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Em Morley

First Time Buyer Sales Down 27% in a Year

Published On: July 31, 2015 at 10:58 am

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First Time Buyer Sales Down 27% in a Year

First Time Buyer Sales Down 27% in a Year

First time buyer property sales fell by over a quarter in the year to June, according to agents Reeds Rains and Your Move.

According to the research, the agents estimate that in June there were 21,000 first time buyer transactions at an average price of £154,910.

This figure has decreased by 7% since May, by 8.3% quarterly and by 27.2% over the year.

However, the average purchase price was unchanged from June 2014.

The average deposit of just under £26,000 was also almost unchanged from last June.

In London, the average first time buyer home cost £277,871, with a deposit of £70,374.

The single greatest reason for tenants not being able to buy a property was a lack of savings for a deposit.

The two agents asked renters if they plan to get onto the property ladder by the end of this year, with only 8% saying yes, down from 16% last year.

Regarding the sacrifices they may have to make to afford a home, the aspiring buyers said they could live with dated décor and bathrooms, and some even said they could go without basic utilities, such as electricity and plumbing.

Around half (45%) said they would accept a home of any condition if it were in their budget.

 

Paragon report high profit increase

Published On: July 31, 2015 at 10:47 am

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The Paragon Group of Companies, parent firm to Paragon Mortgages, has today announced its financial results for the second quarter of 2015.

Profits

Encouragingly, the groups total operating profits amounted to £98m in the nine months to 30th June 2015, an 11% increase on the same period last year. In addition, Paragon Mortgages record completions totalling £370.3m in the quarter, representing a 98% increase on the same quarter last year. In the year as a whole, buy-to-let finishes totalled 816.5m.[1]

New business secured stood at a cumulative total of £864.9m at the end of the quarter, in comparison to £352.7m at the same time in 2014.

Paying dividends

Managing director of Paragon Mortgages, John Heron, commented, ‘we have seen a substantial increase in market share over the last year as our strategy to diversify funding has started to pay dividends.’ Heron said this was the case,’ against a background of strong and sustained tenant demand in a private rented sector that has doubled in scale in the last ten years and now accounts for 4.9m homes.’[1]

Paragon report high profit increase

Paragon report high profit increase

‘Buy-to-let plays an important role in supporting the sector and making sure the market can respond to this continued increase in demand for rented homes, ‘Heron added.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2015/7/paragons-buy-to-let-business-doubles

 

 

Romans Buys Third Business This Year

Published On: July 31, 2015 at 9:58 am

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Romans Buys Third Business This Year

Romans Buys Third Business This Year

Romans Group has acquired Atlantis Sales and Lettings in Reading, Berkshire.

This is the third purchase so far this year for Romans, which has a £12m fund for acquisitions.

Atlantis Sales and Lettings was founded as part of the Atlantis Group, which will continue to run its residential and commercial estate management services.

Romans has 23 branches in Berkshire, Buckinghamshire, Hampshire, Oxfordshire and Surrey. The firm states it is still hoping for more purchases.

Managing Director of Romans Lettings, Peter Fuller, says: “We are ready and able to consider any acquisition opportunity and plan to accelerate our rate of growth this year and in the years to come.”1 

1 http://www.propertyindustryeye.com/romans-makes-its-third-acquisition-so-far-this-year/

 

 

 

 

 

 

 

 

 

 

 

Dream features of property revealed

Published On: July 31, 2015 at 9:15 am

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New research from Leeds Building Society has revealed the dream property for people living in the UK.

Dreams

According to the questionnaire, a three bedroom, two bathroom detached period property would be the perfect dwelling for 48.5% of respondents. 52.4% said that they would like to live in a home with three bedrooms, with 74.3% going as far to say that this is a minimum requirement.[1]

76.2% of people questioned in the survey said that one bathroom would not be enough, with over half (56.2%) stating two bathrooms is a priority.[1]

When choosing a property, the top feature was found to be location, with 72.9% saying this was most important. 68.5% said that the size of the property was the most significant feature and 61.7% gave the largest priority to a garden or outside space. The layout of the property was considered imperative by 56.2% and off-street parking was of paramount importance to 53.1%.[1]

Compromises

Further data from the research shows that buyers were most likely to compromise on good interior decoration. 28.7% said that they were prepared to overlook this and 23.6% said they would also overlook period features. 21.5% commented they could do without a new kitchen or bathroom and 21.2% were unconcerned about the property layout.[1]

Dream features of property revealed

Dream features of property revealed

However, the biggest turn off for potential purchasers was no garden, with 35.3% that they could not buy a home without one. 14% said they could not operate without a drive, 10.9% didn’t feel they could live with an old heating system and 9.4% cited they couldn’t live in a home with stairs in the living room.[1]

‘When home ownership appears to be a national obsession and there’s a mind boggling choice in types of properties to purchase, it’s perhaps surprising that our survey discovered so many people share the same view of what makes their dream home,’ observed Martin Richardson, Leeds Building Society’s general manager for business development.[1]

Fundamentals

Director of business development for e.surv Richard Sexton, feels that it should not come as a surprise that the major selling points of a property are those that cannot fundamentally be altered.

