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UK group suggests special help for oldies to downsize and free up family homes
A group of politians in the UK have called for older home owners to be given support to help them move home so that more properties can be made available for families. According to the All Parliamentary Group on Housing and Care for Older People a Help to Buy style equity loan scheme and stamp duty exemption would encourage older people to downsize. The claim follows an analysis revealing a third of over 60’s would downsize if it was easier, but up to half of older home owners are priced out of local retirement housing. Their report argues that a Help to Move equity loan would help older homeowners with lower value properties ‘bridge the gap’ between the value of their home and the purchase price of a new retirement property. It also said that many older people cannot easily access mainstream mortgage lending, even when they can afford the repayments. The report goes on to argue that exempting older people purchasing homes worth up to £250,000 from stamp duty would reduce their transaction costs, while leading to a net gain for the Treasury because of the consequent moves in the property market. It also points out that the ‘guidance guarantee’, to be brought in with new pensions freedoms next year, as well as a new duty on local authorities to provide care advice, should be wrapped into a comprehensive package together with housing advice, helping older people make decisions about where and how they live after retirement. The report cites analysis by the think-tank Demos revealing 58% of over 60s, equal to around eight million people currently living in seven million homes, are interested in moving. A third of over 60s specifically wanted to downsize, while a quarter said they were interested in buying a retirement property. If ‘Help to Move’ encouraged all those wanting to downsize to move home researchers calculate that 4.3 million family homes would be freed up, easing the pressure on the housing market. However, between 40 to 50% of older home owners aren’t able to afford to downsize in their local area as their family home is not worth as much as new retirement housing, making additional financial support crucial for many older people in lower value properties. The group points to land prices, an overall lack of supply, and limited availability of ‘shared ownership’ options as reasons why retirement housing is unaffordable for many older people. ‘More and more people in their extended middle age are thinking about downsizing. This can mean much reduced fuel bills and maintenance costs, perhaps the release of some capital, and can prevent a forced move in later life. But down-sizing is not easy,’ the group’s chair Lord Best. ‘Our report recommends a Help to Move package of Stamp Duty relief, financial advice and mortgage support like the Help to Buy assistance for younger purchasers to generate the demand that will get more high-quality homes built for this age group,’ he added. Claudia Wood, chief executive of the… Continue reading
October saw a further dip in property valuations in the UK, latest research shows
The UK housing market has now cooled following a pick-up in valuations activity in September with October seeing the total number of valuations fall by 20%, new data shows. However, on an annual basis, housing market activity decreased by 10%, an improvement from a slightly steeper fall of 12% over the 12 months to September 2014, according to the latest report from Connells Survey & Valuation. ‘While the housing market is now less animated than in September, the slowdown is broadly in line with seasonal expectations and is not an alarm bell. On average, we have seen a 16% drop from September to October every year since 2010,’ said the firm’s Corporate Services Director. But he pointed out that beyond seasonal factors, there are other things contributing to this slowdown. ‘The introduction of stricter policies designed to restrain uncontrolled growth and protect against a return to the property bubble of 2008 have tempered the housing market. For instance the recent loan to income cap which came into force in October seems to have had a considerable impact,’ he explained. ‘We may see a further seasonal lull in the housing market as we approach the holiday season. And looking further ahead, the General Election in May 2015 is also likely to bring increased caution with the prospect of policy uncertainty,’ he added. The research report also shows that buy to let performed the strongest with a noticeably small annual dip of 7% compared to the rest of the market. Even on a month on month basis this section of the housing market did better than the others with the smallest drop of 17% since September. ‘Buy to let was the strongest performing sector in a clear indication that lenders are focusing on low risk investors as a result of increased regulation. Policies like loan to income caps have introduced stricter lending rules but crucially do not apply to the buy to let sector. There are now an array of competitive rates out there, especially on low LTVs,’ said Bagshaw. First time buyer valuations made up almost a third of total activity in October but the number of valuations for first time buyers was still down 18% compared to the previous month, and 11% lower on an annual basis. Other owner occupiers moving home saw a month on month dip of 21%, as well as the biggest annual drop of 16% compared to October 2013. ‘While Help to Buy has supported many first time buyers to get on the property ladder, other new policies have introduced fresh limits to promote responsible lending. These new caps seem to have affected first time buyers and home movers the most,’ Bagshaw said. ‘The impact of Stamp Duty on buyers is also not to be ignored. Though it has been a permanent feature of the housing market for a while, the prospect of a hefty tax bill… Continue reading
Drones allowing estate agents to give an extra dimension to property marketing
Estate agents are known for going that extra mile to get a sale and now they are set to embrace the very latest technology to make sure a property looks its very best. Savills is one real estate company that is leading the way in their use of drones and have explained how they are increasingly helping estate agents to market properties. It enables them to take airborne photographs and videos to help market properties. The firm says that drones, or unmanned aerial vehicles (UAVs), present a number of advantages over traditional aerial photography techniques. They’re are measurably much cheaper and can produce better quality video than helicopters. Also, with the necessary consents they can be flown almost anywhere unlike aerial masts which must be set up and positioned, and are limited in height. Additionally, many commercial drones are based on the open source Arduino platform, which allows savvy users to customise them to a specific purpose. Savills began using UAVs to market homes on a wider scale in 2012, having seen their potential to convey properties in 3D, and thereby bringing the property to life for potential buyers. To date, the company has used drones on many occasions, including for Donhead House in Wiltshire, and Lasborough Park and Bell’s Castle also in Gloucestershire. They have found that drone-captured video and photography can offer not only the dramatic details of a property, but a sense of place, something that can be difficult to capture using traditional techniques. ‘It’s not just about selling the house, it’s also about selling lifestyle and the wider area. A brochure would normally lead with images of the house and formal gardens, whereas a video can capture the whole,’ said Ed Sugden, director of Savills Country House Department. ‘It allows a potential buyer to look beyond the brochure, and allows us to convey a lot of information far more quickly and efficiently,’ he added. However, it is not as simple as letting the drone do all the work. There is an art to using drones as well as a science, and one common mistake is showing too much of the property’s roof. Savills advises taking video and photography from a 45 degree angle, which allows the property’s best attributes, including its grounds and architecture, to be captured in the most aesthetic way. The novelty of drone photography itself can also help to capture buyer interest, and encourage people to take it forward with a viewing. So far, this strategy has been working for Savills and their clients. For example, one property’s video has had over 7,000 visits from around the world, which must lead to more viewings and interest. However, as useful as they are, drones aren’t suitable for every situation. ‘If a particular house has a pig farm on one side, a pylon and a motorway on the other then an aerial overview is not the… Continue reading
