Demand for property rises in London, but Wales and Scotland have largest increase

Demand for property has lifted in London but commuter locations around the capital have seen a slowdown while Wales and Scotland outperform the rest of the UK, the latest index shows.

Overall, the national hotspots index from hybrid estate agent Emoov, which calculates the number of properties sold as a percentage of homes listed, reached 38%, up 8% across the country, but up just 3% in England. While in Scotland it rose by 8% and in Wales by 10%.

It also shows an improvement for London with demand up 2% since the beginning of 2018. But in commuter zones demand fell by 8%. While Edinburgh is the most in demand city at 62%.

Wales recorded the largest change in property demand since the start of the year taking it to 34% demand in the second quarter. Scotland followed with an 8% change this year, while England demand saw the
lowest change at 3% and the index report suggests that this could be a result of the higher prices across England, as market uncertainty has seen activity largely subdued at higher ends of the market.

Demand across the UK’s major cities and towns have seen a slight rise of 1% in demand since the start of the year while Durham tops the list for the largest increase at 60% after a consistent decline over the last year.

The report explains that London’s escalating levels of unaffordability has resulted in a mass shift of home buyers moving to the peripheral commuter belts. This has led to high levels of demand for property in these towns but this influx of buyers might be starting to slow. Across the commuter belt demand as a whole has dropped 7% since the start of 2018 to 39%. Tandridge is the hottest spot at 42% demand and has seen an uplift of 30% already this year.

In London the biggest demand is in the borough of Hammersmith and Fulham at 71%. Overall the biggest jumps have been in prime property markets in central London.

‘Market uncertainty is still dampening buyer appetite elsewhere across the nation though as demand in the UK’s larger urban towns and cities has cooled. The London commuter belt has also been on fire for quite some time but has dropped the pace a little in 2018. It is inevitable that such a sustained level of demand will eventually drive prices up and so this slight correction is nothing to worry about,’ he pointed out.

‘However, there are positive signs across the board for UK demand and indicators that the market is starting to find its feet again. The more affordable spots across the nation are seeing notable uplifts in buyer demand, and in turn price growth, and as stability builds the upper ends of the market should start to follow suit,’ he added.

Original source: Property Wire https://www.propertywire.com/news/uk/demand-property-rises-london-wales-scotland-largest-increase/

Number of young people owning a home up by 3% since low of 2016

New research shows that the UK’s housing market has seen the first rise in home ownership for young families in 30 years but renting is set to be an important sector.

Although home ownership among those aged 25 to 34 has increased by 3% since 2016 when the level reached a record low of 25%, the high cost of buying a home means that letting is still an option for many people.

The analysis from the Resolution Foundation says that better credit conditions as the nation moves further away from the financial crisis, and a slowdown in house price growth in recent years have improved the situation for young first time buyers.

It means that the equivalent of an extra 190,000 young families now own a home but rates are still barely half as high as their late 1980s peak, when half owned their own home. If ownership rates hadn’t fallen sharply from this peak, some 1.4 million more young families would be home owners today.

The Foundation adds that, despite this recent uptick, renting will continue to be the norm for the majority of young people, particularly in the UK’s major cities. The long term drivers of lower home ownership are here to stay with low interest rates and a shortage of homes driving higher house prices and deposit requirements.

It would currently take a first time buyer in their late 20s around 18 years to save for a deposit if they relied solely on savings from their own disposable income, up from three years as recently as in the mid-90s.

A new local area analysis shows that fewer than one in five young families in London, Manchester, Liverpool, Brighton and Birmingham currently own. For these families, owning their own home is likely to come far later in life, if at all.

In contrast, nearly half of young families in areas like South Lanarkshire, South Hampshire and Central Bedfordshire already own their home, highlighting that Britain’s housing divide is not just between London and everywhere else but between major cities and rural areas.

The analysis shows that falling home ownership rates, and reduced access to social housing, have driven rapid growth in the number of young families who rent privately. Nationally, the share of young families in the private rental sector increased from just 9% in the late 1980s to 34% today.

For this group of renters, shared residencies are quickly becoming a core feature of urban British living: twelve per cent of all young families are now sharing with others in the private rental sector, an increase from just 3% in the late 1980s. In Bristol and Brighton, one in three young private renters are now living in shared accommodation.

The Foundation says that rising home ownership rates for young people will be welcome news, but a better deal for renters is needed as the high financial barriers to getting on the property ladder will continue to force many into long term renting.

It calls for the Government to improve security and stability for young tenants by making indeterminate tenancies the sole form of private rental contract and introducing light touch rent stabilisation that limits rent rises to CPI inflation for set three year periods.

