Uk
Millions of UK home owners fail to get a survey on their property
Over seven million UK home owners have taken a serious financial risk by choosing not to have a survey completed on their current property, new research has found. Some 13 million home owners have needed unexpected building work completed on their property since moving in and 56% of those who had major building work said knowing this in advance would have influenced their decision to buy the property. Surveyors say the top three problems with properties which can be detected by a building survey are damp, roof issues and subsidence, according to the research rom Churchill Home Insurance. But millions choose not to do so and this includes 3.5 million who did not have any type of independent checks completed and 3.6 million who assumed a mortgage valuation was sufficient. With the price of property stretching many home owners’ budgets, it appears people are scaling back on the level of surveys completed on their property pre-purchase and choosing to go down the cheapest route. The number of people having at least a base level survey has increased over time, from 63% 20 years ago to 91% in the last 12 months. The number of home owners, however, having the comprehensive building survey has reduced significantly from 28% 20 years ago to just 6% in the last 12 months. The research also found that 36% of UK surveyors have seen a change in the trend for people requesting surveys in recent years, the main one being an increase in the number of surveys requested compared to previous years. Some surveyors said buyers look for the cheapest survey as they want to save money throughout the property purchase. ‘It’s encouraging to see the number of people having a survey has increased over time. Only by having a qualified surveyor assess a property are prospective buyers fully informed of the true state of that property, so it is an essential part of the buying process,’ said Martin Scott, head of Churchill home insurance. ‘Those relying on a mortgage valuation alone should be wary as this is just a cursory look at a property from a mortgage lender to assess how much it is worth, not a survey looking at the state of the property,’ he added. The research also reveals that 23% of surveyors have had clients who needed expensive building works doing to their property soon after moving in, which would have come up in a more comprehensive survey. Indeed, one home owner had a Home Buyers report that missed the full extent of subsidence affecting the property while others needed roof repairs, had problems with dry rot, damp or heating issues, all of which would have come up in a full building survey. Overall 42% of UK home owners have needed unexpected works doing to their property within 12 months of moving in, some 9% needed major works completed, while 15% needed moderate remedial work. Demonstrating that scrimping on a thorough survey can be a… Continue reading
Home Counties prime property rents down month on month and year on year
Prime rents across the English Home Counties, locations that are popular with people who commute to work in London, fell by 0.6% between April and June, according to the latest index. The Knight Frank rental index also shows that on an annual basis rents were 0.8% lower than a year previously and adds that the fall in quarterly and annual rental growth has been driven by higher stock levels and a desire from landlords to remain competitive and keep void periods to a minimum in what is increasingly a tenant’s market. However, the index report points out that underlying demand for rental property remains strong, with the number of new prospective tenants registering in the second quarter some 6% higher than the same period in 2015 and the number of viewings up by 12% year on year. The data also shows that the number of new tenancies agreed between April and June was almost identical to the same period in 2015 and 28% higher than in 2014. However, despite robust activity levels, agents note that any upwards pressure on rents has been countered by rising stock, especially at the top end of the market. ‘In the wake of the European Union referendum, there is already anecdotal evidence that some vendors are deciding to let their property until more clarity emerges, and this could further weigh on rental values in the medium term,’ said Knight Frank associate Oliver Knight. The index reveals that the market continued to attract international tenants in the second quarter. Indeed, some 38% of new renters across the prime Home Counties market were non-UK nationals between April and June in Ascot, Cobham and Esher, where corporate tenancies tend to be more prevalent this rose to 47%, although some of these tenants will already be domiciled in the UK. Individuals from North America were the most active movers during this time, with the start of the American school term in August likely to have been a factor, the report explains. Corporate enquiries were more than double the level in June and 19% higher than in February, the second busiest month of the year to date. Executives being relocated by their companies for work, both from London and internationally, have historically formed a large part of demand within the Home Counties lettings market. ‘As such, any rise in economic and business uncertainty as a result of the vote to leave the EU has the potential to weigh on demand for rental property as companies take stock of the new environment or look to make budget cuts,’ Oliver explained. ‘However, while our figures show a notable slowdown in the number of enquiries from relocation agents in the immediate run-up to the referendum, the number of enquiries in July was at the highest level all year, suggesting a degree of pent-up demand in spite of the UK’s vote to leave the EU,’ he added. The report also points out that the prime rental market in… Continue reading
Research shows just 18% of UK mortgage holders overpay to reduce their loan
Mortgage holders in the UK could save over £1,800 in interest alone through regular overpayments, according to new research. Some 18% overpay on their mortgage every time a payment is due and 11% have even delayed buying a new car to make the extra payment, however 58% never overpay. Overall UK mortgage holders could save over £14 billion over the next two decades by regularly overpaying, the research from Comparethemarket shows. Overpaying each month by as little as £59, or around 10% of an average monthly payment, means mortgage holders could reduce their mortgage term by approximately one year and four months and possibly save £1,842 on interest alone. For first time buyers the potential savings are even greater. Mortgage holders between 25 and 34 years old could reduce their mortgage term by approximately two years and eight months and save roughly £6,553 on interest by overpaying by 10%. Many home owners are already aware of the benefits of overpayment. The survey found that 52% said that contributing more towards their mortgage each month would make them feel more financially secure, with 19% agreeing that it would make them feel much more secure. Those who do regularly contribute extra to their mortgage overpay by an average of 4.7%. Nearly a fifth said that they overpay every time a payment is due and 15% admitted to overpaying by more than 10% in the last 12 months. Many mortgage holders are willing to give up day to day luxuries in order to afford overpayments. To pay off more of their mortgage, over one in ten people delayed buying a new car, 18% had not taken a holiday abroad and over a fifth put off buying a luxury item such as expensive clothes or a new gadget such as an iPad. However the majority of people still hesitate to put more money towards their mortgage every month, with 58% admitting to never overpaying. Of those who don’t overpay, a fifth think they have too many other outgoings such as household bills, and one in 10 were not aware they could overpay on their mortgage or thought it seemed too complicated. Of those who do not overpay, 44% thought they couldn’t afford the extra payments, yet respondents also said they spent on average £167 each month on non-necessity items, with nearly one in 10 admitting to more than £300. The research also shows that 25 to 34 year olds admitted to spending closer to £210 on luxuries such as going out for dinner or attending the theatre. ‘As a nation we are getting more proactive in searching for the best deals, whether on energy providers or insurance. Whilst committing more of your pay cheque towards your mortgage can seem financially daunting, making small contributions each month, or even a one-off lump sum overpayment, could save mortgage holders thousands of pounds in the long term,’ said Jody Baker, head of money at the comparison website. ‘Sacrificing one meal… Continue reading
