Posts with tag: housing market

What technology is attractive to homeowners?

Published On: November 12, 2015 at 3:23 pm

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An interesting new ‘Digital Homes Report,’ released today by Barclays Mortgages has revealed that nearly one third of homeowners believe installing technology in the home will increase its value.

The report centres on the rise of the ‘digital home,’ that includes both connected technology and a digital infrastructure that is integrated into the home.

Equipped

Data from the report found that on average, UK homeowners who said that they would be willing to spend more would be willing to pay an additional £3,310 for a new property fully equipped with the latest technology. This includes smart heating systems and appliances.

Additionally, the investigation reveals that when it comes to choosing technology in which to invest, homeowners are seemingly putting practically first. When selecting where to spend their cash, the most common technologies homeowners are likely to buy in the future are those that support a home’s infrastructure. USB connections (36%), super-fast broadband connectivity (51%), smart meters (35%) and solar panels (27%) were all common features mentioned.

Although it seems something for the future, the survey revealed that nearly half of UK homeowners already have some kind of technology in their home. The most popular of these is fibre optic cabling, which allows for super-high speed interest. 26% of respondents said that they already had this in their property.

The top and bottom five most and least popular pieces of connected technology that homebuyers would be willing to pay extra for were found to be:

Connected technology that homebuyers would pay extra for (by popularity)
Top 5 Bottom 5
1 Solar panels (31%) 1 Smart fridge (4%)
2 Fibre optic cable (21%) 2 Smart Doorbell (5%)
3 Smart security alarm (19%) 2 Smart oven (5%)
4 Sensor technology (16%) 3 Mobile signal box (8%)
5 Smart thermostat (15%) 3 Induction cooktop (8%)

[1]

What technology is attractive to homeowners?

What technology is attractive to homeowners?

Fascinating

UK property expert and television personality Amanda Lamb, said, ‘it’s really fascinating to see from the Barclays Mortgages Digital Homes Report, how peoples’ attitudes to connected technology are changing and adapting in the modern world.’[1]

‘In my years of dealing with the UK property market, I’ve seen plenty of trends come and go however, digital homes are really here to stay and this space is something I see really growing over the next three to five years. Whilst it will take time for it to be widely adopted by the general public, I see technology integrated in the home being a real incentive for homebuyers, so would encourage homeowners to start thinking about what they can do to future-proof their home,’ Lamb added.[1]

[1] http://www.propertyreporter.co.uk/household/what-technology-attracts-homebuyers.html

 

 

Total London Housing Stock Valued at £1.13tn

Published On: November 11, 2015 at 4:01 pm

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Categories: Property News

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The Halifax has valued London’s total housing stock at £1.13 trillion, almost double the worth of all the homes in Scotland, Wales and Northern Ireland.

Total London Housing Stock Valued at £1.13tn

Total London Housing Stock Valued at £1.13tn

Property in Scotland, Wales and Northern Ireland is worth a combined £582 billion, says the mortgage lender.

The substantial rise in the value of London’s homes means that the capital’s residential property is now worth the same as the total housing stock in the North West, Yorkshire and the Humberside, the North East and Scotland.

The housing stock in the north of England, from Cheshire to Northumberland, is valued at £810 billion.

The Halifax’s research found that the estimated total value of the UK’s private housing stock has exceeded £5 trillion for the first time. However, this hides a huge north-south divide.

House prices in the north have risen by 36% over the last decade. Meanwhile, property values in the south have surged by 66%.

As a result, the south’s share of the UK’s total housing worth has grown from 56% in 2005 to 61% this year.

Although mortgages are typically higher in the south, the average homeowner in London has net equity – the value of the property after the mortgage is deducted – of £306,000, compared to £94,000 in the North East and £82,000 in Northern Ireland.

On paper, Britons are much wealthier than they were a decade ago, with the net value of homes increasing from £3.3 trillion in 2005 to £5.1 trillion today.

The growth of £1.8 trillion is equivalent to £76,316 per household, according to the Halifax. However, it did not specify how much is down to private landlords.

Since lenders began providing buy-to-let mortgages, owner-occupation in Britain has dropped significantly, from a peak of 70% in 2005 to below 65% this year.

