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Research reveals the cost of bungled DIY by UK home owners
As home owners in the UK gear up for a bank holiday of DIY, new research shows that bungled workmanship leads to 90% paying the cost rather than claiming on insurance. Britain’s amateur handymen are set for a disastrous May bank holiday, according to research from the Nationwide Building Society and just 10% are likely to recover the costs of their mistakes by claiming on their insurance. But many people are completely unaware they can claim for accidental damage caused in this way, according to Nationwide’s head of general insurance, Martyn Dyson, when some 80% carry out home improvements themselves rather than asking a professional for help. Many undertake manageable tasks with 70% opting to do some wallpapering and painting, 65% bleeding a radiator and 62% improving the garden. Some tackle more onerous DIY with 24% knocking down walls, 21% laying loft insulation, 12% fitting a new kitchen or fitting a new bathroom. The research reveals the top disasters. Some 35% suffer spillages, including paint, glue or white spirit, 22% marking the walls, and 10% damage to furniture, breaking a window and damage to flooring. Some 90% of those who admitted to home improvement horrors ended up paying the cost of their mistakes themselves rather than claiming on their home insurance. And with 19% of people with DIY horror stories causing over £200 of damage, not knowing what your home insurance covers you for can prove quite costly. ‘The May bank holiday is prime time for getting stuck into jobs around the home you’ve been putting off. Unfortunately, you can end up causing more damage than good, especially if you’re inexperienced,’ said Dyson. ‘Nationwide’s advice to anyone looking to do home improvements this weekend is to not rush into it, stop and think about the job in hand, be realistic about your capabilities and make sure you are covered if things do go wrong, as not all policies include accidental damage like Nationwide’s Home Insurance. As the survey shows, many people may be completely unaware they can claim for accidental damage in this way,’ he added. Continue reading
Home leasing market in Hong Kong stable but flat
The residential leasing market in Hong Kong remained largely stable in the first quarter of 2015 but is experiencing low demand and slow take-up, according to a new research report. Average luxury apartment rents have now bottomed out, and the vacancy rate has fallen to a new low, the latest residential leasing report from Savills World Research. It shows that rents on Hong Kong Island rose by 2% in the first quarter of the year amid the bottoming out of luxury rents. Leasing was mainly active in the rental range of HK$50,000 to HK$80,000 per month. Townhouse rents also stabilised, down about 30% since their peak in 2011, with fewer vacancies and the report says that landlords have been very flexible in terms of lease renewal and are generally not willing to let units stand vacant. ‘Whilst this has attracted some new tenants to the townhouse market, few transactions have been reported and leasing volumes in the townhouse market remain thin,’ said Simon Smith, senior director for Savills Asia Pacific. The report suggests that leasing activity has been driven by a variety of sectors setting up new or additional offices in Hong Kong, mainly in retail and IT services. ‘Landlords are utilizing the stable rental renewal growth rate in prime areas to maintain occupancy levels,’ added Smith. On the demand side, Savills does not note any large expansion from the financial sector, where demand is largely flat, however, the report says that some new small to medium sized financial tenants have set up office in Hong Kong, which increases slightly the demand in the leasing market. New residential developments, such as Azura in Mid-Levels, are gradually entering the market for lease which the report says will gradually help to ease the tight stock situation. In Kowloon, rents are supported by local families who are looking to traditional districts such as Kowloon Station and Kowloon Tong. Vacancy rates in these traditional areas are also falling as vacancies are being filled quickly. Indeed, rents in Kowloon rose by 4.5%. ‘Looking ahead, we expect that the leasing market has now bottomed out, and luxury apartment rents are likely to see 0% to 5% growth in 2015, supported by tighter availability,’ said Smith. The report also says that in the serviced apartment market occupancy is rising alongside tightening vacancy rates in the luxury leasing market. Rents for serviced apartments rose by around 2% in the first quarter of 2015. Continue reading
Signs of mortgage market in UK recovering, says CML
Home lending appears to be on the brink of recovery after a dip due to new mortgage rules, the latest gross lending data from the Council of Mortgage Lenders suggests. The CML April estimate for total gross lending is £16 billion, 1% down on the previous month and 4% lower than the £16.7 billion of lending last April. But according to Mohammad Jamei, CML economist, lending appears to be in the throes of an incipient recovery even although lending in April was fractionally down on the previous month and year as this comes after a stronger March. ‘Overall, we now seem to be on the cusp of a modest lending recovery. Household finances are generally improving as earnings growth continues to outstrip inflation, and mortgages are being offered at extremely competitive rates. As a result, we expect to see stronger lending in future months,’ he said. Paul Smith, chief executive officer of haart estate agent, believes that the mortgage market is in rude health and despite the doom and gloom in the election run-up, consumers have been undeterred by the prevailing uncertainty. ‘Mortgage lending is still down on April 2014 but 2014 was an exceptional year where property prices and demand were speeding along beyond all expectation and an application of the brakes is no bad thing,’ he said. ‘Lower, but still strong, house price growth and levels of demand that aren’t dominating the headlines, is actually good for overall sentiment and both buyer and seller confidence. With the new majority government bedding in and the continued advantageous economic climate and government support for consumers, we expect mortgage lending to be on an upward trajectory for the rest of this year,’ he added. John Eastgate, sales and marketing director of OneSavings Bank, said that there is no doubt that pre-election jitters took their toll on borrower demand in April ‘But the mortgage market hardly ground to a halt. Mortgage rates remain near historic lows, and this continues to drive underlying activity,’ he pointed out. ‘On top of this, we have seen deflation take hold, pushing back the prospect of a hike in interest rates. Combined with improving earnings, this will boost the borrowers' budgets. With the new government now in situ, any lingering uncertainty has been put to bed, and sentiment has undergone a palpable bounce,’ he explained. ‘There are already signs that mortgage activity is on the increase, with big ticket purchases returning, and the market expects positive momentum to build as the year progresses. Yes, affordable mortgages for those with the smallest deposits remain thin on the ground, holding back first time buyer levels, but an increasingly buoyant buy to let market will support total lending in 2015,’ he added. Continue reading
