Tag Archives: real estate
Survey finds home owners think peer to peer lending is risky
Almost half of home owners in the UK who have not invested in peer to peer finance are put off by a perceived risk, new research has found. Some 42% who took part in a new survey feared it was too risky, 22% had never heard of it, 17% do not understand how it works but 5% had invested on at least one peer to peer platform. Younger generations however are more open to risk, with just 28% of those aged 25 to 34 citing risk as a factor for not investing in peer to peer, compared to 46% of 55 and overs, according to the YouGov poll commissioned by buy to let peer to peer platform Landbay. Some 30% of those home owners who do use peer to peer platforms invested moderate amounts of £1,000 or less. However at the opposite end of the spectrum, 18% invested larger sums of over £5,000. Investment in peer to peer finance appears to be divided into consumers trying out platforms with small amounts of cash invested, and those who regularly invest larger sums. ‘We’ve gone out of our way to be open and up front about the risks involved on our platform, but we’re equally open about the unique range of protections our model offers. We’ve based our proposition around creating the most risk proof peer to peer platform, in an industry sometimes reluctant to mention the risk,’ said John Goodall, cofounder and chief executive officer of Landbay. ‘These research findings highlight the need to debate the merits of risk more in financial planning. We need an open and proper discussion on whether more people should consider moving a small proportion of their savings into an investment,’ he pointed out. ‘Of course risk is not for everyone, but it appears too many hoard large amounts of money in cash savings when it might be wise to consider putting a small amount of those savings at risk in exchange for better returns as part of a balanced approach,’ he explained. ‘The question is whether too many people see it as a binary choice between keeping all their money safe in the bank or putting it all at risk. Instead it should be about finding the right balance to achieve what you want to with your hard earned cash,’ he concluded. Continue reading
Asking prices rise across the UK apart from in Scotland
Asking prices have increased across England and Wales but not in Scotland, according to the latest index to be published. Prices rises increased by 0.9% overall in England and Wales during the last month but the average annual appreciation for England and Wales is down to 6.5%, the Home.co.uk index shows. The firm says that this reflects increasing demand across most of the UK and although Scottish prices nudged down slightly they remain 4.1% higher than last year. The data also shows that the typical time on market for England and Wales has improved considerably. At 88 days, this already matches last year's post-crisis low and looks set to fall further despite the slower Greater London market. Supply of property for sale in London has risen considerably over the course of the last year, up19%. Correspondingly, marketing times have increased and the typical marketing time is now 60 days which is 13 days longer than in April 2014. Despite this, prices continue to rise at a rate of 13% per annum. Supply rises in other regions are either small or negligible and this is stimulating great price growth, the index report says. Prices are higher in East England, where the typical time on market has fallen to a new post-crisis low of 64 days. East England, the South East, West Midlands and the South West all showed higher monthly price rises than Greater London this month. Further north, marketing times are also improving and prices are nudging up as spring increases the market momentum. Overall, the current mix-adjusted average asking price for England and Wales shows that properties on the market are valued 6.5% higher than they were in April 2014. Homes might be taking longer to sell this year than last, but London’s property values have soared to new all-time highs and this month’s rise takes the average home to over £500,000. Also, the mix adjusted average price has risen by 44% in just three years, which equates to an increase of around £150,000. However, the market dynamic in London is changing and the same vigour that yielded such price growth is moving out to the regions via the Home Counties, according to Doug Shephard, Home.co.uk director. ‘The immediate future looks rosy for all of the UK, but much of this growth is based on debt at historic low rates of interest. And the music won’t stop until it appears that the debt cannot be repaid, although that moment seems a long way off,’ he said. ‘Leveraged property investors can take comfort in the fact that the Bank of England doesn’t look keen on increasing interest rates any time soon. In fact, inflation is falling to new lows and the Bank ‘stands ready’ to cut IRs should this deflationary trend continue for too long. So, for the time being, the sky’s the limit,’ he added. Continue reading
The dream British home is a farmhouse or cottage with an Aga, a new study shows
A quintessential farmhouse or cottage surrounded by quiet countryside is the dream home for many people in the UK, new research shows. But that home needs to be not too isolated, have three bedrooms or more, have good broadband, good insulation, be cosy and inviting and have an Aga in the kitchen, according to the latest Housing Futures survey from Strutt & Parker. Much has been written about the new urban living trend but the survey reveals that is not necessarily everyone’s dream. The top desire was a home in the South East of the country followed by a rural location. The third desire on the list is being less than a mile from shops, followed by a detached farmhouse or cottage with three bedrooms or more. Next is a home that has a traditional British interior and cosy ambiance and then sixth on the list is an Aga oven. The final four top wishes are for good broadband, a walled garden, an outstanding view of the countryside and good insulation for energy savings. ‘The survey results paint an interesting picture as the quintessential British farmhouse surrounded by quiet countryside clearly remains as an enduring ideal for many. Over the past decade, there has been a focus on urban resurgence, so we were interested to discover that while our respondents want to live near other people, they didn't want them on their doorstep,’ said Stephanie McMahon, head of research at Strutt & Parker. ‘Lifestyle change remained the dominant motivation for moving, but in light of pension challenges and parents seeking to help their children onto the housing ladder, we were surprised to see that so few respondents ranked release of equity, pension top up and financial support for relatives as their reasons for moving home,’ she explained. ‘It seems that we really are a nation of optimists. It certainly was encouraging to discover that 79.4% of respondents believe they can achieve their dream home within the next five years,’ she added. Focusing solely on those who intend to move within the next five years, the survey showed that the largest proportion of home buyers wished to settle in the South East at 26.1%, followed by the South West at 15.6% and the West Midlands at 9.6%. Rural areas, villages and market towns came out as the most desired living environments at 23.3%, 22.9% and 17% respectively. Walking distance to the shops of less than a mile was crucial to 49.2% of people. For the second year in a row, lifestyle change was the biggest motivation for moving for 49.3%, followed by access to shops and amenities cited by 39.3%. A new category for the survey this year was broadband connectivity, which has shot in as the third motivation at 35.8% and highlights the desire to be technologically connected. According to those who plan to move within five years, the ideal home will be a detached house for 65.7%, either a farmhouse or in a cottage… Continue reading