The data also highlights how much more property prices have increased than inflation and wages, with growth of 53% over the last ten years, compared with a 35% rise in CPI.

A separate study by the Office for National Statistics (ONS) shows how Britons consider housing the best long-term investment. It found that 44% of people think that property will make them the most money in life, compared to less than 10% who believe the stockmarket is a better investment.

The latest house price index from the Halifax found that the average home in Britain is now worth £205,500, up by 9.7% over the last year.

Cheaper to buy than rent in 1/3 of UK cities

Published On: October 12, 2015 at 2:51 pm

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Categories: Property News

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Fresh research from property search firm Zoopla suggests that it is cheaper to buy a property rather than rent in one third of British cities. Buying is also more effective in the north of the country.

Better-off

Mortgage payments were found to be less expensive than monthly rent in 36% of British cities. In Glasgow, home-owners are more than £100 better-off than renters in the city.

However, renting is still more profitable than buying in the south, with home purchasers in London, Reading and Cambridge spending hundreds of pounds more.

Across the nation, the cost of renting a two-bedroom house in comparison to taking out a mortgage showed that renters pay £58 less on average per month than buyers.

In Scotland, buyers faired better than their renting counterparts. Looking at Glasgow again, rents in the city total a monthly average of £596. Monthly mortgage payments however totalled just £447. Glaswegian buyers therefore are paying 25% a month less to own a property rather than rent it.[1]

Southern switch

On the other hand, the South East of the UK gave the best value for money for renters. An average tenant in London pays £2,218 per month in rent, whereas homeowners pay an average of £3,302. This means that buyers are paying 49% more.[1]

Cheaper to buy than rent in 1/3 of UK cities

Cheaper to buy than rent in 1/3 of UK cities

Typically, buyers in Reading and Cambridge pay more than renters. Property owners in Reading typically pay £3,600 per annum more than tenants, with those in Cambridge paying an additional £3,700.

Nationally, the average asking rent for a two-bedroom house is £666 per month, in comparison to an average asking price of £145,840. What’s more, taking out a 90% LTV mortgage costs £58 per month more than the average tenant would pay if they were to rent the same property.

Leap of faith

Coupled with the peace of mind that owning a home brings, a large number of homeowners have more disposable income at the end of the month than their renting counterparts, according to Lawrence Hall of Zoopla.

Hall said that if would-be homeowners, ‘can make the leap and are willing to relinquish the flexibility that comes with renting, tenants up north in particular would be much better off buying and paying off a mortgage every month.’ In addition, he noted that Scotland and the North of England are now international university hubs, with excellent universities in York, Edinburgh and Durham. This, Hall says, ‘means increasingly high numbers of students are flocking to these areas, all looking for places to stay and driving up rents as a result.’[1]

Concluding, Mr Hall observed that London and the South East are certainly not cheaper places to rent. However, he did say that, ‘growing pressure on housing supply in this corner of the UK from professionals, families and overseas investors means that getting a foothold onto the property ladder in these areas is only becoming a more costly endeavor and the mortgage payment attached to this are rising to bridge this gap.’[1]

[1] http://www.propertywire.com/news/europe/uk-renting-buying-property-2015101211082.html

 

The Buy-to-Let Sector in Numbers

Published On: October 6, 2015 at 8:53 am

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Categories: Landlord News

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The Buy-to-Let Sector in Numbers

The Buy-to-Let Sector in Numbers

The Bank of England (BoE) has warned that the buy-to-let sector could have a detrimental effect on the country’s financial stability.

Rising property prices, which are making it difficult for many to get onto the ladder, could eventually lead to a housing market crash.

Former business minister Sir Vince Cable has also voiced his concerns. Read more: /ex-minister-warns-of-another-housing-market-crash/

So how big a problem is buy-to-let in Britain?

Private landlords now own one in five homes and half of the five million new properties built between 1986-2012 are under their ownership.

Of all landlords, 10% get half or more of their total income from their property investments.

The estimated value of buy-to-let properties in the UK is a huge £1 trillion.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage lending at seven-year high

Published On: September 25, 2015 at 3:11 pm

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Categories: Finance News

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Mortgage lending rose to a seven-year high during August, as buyers and remortgagers came back into the market.

