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Em Morley

Have More People Heard of Zoopla or Rightmove?

Published On: July 17, 2015 at 12:51 pm

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Have More People Heard of Zoopla or Rightmove?

Have More People Heard of Zoopla or Rightmove?

New research suggests that more people have heard of Zoopla than Rightmove.

The study was undertaken by Harris Interactive on behalf of ZPG, and reveals that Zoopla is the most popular UK property portal with the highest level of national consumer brand awareness.

The survey was conducted between 29th June and 3rd July this year, and questioned thousands of consumers around the country. It shows that Zoopla’s national spontaneous brand awareness amongst adults is at 38% compared to Rightmove’s 34% and OnTheMarket’s 2%.

It is also believed that the second half of this year could see increased vendor activity, with 7% of respondents planning to sell in the next 12 months, up from 5% in February.

Zoopla’s Lawrence Hall says: “This research reinforces how the Zoopla brand remains front of mind with consumers when thinking of property search and research.

“This is a difficult market in which to establish brand loyalty, which we have done through constant innovation and differentiation.

“And our high levels of brand awareness and usage are helping us to deliver record levels of instruction leads for our members to take advantage of.”1 

1 http://www.propertyindustryeye.com/more-people-have-heard-of-zoopla-than-rightmove-claim/

 

Tenants moving to new cities

Published On: July 17, 2015 at 12:42 pm

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Latest data has revealed the locations where tenants new to a region account for the greatest proportion of new tenancies agreed.

HomeLet’s Rental Index Regional Variance Figures give the total number of new tenancies for people moving into an area. The latest report indicates that Wakefield, Coventry, Brighton, Nottingham and Greater London top the list for new tenancies from people new to the area.

Out of town

More than 25% of tenancies signed in the last year in Coventry and Wakefield were from people moving into the cities. Tenants moving to Greater London have also increased since the recession, with 18% of new tenancies agreed last year from new arrivals, as opposed to 11% in June 2008. What’s more, the average rent for people living in the capital was £1,515 per month in the three months to June. This represents a 10.1% increase from twelve months ago.[1]

On average, rent for new UK tenants in the second quarter of 2015 was £956 per month, with increases in all regions of Britain, with the exception of London.[1]

London has however shown the largest increase in average monthly rents since the recession, with a 51% increase. The capital was followed by Brighton with 25% and Coventry with 21%.[1]

Tenants moving to new cities

Tenants moving to new cities

Staying put

The Index also indicates the British cities in which tenants are most likely to remain, by looking at the proportion of tenancies being signed by people who have lived elsewhere in the city. Belfast, Cardiff and Birmingham all proved popular with renters, with more than 95% of tenancies in these locations taken on by someone already residing in the region.[1]

Martin Totty, chief executive officer of HomeLet’s parent company Barbon Insurance Group, stated, ‘the HomeLet Rental Index paints a fascinating picture: it reveals several hotspots around the country that are attracting and retaining tenants. For example, with its proximity to the burgeoning local economy of Leeds, Wakefield is an attractive and affordable location for tenants to move to. Meanwhile, cities such as Birmingham and Bristol appear to be ‘must stay’ locations, with tenants increasingly choosing to settle and stay in these cities, and continuing to choose to privately rent property in order to do so.’[1]

‘While the London rental market continues to be popular, with the capital inevitably drawing in large numbers of people, it’s not the only part of the country attracting incomers, with tenants also choosing cities such as Nottingham, Brighton and Coventry,’ Totty added.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2015/7/tenants-are-on-the-move-to-where

 

 

Charities Say Housing Benefit for Under-21s is Vital

Published On: July 17, 2015 at 11:46 am

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In her first House of Commons speech, the youngest MP, Mhairi Black, stated that she is the only 20-year-old in the country that the Chancellor is willing to help with housing.

Criticising the Government’s plans to cut housing benefit for 18-21-year-olds, Black shared the concerns of many charities that work with young homeless people to the Commons.

In the July Budget, Chancellor George Osborne claimed that the best way out of poverty is work. However, for those struggling with housing, the solution is not so simple.

Charities Say Housing Benefit for Under-21s is Vital

Charities Say Housing Benefit for Under-21s is Vital

Jacqui McCluskey, Director of Policy and Communications at Homeless Link, voices her thoughts: “Here at Homeless Link, we have real concerns that some current and proposed welfare policies are counter-intuitive, and could create unnecessary hurdles for the people most in need of help to escape poverty.

