Tag Archives: real-estate
Retirees appetite for assured tenancy rental growing, research suggests
Home owners’ appetite in the UK for downsizing and renting a retirement property when they get older continues to grow, according to new research. There has been a 7% rise in enquiries from people looking for a smaller home to rent once their working life is over in the first seven months of this year compared to the same period in 2014, says retirement firm Girlings. The firm also reports a 34% rise in visits to its website and says that there is a severe lack of purpose built retirement property, either to rent or buy and many people who want to downsize are unable to do so. The research says that less than 3% of housing in the pipeline is aimed at older people and yet, in 20 years’ time, those aged 65 or over will make up 23% of the population. ‘Our continuing message to government is that the UK desperately needs more purpose built retirement property so that older people have the option to downsize,’ said Peter Girling, chair of Girlings Retirement Rentals. ‘Many older people are stuck in homes that are too big for them, have little choice of a suitable alternative and perceive the obstacles to enjoying a better quality of life in their later years are insurmountable,’ he added. He also pointed out that retired people in the UK currently own a third of the nation’s housing stock and enabling them to downsize would free up much needed family houses and give them the opportunity to release their capital, invest in their future and enjoy their retirement, living in housing that meets all their future needs. ‘We believe there is a simple answer to the current housing shortage and that is for older people to consider downsizing to a purpose built retirement property and renting on an assured tenancy. Choosing to rent in later life is a sensible solution and one which thousands of Girlings’ tenants can recommend,’ said Girling. ‘Equally, if older people downsize it will free up much needed family housing for people further down the ladder. The latest statistics from the Home Builders Federation state that we are still some way off of the 220,000 to 250,000 new houses that are needed to be built per year to satisfy current demand,’ he explained. The firm believes that there are many positive reasons for renting in retirement but those opting for such a move should make sure they are fully informed. For example, the provision of an assured ‘lifetime’ tenancy should be considered as this removes any obstacle to renting by providing the peace of mind that people can live in their new home for as long as they wish. Furthermore, should circumstances alter in the future there is not the frustration of trying to sell a retirement property in an uncertain market and the ensuing worry for family and friends. An example is Olive Young who sold her home in Ilford, Essex in 2006 and rented… Continue reading
US pending homes sales up 0.5% in July, latest index shows
Pending home sales in the United States increased by 0.5% in July and are now 7.4% higher than the same month last year, according to the latest index data. The Pending Home Sales index from the National Association of Realtors (NAR), a forward looking indicator based on contract signings, has increased year on year for 11 consecutive months and July is the third highest reading of 2015. According to Lawrence Yun, NAR chief economist, the housing market began the second half of 2015 on a positive note, with pending sales slightly rising in July led by a solid gain in the Northeast. ‘Contract activity in most of the country held steady last month, which bodes well for existing sales to maintain their recent elevated pace to close out the summer,’ he said. ‘While demand and sales continue to be stronger than earlier this year, realtors have reported since the spring that available listings in affordable price ranges remain elusive for some buyers trying to reach the market and are likely holding back sales from being more robust,’ he explained. Looking ahead, with inventory shortages likely to persist into, Yun expects the national median existing home price to increase 6.3% in 2015 to $221,400 and forecasts total existing home sales this year to increase 7.1% to around 5.29 million, about 25% below the prior peak set in 2005 when it was 7.08 million. ‘In light of the recent volatility in the stock market, it's possible some prospective buyers may err on the side of caution and delay decisions, while others may view real estate as a more stable asset in the current environment,’ said Yun. ‘Overall, the prospects for ongoing strength in the housing market remain intact for now. The US economy is growing, albeit at a modest pace, and the labour market continues to add jobs,’ he pointed out, adding that uncertainty in the equity markets, even if short term rates rise in September, could stabilise long term mortgage rates and preserve affordability for buyers. The PHSI in the Northeast increased 4% to 98.8 in July and is now 12.1% above a year ago. In the Midwest the index remained unchanged at 107.8 in July, and is now 5.7% above July 2014. Pending home sales in the South increased slightly by 0.6% to an index of 124.2 in July and are now 6.5% above last July. The index in the West declined 1.4% in July to 103, but is still 7.5$% above a year ago. Meanwhile, new home sales increased by 26% from one year ago and Yun said that it is further proof of the housing market strengthening. ‘Amid stock market gyrations residential real estate appears a very safe place to invest particularly given the current housing shortage in America,’ he said. The data shows that new home sales, which are not closings but rather contract signings on a newly constructed home, reached 507,000 annualised sales pace in July. Sales are up solidly… Continue reading
Majority would pay more to buy or rent in a school catchment area
Some 95% of buyers and 81% of renters in the UK would pay up to 25% more to live in a home in close proximity to a school, new research has found. Also, 38% of buyers and 42% of renters would take a lesser property to be within desired catchment area, according to the survey from online estate agents Urban. Surveying both those looking for property to purchase as well as those looking for a rental home confirms how important the school catchment area is for parents when they move home. Indeed, the school catchment area was the top concern for tenants when choosing a property. Double the number of prospective tenants would put school catchment area at 30% over being in close proximity to a town at 15%, with this also ranking significantly higher than the desire to be near to a station at 17%. These results reveal that parents' needs are widely put on the backburner when compared to those of their children, with people often taking on a far longer commute to be able to ensure that their child has the very best education and shortest journey to school. With residing close to a school the prominent concern for many, the survey also asked those that were buying a property, whether they would consider renting if they cannot sell their own property with 52% saying that they would do so. ‘Quantifying the influence that being in close proximity to a school has on house hunters has been truly eye opening. The results of the survey show that most people would stretch their budget quite considerably, whilst many would also downgrade their property choice, for the sake of a school,’ said the firm’s founder Adam Male. ‘The results make for particularly interesting reading for those selling a property within a school catchment area. When marketing the property, these findings show that real focus should be given to the location of the property in relation to the nearest school, highlighting the benefits provided as part of the enrolment process and the ease of school run, for example,’ he added. Continue reading