‘After decades of falling home ownership, recent conditions in the housing market as we move away from the immediate aftermath of the financial crisis are finally helping more young families to buy a home of their own,’ said Daniel Tomlinson, research and policy analyst at the Resolution Foundation.

‘But the long term drivers of lower ownership rates, including low interest rates, and high house prices and deposit requirements, are here to stay. Home ownership rates for young families are barely half as high as they were back in the late 1980s, while fewer than one in five own in many of Britain’s major cities,’ he pointed out.

‘So as well as welcoming the tick up in youth home ownership politicians should act to increase the number of homes available to buy, use the tax system to favour first time buyers over second home owners, and ensure that the private rental sector is fit for purpose, providing the security that many young families need,’ he added.

 

Original Source:Property Wire https://www.propertywire.com/news/uk/number-of-young-people-owning-a-home-up-by-just-3-since-low-of-2016/

Emergency damage costs households £3.7bn new report shows

Households across the country are spending a £527.30 per household emergency, a total of £3.7bn across the UK, according to research from NFU Mutual.

74% are concerned about home emergencies, particularly as over half (52%) have experienced one in the last two years. Top concerns include heating breaking down (32%); failure of electricity or gas supply (27%) and blocked or broken plumbing systems (26%).

The research highlighted that to avoid costs some people would rather simply not fix the problem (16%) or ‘fix it themselves’, with people in Northern Ireland being the most likely to just leave the damage (25%), followed by those in the South East (23%) and then people across Scotland (22%).

When it comes to paying out for the damage caused by home emergencies, 45-54 year olds are most likely to pay to fix the damage from their own pockets (44%) whereas 16-24 year olds are most likely to get a credit card or loan (17%).

Ross Garner, home insurance specialist at NFU Mutual, said: “Whilst home insurance protects against disasters such as fire, flood and storm damage, the costs of everyday domestic breakdowns, such as broken boilers, can be expensive to fix. For this reason we have introduced our home emergency cover to help customers resolve common domestic faults quickly and avoid hefty repair bills.

“Although some people put money aside to cover unexpected costs, repairs can often cost more than anticipated and home emergencies can happen in quick succession. This leads to more than one in five people taking out cover following a bad experience.”

 

Original source: Property Reporter https://www.propertyreporter.co.uk/household/emergency-damage-costs-households-37bn.html

Research reveals how many couples move in with parents to save for a home

Moving house in 2018

A quarter of young couples who have moved back in to the family home have done so in order to save money for a house deposit, new research has found.

Some 12% did so after graduating from University and a further 12% returned home because they could no longer afford their rent, according to the study from Churchill Home Insurance.

It says that this equates to 1.25 million couples in the last five years, highlighting the financial struggles young couples face when it comes to funding their own home.

The majority of parents welcome their children home with open arms, with 28 per cent pleased they could spend more time with their child and 26% said they are pleased to give them the opportunity to save for their own home.

However, not all were as pleased to have their kids return to the nest, with 34% of parents reporting a negative outcome following their child and partner having moved in.

When it comes to the finances, only 30% of parents charge their offspring rent, with the average monthly payment standing at £115.60, more than eight times less than the average monthly rent in the UK of £928.

Partners are even less likely to pay rent, with just 18% being charged for staying with their partner’s parent/s. Even those who do pay get a good deal with the average rent charged coming in at £109.90.

‘Moving back in to the family home is becoming ever more popular and is often the only choice for young adults who are trying to save up for a house deposit of their own. Whilst it is surprising that so many have opted to move back in with their parents with their partner in tow, this does allow couples to save more whilst still living together,’ said a spokesperson for Churchill home insurance.

‘If your child is thinking about moving back in to the family home it is important to make sure you inform your insurer and update your home contents insurance to take into account for their possessions, as this could increase value of the items kept in your home,’ the spokesperson added.

Original Source:Property Wire https://www.propertywire.com/news/uk/research-reveals-how-many-couples-move-in-with-parents-to-save-for-a-home/

Top tips for Christmas home security

Darker evenings, poor home security, cars full of gifts and preoccupied homeowners are all triggers for opportunistic thieves over Christmas.

In addition to the obvious, during this time of year fridges and freezers are usually stuffed to breaking point with festive treats, so check that your insurance policy covers you in case of any issues.

Co-op Insurance offers the following advice to keeping your home and belongings safe throughout the festive period:

1. Close your curtains when you have the lights on inside, in the dark winter months it is easy to tell when a house is unoccupied and burglars can use this to their advantage.

