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Em Morley

Millennials are Sloppy on Home Security, Suggests Study

Published On: November 8, 2016 at 10:11 am

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Millennials are more likely to be sloppy with home security than their elders, according to a new study by Ocean Finance.

The research found that one in ten millennials admit that they are unsure about who has keys to their home.

The firm questioned households about who else had keys to their home, beside the people who live there.

Over three quarters (77%) of adults admit that they have given keys to other people, while one in five have given out two or more sets of keys.

Who holds the key?

Millennials are Sloppy on Home Security, Suggests Study

Millennials are Sloppy on Home Security, Suggests Study

Overall, we are most likely to give keys to other (non-resident) members of our family. However, neighbours, cleaners and dog walkers all routinely hold keys to our homes.

Around 70% of us give keys to family members that don’t live with us, while almost a fifth (19%) give their neighbours a key.

Perhaps surprisingly, 20% of millennials give keys to a cleaner, compared to just 2% of those aged 55 or over.

Almost one in ten (8%) Londoners gives a key to their dog walker.

Overall, 2% of adults admit that they don’t know who has keys to their home, compared to 10% of millennials.

Change the locks 

Most adults (60%) don’t bother changing the locks when they move into a new home, meaning that they can’t say for certain who has access to their property.

However, homeowners are more likely to be concerned with home security, with half (49%) saying they changed the locks when they moved into a new home.

Contrastingly, just one in three tenants changed the locks when they moved into their rental property. While tenants do have the right to change the locks of their home, some tenancy agreements state that the landlord must be informed and given a set of keys.

Worryingly, however, just 12% of tenants are aware that their landlord has keys to their home.

Ocean Finance’s Ian Williams says: “Most, if not all, Brits would say securing their home was very important to them. So it’s really odd that we don’t take the basic precaution in changing the locks. We seem prepared to take it on trust that the previous occupiers and the estate or letting agents have given us all the copies of the keys.

“For many of us, people come and go from our homes even when we aren’t there. Cleaners, dog walkers, child-minders and tradesmen all routinely have access to our homes.”

Landlords, make sure that you inform your tenants of the importance of home security before and during the tenancy.

In order to protect your tenants and property, always explain the many ways that your new renters can look after themselves and their home, and remember to conduct periodic inspections to ensure that the property is in a good condition.

These top tips will also help to prevent burglaries this winter: https://blog.upad.co.uk/blog/top-tips-this-winter-to-avoid-being-the-victim-of-burglary

UK lenders urged to take rental payments into consideration

Published On: November 8, 2016 at 9:57 am

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Home lenders in Britain should take rental payments into account when making lending decisions, according to Experian.

Research from the firm has revealed that rental rates are rising significantly, whereas monthly mortgage payments are dropping.

Rental increases

During the third quarter of 2015, private tenants in Britain paid more for their rental accommodation in 57% of districts, in comparison to the same period in 2015.

At the same time, monthly mortgage payments expected to be paid by first time buyers has fallen in almost two-thirds of districts. This is on the assumption that their loan was for 90% of the property on a two-year fixed-rate mortgage deal over 25 years.

The amount of money tenants pay for their accommodation is either above or within 10% of the monthly payments that they could expect to pay for a mortgage in 27% of UK districts. Experian’s research suggests that if these renters were able to raise a deposit, a large percentage of the 4.3m private rental tenants in Britain would fine mortgage payments manageable in line with their current rental outgoings.

Exceeding

Data from the investigation shows that Scotland is home to six of the ten districts where rental rates are higher than mortgage payments by the biggest margin. In addition, Manchester, Salford and Hull also offer the most favourable conditions for tenants to get onto the property ladder.

Jonathan Westley of Experian, said: ‘What our research shows is that while a mortgage is a major ongoing commitment, renters often have a track record of making monthly payments which are often similar to what they might pay on a mortgage.’[1]

The Mortgage Market Review has already seen lenders subject to stringent checks assessing the suitability of candidates to keep up with their mortgage payments. However, Experian argues that by taking rental payments into consideration, lenders can get a better overall view of a borrower’s track record.

