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Most and least affordable seaside property locations in England, Wales and Scotland

Published On: June 25, 2020 at 8:42 am

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seaside property

Estate agent comparison site GetAgent has analysed house prices in 100 seaside towns to find the most and least affordable areas to invest in a UK holiday home.

These results, looking at seaside towns across England, Wales and Scotland, found the average property price to be £264,258. This is 14% higher than the current national property price average of £232,401.

According to the results, the top 10 least affordable seaside areas are:

  1. The Sandbanks in Poole (average house price of £619,431)
  2. Salcombe (average house price of £602,667)
  3. Aldeburgh (average house price of £507,143)
  4. Lymington (average house price of (£482,071)
  5. Dartmouth (average house price of £458,051)
  6. Southwold (average house price of £447,855)
  7. Padstow (average house price of £433,812),
  8. Lyme Regis (average house price of £425,238),
  9. Bigbury on Sea (average house price of £416,965)
  10. Hayling Island (average house price of £400,678)

15 out of the 20 most affordable seaside towns are located in Scotland, making up eight of the top 10 most affordable. Campbeltown is the most affordable, with an average house price of £71,500. This is 69% lower than the UK average house price.

Outside of Scotland, Blackpool is the most affordable in England and Wales (£93,104), along with Newbiggin by the Sea (£99,017). 

Founder and CEO of GetAgent, Colby Short, commented: “As a nation, we love to be beside the seaside, as the recent hot weather has demonstrated despite lockdown restrictions remaining in place. However, on average, the cost of living there will set you back above and beyond the wider UK average. 

“It’s also clear that the house price ripple effect isn’t just confined to the outer boroughs of London and it’s clear that as a number of seaside hotspots have increased in value, smaller neighbouring towns have also seen the benefit of this overspill in demand.  

“If you can’t afford to live in Padstow for example, opting for nearby Wadebridge provides the next best option and while it isn’t cheap in itself, it still provides a serious property price discount in the region of fifty thousand pounds.

“Of course, this heightened demand for these ‘next best’ options will often cause prices to increase and so the downside to this is a reduction in affordability in the long term. 

“That said, this process can come full circle and areas such as the Sandbanks that are extremely sought after at the top end of the ladder have since seen demand fall off and prices fall due to an over-inflated market.

“While these areas will always carry an air of prestige and attract a certain type of buyer, in tougher market conditions they are often the first to see the largest corrections in price as demand falls off and asking prices suffer.”

New research highlights why and where to invest in new-build homes

Published On: June 24, 2020 at 8:03 am

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invest in new-build homes

Have you been considering investing in a new-build property? New research from property developer StripeHomes has been conducted to pinpoint the best areas for such an investment.

The research looked at price premiums, affordability, and house price growth.

New-build price premiums

This research found that the average costs of a new-build in the UK is currently £302,749. This is 33% more than the existing UK house price. Looking at reginal new-build price premiums, it is 60% higher in the North East, 45% in the North West, and 34% in the East of England. London shows the smallest gap at 10%.

Most affordable

It is possible to find new-builds that are more affordable than buying an existing property. StripeHomes says there are as many as 40 UK areas where this is possible. Surrey Heath is top of this list, with the average new-build costing £281,973 (27% cheaper).

The lowest average cost for a new-build can be found in Hyndburn, at £97,939. Close behind are North Ayrshire (£115,305) and Burnley (£122,193). 

Higher house price growth

For those looking to invest and sell on, this research also looks at the appreciation in property values. In the last year, the average UK new-build has increased by 7.3%, compared to just 1.5% for existing homes. 

StripeHomes reports that new-build house price growth has increased by 6-8% across every UK region in the last year. Meanwhile, the market for existing property has only seen a growth of 3% in the best performing regions.

Strong growth has been noted for London, where new-builds are up 7.6%, compared to 1.2% for existing properties. The South East, East of England, South West and North East have also seen some of the strongest new-build house price growth.

