Written By Em

Em

Em Morley

Cornwall is Top Holiday Home Spot

Published On: April 24, 2015 at 2:49 pm

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Categories: Property News

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More people in England and Wales are buying second properties for holidays in Cornwall than anywhere else, research has found.

In the South West, the county of Cornwall has 300 miles of coastline and lots of unspoilt countryside for visitors to enjoy, leading people to purchase a holiday home there.

Of all properties in the county, 6.2% (10,169) are kept solely for leisure, Direct Line research has revealed.1

Cornwall is Top Holiday Home Spot

Cornwall is Top Holiday Home Spot

Around England and Wales, 165,000 properties are classed as holiday homes, Direct Line found from analysing Census figures.1

The most popular areas from the data, such as Cornwall, Wales and Norfolk, have experienced growth in second homeownership in the last 20 years. This has boosted tourism in these parts, but can be worrisome for local residents.

Those in favour of people having second homes believe that they bring money and business into areas, whereas critics believe that second properties force house prices higher, which can push locals out of the area. Opponents also note that homes can sit empty for large parts of the year.

An estate agent from Padstow, Cornwall, Peter Olivey, says that the market there is competitive: “Cornwall ticks a number of important boxes for second homeowners with its coastal location and abundance of activities. It’s a true holiday haven without the hassle or cost of going abroad.”1

Behind Cornwall is Gwynedd in Wales, where the Snowdonia National Park can be found. 4.7% of all properties here are holiday homes.1

Number three is North Norfolk, which includes part of the Heritage Coast. Seaside spots such as Cromer, Sheringham and Wells-next-the-Sea can also be found here. 2.9% of homes are for holiday use.1

Out of the top ten holiday hotspots, East Riding, Yorkshire is the place where it is most difficult to buy a property.

This news arrives after the Liberal Democrats revealed proposals to give power to local authorities that would allow them to double the Council Tax on second homes.

Head of Select Premier Insurance at Direct Line, Nick Brabham, says: “Holiday homes are very valuable to owners as they are often a place to relax and spend quality time with loved ones.

“This time is often limited, which means it is essential to keep the property and its contents in top condition all year round.”1 

1 http://www.thisismoney.co.uk/money/buytolet/article-3052013/Top-ten-holiday-home-hotspots-revealed-Cornwall-top.html

 

 

Help to Buy Scheme continues to aid buyers

Published On: April 24, 2015 at 12:18 pm

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Positive new figures have suggested that the Help to Buy Mortgage guarantee scheme is working in assisting new buyers get on the property ladder.

Statistics from the Mortgage Advice Bureau show that deposits for house purchases using the Help to Buy mortgage guarantee scheme were at their highest rates for 10 months in February. Users of the scheme put down deposits averaging £9,936 during the second month of the year, up from £9, 099, an increase of £9.2%.[1]

Increases

This rise meant that average Help to Buy deposits now stand at their highest rate since April 2014, where deposits averaged £11,483. Average deposits have also risen for the last three months, following a low of £7, 856 in November 2014.[2]

The Mortgage Advice Bureau estimates that prospective first-time buyers will also be greatly assisted by the upcoming Help to Buy ISA. Calculations indicate that borrowers will be able to reach the current average of £9,936 in just 15 months using this new scheme-10 months quicker than without using it.[3] 

Help to Buy ISA

A person with a Help-to-Buy ISA will see the government give them an additional £50 for each £200 saved, up to a maximum of £3,000. This means that would-be buyers would have to save just £7,500 to reach the current deposit average, as the government would subsidise the additional funds. First-time buyer couples, who both open a separate Help to Buy ISA and save the allotted £200 per month could reach the current average deposit total in 20 months, compared to 25 months if they did not utilise the government’s support.[4]

Help to Buy Scheme continues to aid buyers

Help to Buy Scheme continues to aid buyers

Head of lending at the Mortgage Advice Bureau, Brian Murphy, was quick to stress the importance of the Help to Buy scheme. Murphy said, ‘Help to Buy’s importance to easing affordability pressure is plain to see: the average deposit of those using the scheme remains far below those found in the wider markertplace.’ This, Murphy believes, gives, ‘first-time buyers access to the housing market in a far shorter timescale than would otherwise be possible without parental help.’[5]

He went on to state that,‘ the Help to Buy ISA will provide a further boost to first-time buyers, with the government effectively pledging to contribute a fifth of their deposits up to £15,000.’ Concluding, Murphy said that, ‘the arrival of the new ISA scheme will be another step towards making homeownership a realistic goal for first-time buyers on average incomes.’[6]

 

[1-6] http://www.propertyflock.co.uk/f/093FDFDE3

More Homeowners Think Now is a Good Time to Sell

Published On: April 24, 2015 at 12:13 pm

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Categories: Finance News

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The next few months could see more people putting their properties up for sale, as homeowners are confident that prices will continue to rise.

A recent Halifax confidence tracker found that the amount of homeowners who believe that the next year will be a good time to sell has risen to its highest level for four years.

Property prices have continued to increase in 2015, although slower than last year. Experts believe this is due to fewer homes being put up for sale.

More Homeowners Think Now is a Good Time to Sell

More Homeowners Think Now is a Good Time to Sell

The Royal Institution of Chartered Surveyors (RICS) says that it is witnessing signs of a “worrying”1 upward pressure on prices because of the shortage of homes on the market.

