Uk
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
UK first time buyers sales at their highest since the recession
The number of first time buyers in the UK reached their highest level in July since the recession, paying an average of £161,985, some 8.9% more than a year ago, according to the latest index. There were 29,700 sales of homes to first time buyers, some 4.9% above June with demand judges to be rising to an expected interest rate rise in the New year and despite the fact that the average first time buyer now needs a deposit of £27,975. July’s sales figure also represents a 28% rise on April 2015, amounting to a 6,500 increase over the last three months, the latest First Time Buyer Tracker index from Your Move and Reeds Rains also shows. Average deposits have increased by 10% compared with July 2014’s figure of £25,429 which in cash terms, this equates to a rise of £2,546. The cost of a deposit as a proportion of a first time buyer’s average income reached 71.6% in July, up 3.1% in one month alone and rising 5.4% from a year ago. Equally, the average first time buyer Loan to Value ratio (LTV), which represents the proportional size of an individual’s loan compared to the value of the property they are buying, is steadily dropping. This means first time buyers are having to pay more up front, in the form of larger deposits. July’s rate of 82.7% represents a 0.5% decrease on LTVs in June and a 0.2% decrease on a year ago, as the size of the average deposit rises. A similar picture emerges in the latest Mortgage Monitor from e.surv. The data revealed a decline in the number of small deposit loans given approval in July, dropping 5.9% compared to June and 7.1% compared to July 2014. According to Adrian Gill, director of estate agents Your Move and Reeds Rains, the post general election bounce has given way to a more stable optimism as first time buyers realise that the property market is at no immediate risk of being tampered with by the government. ‘Incentives attractive to first time buyers such as the Help to Buy schemes are running along steadily, while further low cost housing development is being encouraged to entice more people onto the ladder,’ he said. ‘This month’s particularly high transaction rate is also partially due to expectations that the Bank of England may announce a rate rise sooner rather than later. The thought of months of rock-bottom mortgage rates being brought to an end is encouraging many wavering first time buyers to jump on the property ladder before repayment costs shoot up,’ he pointed out. ‘Some may have held back briefly when considering the rising deposit costs. But real wages have been growing too, and first time buyers are able to shoulder the short term burden of a slightly higher deposit to spare the risk of losing out on a good mortgage deal,’ he added. Despite some lenders starting to withdraw their cheapest deals, the… Continue reading
More tenants at check out day would reduce deposit disputes, it is suggested
If more tenants in the UK attended the check out when they end a tenancy there would be less disputes, it is claimed. The Association of Independent Inventory Clerks (AIIC) wants more tenants to attend the check outs which provide the landlord or their letting agent with the opportunity to record the condition of the rental property in comparison to when the tenants arrived. The AIIC's plea comes in response to data released recently by the Deposit Protection Service which suggested that 48% of tenants had not attended their check out. What's more, some 46% of those who didn't attend said they had either not been invited or were not informed of the date or time. According to the AIIC, this is where landlords and their letting agents must ensure they are holding up their side of the bargain. ‘We were disappointed to see that so many tenants didn't attend check out and that almost half of these non-attendees were not invited or made aware of the arrangements,’ said Pat Barber, chair of the AIIC. ‘We are urging landlords and their agents to invite and remind their tenants about their check out. It is an extremely important part of the inventory process and a successful inventory can go a long way to reducing the likelihood of a dispute at the end of a tenancy,’ she explained. ‘As always, we advise landlords and letting agents to utilise the services of an independent inventory clerk in order to maintain impartiality and professionalism,’ she added. Continue reading
