Tag Archives: css
Most UK home owners don’t know the rebuild cost of their property
The majority of home owners in the UK don’t know the rebuild cost of their home and many think it is the same as the value of their property, a new survey has found. Overall some 67% of home owners said that they don’t know how much it would cost to rebuild their home if it was destroyed and 35% thought it would be the same as the valuation. This means that they are probably not insured properly should the unthinkable happen and the property is badly damaged and needs to be rebuilt, according to the research from insurance firm SunLife. ‘When you buy buildings insurance, you will need to know the rebuild cost of your home, which is the amount it would cost to completely rebuild your home if it was destroyed beyond repair,’ said Simon Stanney, director of insurance at SunLife. ‘Unfortunately, two thirds of home owners don’t actually know what this is or how calculate it properly. Contrary to popular belief, it is not the same as the current market value of the property,’ he added. He explained that having an accurate figure can help prevent over or under insurance. If you over insure, you could be paying out hundreds of pounds in unnecessary premiums, but if you underinsure, the consequences could be very serious. ‘In the unfortunate event that your home requires a complete rebuild and your buildings insurance is not sufficient, you will be left to cover any difference in price. Worse still, if your property is mortgaged you could be left with no home and thousands to pay back to your lender,’ Stanney explained. He pointed out that the best way to get an accurate rebuild cost is to get a surveyor to carry out detailed measurements of a home and then prepare a professional Rebuilding Cost Assessment which generally costs around £250. However, the survey found that only 8% of home owners do this. ‘Most people either don’t want to or cannot afford to spend this kind of money,’ said Stanney, adding that the research found 22% said they had calculated the rebuild cost themselves and 30% just leave it, hoping the insurer will estimate it for them. There are tools available, for example, the rebuild cost calculator from the Royal Institution of Chartered Surveyors which needs a property’s external floor area for both upstairs and downstairs as well as what it is made from, the type of house, and how old it is. The other way to avoid the issue of over or under insurance is to shop around for a policy that doesn’t ask the question. There are a number of providers out there that offer buildings insurance with a standard rebuild cost cover, including SunLife. ‘Despite the fact our research shows that most people don’t know what rebuild cost is, many policies still ask for it, and this is an example of how some insurers are not thinking enough about their customers. At SunLife we’re doing… Continue reading
Scottish rents up just 0.1% in November, latest index shows
Scottish residential rental growth has almost ground to a halt in the run up to the festive holiday season with the average monthly rent up in November by 0.1% month on month. This takes the average rent to £546 per month with the data from the Your Move Scotland buy to let index showing that growth has fallen from a 0.2% rise between September and October. On an annual basis, the pace of rent rises in Scotland is also continuing to decline. November marks the fifth successive month where annual rent growth has slowed. With Scottish rents now just 1.4% higher than a year ago, the pace of annual rent rises has more than halved since the June peak when rents were up 3.1% year on year. But the headline figures disguise rises in some locations. For example, in Edinburgh and the Lothians rents increased to a new peak of £635 per month with a 0.8% monthly rise in November. The index data also shows that landlord total returns have increased to 6% across Scotland led by Glasgow and Clyde at 9.8% and the buy to let sector has seen its first fall in tenant arrears for six months. According to Brian Moran, lettings director at Your Move Scotland, the market is now set for change in 2016 with an extra 3% stamp duty tax set to be in place from April and rent control proposals looming. He reckons it will result in fewer properties available for rent which could push up prices. ‘Fresh supply is likely to be put on ice. Rents will then be ultimately be vulnerable to the shrinking pool of available homes for let. Landlords and the private rented sector have become a popular target for the Government recently but any attempts to curb investment in the private rented sector, and undermine landlords, will only have an adverse effect on tenants’ rents,’ he said. A breakdown of the index figures shows that as well as Edinburgh and the Lothians seeing growth above average, rents in the South of Scotland climbed 0.2% and those in the South were up 0.1%. Glasgow and Clyde saw the most significant monthly fall in rents, down 0.6% and the Highlands and Islands saw a 0.1% decrease in average rents since October. The picture is also mixed on an annual basis, with only three of the five regions of Scotland seeing rents increase in the past year. The Highlands and Islands saw rents rise 5.8% year on year, taking the average to £569. The next strongest annual increase was in the South of Scotland, up 3.1% and in Edinburgh and the Lothians typical rents are now 2.9% higher than in November 2014. Compared to a year ago, Glasgow and Clyde saw the biggest drop in rents, down 1.3% while average rents in the East of Scotland were down 0.1% year on year. After five months of successive rises, tenant arrears in Scotland… Continue reading
UK property prices set to rise by 3% to 8% in 2016, even with a rate rise
Residential property prices in some locations in the UK could increase by as much as 8% in 2016 as the recovery that has taken hold in London ripples out across the country. But overall price growth is expected to be around 6% across the country during the year, according to the forecast from the Royal Institution of Chartered Surveyors. One location tipped to see strong growth is Cambridge because of its buoyant jobs market and good commuter links to London. However, the RICS report also suggests that the current shortages of supply in the market is set to continue and this will push up prices with this growth likely to outstrip any rises in household income. According to RICS surveyors the average number of properties for sale have fallen to a record low of 46 and 40% of chartered surveyors believe that it is this lack of stock which is the main reason sellers are not entering the market, leading to a vicious circle. After East Anglia, the strongest growth is expected to be in the South East and the West Midlands, where 7% rises are forecast. The lowest level of increase is forecast for the North East of England where prices are forecast to rise by a much lower 3%. Areas with the highest number of transactions are likely to be the North East, Wales, Scotland and Northern Ireland, where prices remain low relative to the rest of the UK. RICS chief economist, Simon Rubinsohn, explained that an interest rate rise of 0.25% has been taken into account when making the forecast but he does not expect there to be a big rise in mortgage rates. ‘Housing has clearly leapt up the government’s agenda, but despite the raft of initiatives announced over the past year the lags involved in development mean that prices, and for that matter rents, are likely to rise further over the next 12 months,’ said Rubinsohn. ‘Lack of stock will continue to be the principal driver of this trend but the likely persistence of cheap money will compound it for the time being. Critically our principal concern with the measures announced by the government is that they are overly focused on promoting home ownership at the expense of other tenures,’ he pointed out. ‘Discouraging buy to let could see private rents take even more of the strain if institutional investment doesn’t increase significantly, particularly given the likely reduced flows of social rent property going forward,’ he added. Continue reading