2. If you’re out for the night, leave a light on inside to look like the house is lived in.

3. Whilst Christmas shopping don’t let your handbag out of sight and make sure it is secure, as in busy crowds you can be an easy target for pick pockets.

4. Be sure to leave your presents out of sight and well hidden, away from a window, and if you’re out Christmas shopping in your car be sure to leave them out of view and locked in the boot

5. Be careful what you post on social media. As tempting as it is to show your friends what Santa’s bought you for Christmas, think carefully who will be able to read your posts, and make sure you check your privacy settings to see who can and who can’t read them

6. After the mania of present opening, discard your cardboard packaging in your bin outside or better still take to your local recycling centre, don’t leave on show outside for thieves to see what presents you’ve got.

7. Fairy lights can be a fire risk, consider buying new ones to ensure they have a good standard of safety, make sure you turn them off when unattended and don’t leave them on overnight

8. Check your insurance policy, presents kept in your home will be covered by your usual contents insurance, but if you’ve bought big ticket items as gifts they may need to be listed separately. Typically, the limit for single items ranges from £1,000 to £2,000, so check your policy and call your insurer if you’ve purchased anything above your limit.

9. Also check to see your insurance policy covers accidental damage cover, for any breakages to new items such as laptops, or wine spillages over the Christmas period.

Caroline Hunter, Head of Home Insurance at the Co-op, said: “Burglary is an extremely upsetting experience for anyone who happens to find themselves in this situation, however by taking simple security measures they can easily be prevented. It is easy to be distracted when you’re busy getting ready in the run up to Christmas, but taking just a few small steps can make a big difference, in keeping your home, your possessions and, most importantly, you safe.”

Whilst ensuring you are adequately covered over the festive season allows you to focus on the festivities instead of worrying that something may go wrong, so be sure to check that your policy provides a seasonal uplift.”

Lynn Farrar, Chair of Neighbourhood & Home Watch said: “At this time of year people are buying lots of new things and it’s important to remember that thieves and burglars know this and are looking for easy pickings to get their hands on the things you’ve bought.

Dark houses are a clear sign that no-one’s home and most burglaries are opportunistic. So our advice is to buy some timer switches for your lights and use them. It sounds simple but a few pounds spent on timers could save you much more this Christmas.”

Original source: Property Reporter

Change of use from retail to residential could boost High Streets in the UK

Turning ex-retail premises into residential property will give High Streets in the UK a new lease of life, boosting landlords, new research suggests.

Some 72% of property professionals, including investors, owners, developers, consultants, contractors, property managers and letting agents, see residential development of former retail premises as a way forward.

They survey from global property technology company MRI Software, also found that 82% say projects to redevelop former retail premises to create mixed-use properties, including residential, will be a lucrative opportunity over the next 12 to 18 months.

‘The challenges faced by retail won’t be solved by a shift to residential, but the trend will be a significant boost to opportunities for property owners. Retail property owners will increasingly become residential landlords,’ said Colin O’Reilly, EMAE sales director.

‘Ultimately, more people living in town centres will enhance the opportunities for retailers and other businesses, such as coffee shops, health clubs and entertainment venues,’ he pointed out.

The poll also asked respondents about Brexit and found that 68% of senior property professionals say that as long as a soft Brexit is achieved, the UK property industry will continue to have good access to the funding it needs to develop properties.

While almost half, some 44%, say a hard Brexit would seriously hurt the ability of the UK property industry to get the funding it needs to develop properties while 58% think Brexit will cause housing prices to fall.

‘The one cautious note struck in the results was the fact that a majority see Brexit likely to cause housing prices to fall but even then, more than 40% do not. And close to two thirds see it having only a minimal impact on the rental market,’ he explained.

‘This is an industry that has seen more than its fair share of ups and downs and, once the new market environment is established, it will be moving forward and looking to take advantage of openings,’ he added.

Original Source:Property Wire https://www.propertywire.com/news/uk/change-of-use-from-retail-to-residential-could-boost-high-streets-in-the-uk/

What are the best ways of financing a property flip

Property renovation used to be the reserve of a small number of experts. But popular TV shows like Homes Under the Hammer have demonstrated to ordinary people that they can turn a profit by renovating tired, older properties and quickly selling them on.

However, new investors and landlords buying at auction who want to follow this path will need to have their finances in place, so here’s a guide by Daniel Owen-Parr, head of professional sector and auction at lender Together, explaining each stage of the process.