Managing director of StripeHomes, James Forrester, commented: “Opting to purchase anything brand new is going to cost you more but when it comes to new-build homes, the premium is often justified and well worth the additional cost. 

“Buying a new-build comes with a whole host of benefits, not just an easier, chain-free sales process with the ability to move straight in. There are a host of incentives available such as paid for stamp duty and help for first time buyers, as well as the fact that new-build homes are often better quality, more energy-efficient, and require little to no maintenance for a good number of years.

“However, the real benefit of a new-build is the appreciation of its value. Despite the tough market conditions seen pretty much since the Brexit vote itself, new-build values have continued to go from strength to strength, far outperforming growth seen in the existing sector.  

“So not only will you purchase a far superior property, but even in areas with the highest new-build premium, it will only take a matter of years before you’re likely to recoup the additional price paid in house price growth.”

All data on new-build and existing house prices sourced from the ONS.

invest in new-build homes
invest in new-build homes

Higher prices reported in Home.co.uk’s June Asking Price Index

Published On: June 22, 2020 at 8:09 am

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Top five UK rental hotspots for landlords in 2023

The latest Asking Price Index from Home.co.uk shows that vendors are re-entering the market with higher prices for June.

Home.co.uk says: “Counter to the doom and gloom that has dominated the media recently, vendors who have been brave enough to place their properties on the market are showing considerable confidence and less caution than might be expected.
 
“However, considering the overall lack of supply (there are only around 40% of the new listings one might expect for the month of May), their bullishness would seem justified.

“Supply was already low a year ago, according to longer-term trends, and the mere trickle of properties entering the market is highly unlikely to surpass demand.

“Moreover, it is clear that there is considerable pent-up demand post-lockdown, so much so that several major lenders have temporarily withdrawn 90% LTV products citing overwhelming demand, especially from first-time buyers.
 
“The fact is that the market is currently in a state of transition and the new normal is yet to be defined. We anticipate that it will take two to three months for the market to find its new post-pandemic equilibrium.
 
“Previously, we observed that the UK property market began the year with a plethora of encouraging activity and post-correction regions showed considerable potential for price growth. 

“The optimistic scenario would be a return to this positive trend, although demand will certainly be tempered to some degree by a mortgage credit bottleneck and the economic damage sustained by the lockdown cannot be ignored.

“The key question remains ‘How vigorous will be the rebound be?’ Indications thus far suggest the market is taking off with an unprecedented sense of urgency.
 
“What is blatantly clear is that the situation could have been a whole lot worse. The annualised mix-adjusted average price growth across England and Wales currently stands at +0.8%; in June 2019, the annualised rate of increase of home prices was -0.6%.”

Asking Price Index
Higher prices reported in Home.co.uk’s June Asking Price Index

Asking Price Index headlines

  • Supply of new sales instructions ticks up across the UK in May (but is only 43% of the May 2019 total) as the lockdown eases.
  • Vendors braving the market are confident and are pricing much higher, safe in the knowledge that supply is very low.
  • Consequently, the mix-adjusted average for England and Wales has jumped 0.7% since the May reading.
  • The North West and Yorkshire show confident price hikes of 1.5% and 1.3% respectively since last month.
  • The supply rate of new instructions has recovered the most in London and the least in Scotland.
  • The best-performing regions, the North West and Yorkshire, show the lowest rises in Typical Time on Market aside from London and have year-on-year price growth comfortably surpassing that of monetary inflation (3.4% and 3.2% respectively).
  • The total sales stock on the market across England and Wales has increased slightly since last month but is still significantly down; 14% year-on-year.
  • East of England remains the UK’s worst-performing region with the average asking price 1.7% lower than twelve months ago, although a jump of 0.9% this month shows that confidence is rapidly returning.
  • Supply in the rental sector across the UK recovers slightly but remains 15% down year-on-year.

View the full report here: www.home.co.uk/asking_price_index/HAPIndex_JUN20.pdf

Latest Rightmove House Price Index shows market moving again in May

Published On: June 19, 2020 at 8:12 am

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eviction ban

Rightmove’s latest House Price Index shows that the market is starting to pick up again, following the slowdown caused by the COVID-19 lockdown.

