Posts with tag: homebuyers

Buyers Go £16k Over Budget When They Fall in Love with a Home

Published On: February 12, 2016 at 12:57 pm

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Homebuyers that fall in love with a property will spend £16,000 over their budget to secure the deal, according to a survey by Zoopla.

One in three (34%) homeowners admitted that they let their heart rule their head when buying their property, leading them to spend an average of £16,193 more than they had originally planned.

Buyers Go £16k Over Budget When They Falling in Love with a Home

Buyers Go £16k Over Budget When They Fall in Love with a Home

Around 44% of those that had gone over budget after finding a property too good to resist said it was love at first sight. We recently reported that over half of buyers purchase their homes because they’ve fallen in love with it. Read more: /buying-a-home-depends-on-whether-you-fall-in-love-with-it/

Fireplaces took the top spot for the property feature that is most likely to influence a buyer’s decision, with nice neighbours and good décor coming in second and third respectively.

Bay windows, original features, such as floorboards, walk-in wardrobes and freestanding baths can also sway property purchasers.

However, the property portal also found that falling in love with a property can cause rows between couples, with one in 12 pairs saying they argued when putting in an offer because one person was more infatuated with a home than the other.

The top ten reasons people fall in love with a property

  1. Fireplace
  2. Nice neighbours
  3. Nice décor
  4. Original features
  5. Bay windows
  6. Original floorboards
  7. Parquet flooring
  8. Walk-in wardrobe
  9. Range cooker
  10. Freestanding bath

Homeowners in the East of England have spent the most over budget for a home they love, paying £18,908 more than original planned. Those in the North West follow, spending £18,436 more, and Londoners, who fork out £17,386 more than they wanted to.

Homebuyers in Wales are more restrained, spending £9,591 over their budget. In Scotland, house hunters paid £14,152 more than they planned to.

The spokesperson for Zoopla, Lawrence Hall, says: “Buying a property is a significant financial commitment, and all house hunters want to find a home that they love, so it’s understandably a process often fraught with emotion.

“In a competitive property market where stock is low, demand is high, prices are rising and interest rates are at a historical low, it’s hardly surprising to see original budget levels creeping up.”

“However, buyers need to be careful to not let their hearts take over completely,” he warns. “The key to the process is to do as much research as possible before making an offer and striking a balance between the heart strings and the purse strings.”1

1 http://www.mirror.co.uk/money/16000–price-falling-love-7353275

Superfast broadband for all new homes in Britain

Published On: February 8, 2016 at 10:20 am

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Categories: Property News

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A new agreement between the Home Builders Federation (HBF) and internet provider Opeanreach is set to deliver superfast broadband to new build homes in Britain.

Fast internet connection is becoming one of the must haves for would-be homebuyers in the UK and the new partnership is set to see this become standard in new properties.

Deal

The deal will see fibre based broadband made available to all new developments, for free or as a part of a funded initiative. It is thought that more than half of all new-build homes will be connected to the broadband free of charge for developers.

In addition, Openreach is looking to introduce an online planning tools for new homebuilders. The tool will tell them if properties in a certain development can be connected to fibre for free, or if a subsidiary contribution is required to help fund the activation of the local fibre network.

The housing industry will be able to access a rate card from Openreach, which will detail the fixed cost contributions that are required by homebuilders. Openreach said that it will make a significant contribution itself before looking for additional funds from developers.

Additionally, the Home Builders Federation pledged to promote and support the uptake of co-funding amongst their existing members.

Superfast broadband for all new homes in Britain

Superfast broadband for all new homes in Britain

Expectations

‘Broadband connectivity is just one thing that home buyers now expect when buying a new build, so the industry-led push to make superfast, or indeed ultrafast, broadband specials available by default in new homes represents a very important step in meeting the UK’s digital needs,’ noted Digital Economy Minister Ed Vaizey.[1]

Clive Selley, chief executive officer of Openreach, believes that the agreement is a positive step in bringing fibre broadband to as many homes as possible. Selley said, ‘we recognise that high-speed broadband connectivity is a major factor for home owners when deciding to buy a house. That’s why we’re offering to deliver fibre to all new build developments either for free or as a co-funded model.’[1]

‘With the support of the HBF we’ve delivered a series of measures to give developers greater clarity, choice and more funding. This underlines Openreach’s commitment to further extend its fibre network, which reaches more than 24 million premises, to benefit even more communities across the country,’ he added.[1]

Growth

Stewart Baseley, executive chairman of the HBF, observed that it will help reach home buyers expectations. He said, ‘house builders are constantly striving to deliver on and surpass the expectations of customers as we continue to see housing supply grow.’[1]

‘Broadband speeds are an increasingly important factor in the home buying process and this offer to developers will see more build purchasers benefit from the very best connectivity to go alongside the many other advantages of purchasing a brand new home,’ Baseley concluded.[1]

[1] http://www.propertywire.com/news/europe/uk-new-homes-broadband-2016020811529.html

 

Buying a Property Depends on Whether You Fall in Love With It

Published On: February 6, 2016 at 12:11 pm

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Buying a Home Depends on Whether You Fall in Love With It

Buying a Property Depends on Whether You Fall in Love With It

Love is in the air… At least it is for property buyers.

