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Half of UK home owners planning to improve their property this year
More than half of home owners in the UK are planning improvements in 2015 with 12% of them hoping to extend or convert their property, new research shows. A growing family is the most popular reason for doing this, however, older kids returning home are also behind people’s decisions to extend, according to the survey from mortgage and loans provider Ocean Finance. Accommodating their growing family is behind the majority of homeowners’ desires to create more space in their property, new research has revealed. Overall some 54% of home owners in the UK are planning to carry out improvements of some sort on their properties this year with 12% wanting to create more useable space in their properties. Of these, 7.2% are planning an extension of some sort, and 4.8% are considering converting either their loft, garage or cellar. While decorating is the most popular home improvement being planned by home owners in 2015, with 25% saying they hope to paint and decorate, extending their property is also a popular option. And it seems the main motivation for this is so home owners can ensure there is space for their families to get the most from their properties without moving. Of those property owners who are planning to create more living space by way of either an extension or conversion, 39% said this is so they can accommodate their growing family. Meanwhile, 14% revealed it is because they have grown up children who are returning to the family nest, or older relatives who are moving in with them. Other motivations given for wishing to extend include needing more space for storage cited by 18%, some 10% wanting large open spaces from a stylistic perspective, 8.8% seeing as cheaper than moving, and a further 8.8% wanting to add value to the property. ‘Despite the recent stamp duty changes, moving house is expensive with legal and estate agency fees and moving costs to meet. So it’s no surprise that so many home owners are looking to improve and in some cases extend their existing property,’ said Ian Williams, spokesman for Ocean. ‘Creating more space is clearly a popular option. It’s interesting to see that a leading motivation for this is family; whether that’s more children coming along or grown up kids coming back. It goes to show that many families are willing to put in the work and the investment if it ensures their home grows with them,’ he added. Continue reading
Price growth and new buyer demand declines in UK housing market
House price growth and new buyer demand in the UK both tailed off in December 2014 but stamp duty reforms are still expected to support market activity in the months ahead. Overall, the number of potential new house buyers dipped for the sixth consecutive month in December and price growth fell to its slowest pace since May 2013, the latest residential survey from the Royal Institution of Chartered Surveyors shows. Across the UK, 10% more surveyors saw the number of potential new buyers decrease in December and London saw the weakest demand, with 45% more surveyors reporting a decline in enquiries, the eighth consecutive monthly decline. The North of England and the South West saw strong rebounds in demand, albeit the underlying picture remains most upbeat in Northern Ireland and Scotland. Despite the slowdown, there is optimism that the stamp duty reforms will deliver a 2% to 5% boost in both sales and prices over the next 12 months, despite members in London expecting sales to decrease by between 5% and 10% and prices to decrease by 2% to 5%, with larger properties and/or those in prime areas expected to see the biggest price decreases. Nationally, as a result of the weaker trend in buyer interest, sales expectations slipped to a net balance of 21%,down from 27% in November, and just 11% more surveyors saw prices rise in December, rather than fall. The volume of agreed sales during December was little changed, while the average number of sales per chartered surveyor slipped to 19 compared to 21.2 in the preceding December. In the month that also saw mortgage approvals fall to their lowest in 18 months, December’s data showed that perceived Loan to Value ratios across properties for first time buyers and existing home owners remained stable at 84.9% and 77.6%, although they are lower compared with the early part of 2014 following the adoption of a more cautious approach to lending as a result of the introduction of the recommendations of the Mortgage Market Review. ‘The changes to stamp duty are expected to provide a timely boost to activity in the housing market across most of the country but there remain significant challenges particularly for first time buyers seeking to take an initial step onto the property ladder,’ said Simon Rubinsohn, RICS chief economist. ‘Critically, the stock of property on the market continues to hover close to historic lows with new instructions to agents falling in ten of the last twelve months. Indeed, there is a risk that with so little housing available any pick-up in demand could rapidly feed through into higher prices rather higher sales,’ he explained. He pointed out that the RICS lead indicators do provide some encouragement that the level of housebuilding will continue to increase over the course of this year but even with further growth, the volume of home starts will still fall well short of the number of new household being formed… Continue reading
Asking prices still rising in many parts of UK, latest index suggests
Prices are rising in more regions in the UK than might be expected for the time of year and price discounting is at a four year low, according to the latest asking price index. The current mix-adjusted average asking price for England and Wales shows that properties on the market are valued 7.8% higher than they were in January 2014, the data from Home.co.uk shows. The biggest price growth was in Greater London over the last month with a rise of 0.6%, despite falling prices in the prime central London market. Prices also rose in the North East during the last month by 0.4%, which the firm says is encouraging given that the recovery has not yet been evident in the most northerly English region. Asking prices increased in seven English regions and in Wales with prices up 0.1% overall in England and Wales during the last month. Only Scotland and East Anglia showed significant month on month falls of 0.6% and 0.8% respectively. The index report suggests that the positive momentum gained through the course of 2014 has clearly been carried through into 2015. Demand remains ahead of supply in most parts of the UK and looks set to stay that way as mortgage deals seemingly get better and better. The only dark clouds on the current property horizon would seem to be the price falls in prime central London and various potential housing policy changes that will be debated in the run-up to this year's election. Flat prices have fallen by an average of 9% over the last 12 months in central London. Over the same time, the number of flats for sale in central London has increased by 64%. ‘We consider that there is a significant risk that the same price correction will be perpetuated throughout Greater London and the South East over the course of 2015/2016,’ said Doug Shephard, home.co.uk director. ‘Possible changes in property taxes and rent capping also carry uncertainty and risk for the market in a year that will be coloured by political policy change,’ he added. The firm’s analysis of the situation in London shows that Belgravia was the first area to see prices fall. Prices peaked in November 2013 and since then, the typical price for a flat has fallen from £1,995,000 to £1,600,000, a drop of 20% and much more than the price of the average UK home. Shephard says this causes concern as history indicates that booms and busts always start in central London and then, quite slowly, emanate out to the rest of the country. He also pointed out that prices peaked for flats in Islington in March 2014. Since then, the typical asking price has dropped 11%, which represents a 10 month loss of £85,000. Over the same period, the typical time on market for flats in Islington has risen 220% from a frantic 35 days to a lethargic 112 days. Further out, Holloway flat prices peaked in May 2014… Continue reading