Sexton noted that, ‘it’s relatively easy to redecorate, but impossible to move a building from one location to another. The findings reflect the fact that house hunters are generally aware of the difference between these categories and take a long term view on changeable factors to ensure they get their preference on the fundamentals.’[1]

[1] http://www.propertywire.com/news/europe/uk-dream-home-survey-2015073010806.html

 

 

Second Series of Nightmare Tenants, Slum Landlords Confirmed

Published On: July 31, 2015 at 8:56 am

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The first series of Nightmare Tenants, Slum Landlords on Channel 5 has explored the relationship breakdown of landlords and tenants. But bosses agree that there is more to be seen.

Second Series of Nightmare Tenants, Slum Landlords Confirmed

Second Series of Nightmare Tenants, Slum Landlords Confirmed

The last episode of the current series aired last night, but a second series featuring eviction specialists Landlord Action has been commissioned, due to be broadcast in March 2016.

The final episode in season one featured a landlord making the decision to end his buy-to-let career.

Steve Bull bought his first investment property four years ago, hoping that his children would benefit in the future.

Eight months ago, a new tenant moved into the property and has been paying the rent late ever since. The rent arrears totalled over £5,000.

Bull called on Landlord Action’s Paul Shamplina to help him evict the tenant, but the worry that the incident has caused means that Bull is ready to sell the property.

Shamplina says: “As the buy-to-let market grows, with more people expected to rent than own property with a mortgage by 2025, naturally the level of complaints relating to tenancies will follow.

“No amount of legislation will ever be able to eradicate problematic tenancies, so education is the only way to help reduce this.

“Nightmare Tenants, Slum Landlords isn’t aimed at putting people off either letting or renting property, but highlights some of the scenarios which can arise so both tenants and landlords can protect themselves in advance.”1

1 https://www.landlordtoday.co.uk/breaking-news/2015/7/nightmare-tenants-slum-landlords-commissioned-for-second-series

Connells Profits Drop, but Remains Optimistic

Published On: July 30, 2015 at 4:51 pm

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The Connells Group has announced that in the first half of this year, profits dropped substantially. However, the firm says that a strong second half of 2015 will make this year a record.

Connells revealed its pre-tax profits of £27.3m for the first six months of 2015 were down from £42.6m in the same period last year.

Connells Profits Drop, but Remains Optimistic

Connells Profits Drop, but Remains Optimistic

Connells is owned by Skipton Building Society.

It says that it experienced a sharp rise in activity during the second quarter (Q2) of 2015, especially after the general election.

In June, its estate agency division recorded a 27.5% increase in the amount of agreed sales compared with June 2014.

Connells says that it enters the second half of the year with a 13% rise in its residential sales pipeline compared to June last year.

Connells has also witnessed growth in new homes sales. In the first six months of the year, it recorded a 43% increase in sales of new homes compared to the same period in 2014.

David Livesey, the Group CEO, says: “Our profit figure understates a performance and market that has improved as the year has progressed.

“2015 started steadily and post-election, with the stabilising effect of a clear majority government and a recovering economy, market confidence now seems strong.

“Connells enters the second half of this year with a substantially increased sales pipeline and with every indication that this year will be a record-breaking year for growth and profit for the Connells Group.”

In other areas of the firm, Connells’ growing lettings network saw a 23% increase in income in the first half of 2015.

The Group purchased a number of lettings businesses in quick succession, including three in June. This supports the company’s aim to double its lettings division by the end of the year.

Connells has opened over 100 lettings branches in the past 18 months and Livesey insists that it is still hoping for more buys.

He states: “We still have the appetite and the means to expand the Group through a mix of organic growth and acquisitions.

“As the year progresses, we are open to new opportunities to acquire both sales and lettings business.”1

1 http://www.propertyindustryeye.com/connells-profits-take-a-dive-but-firm-says-it-is-on-course-for-best-year-ever/