The Index highlights that the average asking price of property entering the market in England is up by an average of 1.9% (+£6,266), compared to March.

It also states that there were over 175,000 sellers missing from the market, but there was a record number of owners asking for valuations and daily new listings are now up on last year.   

40,000 new sales have been agreed since the market re-opened on 13th May. The number of people phoning and emailing estate agents have hit a new daily record, 40% above the level seen in early March.

A delayed spring market has resulted in a traffic boom with Rightmove recording its 10 busiest days ever in May and June. 

Within the report, Miles Shipside, Rightmove director and housing market analyst, comments: “Following the initial shock of the early reopening of the housing market, England is getting moving again with a boom in traffic on Rightmove. There are no signs of panic selling or even a price dip. Some sellers who had agreed a sale before lockdown have been worrying that their buyer may try to re-negotiate with a reduced offer. 

“On this evidence buyers may now be trying to exchange quickly, as there are signs of high pent-up demand and upwards price pressure, rather than downwards. Lenders may also have been concerned about price instability affecting the risk profile of their low-deposit mortgages, so hopefully, this will give them more confidence to increase their range of first-time-buyer products.” 

Director of Benham and Reeves, Marc von Grundherr, commented: “The latest figures from Rightmove will make uneasy reading for those who have been insistent on talking the market down over the last few months. 

“Of course, it will take some time before we see market health completely return to pre-lockdown levels however, early indicators clearly show a sustained appetite on both the side of buyers and sellers. 

“A huge uplift in stock entering the market and an increase in the average asking price demonstrates there has been little to no dent in seller confidence. When you couple this with the fact that buyers are now paying a larger percentage of asking price than previously, it’s clear that any suggestion of a market crash couldn’t be further from the reality we’re seeing on the ground.”  

Managing director of Barrows and Forrester, James Forrester, commented: “We’re slap bang in the middle of what is traditionally the busiest time of year, but this period of heightened activity has understandably been delayed due to the industry-wide lockdown of previous months. 

“This pandemic induced paralysis inevitably led to a drastic decline in new stock, prices, and transactions. That said, the only lasting impact seems to have been a huge build-up of demand and this tightly coiled spring is unwinding at rapid speed now the market is back open for business.

“We will see this sharp uplift level out as normality returns but this initial burst along with the increased level of asking price achieved demonstrates strong market confidence and bodes very well for the rest of the year.” 

Managing Director of Sourced Capital, Stephen Moss, commented: “Perhaps a little too soon to call the complete resurrection of the UK property market from the depths of lockdown decline, but positive signs nonetheless.

“It will be interesting to see where the market sits once this initial burst of activity subsides. It is almost certainly being fuelled by those already transacting and those that have had to move out of necessity, but the long-term health of the market relies on a sustained level of transactions.

“The danger now is that those who were contemplating a sale later in the year may sit tight until the dust has truly settled and this will lead to a period of muted market activity down the line if they do.  

“That said, given the market’s current immunity to the crisis and the clear signs of returning confidence, they may well decide that now is as good a time as any to transact, with the figures suggesting they’re not wrong.”

Top 10 UK cities where tenants are unsure of their rights

Published On: June 17, 2020 at 8:21 am

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tenants are unsure of their rights

An analysis by Boiler Plan highlights the top 10 UK cities most unsure of their tenant rights. 

They looked at the Google search volume for the term ‘tenants right’ for 25 UK cities and then divided this number the population. This revealed a ratio of how many individuals are searching for help.

The smaller the ratio, the higher the number of people searching for tenants’ rights in that city, Boiler Plan says.

