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Em Morley

easyProperty Hits 100 Sales Listings

Published On: September 18, 2015 at 9:53 am

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easyProperty Hits 100 Sales Listings

easyProperty Hits 100 Sales Listings

Online agent easyProperty has now reached 100 sales listings.

Part of the easyJet empire, the business was first launched as an online letting agency in September 2014.

Headed by Robert Ellice, the site branched out into sales last month, promising to save “home sellers across the UK thousands of pounds in hefty high street fees.”1

easyProperty’s upfront fees range from £475-£1,500. For the lowest fee, vendors host any viewings and deal with sales progression. For £825, sellers host the viewings, but the agent handles the sales progression. For the highest cost, vendors receive a full service, including premium listings on Rightmove and Zoopla.

In an attempt to attract sellers, easyProperty offered its first 200 vendors a fee-free service.

The agent currently lists 101 properties on Rightmove, ranging from a £46,500 two-bedroom flat in Liverpool to a £1.7m terrace house in London.

1 http://www.propertyindustryeye.com/easyproperty-reaches-100-listings/

 

 

 

 

 

 

 

 

 

 

 

 

Homeownership a dream for half of renters

Published On: September 18, 2015 at 9:15 am

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A depressing new report has revealed that over 45% of UK renters believe they will never be in a position to afford their own home.

The latest Post Office Money Mortgages survey found that of the 20 million people that are currently renting a property in Britain, nearly half expect to never get onto the property ladder.

Growing

What’s more, the average age that people now expect to take their first step onto the ladder is now 36, up one year on 2014. This expectation of having to wait until mid-thirties to own a property is shared across most would-be buyers, with those in the East Midlands most sceptical. In this region, people believe they will be 46 before they will be able to own their own property.[1]

Raising a deposit was found to be the largest barrier to potential property ownership, with UK renters believing that on average, it will take them eight and a half years to save enough. One in ten expect to have to wait for more than a decade.[1]

More cause for concern was shown with 28% of prospective home-buyers feeling that they will never be able to afford a deposit, unless their circumstances dramatically change. In addition, 17% cited that not being able to afford mortgage repayments is also a concern.[1]

Worrying

‘The average age at which non-homeowners expect to get a foot on the property ladder has increased to 36 over the past year, which is a worrying trend,’ said John Wilcock, head of mortgages at the Post Office. ‘It is clear that there is still a long way to go inspire confidence in the first-time buyers’ market, with nine million feeling they won’t ever be able to buy their own property. The size of a deposit is clearly the biggest hurdle that people face, with only 31% expecting to be able to raise the money alone,’ he added.[1]

Homeownership a dream for half of renters

Homeownership a dream for half of renters

In terms of raising a deposit, 31% of those looking to purchase a property said they would save the required amount alone. 25% said they would take advantage of the Government’s Help to Buy scheme, with 19% said they would rely on help from their partners. 13% said they would enlist the help of their parents.[1]

26% of respondents said they believe greater assistance for first-time buyers from the Government would be a help, with 24% saying lower interest rates would encourage them to buy in the near future. In addition, the re-introduction of no stamp duty for initial buyers would tempt 14% to buy.[6]

11% of respondents simply stated that they were happy with renting and the freedom that it brings, admitting they have no desire to own their own property.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2015/9/homeownership-a-distant-dream-for-nine-million-renters

 

 

Mortgage Lending Back to Pre-Recession Levels

Published On: September 18, 2015 at 8:50 am

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Categories: Landlord News

Mortgage lending reached its highest August level last month since before the recession began in 2007, according to data from banks and building societies.

Gross mortgage lending hit £20 billion in August, an 8% decline on July but a 12% rise on August last year, reports the Council of Mortgage Lenders (CML).

Chief Economist at the CML, Bob Pannell, says the August figure is the highest since August 2007, a month before the financial crisis began.

Mortgage Lending Back to Pre-Recession Levels

Mortgage Lending Back to Pre-Recession Levels

By August 2008, mortgage lending had halved and only recovered to its previous levels in the past year.

Pannell observes: “Mortgage lending is currently enjoying its best spell since 2008, on the back of a pick-up in house purchase and remortgage activity over the summer months.

“We expect further modest growth for the rest of the year, although affordability pressures are likely to limit gains for first time buyers and home movers.”1

Chief Economist at IHS Global Insight, Howard Archer, recently changed his forecast for the end-of-year growth for 2015 from 6% to 7%, after the Halifax reported the highest monthly increase in house prices since May last year.