UK lenders urged to take rental payments into consideration

UK lenders urged to take rental payments into consideration

Responsibility

Mr Westley continued by saying: ‘Lenders take more into account than simply the amount you have raised for a deposit and what multiple of your earnings you are looking to borrow. The responsibility of ensuring mortgage payments are affordable for borrowers in the long term is one lenders take seriously.’[1]

‘They want to get a complete picture of a would be home owner’s financial commitments and see a strong track record of making regular payments. This helps lenders to understand how a borrower would manage mortgage payments now and in the future,’ he concluded.[1]

[1] http://www.propertywire.com/news/europe/home-lenders-urged-take-rental-payments-account/

Hillary Beats Trump… At Least Where UK Property is Concerned

Published On: November 8, 2016 at 9:26 am

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Hillary beats Trump…. At least where UK property demand is concerned, according to new research ahead of today’s US election.

Hillary Beats Trump... At Least Where UK Property is Concerned

Hillary Beats Trump… At Least Where UK Property is Concerned

Online estate agent eMoov.co.uk has analysed the impact of each presidential candidate on their UK property namesakes.

The agent has pitted St Hilary in Cornwall against Trumpington in Cambridgeshire to see which location is most in demand from UK property buyers.

And it’s bad news for Trump fans, as St Hilary came out on top.

eMoov produces a quarterly national hotspots index that monitors demand for property around the country, based on the balance of available and sold housing stock on the market.

It ran the study for Trumpington in Cambridgeshire and St Hilary in Cornwall to see just what impact the US election is having on property demand in the UK.

The data shows that property demand in Cambridgeshire as a whole is at a strong 43%. However, demand in the village of Trumpington has plummeted to just 19% ahead of today’s crucial vote.

Property demand in St Hilary, however, stands at a robust 37% – close to Cornwall’s overall level of 38%.

The Founder and CEO of eMoov, Russell Quirk, comments on the findings: “The prospect of a Trump presidency seems to be sending shockwaves further afield than the US campaign trail. Even sleepy corners of the British property market seem to be impacted by the unintentional allegiance to each candidate, through the names they share.

“It’s clear that, where property demand is concerned at least, Hilary is out in front by some way. We’re going to put our hat on this data and call the result of this election a day or two in advance – fingers crossed we’re correct.”

Yesterday, we reported on claims from many agents in the UK property industry, who have found that US buyers are ready to flee their homeland to the UK when the result is announced. Some property deals are already linked to the potential outcomes.

We will keep you up to date with the US election and its impact on UK property on social media. Follow us on Twitter for the latest updates: https://twitter.com/NewsLandlords

Brexit ruling set to increase uncertainty in the housing market

Published On: November 7, 2016 at 12:37 pm

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Last week saw a momentous decision in the High Court that blocked Theresa May from starting the process of leaving the UK without the consent of Parliament.

This is likely to cause more uncertainty in the housing market, according to Paul Smith, CEO of haart estate agents.

Clarification

Mr Smith feels that the transaction rates in the sales market are likely to drop as both buyers and sellers receive more clarification on the future of the UK.

Smith observed: ‘The High Court’s decision will elongate the process of Britain leaving the European Union, reigniting cause for a lack of confidence among buyers, sellers and housebuilders. It cannot be emphasised enough how much the residential property market is reliant on confidence and as we currently see a market that is suffering from almost record low transaction levels, especially in the capital, it is now more important than ever that clarity is provided.’[1]

Clean Break

Mr Smith went on to say that a ‘quick, clean break from the EU,’ is required to help increase the residential property market and wider economy.

Brexit ruling set to increase uncertainty in the housing market

Brexit ruling set to increase uncertainty in the housing market

‘Britons have voted to be free of the EU and their wishes should be respected with a clear exit strategy being put in place. The High Court’s decision is likely to stall the process, increasing likeliness of a half-way house deal that would see many Brexit promises reversed, something that the Government must avoid’, he noted.[1]

‘Our property market has in the past proved robust and bounced back in terms of adversity, however guarantees of future stability would certainly not go amiss-and clarity over the direction of Brexit is a good place to start,’ Mr Smith concluded.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/11/high-court-brexit-ruling-will-increase-uncertainty-in-housing-market

 

The Number of Million-Pound Houses in the UK Rises

Published On: November 7, 2016 at 11:34 am

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The number of million-pound houses in the UK rose by 12% in the first half of 2016 compared with the same period last year, according to a report from Lloyds Bank.

