Written By Em

Em Morley

Students use Smartphones to Look for Property

Published On: July 18, 2013 at 9:53 am

Tags: searching for homes online,student tenants,students looking for property

Advancing technology has changed the way that students are searching for private rental accommodation during their time at university.

Research from accommodationforstudents.com suggest that 90% of students own a smartphone. With this in mind, students are likely to search for accommodation away from their computers.

Google was unsurprisingly the preferred search portal for 52% of the 1,500 students surveyed.[1]

Offline

Students choosing not to search for rental accommodation for their next academic year online mostly utilized letting agents and university accommodation offices.

58% of students said that proximity to their university campus was their most important factor when searching for new housing. However, many were ultimately ruled by price when making their final decisions.[1]

Students use Smartphones to Look for Property

Those students residing in privately rented accommodation expressed that they felt they got more value for money than those living in halls of residence.

Important

The survey revealed that 70% of students feel that rent inclusive of bills is very important, allowing them to keep on top of their finances. 88% nodded again to advanced technology, stating that a fast internet connection was the most important feature to them.[1]

Of the students who responded to the survey, 66% lived in rental accommodation managed by agents or private landlords. 60% said that they had a positive relationship with the property owner.[1]

Issues

Disappointingly, the students questioned reported a range of problems with their accommodation provider. 40% said that they had received no communication after lodging a maintenance issue and almost 33% cited a general lack of communication.[1]

Further disappointing news came with the figure of 51% reporting that they felt their deposit had been wrongly withheld by their provider.[1]

[1] http://old.lettingagenttoday.co.uk/news_features/Half-of-student-tenants-say-deposits-are-unfairly-with-held

Building more Houses will Stabilise the Market

Published On: July 15, 2013 at 12:52 pm

Author: Em Morley

Categories: Property News

Tags: future housing market recovery,help to buy scheme

Many industry experts are warning that the current housing market recovery could be soured if more long-term measures are not put in place to further stabilise the market.

Help to Buy

A number of experts are concerned about the legacy of the Help to Buy scheme. The scheme was implemented in order to assist first time buyers, with just a 5% as opposed to a 20% deposit required in order to secure a property. Under the scheme, it is possible for buyers to have a 5% deposit, 75% mortgage and 20% loan, with is funded by the tax-payer.[1]

While critics acknowledge that the scheme is a good short-term fix, which will get the housing market moving, they warn that the long-term effects could be catastrophic.

Increases

Some industry economists are suggesting that by the end of 2014, average house prices in the UK will have risen by as much as 15%. Some even suggest that this number could be even higher.

Online property website Rightmove said recently that house prices in all regions, “are up year on year for the first time in nearly three years contributing to the positive national picture.”[1]

Building more Houses will Stabilise the Market

Rob Wood is an analyst who oversaw the last house market increase and subsequent slide from the inside of the Bank of England. Wood believes that after 2015, prices of property will rise to new heights. However, rising property prices, coupled with static wages have lead him to raise his concerns that there may be another housing bubble.

Wood said: “House prices thus reach the heart of Britain’s current policy paradox. Loose monetary policy works by boosting asset prices and encourage households and firms to spend now and save later. That boost can cause depression. But it can only delay the inevitable adjustments of saving, spending and house prices.”[1]

Mr Wood suggests: “To keep the economy alive today, policy has to do the opposite of what is needed to keep it alive tomorrow. The positive way this plays out is that the UK adjustment is less painful in the future. Eurozone austerity is due to ease off next year and the US will be through the fiscall cliff. With a stronger world, UK adjustment could be less difficult in the future.”[1]

For Wood, it is too risky for the UK to have to depend on other countries for bail. Instead, he feels that the best way to solve the issue is to build more houses to cope with demand and for a cheaper price. He believes that this will not only improve housing prices but will reduce unemployment.

[1] http://www.justlandlords.co.uk/news/Building-more-Homes-will-Stabilise-the-Market-1759.html

Landlords Have Unrealistic Expectations of Returns

Published On: July 15, 2013 at 10:27 am

Author: Em Morley

Categories: Finance News

Tags: buy-to-let returns,property returns

Data taken from YouGov’s Landlords and Mortgages 2013 report suggests that landlords are expecting unrealistic returns from their buy-to-let property.