#UK CityMonthly Search Volume – ‘Tenants Rights’Population of CityRatio
1Bristol540686,2101,271
2Belfast420630,6321,502
3Sunderland180290,0001,611
4Coventry260425,5661,637
5Reading190342,1171,801
6Leicester280552,1781,972
7Leeds390780,0002,000
8Edinburgh250536,7752,147
9Southend-On-Sea140312,3282,230
10Preston60141,8002,363
Top 10 Cities Searching for ‘Tenants Rights’ on Google

Most Googled questions related to private renting

Boiler Plan also researched the most common questions private renters are asking Google in this uncertain climate. These are the top nine results:

  1. ‘Can landlords increase rent’ – 3,200 monthly Google searches
  2. ‘Can landlord evict me’ – 1,880 monthly Google searches
  3. ‘Responsibilities as a tenant’ – 1,600 monthly Google searches
  4. ‘Can letting agents charge fees’ – 760 monthly Google searches
  5. ‘Can landlord keep deposit’ – 550 monthly Google searches
  6. ‘What are tenancy fees’ – 250 monthly Google searches
  7. ‘Can you paint a rented house’ – 220 monthly Google searches
  8. ‘Does landlord have to fix boiler’ – 130 Google searches
  9. ‘What is landlord responsible to repair’ – 110 Google searches

Jay Lee, who runs uAcademy, host of Mortgage Advisor courses, commented: “As the tenant, you should know what you can and cannot do in the property. You should know the guidelines to ensure the property meets the regulations set by the government and, more importantly, that the property is safe to live in. 

“It’s also essential to read your obligations as a tenant, as this will provide details if you’re responsible for certain repairs, maintenance or if the landlord is, etc. This will also make sure you don’t have any unexpected surprises in the future.” 

UK evictions ban prevents action from being taken against domestic abuse

Published On: June 16, 2020 at 8:26 am

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evictions ban

The decision to extend the ban on evictions in the private rental sector will compound the suffering of victims of domestic violence and anti-social behaviour says the National Residential Landlords Association (NRLA).

The government has not extended the ban until the end of August. This leaves landlords without the power to take action against tenants committing domestic abuse or making the lives of fellow tenants or neighbours a misery.

According to research last year by the University of Bristol, 38% of victims of domestic abuse live in private rented housing, a higher proportion than any other tenure. The charity Refuge, which runs the Domestic Violence Helpline, has said that there has been a 66% increase in calls to the helpline during the COVID-19 pandemic.

The NRLA says that In cases of domestic violence, landlords will often end the tenancy agreement and offer a fresh one, for the same property, to the victim independent of the abuser.

The association argues that the ban goes against the spirit of a report by the then Victims Commissioner, Baroness Newlove, who warned last year that “victims of anti-social behaviour are being let down by police, local councils and housing providers.”

The NRLA is calling for the courts to deal urgently and swiftly with cases concerning anti-social behaviour and domestic violence when they are allowed to begin to hear repossession cases.

Ben Beadle, Chief Executive of the NRLA, said: “Extending the evictions ban is not without victims. It leaves landlords powerless to tackle the kind of behaviour that causes untold suffering and hardship for many communities and tenants alike. 

“These cases must be given top priority by the courts and their processes enhanced to avoid further delay once they start to deal with possession cases.”

Since the Government made the decision to further extend the evictions ban, many victims of such behaviour have taken to twitter to express their deep concerns at the move. Sentiments have included:

“My sister can’t return to the house she owns because the abusive next door neighbours who rent and have been served a section 21 can’t be evicted – how is that fair?! Meanwhile, her mental health suffers.”

“Fantastic. Landlord won’t be able to evict the criminals living below me that are making mines (stet) and my daughter’s life’s hell. Landlord can’t evict them, police aren’t doing anything. What am I supposed to do now? I own my home I can’t just up and leave.”

“This is a total disaster. I’m living in a shared house with a nightmare tenant. We all want her gone, as does the landlady. Her anti-social behaviour is driving us and the neighbours up the wall. She was due to go on 1st July. I can’t put up with it for another 2 months.”

“Please don’t make this a blanket ban on evictions. Spare a thought for those of us putting up with anti-social noisy and threatening neighbours who, but for these delays to evictions, would have been gone already. Lockdown is like house arrest next to a rave party for me.”