Halifax surveyed around 2,000 people and found that 59% believe now to be a good time to sell, with 26% thinking it is not.1

The overall net balance is 33%, which is the highest figure recorded since the survey began in April 2011. At the beginning of 2012, the net balance had dropped to -64%.1

Respondents still think that house prices will rise even if the supply of properties for sale and buyer demand is better balanced. Over two thirds predict prices to increase in the next 12 months, with only 3% expecting them to decrease. This is the strongest net balance since the start of last summer.1

Net balance of people who predict prices to rise rather than fall in the next year1:

South East 79%
East of England 75%
London 69%
Yorkshire and Humberside 66%
North East 64%
South West 63%
West Midlands 57%
Scotland 51%
North West 50%
East Midlands 49%
Wales 40%

Mortgages Director at Halifax, Craig McKinlay, says: “We’ve seen a strong start to the year in terms of the net sentiment regarding the outlook for the housing market, and this has translated into an increase in transaction volumes.

“This increase in optimism is likely to be the result of a combination of factors, including the improving economic figures, greater numbers of higher loan-to-value mortgages, and extremely competitive mortgage rates.”1

House price predictions for the next 12 months are the strongest in the South East, where buyers are looking for better value in the commuter belt than London.

Furthermore, 53% of people think that now is a good time to buy a property, compared to 32% who do not.1 

The main obstacles facing those looking to buy a home are said to be saving a deposit and worries over job security, at 61% and 44% correspondingly.1

Only 12% of respondents are concerned over interest rate increases in regard to owning a property, down from 15% last year.1 

Estate agents recently revealed that there are fewer buyers searching for a home than a year ago, due to stricter mortgage lending criteria. The National Association of Estate Agents found that 65% of its members are reporting a decline in buyer numbers since the mortgage market review a year ago.1

1 http://www.thisismoney.co.uk/money/mortgageshome/article-3052488/Share-homeowners-believe-12-months-time-sell-reaches-four-year-high-confidence-price-rises-grows.html

 

 

 

 

 

Which Costs More?

Published On: April 24, 2015 at 10:45 am

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Categories: Finance News

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Which Costs More?

Which Costs More?

Internet news website BuzzFeed has compiled a quiz questioning: “Which costs more?”

From London garages to Italian castles, test your knowledge of the London property market by guessing which of these costs the most. Find the quiz here.

 

 

 

 

 

 

 

 

 

 

 

Poll Suggests Landlords Backing Tories

Published On: April 24, 2015 at 10:38 am

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Categories: Property News

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A recent survey has suggested that the Conservatives can expect the majority of backing from landlords in the upcoming general election.

Despite official You Gov predictions estimating that Labour will amass 35% of the vote and the Tories 33%, research from online letting agent Rentify suggests a much different result.

Conservative Landslide

Rentify’s poll of over 1,200 UK landlords, which covered a range of ages and locations, resulted in 45% of respondents pledging their support for the Conservatives. However, it was a much bleaker story for the Labour party, with just 19% of landlords giving their backing to Ed Milliband.[1]

Poll Suggests Landlords Backing Tories

Poll Suggests Landlords Backing Tories

While support for the Tories has seemingly remained constant, the survey suggests that a number of former Labour supporters are switching to UKIP. One particular respondent went as far to describe Mr Milliband as, ‘kryptonite.’ 17% of landlords surveyed said they planned on voting for Nigel Farage’s party, while just 6% pledged their backing for the Liberal Democrats.[2]

Rentify Chief Executive George Spencer, said that Labour’s focus on the housing market may have backfired. Spencer said, ‘Labour has been hugely vocal on housing policy in the build-up to the election, but these results suggest they may have gone down the wrong path.’[3]

[1-3] http://www.propertytribes.com/labour-are-electoral-kryptonite-for-uk-landlords-poll-t-13920.html

 

Landlords May Have to Notify NMRO of Heating Systems

Published On: April 24, 2015 at 10:25 am

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Categories: Landlord News

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The worst London boroughs for broken boilers
Landlords May Have to Notify NMRO of Heating Systems

Landlords May Have to Notify NMRO of Heating Systems

According to the Residential Landlords Association (RLA), some landlords and letting agents may have to notify the National Measurement and Regulation Office (NMRO) about the heating systems in their rental properties by the end of this year.

Generally, anything considered a communal heating system needs to be reported to the NMRO.

The RLA initially believed that these duties would only apply to institutional landlords, such as those of university halls or nursing homes. However, the regulations could impact Houses in Multiple Occupation (HMOs) and bedsits. The landlord or letting agent could be required to send details of the heating network to the regulator.

The landlord must give notification to the NMRO about the heating system of the rental property by 31st December 2015. They may be required to install individual meters by the start of April 2016. There could also be ongoing responsibilities regarding maintenance and billing.

The RLA describes a landlord or agent as a heat supplier if all of the following apply:

  • There is distribution of thermal energy in the form of steam, hot water or chilled liquids from a central source in the building, for example, a gas boiler.
  • The thermal energy provides heating, hot water or cooling.
  • The building is occupied by more than one customer.
  • The landlord bills more than one resident for the heat or hot water that the individual has used (or a proportion of).