“The Government’s plans to remove housing benefit from 18-21-year-olds are being sold as an incentive for young people to either earn or learn. Yet without the safety net that housing benefit provides, young people can find themselves pushed even further from the workforce.” 

Research has found that the most common cause of homelessness in under-25s is a relationship breakdown. Additionally, many are leaving violence or mental and physical abuse. These young people cannot stay at home and therefore housing benefit provides vital support as they “move towards independent living.”

“Without a stable home, many young people face additional barriers to work that cannot be addressed simply by removing access to benefits,” says McCluskey.

Six in ten young homeless people also have a range of complex needs, including mental health problems, and half do not have the basic skills to live independently.

“Restricting access to benefits does little to help these people into jobs,” explains McCluskey. “Homeless people have a far harder time trying to find work than those with a home.”

A study into benefit sanctions, usually occurring when jobseekers fail to turn up to Jobcentre appointments, revealed that only 3% of people who receive Jobseeker’s Allowance (JSA) are sanctioned. Among homeless people, this increases to 33%.

McCluskey urges: “Existing help to support people into work is already proven to be failing those who are most vulnerable. We need a greater focus on homeless people and their needs in the assessment process, the design and delivery of employment programmes, and the conditions placed upon individuals seeking support.”

Many homeless charities have reported that their clients are driven further into destitution due to losing their benefits. Although the Government has made the rules more flexible regarding those who are especially vulnerable, this should only reinforce the need for keeping essential benefits.

McCluskey concludes: “Work is a route out of poverty only if there is a welfare safety net that recognises the value of a sale and stable home, and employment support that understands housing needs.”1

1 http://www.theguardian.com/housing-network/2015/jul/16/housing-benefit-under-21s-vital-safety-net-vulnerable

Tenants spending half of income on rent

Published On: July 17, 2015 at 10:54 am

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A new report on the make-up of the country’s housing market has revealed that renters in England spend half of their take-home pay on rental costs.

The latest English Housing Survey shows tenants spent an average of 47% of their total net income in rent. Those who had taken out a mortgage face repayments of around 23% of their earnings after tax.[1]

Living trends

Providing a comprehensive overview of English housing stock and trends, the survey indicated that once housing benefit is removed from income, average rental costs are more than half of the typical gross pay.

Across the country, private renters paid 43% of the average total gross income of the main householder and partner, including housing benefit, in rent. Without including the state payments, tenants faced rental costs that were on average 52% of their earnings. This total has risen from the 48% recorded in 2003, with the proportion of pay plus housing benefit dropping marginally from 44%.[1]

‘The increase between these years in the proportion of income (excluding housing benefit) spent on rent is consistent with the rent increase in housing benefit receipt among private renters in work,’ the report said.[1]

Concern for the young

Concerning data from the reports highlights the difficulty of 16-24 year-olds. For this particular age bracket, rents accounted for a huge 88% of incomes and 81% for when state payments were included.

David Orr, chief executive of the National Housing Federation said that the results of the survey were, ‘yet another symptom of a very sick housing market that is carving ever-greater chasms between those who own a home and those who don’t.’[1]

‘Private renters are having the hardest time of it, paying the most as a proportion of the pay cheques and in real terms. We need to bring an end to these extortionate prices and give people real choices, by building the homes this nation needs,’ he added.[1]

Roger Harding, of housing charity shelter, said that private renters, ‘are bearing the brunt of our dramatic housing shortage.’ He went on to say that, ‘the result is an entire generation forced to give up hope of a stable future and resign themselves to a lifetime of expensive rents.’[1]

Tenants spending half of income on rent

Tenants spending half of income on rent

Rising renters

Figures from the survey also show how tenant numbers have increased over the last decade. In 2003-04, 2.1m households were privately rented. By 2013-14, this figure had grown to 4.4m.[1]

There was also a sharp rise in renters of every age group, but in particular for those aged between 45-54. In this age bracket, the number of tenants rose from 217,000 to 662,000 over the ten-year period.[1]

With people staying in the private sector for longer, the total number of families with children who are tenants has risen. In 2003-04, 23% of tenant households contained dependent children but by 2013-14, this figure had increased to 35%.[1]

First-time buyers are being forced to turn to their family for help, as they struggle to get on the housing ladder. The report revealed that of first-time buyers who have been in their property for under five years, 27% received help in financing their move through a loan or payment from their parents or friends. This was in comparison to 20% a decade previously. [1]

