Posts with tag: homebuyers

Number of Homebuyers at Highest Level for 13 Years in December

Published On: January 24, 2017 at 9:25 am

Tags: first time buyers,homebuyers,homeowners,property market,property sales

The average number of prospective homebuyers registered per estate agency branch was at the highest level for 13 years in December, according to the latest Housing Market Report from the National Association of Estate Agents (NAEA).

The group’s December study also found that the highest number of sales to first time buyers since 2001 was recorded last month.

Number of Homebuyers at Highest Level for 13 Years in December

The NAEA’s data shows that although the amount of homes available to buy rose marginally in December, the number of sales agreed fell by a quarter on a monthly basis.

Homebuyer demand

Last month, the amount of house hunters increased to the highest level seen since 2003 for the month of December.

The average number of prospective homebuyers registered per NAEA member branch stood at 386 in December, up by 12% on November’s figure of 344.

First time buyer sales

In December, a third (32%) of sales were made to first time buyers – the highest number for the month of December since 2001, when it was also 32%.

This is up by 10% on November last year, when 29% of sales were made to these buyers.

Property supply and sales agreed

The amount of properties available to buy on estate agents’ books in December stood at an average of 41 – up marginally from November, when there were 39.

Despite an increase in supply and demand, the number of sales agreed fell by a quarter (25%) on November, from an average of eight per branch to six.

The Managing Director of the NAEA, Mark Hayward, comments on the report: “In November, we saw a seasonal slowdown; typically it’s uncommon for people to buy and move close to Christmas. Yet, our December findings have completely bucked this seasonal trend. With demand at an all-time December high and sales to first time buyers at their highest on record, 2016 closed on a positive note following several months of uncertainty.

“However, despite an encouraging December, there remains a clear shortage of homes. We await the Government’s Housing White Paper to see how it intends to tackle this, and hope the market continues to improve for both buyers and sellers.”

While property market experts insist that the Government must do more to tackle the housing crisis, one investor and lender believes that small-scale developers are critical in supplying much-needed homes.

Buying a Property – Find Out What You Need Vs. What You Want

Published On: January 5, 2017 at 11:18 am

Author: Em Morley

Categories: Property News

Tags: buying a home,buying a property,homebuyers,property investors

If you’re buying a property, you must find out what you really need compared to what you want, advises Romans estate agent.

Whether you’re a first time buyer, home mover, or landlord, buying a property can be an incredibly exciting time. But while finding a home to suit your needs can be tough, finding one to meet your wish list is even more difficult.

Romans has compiled some advice to help you find out what is essential and what can be compromised on when buying a property.

Buying a Property – Find Out What You Need Vs. What You Want

The first step is to make a list of all the features that you would want in the property and divide them into three lists:

Basic requirements – deal breakers

Cost – The most important thing to consider is finding a property you can afford. Then, you must put yourself in the best position possible to get your offer secured. If you are buying with a mortgage, make sure that your loan has been pre-approved by a lender so that you can find the best property for your budget.

Location – Location is key for both homeowners and investors. Buying a property within your commute to work or children’s school catchment area is vital for movers, while landlords should seek an area with high demand from renters.

Size – You should always be practical when thinking about the size of your new home. While it is nice to have space to accommodate a growing family or add another bedroom to achieve a higher rental income, you must think about what you need as a minimum.

Antony Gibson, the Sales Director at Romans, says: “If a property does not meet your basic requirements, then the property should not even be considered. That said, there are wildcards, those homes that ‘speak to you’, as there are many homeowners very happy in their dream home, which, if you ask them, they would privately admit: We couldn’t really afford it; it’s a bit further out; it is a little smaller than we would like, but we love it!”

Features that are nice to have – not deal breakers

If you are moving house, weigh up the pros and cons of your current home and make a list of what you would like in your next property. For instance, you may want a garage, but on-street parking could be enough, while an open-plan living area may just be a luxury.

