Posts with tag: London

The Varying Costs of Using an Estate Agent

Published On: February 7, 2016 at 4:01 pm

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Selling a property can often be a difficult process, with a variety of estate agents to choose from and the issue of getting stuck in a chain. But then there’s the fees themselves to think about.

And estate agent costs are anything but consistent. Depending on location, fees range from 0.9% to 2% of the property’s purchase price, according to Urban.co.uk.

The Varying Costs of Using an Estate Agent

The Varying Costs of Using an Estate Agent

The firm contacted 450 estate agents across the country, requesting a quote for a standard package, including photography, floor plan creation, online marketing and shop window marketing.

However, estate agent fees do not always rise in line with purchase price.

Unsurprisingly, London dominates the top of the list, with the seven most expensive locations for estate agent fees situated within the capital.

Farrington and Euston come out on joint top, with an average estate agent fee of 2% of the sale price.

In Farrington, where the average property costs over £1m, estate agent fees equal a huge £21,000.

As is happening in most industries, the online estate agent sector has boomed in the last few years. There are now many online agents that offer their services at much lower costs than high street firms. They typically charge set fees rather than commission percentages.

These agencies claim to be able to offer lower fees due to not having the overhead costs of running a physical branch.

However, vendors should be aware that they will have to host viewings and take on more of the work themselves to make the most of the savings on offer.

Many sellers might prefer the face-to-face interaction of using a high street agent, but billions of pounds worth of property is now sold through online agents every year.

Online estate agents are still controversial, as many believe that physical agents are irreplaceable. But it is clear that the potential savings are definitely significant.

A comparable package from an online agent, including a floor plan, for sale board and photography, costs around £1,000 – who would blame a vendor in Farrington using this service?

What’s your opinion of online estate agents? And do you think traditional agents are too expensive?

The Average House Price at Each London Underground Station

Published On: February 4, 2016 at 4:04 pm

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Categories: Property News

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Are you looking to invest in the London property market ahead of buy-to-let tax changes this year? Or maybe you’re one of the homebuyers looking to take advantage of the London Help to Buy scheme, which launched on Monday?

Whichever way you’re going to buy, if you’re considering the property market in the capital, it is vital that you pick the best place to purchase.

Thanks to online estate agent eMoov, you can now compare house prices across the London Underground with the firm’s alternative Tube map.

For each of the 280 stations on the Underground, eMoov has found the average house price in that area.

Last year, we published a similar map, which shows how much it costs to rent near each Tube stop. And the two maps show some similarities…

Take one of the cheapest rental prices for example. Renting in Hatton Cross cost just £324 per month back in September, and indeed, it is still one of the cheapest places to buy this year, with house prices around £292,000.

Dagenham Heathway also has some affordable properties – the average house costs just £238,000. However, renting in this area was more expensive last year, at £796 a month.

While not all rent prices/house prices correlate, expensive spots are pricey across all tenures.

Properties in Hyde Park Corner go for an average of £1.9m, while tenants will need a huge £2,920 per month to rent there. However, rents are cheaper in Piccadilly Circus, at £2,256 a month, while house prices average a whopping £2.6m.

Landlords are reminded that buy-to-let investors and second homebuyers will be charged an extra 3% in Stamp Duty after 1st April, which is causing many investors to rush into the market now in order to beat the deadline. Find out more: /landlords-rushing-to-avoid-buy-to-let-tax-changes/

Those looking for help with saving for a deposit can apply for Government-backed equity loans of up to 40% of a new build property’s purchase price worth up to £600,000 through the Help to Buy London scheme. For more information visit: /help-to-buy-london/

Use the map to find out where you can afford to buy: https://media.timeout.com/images/103113857/image.jpg

London Landlords to Receive Cashback on Old Boilers

Published On: February 4, 2016 at 1:22 pm

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Categories: Landlord News

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The capital’s first boiler replacement scheme has been launched, announced by the Mayor of London, Boris Johnson.

The London Boiler Cashback Scheme is offering £400 in cashback when old, inefficient boilers are replaced to 6,500 of the capital’s homeowners and private landlords.

London Landlords to Receive Cashback on Old Boilers

London Landlords to Receive Cashback on Old Boilers

The scheme works on a first-come, first-served basis, so landlords are being encouraged to apply early.

Private landlords or their letting agents must be accredited with the London Rental Standard in order to be considered. They can apply for cashback on more than one property, so long as they meet the scheme’s requirements.

Replacing an old, inefficient boiler with a new, efficient version can be beneficial in many ways; a more efficient boiler can mean average savings of £340 per year, as well as a warmer, more comfortable home. It also substantially reduces the risk of carbon monoxide poisoning.

It is hoped that the scheme as a whole will significantly cut carbon emissions and improve air quality across London.

If you are considering applying for the scheme, the following rules apply:

  • The current boiler must be 70% or less energy efficient – usually a G rated boiler that is either gas, LPG, solid fuel or oil fuelled – in working order and the main boiler used to heat the property.
  • The replacement must be a gas boiler that is A rated – at least 90% energy efficient – or a renewable/low carbon heating technology.
  • The installer must be a Gas Safe registered installer, a Microgeneration Certification Scheme (MCS) certified installer or equivalent, or a member of a competent persons scheme, such as OFTEC or HETAS.

When you apply, you must provide details of the boiler to be replaced, along with those of the heating engineer. You will then receive a voucher, after which the boiler can be replaced.

Vouchers are valid for 12 weeks from the date of issue, in which time the boiler must be installed. To receive the £400 cashback, you must then send back proof of installation, along with the voucher, no later than ten working days after the expiry date of the voucher.

