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Over half of UK first time buyers rent before they buy
More than half of the UK’s first time buyers now try before they buy when it comes to owning their first home, according to an annual survey. The research from Clydesdale and Yorkshire Banks found that 54% of the nation’s first time buyers rent before they take the house buying plunge. A further 35% stay with family and 6% rent but move back to the family home to save for a deposit. The same survey last year revealed that 67% of first time buyers in the UK were waiting longer than planned to buy their first home with more than half of those surveyed revealing it had taken up to three years longer than anticipated. There is a clear financial benefit with 39% of those at home claiming to live rent free. Some 61% pay rent every month and a further 21% make a contribution through helping at home, paying bills or buying food for the household. However, 80% of Scots living at home pay rent compared to just 46% of those in London. The majority, 56%, of first time buyers said they feel pressure to buy their own home and this is felt most keenly amongst those renting a property. There were regional variances with 65% of first time buyers in London admitting to pressure to take their first step onto the property ladder. This compared to just 37% in the North East. ‘We know that first time buyers face a number of pressures and challenges and are focused on providing support throughout the process from helping to save for a deposit to finding the right mortgage to suit different needs and budgets,’ said Steve Fletcher, head of Clydesdale and Yorkshire Banks retail network. He pointed out that Clydesdale and Yorkshire Banks are offering first time buyer mortgages with a 5% deposit. ‘We are proud that we were one of only a handful of lenders who continued to support this market throughout the economic downturn,’ he said. First time buyers with a deposit from as little as 5% can apply for a first time buyer mortgage and receive the benefit of no arrangement fee, £250 cashback and one free home valuation. The Banks offer a three year fixed rate of 3.59% with 90% LTV or 4.89% for a three year fixed with a LTV of 95%. Continue reading
Most property hotspots in UK are in London
Nine out of 10 property hotspots in the UK are in London with Sutton named in the latest index that monitors the number of properties sold in comparison to those on sale. The south west London borough has seen a 67% demand for property with the previous top spot of Bexley pushed down to sixth position with 62%, according to the index from online estate agent eMoov. The two London Hotspots are joined in the top 10 by a number of other outer London boroughs and commuter friendly towns, with quick and improving transport links into the heart of the capital. They are Cambridge at 66%, Watford at 64%, Bristol and Reading both at 63%, Guildford at 59%, Aylesbury at 57%, Havering at 57% and Hillingdon at 56%. Some parts of London have seen demand drop severely, for example Wandsworth at 32% has seen a fall of 11% since December 2014 and has dropped out of the top 50 hotspots. With a property demand of just 12%, Nine Elms is the coldest spot in the UK. The firm says this is a surprise as the area is due to benefit from the planned extension of the Northern Line. But it seems that those already selling their property in Nine Elms, may have jumped the gun and increased the price in anticipation. The resulting inflation in house prices looks to be a factor influencing the low demand in the area at present, it is also contributing towards the decline in property demand for Wandsworth as a whole. Although outer London and the surrounding commuter areas have continued to enjoy a strong demand for property, it is in fact the North West that has seen the most marked improvement. The hotspots that have enjoyed the biggest turn around in demand since December are mostly located in the North West. Sefton has seen the greatest improvement in demand, up 80% since December, followed by Huddersfield up 56%, Trafford up 24%, Bradford up 23%, Stoke-on-Trent and Bolton both up 21% and Warrington up 19%. Half of the top 10 coldest spots in the UK are in the north east. North Tyneside with a current demand percentage of 13%, is the second coldest spot across the UK and has seen the biggest decrease in demand for property since December, falling by 43%. It is closely followed by County Durham, where demand declined over the course of 2014 and has continued to do so, dropping by a further 37% on December’s hotspots index. ‘It’s almost a tale of two halves in the North alone, let alone the North and South. The North West seems to be flourishing as demand for housing increases almost across the board. It is however a very different picture in the North East, as it accounts for a number of the coldest spots in the March Hotspots Index,’ said Russell Quirk, the firm’s chief executive officer. ‘As we predicted last summer, commuter towns around the capital… Continue reading
Landlords needing to evict a tenant face rising UK court costs
Rising court fees in the UK could tempt law abiding landlords to cut corners when it comes to tenant evictions, it is claimed. For the second year running, the Ministry of Justice is increasing fees for landlords who want to evict tenants who have fallen into rent arrears. The cost for filing a paper application will rise by £75 to £355. Online applications will rise from £250 to £325. This comes on top of increases last year of £100 for online applications and £175 for paper claims. According to Legal 4 Landlords the spiralling court costs could lead to landlords being tempted to evict problem tenants without following official procedures, risking prosecution and a criminal record. ‘The spiralling costs are unfair and are hitting landlords in the pocket yet again. However, the law is complex and too many landlords serve invalid notices delaying the process and waste their money,’ said Sim Sekhon, managing director of Legal 4 Landlords. ‘Landlords must follow the correct procedure and expert guidance is paramount. Evicting a tenant is stressful enough but many landlords are concerned about rising court costs so it’s not surprising some are tempted to take the law into their own hands,’ he added. The firm explained that there are several routes that can be taken to evict a tenant and every case is different. The court expects landlords to follow procedures to the letter so they should always seek expert guidance. Legal 4 Landlords offers a range of services for landlords and letting agents with a network of offices across the UK. This includes advanced tenant referencing and general insurances products. It offers a free eviction case review and recently launched a rent and legal protection insurance product. This safeguards landlords from future hikes in court costs at the legal stage for landlords who may need it for their next tenants. The number of people evicted from rented properties hit record levels in 2014, with 42,000 homes repossessed by landlords, according to the Ministry of Justice. Continue reading