Lenders have suggested that landlords newly entering the buy-to-let market are more focused on potential long-term returns of a property than before the financial crisis. Critics argue however that YouGov’s findings suggest many landlords are not taking into account a range of necessary payments when calculating their figures.

Decline?

The report indicates that landlords’ total returns are in decline, despite rising rental prices. Between 2002-2006, landlords’ returns were between 4%-6%. However, the findings suggest that they are now between just 1%-4%.[1]

A possible reason for this reported decline is landlords overlooking many mandatory costs. The data shows that 93% consider mortgage interest payments, but only 68% take account of agency fees, and 46% budget for other management expenses.[1]

Buy-to-let in general has continued its remarkable growth, with 1.5m landlords making up 13% of total lending.[1]

Landlords Have Unrealistic Expectations of Returns

Landlords

The Strategic Society Centre recently released a report entitled Understanding Landlords, collated in order to ascertain the profile of the everyday landlord. The think tank found that “private rented sector landlords have, on average, a more advantaged background,” with 40% of 45-64 year old landlords having a degree or higher qualification.[1]

There are concerns that the well educated private sector are driving up prices, making it increasingly difficult for young people to purchase property.

Limits

The findings of the YouGov report have called for limits on landlord activity. Campaigners are asking for prohibition surrounding the purchase of new build properties with buy-to-let loans. Pricedout.org.uk, a website campaigning on behalf of young would-be homeowners, has called for a landlord’s right to offset mortgage interest against tax to be stopped.

However, Richard Lambert from the National Landlords Association (NLA), has slammed the Strategic Society Centre’s report, coining it “Misunderstanding Landlords.” Lambert suggests: “The authors just want to prove their preconception that the growth of the sector is the cause of problems in the market rather than a consequence of them.”[1]

Lambert then asks: “Will anyone be surprised to learn that those who invest in property are wealthier than those who have not been able to buy?” before continuing, “claiming that the private rented sector represents a transfer of wealth from tenants to landlords is like saying that pubs represent a transfer of wealth from drinkers to publicans.”[1]

[1] http://www.landlordexpert.co.uk/2013/07/15/landlords-have-unrealistic-expectations-of-property-returns-claims-new-report/

Redecorating Before Selling

Published On: July 13, 2013 at 4:22 pm

Author: Em Morley

Categories: Property News

Tags: redecorating,redecorating before selling

A recent study has revealed that finishing your property to a high spec makes it more likely to sell faster and for more money.

If you are expecting to sell your house in the next couple of years, it may be a good plan to evaluate the property and see what could be improved. Making some changes could benefit you in the long run. A higher specification could be anything from new kitchen appliances to high quality flooring.

Once areas of the home are highlighted as potential places of development, it is crucial to assess whether the costs of completing these tasks are less than the projected increase in selling price.

The research has found that by spending some money on your house before selling can be a very good investment. The bathroom is a great place to start, as everybody in the house uses it. If it is somewhat out-dated, then a replacement is a worthy option. The average cost of a bathroom suite is £1,500, but could add a value of £3,350 to your property.

Redecorating Before Selling

Another room to benefit from a revamp is the kitchen. Again one of the most used rooms in any property, brand new kitchens can appeal to more buyers and encourage higher offers. There are many options in updating a kitchen area; so all budgets are catered for. However, a new kitchen will add about £5,000 onto a property, so spending more than this is not advisable.

One major building society has explained the benefits of incorporating a loft conversion to your house. They can add lots of value, an estimated £21,000, but could cost anything from £10,000 to £30,000. A conservatory also adds to the available living space of a house, and is therefore attractive to buyers.

Another leading building society has also claimed that adding a garage to the house increases the property’s value by around 10%, and may cost just £8,000.