We’re often told that when choosing a property, it’s all about location, location, location, but recent research indicates that it’s a little more emotional than that.

More than half of homebuyers purchase a property because they’ve fallen in love with it, and the top three reasons for such amorous feelings are location, price and the garden.

Property expert Kirstie Allsopp suggests that it could be about even more: “It is a given that it is about location. Location is everything. But once you have got the location, what often makes people choose one property over another is perhaps something people don’t even acknowledge themselves, and that’s aspiration.”

She explains: “Potential buyers look around a house and it could be a holiday picture or a book, something they want to do or be, and that often seals the deal, especially when choosing between two houses.”1 

The study by conveyancing firm My Home Move found that 56% of buyers purchased their home or a previous property simply because they fell in love with it.

Respondents were asked to choose up to three reasons why they fell in love with the property. The most common reason is the location, followed by the home’s price and thirdly by its garden.

What made buyers fall in love with their home?

Position

 Reason

Number of respondents
1 Location 58%
2 Price 37%
3 Garden 29%
4 Interior 15%
5 Living area 13%
6 Kitchen 8%
7 Master bedroom 7%
8 Exterior 7%
9 Natural light 7%
10 Architecturally interesting 5%
11 Beautifully decorated 3%
12 Fireplace 2%
13 Flooring 1%
14 Walls 1%
15 Street name 1%

The Chief Executive of My Home Move, Doug Crawford, comments on the findings: “Britain’s love affair with property is built on location. For most people, location is the secret ingredient that makes them fall in or out of love with their home. Brits also love a bargain, which explains why cost was the second most important factor in making someone fall in love with their home.

“As house prices continue to climb and many first time buyers struggle to take their first step onto the property ladder, younger buyers are more willing to scout out up-and-coming areas to try and find a bargain to fall in love with.

“Unfortunately, not all of those buying a home have the flexibility to pick and choose their ideal location or perfect interiors, especially as demand continues to outstrip supply. Compromise may have to become the buzz word of 2016, as there is little to suggest the situation is likely to ease any time soon, as more and more homeowners chase after one property.”1 

Location was also a key reason for buyers not choosing a property, along with its appearance inside and out.

What put buyers off purchasing other properties?

Position

 Reason

Number of respondents
1 Location 43%
2 Price (too expensive) 40%
3 Appearance (interior) 34%
4 Too small 30%
5 Appearance (exterior) 26%
6 None/don’t know 20%
7 Price (under budget and felt they could get more) 9%
8 Too big 7%
9 Worried about the neighbours 7%
10 Didn’t feel safe 5%

Andrew Montlake, of mortgage brokers Coreco, says: “The vast majority of our clients are fixated on having a home in their perfect location, whether this be for transport links, schools or even a romantic notion about the area itself, and are willing to compromise on other aspects, often paying a bit more to get it.

“However, an increasing number are now more constrained by price and have shown more willing to investigate other areas, where the features of the property itself become more important once more. While different buyers all have very different opinions on what will make their perfect home, the phrase I hear more often than not is, ‘I have found a property I have fallen in love with’.”

He adds: “Once buyers picture themselves in an area and a particular property where they can build a home, love does the rest.”1 

1 http://www.dailymail.co.uk/property/article-3420607/The-three-real-reasons-people-buy-property.html

Location still important to homebuyers

Published On: February 3, 2016 at 10:02 am

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New research has underlined the importance of location (location, location) to would-be homebuyers.

An investigation conducted by My Home Move shows that over half of UK people make an offer on a home as they are smitten by its location. The property’s price and size of garden made up the top three features likely to sway potential buyers.

Homely

My Home Move’s report shows that 58% of respondents cited location as the top feature for making an offer. 37% said it was down to price and 29% said it was the garden.

Just 9% said that moving closer to friends was their main consideration when making a bid for a new home.

In terms of location, 40% said living near transport links was important, while 35% wanted a green area nearby. 32% said they wanted a property near to cafes, shops, bars and restaurants.

Characteristics

Women were found to be most likely to base their decision on being close to family, with 32% stating this was the case, in comparison to 26% of men.

Those in their 20’s said having a school in close proximity, and being in an up and coming area were important, both accounting for 34% of replies. This would suggest that the younger age group are looking to plan ahead.

However, location was also found to be the factor that puts most people off purchasing a home. 43% said a property in a poor location would put them off, with 40% deterred by price and 34% by the appearance of a property.

