing at more than twice the pace of earnings, which is certainly jubilant news for existing home owners,’ he said. ‘Potential sellers would be advised to get their property on the market now to take advantage of the spring surge that is already following these figures for December. But rising prices make it tougher for those still hoping to climb onto the… Continue reading
A south facing garden doesn’t push up a property’s price, study shows
Despite estate agents and property experts in the UK espousing the benefits of a south facing garden, this is not reflected in the asking price, new research has found. An analysis of property asking prices reveals homes with south facing gardens carry a mere 0.37% premium compared to properties with north facing gardens. South facing gardens have long been touted as desirable because they typically get the sun for most of the day and are therefore thought to be warmer and brighter, but it appears this isn’t reflected in property prices. River views however do carry a higher cost, averaging 9% compared to identical properties located on the same development without this sought after outlook, according to the study commissioned by Direct Line Home Insurance. In one North London development, a three bedroom property with a river view has an asking price of £850,000, some 42% more than an identically proportioned and designed property elsewhere in the development that costs £600,000. The research also reveals that in many cities if you live higher in a new development, you pay a significant premium for the privilege. One developer informed researchers they added a £15,000 premium to the asking price for every floor, bringing new meaning to the phrase ‘sky high’ prices. An apartment on the fourteenth floor of a new London development five minutes from Angel tube station is on the market for £850,000, which is 31% more expensive than an identical property on the third floor. In a new development near London’s Colindale station a one bedroom flat on the fourth floor costs £438,950 while an identical property on the eighth floor is on the market for £475,000. ‘The research highlights that south facing premiums may well be a myth, but a room with a view comes with a hefty price tag. People are prepared to pay thousands more for the same amenities and layout because a property is located higher in a building, has a more scenic vista, or because it overlooks water,’ said Katie Lomas, head of Direct Line Home Insurance. ‘However, while picturesque river views are much admired it is worth noting properties built near water may cost more to insure because of increased flood risk. Purchasers should check the likely cost of insurance before they commit to buy,’ she added. Continue reading
