Tag Archives: real estate
UK estate agents say controversial fracking plans already affecting home sales
Estate agents operating close to potential fracking sites in the UK are warning that the controversial technique is likely to wipe tens of thousands of pounds off the values of nearby properties. It could also make homes harder to sell with agents in areas already targeted by fracking companies reporting concerns from prospective buyers over looming shale developments, with some sales already falling through as a result. The findings from a survey of estate agents conducted by leading marketing research agency Redshift and for environmental campaigners Greenpeace UK in three key areas where energy firms are planning to carry out fracking in West Sussex, Manchester, and Lancashire, shows that 67% believe fracking could bring down prices. A majority of them estimate the loss in value could be up to 11% with two agents putting it as high as 41% to 70%. With the price of the average house in the UK estimated at £272,000, even just a 10% drop in value could translate into a loss of tens of thousands of pounds. Some 54% said they are concerned fracking could reduce property sales near potential sites. Most of those who say they’re concerned believe more than one in 10 purchases could be affected, with nine dealers putting the estimate as high as 25 to 50% of all sales. One in four respondents also say home buyers have expressed concerns about the prospect of fracking in the area, with four estate agents reporting some customers have pulled out as a result. The Department for Energy and Climate Change is expected to auction off licence blocks to fracking firms over an area covering more than half of Britain in the coming months. The government has previously stated there’s no evidence that fracking will affect house prices. But three quarters of the estate agents said fracking should not be permitted until more research is done. James Nisbet, who lives a few hundred metres from one of the Lancashire sites says a few potential buyers have pulled out of purchasing his £375,000 house after learning about the looming energy development. ‘We have had six viewings so far, all with very positive feedback, but no one wants to commit to buying with the fracking shadow hanging over us. I’ve been hearing the same story from quite a few people in the area. We have lived here for 15 years. I really like this place and I don’t want to move, but I also don’t particularly wish to stick around to see what fracking will do to this community,’ he said. Paula Higgins, chief executive of the Home Owners Alliance, said it is worrying that homeowners who happen to live in fracking zones are being kept in the dark on how fracking will affect them. ‘Some are already starting to bear the brunt through aborted… Continue reading
Supply of new homes in UK falling well below demand despite rising development
Activity in the UK house building sector has continued to pick up over the last year, but the supply of new homes is still falling well short of demand, a new analysis report shows. Boosting supply where new housing is most keenly needed, is a key priority if the UK housing market is to avoid long term distortion, according to the latest annual house builder survey from real estate firm Knight Frank. House builders say policymakers shout boost resources for local authority planning departments, increase skills and training for the construction sector and step up the delivery of public sector land to help increase the supply of new homes, the report explains. The survey, which shows the views of more than 160 respondents from house builders and developers across the country, also shows that two thirds of those in the industry believe that the maximum number of new homes which can be sustainably delivered across the country every year is 180,000 or less. Only 9% said that an annual supply of more than 200,000 homes was possible. Nearly 60% of respondents expect housing completions to rise over the next year, with 18% saying the rise could be between 10% and 25%. However around half of respondents expect no change in the delivery of affordable homes over the next 12 months. More than 90% of respondents are expecting construction costs to rise again over the next 12 months and two thirds expect that development land prices will rise again this year. Indeed, rising labour and build costs are expected to pose the greatest risk to the sector in the coming year. The biggest policy change that would help boost development volumes would be recruiting more people to local authority planning departments, according to respondents. The imbalance between the demand for new homes and the number of units being built is well-recognised, by the industry and political parties alike, the report points out. In the 12 months to April 2014, some 141,000 homes were built in the UK, up by 4% on the previous year. However, official household growth projections suggest an additional 230,000 potential households a year in the UK. ‘Below these headline figures, there is a recognition that the right type of homes must be built in areas where there is the most housing need, typically adjacent to existing urban areas. This has led to tensions about the greenbelt, with a lack of consensus on how to expand accommodation in some of the UK’s most thriving towns and cities,’ said Grainne Gilmore, head of residential research at Knight Frank. ‘Nearly one half of the respondents to the house builder survey said that rules around developing on greenbelt land should be loosened,’ she added. The report explains that policymakers from all parties are keen to encourage development on brownfield land and the Royal Institution of Chartered Surveyors has recently published research suggesting there is enough brownfield land available in England to build 226,000 homes… Continue reading
UK home owners find switching mortgages harder, new study finds
There has been a reduction in the number of home owners in the UK finding that it is easy to switch their mortgage since new rules were brought in under the Mortgage Market Review a year ago. New research has found that mortgages are now the hardest financial product to switch among consumers who have shopped around for financial services in the last 12 months. The research, conducted by comparison site Gocompare.com, shows that just 59% of people who recently switched their mortgage provider described the process as easy, a fall from 70% in July 2014 when the same survey was carried out. The firm says that this reduction suggests the Mortgage Market Review, which was introduced at the end of April 2014, is continuing to frustrate consumers. The new system means that anyone needing a mortgage to buy a home, increase a current mortgage or re-mortgage needs to pass a more stringent affordability test, while interest-only applicants need to be able to demonstrate a credible repayment plan. MMR changes have subsequently been blamed for a fall in mortgage applications and delays in processing approvals. ‘It is clear from our research that consumers have taken issue with the changes to the mortgage application process introduced 12 months ago. To put it into context, the recent improvements in bank account and energy switching have failed to register at all on this survey, yet mortgages have slipped 11 percentage points,’ said Matt Sanders from Gocompare.com. ‘It would be fair to say that mortgages were never the most straightforward product to switch, but MMR has added an extra layer of complexity and in many cases led to delays in the process which just frustrates people further,’ he pointed out. ‘MMR has undoubtedly prolonged the process of applying for a mortgage, but a mortgage is still one of your biggest financial outgoings therefore it’s good to know that the importance of affordability is now at the heart of what they offer, which at the end of the day benefits the customer as well as providers,’ he explained.. ‘Even though applying for a mortgage is more complicated, there has never been a better time to shop around and with record low interest rates, the hassle of going through the checks and balances might be worth it to save some cash every month,’ he added. The research found that 90% of customers who switched home insurance providers in the last 12 months found the process easy, followed by 88% for car insurance, up from 84%, and 82% for credit cards. Changing broadband provider was easy for 72% and mobile phones for 70% with mortgages at the bottom of the table. Continue reading