Homebuyers between the ages of 21-30 were less likely to be put off by location, with 37% citing that it would stop them from buying.

Location still important to homebuyers

Location still important to homebuyers

Key Ingredient

‘For most people, location is the secret ingredient that makes them fall in or out of love with their home,’ observed Doug Crawford, chief executive officer of My Home Move. ‘People also love a bargain, which explains why cost was the second most important factor in making someone fall in love with their home.’[1]

‘As house prices continue to climb and many first time buyers struggle to take their first step onto the property ladder, younger buyers are more willing to scout out up and coming areas to try and find a bargain to fall in love with,’ he continued.[1]

Concluding, Mr Crawford said, ‘unfortunately, not all of those buying a home have the flexibility to pick and choose their ideal location or perfect interiors, especially as demand continues to outstrip supply, Compromise may have to become the buzz word of 2016, as there is little to suggest the situation is likely to ease any time soon as more and more homeowners chase after one propert

[1] http://www.propertywire.com/news/europe/uk-home-buying-location-2016020211512.html

 

 

 

Help to Buy London Launches Today

Published On: February 1, 2016 at 9:25 am

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Categories: Finance News

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The Help to Buy London scheme is launching today, with lenders competing for a wave of new business.

The Government is offering buyers of new build properties equity loans of up to 40% of the purchase price. The borrower will need a 5% deposit and a mortgage. The scheme applies to properties worth up to £600,000 in London.

Help to Buy London Launches Today

Help to Buy London Launches Today

Nationwide and Leeds building societies are some of the first to launch products for the scheme, while Barclays has introduced new rates.

Borrowers can get a two-year fixed rate deal at 1.55% with a £999 fee, or 1.85% with no fee from Barclays.

For longer-term borrowers, the bank is offering a five-year fixed rate of 2.19% with a £999 fee, of 2.49% for a fee-free deal.

These are currently the lowest rates available for Help to Buy London.

Today, Leeds is launching a two-year fix at 1.79% with a £799 fee and a five-year fix at 2.45% with a £199 fee.

Nationwide has updated its shared equity products, which include Help to Buy London and the wider equity loan schemes.

It has a two-year fix at 1.89% with a £999 fee, or 2.29% with no fee at 60% loan-to-value (LTV).

For a 75% LTV loan, Nationwide has a two-year fix at 1.99% with a £999 fee, or 2.39% with no fee.

It is also offering five-year fixed rate deals up to 60% LTV, one at 2.64% with a £999 fee, or a fee-free deal at 2.84%.

At 75% LTV, rates start at 2.74% with a £999 fee, or 2.94% with no fee.

Those applying for a mortgage with Nationwide can receive a fee-free standard valuation, plus £250 cashback if they have a Nationwide Flex main current account.

Help to Buy London is an extension of the Help to Buy: Equity Loan scheme, launched in 2013.

The Government is hoping to boost homeownership levels by providing financial support to enhance a buyer’s deposit.

Outside of the capital, borrowers can top up their 5% deposit with an equity loan of up to 20%, meaning they can effectively put down a 25% deposit.

However, for those in London, where the average house price is £506,724, a 5% deposit is still a huge £25,336.

Homebuyers can also take advantage of Government-backed schemes such as Help to Buy: Mortgage Guarantee and the Help to Buy: ISA.

Half of All Homebuyers Move Just Nine Miles or Less

Published On: January 29, 2016 at 12:47 pm

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Those moving house appear to like where they live, with a half of all homebuyers moving just nine miles or less from a previous address.

Half of All Homebuyers Move Just Nine Miles or Less

Half of All Homebuyers Move Just Nine Miles or Less

The figures arrive from home removals website Reallymoving.com, based on 200,000 quotes.

The average distance moved by Reallymoving.com customers was 52 miles last year, down from 55 miles in 2014.

According to the site, over two-fifths of all movers were first time buyers, up from 37% in 2014.

However, the amount that first time buyers have been paying for a property, as a proportion of the average house price, has been in decline.

In 2014, the average first timer paid 79% of the price paid by other buyers. But in 2015, the typical first time buyer property cost £202,000 – three-quarters of the average house price paid by other buyers, says Reallymoving.com.

The Chief Executive of Reallymoving.com, Rob Houghton, comments on the data: “It’s good to see the increase in first time buyers, although large areas of the country remain prohibitively expensive for many.

“Until planning regulations are changed to allow more properties to be built, we don’t see much prospect of a significant change in this.

“We’re also encouraged to see the average distance of home movers continue to drop. Our belief is that as the jobs market improves, people are not having to move as far to find work.”1 

Have you moved home recently? If so, how far away did you move?

1 http://www.propertyindustryeye.com/half-of-all-home-movers-go-just-nine-miles-or-less/