Purchase

As with buying any property, they’ll need to fund a deposit. This could come from savings, or unlocking equity from another property they own – perhaps their own home – with a second-charge loan.

In essence, this piggybacks onto an existing mortgage (the ‘first charge’), but has its own terms and rate. It can be much shorter than a mortgage, if the borrower wishes. Putting down 25% or more will open up options when it comes to borrowing, as the borrower will qualify with more lenders.
For the purchase of the property itself, one borrowing option is a bridging loan. These can be funded within days (rather than taking several weeks, as with a traditional mortgage), so are often used to purchase properties at auction.

The loans usually last up to 12 months, but can be longer, and there are no monthly repayments to make. Interest is calculated monthly, and bundled up (with any fees) to be repaid in a lump sum with the original loan, as soon as the borrower is able. So the sooner they repay their loan, the less it’ll cost in total.

Renovation

Borrowers will need to have cash available for the renovation works. How much the investor needs will depend, of course, on how much work they’re planning to do.

A surface renovation of a typically-sized property – updating the floor and wall coverings, and perhaps a new kitchen – can often be achieved for under £5,000. If the renovation is more thorough – perhaps involving rewiring, plastering, and updates to the outside space – the investor may need five figures.

If they’ve spent all of their cash on your deposit, they could theoretically cover the cost of renovation with unsecured borrowing, such as credit cards. But people need to think hard about whether to take on this risk, and how much this will cost in interest while they’re waiting to sell the property.

Release

Once renovation works are complete, the success of any flip project will depend on the property buyer’s ability to remove investment as soon as they can.

If they’ve taken out a Refurbishment Bridging Loan with us, they can increase their loan to cover the cost of the refurbishments, based on the renovated property’s new market value. This releases cash to start another project (or repay additional borrowing, like credit cards if they’ve used them).

And once the property is sold, they’ll need to repay their bridging loan. They could also repay the second-charge loan (if they’ve taken one), or keep this as a ‘float’ to start another renovation project.

Original source: Property Reporter https://www.propertyreporter.co.uk/finance/financing-a-property-flip.html

There’s no place like home: Almost half of home movers relocate within a 10 mile radius

According to the latest research released by home moving company, AnyVan.com, almost half of home movers move less than 10 miles away from their current property.

The data came from analysis of over 18,000 home removal jobs and shows that 48% of property moves are less than 10 miles from their current home with just over a quarter of moves (27%) less than 5 miles. 62% of all moves are less than 20 miles with 57% less than 15 miles. The data also gave interesting insight into those moving bigger distances with moves over 20 miles at 38% and 50 miles at 25%.

Finding a new home is difficult no matter how far you are moving, especially with the current slow down in the housing market. Home sellers are finding it increasingly difficult to find buyers and in some pockets of the UK, prices are starting to fall. With Brexit on the horizon, who knows what is in store during 2019!

A fresh start elsewhere in the country or abroad could be for a new job, university or you’re selling up to head to the coast to enjoy your retirement. But larger relocations of over 100 miles make up just 17% of movers in 2018 according to AnyVan.com.

Angus Elphinstone, CEO of AnyVan.com, had this to say: “Our vast database of home mover data highlights the majority of movers don’t fly too far from the nest. Nearly half of all movers in the UK move under ten miles with a quarter moving less than just 5 miles. It’s easy to know why as once you are set in an area that you know and love, it can be very daunting to think about moving too far away. For most, you spend years living in the same home and making nearby friends.

For those with school-aged children, it can be hugely difficult to move too far away as finding an available school place is not always that easy. However, for some, it can be tempting for a small move of just a couple of miles to get into the catchment for a better school.“

Original source: Property Reporter

Why build-to-rent is the key to helping ‘Generation Rent’

Millennials look set to be the first generation in the UK who may never own their own homes.

A recent report estimated that more than 50% of adults under the age of 40 will be living in privately rented accommodation by 2025, and research from the Resolution Foundation stated that up to one third of young adults will never be homeowners. As a result, much of this ‘Generation Rent’ looks likely to remain in private rental accommodation for the rest of their lives.

Long-term renting has often been portrayed as a forced living situation, rather than a choice. But it’s important to remember that homeownership isn’t for everyone, and it shouldn’t be. There are many valid reasons for not wanting to own your own home and there are several distinct advantages to renting. Home ownership can be expensive and can soon prove a serious liability if personal circumstances, finances or careers change. Perhaps the most obvious advantage to renting is the degree of flexibility it allows.