He says the CML figures support his decision: “Latest data and survey evidence clearly indicate that housing market activity is now on the up.

“We expect support for housing market activity – and house prices – to come from very low mortgage interest rates, strengthening earnings growth, high employment and elevated consumer confidence.”1 

Chief Executive of mortgage broker SPF Private Clients, Mark Harris, expects mortgage lending to continue to grow for the rest of the year, driven by a continuation of record low interest rates.

“The mortgage market remains over-supplied with lenders having more money to lend than there are people looking for mortgages,” he says. “This means criteria will have to loosen and rates will have to remain low to ensure lenders hit their volume targets.”1 

The CML data mainly mirrors that from the Bank of England (BoE), released earlier this month.

The BoE found that mortgage approvals increased in July, reaching the highest level since February 2014.

1 http://www.theguardian.com/money/2015/sep/17/august-mortgage-lending-in-uk-lays-credit-crunch-to-rest

High London House Prices are Cutting Graduates Off from Best Jobs

Published On: September 17, 2015 at 4:58 pm

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The high cost of housing in the capital is pricing disadvantaged young graduates out of working in London, reveals research from the Sutton Trust.

Increasing rents are making it harder than ever for young people to move to London, says the report. It adds that those who can live in the capital are sharing accommodation and paying a high proportion of their income to a landlord.

The study indicates that there is a widening gap between those who can rely on their families for financial support to live in London, and those who cannot.

High London House Prices are Cutting Graduates Off from Best Jobs

High London House Prices are Cutting Graduates Off from Best Jobs

Figures released in the report show that there are now more graduates (15%) living with their parents than on their own (11%).

The firm studied data for the higher education rate of young people in certain areas, and found that those from educationally privileged neighbourhoods are most likely to be working in London.

Those that grew up in the most disadvantaged parts of the country are often priced out entirely, losing out on jobs in industries such as the media, law and finance.

The research shows that just 6% of new graduates moved to London from the most disadvantaged 20% of neighbourhoods, compared with 42% from the most advantaged 20% of areas.

It urges candidates in the 2016 London mayoral election to consider new housing schemes for young professionals, including short-term student-like accommodation and private rental developments, designed specifically for young people.

The study found that since 2001, London’s population grew by 12%, while the housing stock rose by just 9%. High housing demand has left many in a trap, where they are unable to save for a deposit for a home.

The amount of 25-34-year-olds living in shared housing in the capital has increased by 28% over the last ten years, and last year, there were just two boroughs – Bexley and Barking and Dagenham – where the average property prices were under eight times the average person’s income.

Chairman of the Sutton Trust and the Education Endowment Foundation, Sir Peter Lampl, says: “So many of our leading jobs are based in London, yet the current housing situation is making it increasingly difficult for graduates from less advantaged homes to move here.

“Our brightest young people deserve the same chances to reach the top of their professions or to be able to turn their talents into businesses, whatever their background.”1

The issue with unaffordable rents is so severe that accountancy firm Deloitte is setting up a new initiative for its graduate intake, housing them in the former Athletes’ Village in the Olympic Park.

New employees will be able to sign up for apartments without paying for credit checks or agency fees, also receiving two weeks’ free rent.

The company says that 5% of its graduate intake in 2014 had to share a bedroom because renting is so expensive, while others lived in homes where communal living space had been converted into additional bedrooms to make renting affordable.

1 http://www.theguardian.com/money/2015/sep/16/london-house-prices-cutting-off-graduates-from-best-jobs

More homeowners looking to remortgage

Published On: September 17, 2015 at 4:17 pm

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New research has indicated that up to one in six UK home-owners are considering remortgaging their property during the next six months. The so-called mortgage price wars are persuading a number of property owners to take advantage of record low prices.

According to a report from the Nottingham Building Society, homeowners are looking to save over £1,100 per year by going through the remortgaging process.

Increases

Data from the report shows that remortgaging activity increased by 15% month on month. Experts are predicting a further surge with the news that recent rate cuts have seen many five-year fixed rate mortgages fall below 2%.[1]

Further findings indicate that five-year fixes are the most popular option for customers considering remortgaging, with 27% saying this was the case. 21% preferred a two-year fixed-rate deal.[1]

Overwhelmingly, three-quarters of respondents said that they would choose a fixed-rate term. 12% said they would prefer a deal for longer than five years.