Landlords could also look at what their property portfolio currently has and which direction they’d like to go in next. For example, you may want to invest in student housing, or buy a modern family home that could command a higher rent price than an outdated property you already own does.

Wish list

“The ideas on this list should be an added bonus,” explains Gibson. “If you have all the deal breakers, all the features that are nice to have, and any features from the wish list, you have bought your dream home!”

We all have an idea of what our dream home looks like – original features, a swimming pool, etc. – but realistically, we know that finding a suitable property with these extras within our budget is highly unlikely.

If you manage to find a home with some of your dream features, then it’s certainly an opportunity not to pass up! Any additional bonus features that landlords can find in a property will also go a long way to increasing your rental yield, so choose wisely.

Making these three lists will make it easier for you and your estate agent to know exactly what you’re looking for and find a property that fits the bill.

Highest Number of Londoners Leaving the Capital for Nine Years

Published On: December 29, 2016 at 9:31 am

Author: Em Morley

Categories: Property News

Tags: first time buyers,homebuyers,London,property investment

The highest number of Londoners for nine years has left the capital this year, according to the latest analysis by estate agent Hamptons International.

In 2016, the amount of Londoners buying homes outside the capital reached the highest level since 2007, the research found. Some 74,000 Londoners bought outside the capital, which is 11,000 more than in 2015 and just 16,000 fewer than in 2007, when the highest number on record was seen.

Highest Number of Londoners Leaving the Capital for Nine Years

The average Londoner buying outside the capital spent £388,000 on their new home – a total of £29 billion, which is the highest since 2007, when 90,000 homes were purchased, totalling £32 billion.

The majority of Londoners leaving the capital stayed in the south. A huge 80% of those leaving London bought in the South East, South West or East of England.

One in every six homes sold in the East of England and one in every seven in the South East were sold to someone moving from London in 2016, shows the study.

Of the 17 local authorities that border the capital, more Londoners purchased homes than existing residents in ten of them. However, as house price growth across the south (9.1% annually) surpasses that in London (7.7% year-on-year), both the proportion and number of Londoners heading further north has been steadily increasing.

This year, 20% of those leaving London bought in the Midlands or the north, compared to 12% in 2014 and just 10% in 2012. In 2016, the amount of homes purchased by Londoners in the Midlands rose by 21% on last year, while in the north it was up by 13%.

As many Londoners leave the capital for a bigger home, almost three quarters (74%) of those leaving London bought a property with three or more bedrooms, spending an average of 18% more than local buyers.

While many Londoners take advantage of being able to get more for their money, for others, leaving the capital is the only way of getting onto the property ladder. Around 40% of first time buyers living in London end up buying outside the capital, up from 20% in 2012.

The Head of Research at Hamptons International, Johnny Morris, says: “A move out of London has generally had more to do with changing priorities as people get older and start forming families than the housing market. But with affordability in the capital stretched, more Londoners are looking elsewhere to buy their first home. More too are likely to go further afield, with increasing numbers heading to the Midlands and north.

“It is likely 2016 will be a peak for London leavers. While overall the year saw growth in Londoners buying outside the capital in recent months, the pace has been slowing. A slower housing market in 2017 will likely mean that we see fewer Londoners buying outside of the capital than in 2016.”

Although the research suggests that many Londoners are deciding to leave the capital, landlords must be aware that the study only covers homebuyers. As purchasing a home is still as difficult as ever for many young people, investors should choose the right areas to cater to the high number of renters in the capital.

If you are looking for a lucrative investment property, one of these London hotspots may provide a great opportunity: https://www.justlandlords.co.uk/news/landlords-buy-london-2017/

The Top 10 Hotspots for Property Demand Revealed

Published On: December 7, 2016 at 10:20 am

Author: Em Morley

Categories: Property News

Tags: homebuyers,Northern Powerhouse,property demand,property hotspots

The fourth and final Property Demand Hotspots Index of the year has been released by online estate agent eMoov.co.uk, detailing which parts of the country have experienced the largest increases and decreases over the past quarter.

