Tag Archives: real-estate
New starter home initiative launched in the UK
A new website has been launched in the UK for first time buyers where they can register in buying a new starter home under a new government initiative. The starter-home.co.uk website comes as new rules have cut planning requirements for the new starter homes, allowing house builders to slash 20% off the usual price and building on the first properties is expected to start within months. It is the latest major push from the government to boost home ownerships and build more homes and it is claimed that there is the potential for discounts of around £100,000 per house. With average house prices for first time buyers in England standing at around £218,000, a new starter home could save young first time buyers across the country an average of £43,000 while helping to get them onto the housing ladder. The plans will allow young first time buyers the opportunity to secure a new starter home at a 20% discount to the market price and thanks to changes in planning policy, builders that develop commercial and industrial land that is either unusable or surplus for the new starter homes will be able to save on costs by freeing them from the requirement to provide affordable housing. In return, developers will have to offer the homes at a minimum 20% discount on the market price to first time buyers who must be aged under 40. Leading home builders and councils have already have said they would consider bringing forward land to develop the new homes from this year, and from today will be able to start submitting their plans to get work started and pass the savings onto home buyers as soon as possible. As well as reducing the prices of properties for young buyers, a design panel, including world class architects Sir Terry Farrell and Sir Quinlan Terry have drawn on housing designs from across the country for home builders to consider for starter homes developments. Aimed at making sure the new homes are attractive properties that can meet the demands of modern life, the panel’s draft report highlights at a range of exemplar new build styles, which in time it is hoped will become the default approach for starter home developments. They aim to be well proportioned homes, homes that fit in with existing local housing styles, and homes that get the details right with good parking and community spaces. ‘A 20% discount off the price could be a real game-changer for many aspiring home owners. My message is clear: we are on your side and we will help you fulfil your dream of buying your first home,’ said Prime Minister David Cameron. Communities Secretary Eric Pickles said that the number of first time buyers is already at a seven year high and these starter homes will help even more people realise their dream of home ownership. Sir Terry Farrell, founding partner at Farrells, said he believes that the templates developed by the government’s Housing… Continue reading
House purchase lending in London slowed in fourth quarter, says CML
Greater London saw a decline in the level of house purchase and remortgage lending both year on year and quarter on quarter at the end of 2014, according to the latest data from the Council of Mortgage Lenders. First time buyers in Greater London borrowed £2.9 billion, down compared to the third quarter by 11% in value and down 7% in number of loans. Compared to the fourth quarter of 2013, the total number of loans was down 10% and the amount borrowed decreased by 4%. Home movers saw a decrease in numbers to 8,800 loans, valued at £2.9 billion, which was down 15% by volume and down 20% by value compared to the third quarter. Compared to the fourth quarter of 2013, there was a decrease of 15% by volume and down 9% by value. Remortgage lending declined in the fourth quarter totaling 9,800 loans at £2.5 billion, which was down 12% by volume and down 13% by value. Compared to the fourth quarter of 2013, remortgage lending in London was down 13% by volume and 11% by value. The data also shows that overall lending in Greater London accounted for 21.5% of UK wide house purchase activity, down from 22.6% in 2013. First time buyer affordability changed slightly in Greater London quarter on quarter with first time buyers typically borrowing 3.84 times their gross income, less than the 3.86 income multiple in the third quarter but more than the UK average of 3.38. The typical loan size for first time buyers was £216,000 in the fourth quarter, down from £222,275 in the previous quarter. The typical gross income of a first time buyer household was £56,314 compared to £58,000 in the third quarter. The CML says that first time buyers' payment burden remaining relatively low in the fourth quarter at 20.8% of gross income being spent to cover capital and interest payments, lower than the third quarter's 21%. Home mover affordability changed fractionally, with home movers typically borrowing 3.64 times their gross income compared 3.69 in the third quarter and to 3.03 for the UK overall. The typical loan size for home movers was £276,355 in fourth quarter, up from £289,999 in the previous quarter. The typical gross household income of a home mover was £80,160 in fourth quarter compared to £83,592 in the third quarter. Home movers' payment burden in London was on average 20.5% of gross income being spent to cover monthly capital and interest payments, less than the 20.9% in the third quarter but more than the 18.8% UK average. ‘London is a unique market, with equally unique conditions and challenges, which will need a focus on all types of housing tenure going forward,’ said Paul Smee, director general of the CML. ‘Last year had the highest annual level of borrowers buying a home in London since 2007, with first time buyers leading that growth, but there have been recent signs of the market cooling. The dip in the last quarter of… Continue reading
Scotland sees 9% quarterly rise in £1 million plus properties
The number of £1 million plus residential property sales in Scotland rose by 9% quarter on quarter in the final three months of last year according to a new analysis. A report from Knight Frank based on official data shows that the number of sales in this sector increased as the year progressed, with a sharp jump in sales during the second half of the year. Indeed, the total number of sales completed in the final three months of 2014 was 88% higher than the period between April and June and more than double the number recorded over the opening three months of the year. During the final quarter of 2014, £1 million plus sales took place in 11 different local authorities, led by Edinburgh, which accounted for 47% of the total sales over the three month period. This was followed by East Dunbartonshire with 13% and Fife with 11% while over the full 12 months of the year, Edinburgh accounted for 48% of all £1 million plus residential sales in Scotland, followed by Aberdeen City at 17%. According to Oliver Knight, of Knight Frank residential research team, the rise in high value property sales last year can be attributed to two factors, both of which have played a key part in boosting transaction volumes at this level of the market. Firstly, the market has responded to the certainty provided by the result of the independence referendum. ‘After months of doubt about the outcome, buyers felt more secure about making a decision to move house or purchase a property,’ he explained. Secondly, the announcement of the proposed Land and Building Transaction Tax (LBTT) rates in October shed light on how purchase taxes would rise in April 2015, especially for more expensive properties. ‘Buyers now have a window when purchase costs are lower, especially given the changes made to stamp duty at the Autumn Statement in December, and many are taking advantage. From April this year, when the new LBTT rules come into force, a buyer of a property valued at £1 million will pay nearly £35,000 more in purchase taxes,’ said Knight. ‘We expect that the extra impetus for buyers of property valued above £1 million to complete sales before the new LBTT levy comes into force in April will mean the number of high value property sales continues to rise for several months. Even with the new higher purchase taxes, the relative cost of property in Scotland compared to London and the South of England means there is still a large effective discount for buyers making the move north,’ he added. Ran Morgan, head of Scotland residential at Knight Frank, pointed out that the appetite for prime property, certainly in Scottish cities, remains high. Edinburgh continues to lead the way with the highest number of sales, followed by Aberdeen. ‘Despite forthcoming higher levels of tax, Scotland still offers excellent value compared with London and the south. Because of this we expect the… Continue reading
