TSI
London borough of Newham sees biggest urban house price rise in UK in 2015
Newham in London recorded the biggest percentage rise in house prices among major UK towns and cities over the past year, according to new research. The average house price in the London borough was 22% higher than in the previous year, increasing from £261,399 to £319,522 in 2015, nearly double the 12% increase in London as a whole. The research from home lender the Halifax, based on its own figures, also shows that Royston in Hertfordshire experienced the second biggest rise in average house prices with an increase of 19%. And all 10 top performers were in London and the South East. Stroud in Gloucestershire, Wellingborough in Northamptonshire, and Solihull in the West Midlands were the top performers outside London and the South East, recording price rises of 14% to 15% over the past year. A small number of towns recorded modest declines in house prices 2015. Prices in Merthyr Tydfil in South Wales fell 3.8%, in Colwyn Bay in North Wales they fell by 2.3%, while in Durham prices were down 2.1% and in Coalville in Leicestershire down 0.5%. The 10 worst performing towns are outside London and the South East with the exception of the country’s most expensive area, Kensington and Chelsea, where prices have risen by just 1% in the last year. ‘Those areas that have seen the biggest house price increases over the past year are either in outer London or within close commuting distance of the capital. Demand in these areas has risen as rapid house price rises in central London in the past few years have caused increasing numbers of people to look for property in more affordable areas,’ said Martin Ellis, housing economist at the Halifax. ‘A few towns have experienced modest price falls. These areas are typically still suffering from relatively weak employment and economic conditions, which has dampened local housing demand,’ he added. Continue reading
UK home buyers make their mind up about a property quickly, research suggests
Britain is a nation of decisive home buyers who are quick to fall in love with a home and act fast to buy it, according to a new survey. Some 61% of home owners were able to buy the home they originally fell in love with and 25% were lucky enough for this to be the first home they viewed. This highlights the decisive nature of British home buyers, according to the survey report by conveyancing services firm My Home Move. The research also found that house hunters know extremely quickly whether they like a property with 26% making the decision to buy their home even before viewing the whole property. It also found that 18% make the decision within 30 seconds of entering the property and 8% knowing the property is for them before even entering. In contrast, 17% needed a second viewing to decide it was the home for them. On top of this the survey shows that 45% of buyers did not have to make any sacrifices or compromises when buying their home and are therefore living in their dream home. However, first time buyers and those in London are more likely to come to a compromise when buying a home with 11% finding it much harder to find their dream home and having to view 10 or more properties before finding the right one. The research also found that 39% had a perfect home that ‘got away’ and were not able to buy the property they originally fell in love with, and this was more likely to happen in London were 60% were disappointed in this way. Buyers in London were also more likely to make sacrifices or compromises when choosing their home and 70% said their current property did not have everything they wanted, compared to only 55% for Britain as a whole. The report suggests that this is due to the high demand and shortage of properties for sale in the capital, alongside rocketing prices, meaning buyers in London have fewer options to choose from. This also contrasts with other parts of the country, such as the North West, which saw only 44% having to make any sacrifices or compromises. First time buyers were worse hit by this reality when buying their home, with a significant majority of 83% aged 30 or below saying they had to make sacrifices or compromises when buying their home. In comparison, only 43% of home buyers aged above 51 said their home did not have everything they wanted. The most common reason home owners were not able to buy a property was being outbid by another buyer. This happened to 27% of buyers, and is much more likely among first time buyers than older home owners, with 41% of those aged under 30 being outbid, dropping to 26% or less for those aged above 51. Continue reading
UK buyers want a return to 100% mortgages
Half of home buyers in the UK would welcome a return to 100% loan to value mortgages to jump the hurdle of not being able to save a big enough deposit, a survey has found. The poll of 2,000 people reveals that half of those who plan to buy a home within the next two years are in favour of a relaxation of the lending criteria including 100% LTV mortgages. The research by lender and mortgage broker Ocean Finance also found that buyers of all ages want to see lenders offer zero deposit mortgages again, with those aged 25 to 34 most keen. 100% LTV mortgages disappeared as part of a major overhaul of the financial market that led to the Mortgage Market Review (MMR) being introduced in April 2014. The Review, the biggest piece of mortgage regulation in a decade, tightened the rules on the size of deposit required to get a loan. It also placed responsibility on lenders to ensure borrowers only get a mortgage they can afford. In practice, the new regulations have meant that borrowers face increased scrutiny about their income and spending, and often need to save large deposits to gain approval for a mortgage. ‘Buyers would welcome a return to 100% LTVs and many lenders would like to offer them,’ said Gareth Shilton, Ocean’s spokesperson. ‘Many people trying to get on to the housing ladder struggle to get enough cash together for a deposit, then house prices rise further, and they find themselves stuck on a never-ending treadmill,’ he pointed out. ‘The Mortgage Market Review states that lenders must ensure buyers can afford a mortgage. So it’s frustrating for those buyers who are able to prove they can afford a mortgage, but can’t raise a deposit because of their rent and living costs,’ he explained. ‘It would be a brave lender who is the first to go back into the mass market with 100% LTVs, although others would no doubt follow suit,’ he added. Continue reading