These opportunities are all fairly expensive, however, and many will feel it is too much work, despite the added value to their home. Although there are plenty of cheap and easy options that will refresh your house for sale. A lick of paint to either the interior or exterior can make a huge difference. Using neutral colours can make rooms appear much more spacious.

In addition, preparing your house for viewings can be very effective. By de-cluttering and de-personalising, potential buyers will be able to imagine themselves living in the property. A simple appearance will encourage quicker sales.

Jonathan Barry, of Kinleigh Folkard & Hayward estate agents, has said that the current market could highlight other issues with your property. He says that is a house isn’t selling after six months on the market, then the “price is probably an issue.”¹

¹ http://www.independent.co.uk/property/house-and-home/sam-dunn-my-house-just-wont-sell-will-a–kitchen-revamp-help-me-shift-it-1922234.html

Property Market on the Up

Published On: July 3, 2013 at 2:56 pm

Author: Em Morley

Categories: Property News

Tags: property market,recovering property market

Nationwide has found that house prices are rising at the fastest rate since 2010.

The UK’s biggest building society also revealed that since the beginning of the year, property prices have grown by 4%, and they are increasing by £1,000 a month.¹

These figures demonstrate confidence in the market, and a recovering economic climate. A cause of this may be that first time buyers are purchasing homes easier, due to Government schemes and cheaper mortgages.

Property Market on the Up

The start of the year saw an average house price of £162,262. It is now £168,941; a monthly rise of 0.3%.1

Head of Lending at the Mortgage Advice Bureau, Brian Murphy, says: “Homeowners will be delighted to see a third month of house prices increases in Nationwide’s figures while potential buyers will be comforted by the fact that mortgage rates are still heading in the opposite direction. This golden age of rate reductions is coaxing more borrowers through the door.”1

Jonathan Hopper, Managing Director at Garringtons, also says: “There is without doubt more momentum in the property market and this latest data is further proof of that. Consumer confidence is crucial to the property market and people certainly feel a lot more confident about the economy at the moment.”1

Despite this, these statistics are averages, and Nationwide have also claimed that they have seen massive regional differences. The variations in house prices between London and the rest of the UK are the widest they have ever been.1

Property prices in London are up by 5% since autumn 2007, however, the rest of the UK has seen prices drop by 9% in the same period.1

Northern Ireland has seen a tremendous decline, with house prices at a shocking 52% lower than they were in 2007.1

Robert Gardener, Chief Economist at Nationwide, comments: “There are a few signs that the supply of housing is improving significantly. Indeed, construction data points to further decline in building activity.

“For example, in the first quarter of 2013, housing completions in England were down 8% compared with the same period of 2012, and around 40% below the average number of quarterly completions in 2007.”1

This research is just one example that reveals strength in the housing market.

¹http://www.justlandlords.co.uk/news/Property-Market-Recovering-1750.html

Why has the Buy-to-Let Market Improved?

Published On: June 24, 2013 at 11:37 am

Author: Em Morley

Categories: Finance News

Tags: buy to let market stability,buy to let mortgage growth,strong rental demand

The buy-to-let market is starting to become more robust and is improving further as the economy moves out of recession, according to a recent report.

Select Property has just released their UK Buy-to-Let Report, which indicates variances in the sector during the past few months.

Results

Findings from the report show that buy-to-let mortgages rose from 44,000 in 1999 to 122,000 in 2011. In addition, the figures indicate that £3.1m was lent to buy-to-let investors in 1999, in comparison to £14m in 2011.[1] These figures were collated by the Council of Mortgage Lenders (CML).

Giles Bestwick, Director of Select Property, said: “This report will explain more about how the property market has come to favour buy-to-let investors since the economic crisis and why this sector of the industry is now looking relatively robust as a result of strong rental demand and occupancy rates.”[1]

Why has the Buy-to-Let Market Improved?

Report

Section Property’s analysis also covered features such as the increase of foreign investment in the UK market, improvements in buy-to-let practices and predictions about the future of the market.

[1] http://www.landlordexpert.co.uk/2013/06/24/the-buy-to-let-market-has-been-improving-over-past-few-years-heres-why/