For many, renting is an affordable solution which adequately meets day-to-day needs. And it’s not just the young who are moving to private rental accommodation in ever greater numbers. People aged 65 and older are also now moving into the market in larger numbers than ever before. With over 200,000 older adults starting to rent in the last four years and, by 2040, it’s estimated that one in three people over 60 could be living in private rental accommodation.

The benefits afforded by private rental accommodation

With the private rental sector becoming increasingly popular, purpose-built rental properties can meet the need for modern and good-quality, housing stock. There are close to 131,855 build-to-rent (BTR) houses already built, under construction or planned in the UK, over half of which are in London.

These new BTR properties can offer more than many rental properties, including communal living solutions like shared gyms, pools and other sought-after facilities. Custom built accommodation can also often allow renters to pool their resources together and afford facilities which would be beyond their means as private homeowners.

Research from Your Move also revealed that three-quarters of tenants (74%) showed a genuine interest in some kind of communal service or activity, with an onsite gym being the most popular. Tenants were also willing to pay more rent for perks like pet-friendly housing and high-speed internet, with 28% willing to spend more on pet-friendly accommodation and 21% for high-speed internet.

How Build to Rent (BTR) can help fight the housing crisis

The gap between housing supply and demand has continued to grow in the UK – and whilst the Government’s pledge to build 300,000 new homes a year is certainly a step in the right direction, it continues to remain a challenge for some to find a home that is affordable and also to raise a deposit to buy – particularly if they are renting in the meantime.

As such, a stimulus that will support the BTR market is desperately needed – to satisfy the ongoing need for rental property. A recent report estimated that BTR will create 250,000 rental homes by 2030. These figures could, however, be even higher with additional investment.

In London, the public sector has begun serious investment in BTR. Sadiq Khan announced in 2015 that he wanted to build 5,000 BTR properties, but investment is currently limited to collective investment, not singular bodies. The public sector has correctly identified BTR as a way of boosting supply, but needs to open up the scheme to local councils, authorities and developers, both in London and the rest of the UK.

The future of BTR

The UK’s housing crisis is of major concern and whilst the Autumn Budget saw some limited support for Help to Buy and Shared Ownership, it focused mainly on the demand-side of the equation. However, policies to address the supply-side of the housing crisis are thin on the ground and many believe incentives for BTR would be a smart way to address this.

Original source: Property Reporter

Create a luxury kitchen without having to re-mortgage your house!

You may dream of being the proud owner of a luxury kitchen that oozes style, sophistication and elegance in every nook and cranny but unfortunately, you’ve not got the tens of thousands of pounds to pump into such an expensive project.

The good news is that with a few clever interior design tricks and tips, you can heighten the luxury appeal of your kitchen without having to re-mortgage your house.

Don’t believe us? Take a look at the following ways to revamp the hub of the family home on a budget.

Use ‘faux’ worktops instead of the real deal

Have your kitchen worktops seen better days? These well-used kitchen surfaces are continuously hammered with ingredients, knives, forks and detergent, so it’s hardly surprising they can look a little tired over time – a far cry from the luxury appeal you crave for.

Instead of opting for pricey worktops made from the likes of real granite and marble, choose a quality ‘faux’ alternative, which can look uncannily close to the real thing and will significantly jazz up your kitchen without the hefty price tag.

Paint the cabinets and change the handles

New kitchen cabinets can be notoriously expensive, and you’d be surprised at the luxury-heightening effect a new lick of paint on existing cupboards can bring to a kitchen. For a real luxurious feel opt for deluxe colours such a deep blues, rich reds, and dusty silvers.

Similar to the changing the colour of the cabinets, replacing handles can have an impact on the overall look of a kitchen. The simple act of swapping old, worn-out handles with jazzier alternatives is a cost-effective way to inject some luxury into your kitchen.

Add new lights

The light fittings in any room have a significant effect on the style and mood of the space and none more so than in a kitchen. Change outdated light fittings that do little in enhancing the style and appeal of your kitchen with more modern, stylish and luxury alternatives.

Don’t be afraid to be bold and creative with your choice of lighting for a real eye-catching look, such as hanging a pendant from the ceiling or even a crystal chandelier if the ceiling is high enough.

Update the tiling

Most kitchens have tiles in one place or another. Whether it’s wall tiles above the cooker or floor tiles underfoot, updating the tiling in your kitchen with some stylish new tiles is a tried and tested way to add some luxury to your home without the forking out on a hefty bill.

And there you have it, how to create a luxury-looking new kitchen on a budget.

Original source: https://new-id.co.uk/ways-to-create-a-luxury-kitchen-without-having-to-re-mortgage-your-house/