‘Rents are now so high that many will find saving is close to impossible, putting homeownership still further out of reach,’ said Matt Hutchinson, director of the flat share website SpareRoom.co.uk. ‘The situation for renters is becoming more and more indiscriminate. We’re not just talking about young professionals who can’t buy-families who crave stability for their kids are impacted too,’ he added.[1]

[1] http://www.theguardian.com/money/2015/jul/16/tenants-in-england-spend-half-their-pay-on-rent?utm_source=dlvr.it&utm_medium=twitter

 

 

Landlords and Agents Should Take Care Over Student Inventories

Published On: July 17, 2015 at 10:51 am

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Landlords and Agents Should Take Care Over Student Inventories

Landlords and Agents Should Take Care Over Student Inventories

Student tenants could lose thousands of pounds due to items in an inventory going missing at the end of a tenancy.

The Association of Independent Inventory Clerks (AIIC) warns that landlords and letting agents should take extra care over accurate and detailed inventories in the next couple of months, as student check ins and check outs are at their highest.

Recent research from removal firm Kiwi Movers revealed that 52% of tenants experienced difficulties over the return of deposits when leaving a property.

The study also found that the most common reason for lost deposits is when items are missing from the inventory, accounting for a fifth of cases. Following this, other factors include minor repairs, cleaning and unpaid bills.

Pat Barber, Chair of the AIIC, says: “Tenants should be issued with a copy of the inventory at the beginning of the tenancy and I urge them all to double check all the items listed at that time and to ensure that all items remain in the property, in good condition, when moving out.

“If there is something missing it can often be cheaper for the tenant to replace it rather than for the landlord or agent to do so.

“For letting agents and landlords, it is important to go through the inventory fairly and thoroughly when undertaking the check out process.

“If both sides of the rental transaction hold up their side of the bargain, the amount of deposit disputes can be kept to a minimum this summer.”1

1 https://www.lettingagenttoday.co.uk/breaking-news/2015/7/agents-advised-to-be-alert-over-student-inventories

 

 

 

 

 

 

 

 

First Time Buyers at Lowest Level for Three Years

Published On: July 17, 2015 at 9:57 am

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The property market is already struggling to welcome first time buyers. But new data reveals that things aren’t getting any better.

Latest research shows that the amount of first time buyers has fallen to its lowest level for three years.

Numbers decreased by around 20% during May, compared to May 2014, found estate agents Your Move and Reeds Rains.

First Time Buyers at Lowest Level for Three Years

First Time Buyers at Lowest Level for Three Years

The data also indicates that first time buyers have larger deposits to save for, at an average of £25,134. This figure has increased by 4.2% in 12 months.

Additionally, the proportion of a first time buyer’s income spent on the average deposit is rising for the first time in four months, up 1% to 64.4% of earnings compared to the previous month.

These findings arrive as the Bank of England (BoE) warns that homebuyers are committing to “bigger and bigger mortgages” because house prices are growing faster than wages.

In its latest financial stability report, the BoE cautioned that property debt relative to salaries “remains high compared with historical and international norms.”1

The Bank put new restrictions on borrowers last year, stating that most mortgages will only be approved if the buyer hopes to borrow 4.5 times their income or less.

Your Move and Reeds Rains’ Adrian Gill, says: “Many first time buyers are still on tight monthly incomes, struggling to save while savings rates stay so low.

“Meanwhile, deposits are rising primarily as property prices continue their seemingly unstoppable upwards march. This is wholly due to a lack of housing supply versus a stack of housing demand.

“If we want to see property prices stabilise and deposits fall as proportions of income, the Government must address the housing supply problem, for which there is only one solution: build more homes.”

The average first time buyer home is worth £154,000, up almost 7% on last year. This compares to the average house price in the UK of £214,000, according to Zoopla.

Gill continues: “While buyers may grumble, rising property prices are a positive sign. They demonstrate that the continuing fall in the average mortgage rate combined with the brightening economic outlook has left plenty of demand in the first time buyer housing market.

“This is despite May’s threat of a highly uncertain election outcome. Schemes such as the Help to Buy ISA have encouraged all sorts of buyers to overlook temporary political uncertainties and save up to make the dream of home-owning a reality.”1 

The Help to Buy ISA is due to launch this autumn. It will give first time buyers a £50 top up for every £200 they save towards a deposit. The Government payments are limited to £3,000 on £12,000 of savings and a prospective buyer can only open one account.

It will be introduced after the Help to Buy scheme helped buyers with a small deposit purchase a home.

1 http://www.zoopla.co.uk/discover/property-news/first-time-buyers/?utm_content=bufferb248d&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer#dJGmiABBQ5tDYiBp.97