The index grants a percentage score for each area based on the level of housing stock available on the major property portals against that which has already sold, before calculating the total change.

The data shows that, nationally, property demand has dropped by 7% over the last quarter, now standing at 38%.

The Top 10 Hotspots for Property Demand Revealed

Bexley, at 65%, has dropped to third place from its usual top spot, toppled by Solihull (77%) and Portsmouth (67%). Demand is at 65% in Bristol, while Northampton (60%), Medway (59%), Gloucester (58%), Ipswich (58%), Bedford (57%) and Edinburgh (57%) complete the top ten.

However, it is the locations where property demand has increased the most over 2016 that provides a peculiar coincidence; nine of the top ten begin with an S.

With the London market slowing due to a combination of higher Stamp Duty rates for second homes and a lack of foreign interest post-Brexit, it’s the Midlands and northern regions that have shown strength. With six out of the top ten areas with the highest growth located here, it seems UK buyers are stoking the engines of the Northern Powerhouse.

Landlords looking for new investments in 2017 should look to the northern regions of the country for affordable house prices and high tenant demand.

Stockport, in the North West, has experienced the greatest increase in demand over the year, up by a huge 126%, with Stoke-on-Trent (112%) in the West Midlands and London’s only entry, Sutton (110%), also enjoying triple-digit growth.

Demand in Sheffield has risen by 99% in 2016, with Sandwell (83%) and Solihull (79%) representing the West Midlands. Swindon (74%) and Somerset (65%) sandwich Bradford (67%) as the only areas from the South West, while Southampton (63%) is the only entry from the South East.

Outside of the top ten, Highland, Gateshead, Salford, Manchester and Hull all recorded increases in demand of more than 50% over the past year.

The largest decreases were seen in Sunderland (63%), Swansea (57%), Hounslow (51%), Lambeth (46%), Camden (45%), Southwark (43%), Shropshire (42%), South Lanarkshire (42%), Westminster (39%) and Aylesbury (39%).

The Founder and CEO of eMoov, Russell Quirk, comments: “A tough year for the UK market, but it has come through it relatively unscathed.

“Although changes to second home Stamp Duty thresholds and the leave vote may have tainted demand slightly due to an air of uncertainty, there seem to be a number of areas that have benefitted, with the market almost turned on its head in terms of desirability to buyers.”

He continues: “2016 seems to have been a bit of a leveller where the property market is concerned, with many of the so-called weaker markets really seeing a spike in buyer demand, which will, in turn, result in a healthy increase in prices going into the New Year.

“Worrying for homeowners in the likes of Aylesbury, Hounslow and Camden though. These areas were ranking consistently quite highly where demand is concerned, but this seems to have dropped off considerably during Q4 and homeowners and sellers in particular could receive a lump of coal this Christmas when it comes to the price of their property.”

Crest Nicholson Contributing to Much-Needed Housing Supply, According to Latest Update

Published On: November 17, 2016 at 10:37 am

Author: Em Morley

Categories: Property News

Tags: homebuyers,housebuilding,housing supply,new build homes

Housebuilder Crest Nicholson is contributing to much-needed housing supply, according to its latest trading update.

The firm has continued to increase housing supply in 2016, with open-market unit completions up by 7%, to 2,292, and overall housing delivery up by 5%.

Open-market selling prices have risen by an average of 20%, to £371,000, in line with Crest Nicholson’s well-established strategy to reposition the business at this level by 2016.

Crest Nicholson Contributing to Much-Needed Housing Supply, According to Latest Update

Underlying sales rates for the year, excluding private rental sector properties, averaged 0.81 sales per outlet per week, down from 0.90 in 2015. This reduction in sales rates in part reflects the firm’s higher average selling price. In addition, sales volumes temporarily dropped during June and July as a result of the EU referendum vote, which caused an increase in the number of cancellations.

By the beginning of August, homebuyer confidence had largely recovered, reports the housebuilder, and sales rates in the last quarter averaged 0.77 – the same level as 2015.