According to data from the British Bankers’ Association, a total of £12.2bn was advanced during the month. This was the highest since August 2008.

Highs

Net lending also reached a five-year high of £1.96bn, but mortgage advances have had a slow start to the year, staying around the £500m per month mark.

However, advances did begin to rise in May, after the uncertainty surrounding the General Election was dispelled. Indeed, the market looks strong moving forwards, with total number of mortgages approved increasing across all categories.

The number of loans for people looking to remortgage rose to 25,540 in August, which was the highest level for four years. What’s more, this was 38% above the figure for the same period of 2014. This surge was attributed to people taking out fixed rate mortgage deals in order to maintain control over their monthly repayments, once the Bank Rate does eventually rise.[1]

Mortgage approvals for house purchases only rose, by 16% in comparison to August 2014 to stand at 46,743, the highest level since February last year.

Mortgage lending at seven-year high

Mortgage lending at seven-year high

Lack of supply

RICS feels that the number of homes on the market stayed at an all-time low during August, with the ongoing shortage of stock stalling the recovery in transaction volumes.

‘People are putting their money into bricks and mortar while interest rates are low and the timing of a likely rate rise remains uncertain,’ said Richard Woolhouse, chief economist at the British Bankers’ Association.[1]

Woolhouse believes that, ‘mortgage borrowing continues to pick up,’ and. ‘the August increase is the largest in five years, although borrowing is still some way below pre-crisis levels. Remortgaging numbers also continue to be strong, as shrewd homeowners snap up competitive deals.’[1]

[1] http://www.zoopla.co.uk/discover/property-news/mortgage-lending-takes-off-after-general-election-24-09-15/?utm_content=bufferce5d9&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer#Ovgsfv1kgv4DfSK8.97

 

Support needed for elderly people downsizing

Published On: September 25, 2015 at 11:11 am

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Categories: Landlord News

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A new investigation has called on local authorities and the property industry to come together to provide more support to elderly people looking to downsize to a smaller property.

The Royal Institution of Chartered Surveyors believes that will help to cut-down on the emotional distress of pensioners moving home in later years.

Visits

RICS suggested that councils work more closely together to arrange, ‘accompanied visits,’ to suitable properties to, ‘create a more positive experience.’[1]

In addition, the company thinks that the Government should pay for a new fund that covers pensioners’ moving costs, in order to encourage them to move home.

Data from the report shows that pressure is growing on pensioners to move from their large homes and into smaller flats or bungalows. It suggests that a third of over 55 year olds considered moving in the last five years, but only 7% have actually moved property.[1]

Community

The report stated, ‘knowing ones neighbours and feeling a sense of community is also an important factor in deciding to move homes for some older people. RICS recommends that local authorities and industry work together to provide accompanied visits to suitable properties to mitigate emotional distress and create and more positive experience.’[1]

One of the authors of the report, Jeremy Blackburn, told The Telegraph newspaper, ‘one of the things we heard was about the number of pensioners living in under occupied property, who might be asset rich terms of the property itself but are actually quite poor overall in terms of their savings.’[1]

While reluctant to provide a more accurate figure for how much elderly people would be offered to assist with moving costs, Blackburn said it would be, ‘more in the hundreds than in the thousands.’[1]

‘I think for many older people, they want to downsize and it’s really hard to do it, so anything that makes it easier must be a good thing,’ he continued. ‘There’s a lot of hysteria about forcing people to downsize but this is just ridiculous, because nobody is forcing anyone to do anything. It’s just helping people who want to do something already.’[1]

Support needed for elderly people downsizing

Support needed for elderly people downsizing

Exciting

Lord Best, chair of the All Parliamentary Group stated, ‘we want to make it easier to move all round, that’s the essence. Looking for a new home should be exciting and fun. We don’t want people to feel as though they are being forced out of their homes, we want downsizing to be a positive experience.’[1]

‘As people get older, by in large they don’t want to move very far where they live already, the challenge in many areas is that there just isn’t good quality housing available so that has to be looked at as well,’ added Lord Newby.[1]

[1] http://www.telegraph.co.uk/active/11885825/Elderly-people-should-be-given-emotional-support-to-encourage-them-to-downsize.html