For more information on the scheme, details of how to apply and the terms and conditions, visit: www.london.gov.uk/boilers

Help to Buy London Launches Today

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

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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.

London Students Protest Against Rising Accommodation Costs

Published On: January 30, 2016 at 2:42 pm

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Students at a university in London are refusing to pay rent in protest against spiralling accommodation prices and are demanding a 40% reduction in rent prices.

Over 150 students in two halls of residence at University College London (UCL) are refusing to pay rent amounting to more than £250,000. The Cut the Rent campaigners say they will not pay until UCL meets their demand for rent to be cut by two-fifths.

An accommodation representative and a campaign organiser, Angus O’Brien, explains: “The cost of rent has gone up dramatically and it’s preventing people from studying at university. This is a massive problem across London and the country. We are showing that something can be done about rising rent prices; our action could be the start of something much wider.”1

Campaigners claim that rents at UCL have increased by around 56% since 2009.

To rent a room in Ramsey Hall, one of the halls of residence affected by the strike, it costs £158.97-£262.43 per week. At the other building, Max Rayne House, rent is £102.97-£232.40. It is one of the cheapest halls at the university.

Nyima Murry is a 19-year-old first year History of Art student. She says: “I’ve struggled massively with the cost of rent. I’m not from a wealthy background and last term, I had to work two jobs, which really affected my studies. I can’t afford to eat if I don’t work. Studying is becoming about your background and how much you’re earning, rather than your ability.

“Many people I know are putting off moving to London because they can’t afford to study here. I’m striking so that future students have the opportunity to study at UCL on their academic merit, not because of their financial background.”1 

This latest protest follows another campaign at UCL last year, where students were collectively awarded £400,000 in compensation over a dispute against noise and a rat infestation.

The Cut the Rent campaign was set up last year. It says it previously raised the issue of increasing rents with the university, as well as setting up a petition and organising strikes against poor living conditions.

One of the campaigners, 22-year-old David Dahlborn, a third year Eastern European and Jewish Studies student, hopes to bring wider change.

He says: “This strike is extraordinarily significant. Education is becoming unaffordable because of tuition fees and rent. There’s also a housing catastrophe going on in London and a student debt crisis. It’s important that we succeed, because we need to change things.”1

The Vice President of Welfare at the National Union of Students (NUS), Shelly Asquith, also comments on the situation: “I take my hat off to the students at UCL who, for the best part of a year, have mounted a militant and successful rent campaign. Now they are taking their demands further and asking for a cut in rent. This is not unreasonable when the rent in London is more than 100% of the maximum loans and grants available for students. The UCL Cut the Rent campaign is right to point out that accommodation costs are equating to social cleansing of working class students from education. NUS fully supports the campaign.”1 

A UCL spokesperson has defended the rent rises, saying that the university’s prices are competitive for the capital: “We are seeking dialogue with the Cut the Rent campaign to discuss the issues and set out how the finances of UCL accommodation work. While we understand the concerns around the cost of accommodation in London, it is inaccurate to suggest that UCL accommodation is making a profit for the university.

“All of the money that UCL receives in rent is ploughed back into residences. While the proportions may vary year-on-year, we invariably spend more on residences than we receive in rental income.

“We make every effort at UCL to keep rents as low as possible, which is a difficult challenge considering our central London location. Our rents are competitive in comparison with equivalent London institutions and far less than for comparable accommodation in the private sector.”1 

Do you agree with the students’ campaign, or do you believe the university has set competitive rents?

1 http://www.theguardian.com/education/2016/jan/25/london-students-refuse-to-pay-rent-and-demand-40-cut

Starting a Family in London is Impossible for Average Household, Claims Generation Rent

Published On: January 27, 2016 at 12:44 pm

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Living in London is not a feasible option for the average couple that wants to start a family, according to tenant group Generation Rent.

Starting a Family in London is Impossible for Average Household, Claims Generation Rent

Starting a Family in London is Impossible for Average Household, Claims Generation Rent

The group has launched a campaign, Vote Homes 2016, which calls for better conditions for private renters from the next London mayor.

Generation Rent has studied Government rent and earnings data, finding that there is not a single London borough where the median rent on a two-bedroom home is affordable to a household earning the median salary.

Across the capital, the median rent would eat up 52% of the median salary – much more than the 30% that is considered affordable. Even in the cheapest London borough, Havering, the average rent price on a two-bed takes up 35% of the median salary.

Struggles with paying the rent with just one earner means that having a baby is unaffordable for the typical London couple.

Vote Homes 2016 hopes to give impartial advice on the main mayoral candidates’ policies that affect private tenants. Each candidate’s policies on housing are ranked through a traffic light system: red if they fail to improve the current situation; amber if they’re on the right track; and green if they will significantly improve life for renters.

The website (http://www.votehomes2016.com/) will be updated as and when candidates announce new policies.

Additionally, the group is calling on the candidates to commit to building homes at genuinely affordable rents, where the poorest 25% of Londoners would pay no more than 30% of their income on rent.

The Director of Generation Rent, Betsy Dillner, insists: “Housing is now so expensive, even couples on ordinary incomes are unable to start a family. People who grew up here are facing an impossible choice about their future. London’s status as a world capital will rapidly disintegrate if half of its population see the shutters come down on their aspirations.

“We need a mayor who will make lower rents their first priority and take immediate action to help the capital’s two million private renters.”1 

1 https://www.landlordtoday.co.uk/breaking-news/2016/1/generation-rent-starting-a-family-unaffordable-for-average-london-household