The firm has continued to make selective additions to its short-term land pipeline, while also achieving planning consents on seven strategic sites. A further 20 of its strategic sites are included in allocations or draft allocations and are progressing through the planning process.

Sales in the month of October, excluding the private rental sector, continued at a similar level to the past quarter as a whole, averaging 0.77 sales per outlet per week – up from 0.75 in the same month of 2015. This slight increase in sales has generated a rise in reservations, of 17%, and revenue growth of 57%.

The housebuilder’s forward sales, at £344.5m, are 5% higher than in 2015 (£328.9m), signalling a return in consumer confidence.

Having delivered on its 2013 target to build 2,500 units per year, Crest Nicholson has now set a goal to increase housing supply by 4,000 units and revenue to £1.4 billion by 2019.

Attractive housing market conditions continue to support sales rates and revenue growth, insists the firm. In spite of initial uncertainty following the EU referendum in June, homebuyers are largely returning to the market, as high employment rates, good mortgage access and low interest rates continue to make it a very good time to buy a home.

It adds that sales price and build cost inflation have both moderated over the second half of the year, which will help to maintain affordability and support a stable housing market.

With a strong balance sheet, good land pipeline and a robust business model, Crest Nicholson believes it is well placed to continue on its growth trajectory and contribute to the much-needed housing supply in the UK.

Commenting on the update, the Chief Executive of Crest Nicholson, Stephen Stone, says: “I am pleased to report that we are increasing the number of homes built, opening new sites and ensuring that the pipeline of land that fuels our business is progressing steadily through planning.

“There has never been a better time for housebuilding, and Crest Nicholson remains well positioned to grow volumes and deliver the homes that the UK needs.”

The update follows the latest report from Taylor Wimpey, which states that the housing market will remain strong.

House Prices End 15 Consecutive Months of Growth

Published On: November 3, 2016 at 10:15 am

Author: Em Morley

Categories: Property News

Tags: average house price,homebuyers,house prices,property market

House prices remained flat in October, ending 15 consecutive months of growth, according to Nationwide’s latest House Price Index.

The building society’s report shows that house prices stayed steady last month, after rising by 0.3% in September.

House Prices End 15 Consecutive Months of Growth

On an annual basis, house price growth dropped from 5.3% in September to 4.6% in October.

The average house price in the UK now stands at £205,904.

Robert Gardner, the Chief Economist at Nationwide, reassures the property industry that last month’s decrease in growth rates is in line with the trends recorded since early 2015.

As a comparison, annual house price growth stood at 3.9% in October 2015.

Gardner comments: “After 15 successive monthly increases, UK house prices were unchanged in October (after taking account of seasonal factors).

“Measures of housing market activity remain fairly subdued, with the number of residential property transactions circa 10% below the levels recorded in the same period of 2015 in recent months.

“However, this weakness may still in part reflect the after-effects of the introduction of Stamp Duty on second homes introduced in April, where buyers brought forward transactions to avoid additional Stamp Duty liabilities. Policy changes impacting the buy-to-let market may also be playing a role in dampening activity.”

Jonathan Hopper, the Managing Director of Garrington Property Finders, insists that buyers now have the upper hand.

He explains: “Prices in the immediate aftermath of the referendum were flattered by an injection of pent-up demand, as buyers who had sat on the fence in the run-up to the referendum finally got off it.

“But with the impact of that temporary prop now fading, the buyers who remain frequently hold the whip hand – with many feeling empowered to ask for a substantial discount in return for the certainty of a sale.

“Yet pragmatism rather than panic prevails among sellers, which has so far prevented wholesale price cutting.”

He adds: “Prices are also being supported by a chronic shortage of supply in many areas, but the shift in the balance of power from seller to buyer is palpable.

“Reassured by rock bottom interest rates, a robust labour market, and an economy that continues to grow steadfastly, intent remains strong among domestic buyers.”

Does this news encourage you to push forward with a property purchase?