Only 7% of those questioned said they would go for a tracker deal, 4% said they would consider discount deals and 7% said they would choose a standard variable deal.[1]

Taking advantage

The mortgage price war is interesting to existing home owners who are keen to take advantage of the record low rates,’ said Ian Gibbons, senior mortgage broking manager for Nottingham Mortgage Services. ‘With interest rates expected to rise in the coming years then now could well be the right time for many to consider whether there are savings to be had,’ he added.[1]

More homeowners looking to remortgage

More homeowners looking to remortgage

Gibbons explained that, ‘potentially, savings are higher than the average £99 a month people are looking for. Someone with a £150,000 mortgage who moved from a deal a 4% to one at 2% could be around £3,000 a year better off.’[1]

‘However, to secure the best remortgage deal it is important to look at more than the base rate. You need to search the whole market and to be aware of the product fees that may be charged. A great rate won’t save you much if you have to pay a high fee,’ he concluded.[1]

[1] http://www.propertywire.com/news/europe/uk-property-market-mortgages-2015091710992.html

 

 

Brixton’s Latest Status as a New Homes Hotspot

Published On: September 17, 2015 at 3:55 pm

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The forward-thinking and fashionable area of Brixton has gone from fringe to famous, and is now being redefined once more as a new homes hotspot.

Squire and Partners architects – whose projects include Canary Wharf skyscrapers and the Shell Centre redevelopment – is relocating from North London to SW9, in a move that is set to bring a host of architects and design companies to the area.

The firm is setting up in the listed Bon Marché Centre, the UK’s first purpose-built department store and steel-frame building.

A derelict Edwardian annexe of the original store, built in 1877, is being reinvented as a creative centre, with a gallery and exhibition space, a bar, café and rooftop pavilion. The project also sees an old fire station and stables being renovated to become studio space for creative businesses.

Additionally, Lambeth Council is moving into a new town hall and freeing up land and buildings for 275 homes and improved public space. Hambrook House, a 14-storey tower, will provide 94 flats.

Brixton's Latest Status as a New Homes Hotspot

Brixton’s Latest Status as a New Homes Hotspot

The Junction combines modern architecture and stylish interiors. 92 bright flats are spread across three buildings with roof terraces and gardens. Two-bedroom properties start at £570,000.

Park Heights is a new 20-storey tower on the site of a former council estate. Generous-sized flats feature large, wraparound balconies, and are priced from £420,000.

Traditionally, Brixton was a cheap alternative to Clapham. But now, buyers move there because they want to.

Brixton Market is a hotspot for bars and cafes, but it was the music halls and late-night trams to the West End that made it a thriving area in the past.

After the Second World War, however, Brixton was the prime destination for a wave of Caribbean immigrants, due to its cheap rooms.

In the 1980s, the area was subject to riots, and many wouldn’t dream of living there.

But the political spotlight on Brixton turned its status around over the next decade.

By the 2000s, young, fashionable buyers joined the cosmopolitan mix of locals in Brixton, although the yuppies still kept their distance.

Brixton was a liberal spot with creative new ideas. The area even has its own currency, the Brixton pound (B£), designed to encourage local trading and production. Notes can be used at over 200 outlets.

But is Brixton’s character being distorted by gentrification? Some residents fear that it will lose its charm.

Earlier this year, the local branch of Foxtons estate agents was vandalised by affordable housing campaigners.

These groups state that local businesses are being forced out by expensive rents imposed by corporate landlords who’ve taken over the area. Property prices have hit £800 per square foot, and large Victorian homes can cost up to £2m.

A public relations manager who works in Marylebone, Gemma Shah, says: “The changes have been astonishing since I moved here in 2008. Back then, there was only Franco Manca pizza parlour and Rosie’s Café in what’s now the village, and probably two decent spots for a night out.

“Windrush Square, the public space in front of Ritzy Cinema, was pretty dire, too. Now it feels like people from all over London want to visit Brixton. It’s incredible how property prices have risen. I wouldn’t be able to afford my flat now.

“The transformation has made Brixton a fun and interesting place to live, but one always hopes a balance is kept, that it retains its independent spirit and remains accessible to people earning normal salaries.”1

Squire and Partners believes that Brixton will improve and remain inclusive.

Brixton is in an ideal location, in zone 2 at the end of the Victoria line, causing newcomers to arrive from pricier parts of the capital. However, estate agents claim the typical buyer is someone that has rented locally first.

1 http://www.homesandproperty.co.uk/property-news/new-homes/all-eyes-brixton-one-londons-fastest-changing-districts-and-hotspot-new-homes