However, the study also found that the average price of a million-pound property has gone down over the last two years.

The average price of a home sold for more than £1m has dropped by £135,251 between 2014-16. The bank believes that the price drop was partly due to a reduction in sales at the higher end of the market.

The Number of Million-Pound Houses in the UK Rises

The Number of Million-Pound Houses in the UK Rises

During the first six months of 2016, 6,684 million-pound houses were sold – up by 12% on the 5,946 sold in the same period of 2015.

The average price of a property selling for more than £1m has dropped from £1,862,578 to £1,727,327 over the past two-year period.

Even so, a buyer paying the average price would have still owed the Government a whopping £121,000 in Stamp Duty. Based on the total number of sales, this suggests that the Government has earned £808.7m from buyers of million-pound houses.

Changes to Stamp Duty in December 2014 have made it more expensive for buyers to purchase a home worth more than £937,500.

Virginia Water in Surrey has been named as the only million-pound town in Britain, while Cobham and Beaconsfield have lost their previous year’s status.

The North East of England has recorded the greatest rise in the number of million-pound property sales, with a huge 83% increase – due to 11 purchases.

Unsurprisingly, more than nine in ten sales of million-pound houses were in London, the South East and East of England, with Kensington and Chelsea and Westminster leading the way.

The capital saw 4,238 sales of million-pound houses in the first half of the year.

Scotland was the only part of Britain to see a decline in the number of million-pound home sales, with a 33% decrease.

The Private Banking Director at Lloyds Bank, Sarah Deaves, says: “Over the past year, there’s been an increase in the number of houses being sold for more than £1m, but there’s also been a dip in the average house price at this level for two years in a row.

“The strength of the London economy, Stamp Duty changes and the attractiveness of UK prime property to overseas buyers could all play a part in the boost to sales at this level.”

Indeed, recent reports claim that US property buyers are seeking refuge in the UK market following this week’s election result.

The average house price in the UK is now £217,411, according to the latest House Price Index from Halifax.

Rents are set to rise sharply by 2021

Published On: November 7, 2016 at 11:33 am

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A new report has indicated that rents in Britain are likely to rise sharply in the next five years, with more people choosing to rent over purchasing property.

The investigation by estate agency Savills forecasts than rents will increase by 19% between now and the year 2021. During the same period, purchase prices are tipped to only rise by 13%.

Capital pressure

Average rents are tipped to rise by 24.5% in London by the end of 2021, with the cost of buying going through the roof.

More pressure on rental prices is being caused by many would-be buyers who simply cannot afford to buy. Recent tax alterations are serving to deter many buy-to-let landlords from making further investments in the sector

With rents set to rise, Savills believe that home price growth is going to be largely flat over the next two years. This, the agency suggests, is due to Brexit negotiations leaving home buyer sentiment ‘fragile.’

Rents are set to rise sharply by 2021

Rents are set to rise sharply by 2021

Forecasts

Savills estimates UK house price will stay steady in 2017, then increase by 2% in 2018. Growth of 5.5% is expected in 2019 and 3% in 2020, with a fall to 2% in 2021.

Lucian Cook, UK head of residential research at Savills’ said: ‘Brexit has forced the market to change gear and created uncertainty. The period of negotiation with the EU is likely to be a rollercoaster of confidence.’[1]

‘Buyer sentiment across all sectors of the market is likely to be fragile during the period of negotiations to leave the EU,’ he added.[1]

The table below indicates how Savills projects rents to rise per year until 2021:

Rents  
Year Rents
2017 +2.5%
2018 +4%
2019 +5%
2020 +3.5%
2021 +3%
Five year total +19%

 

[1] https://www.landlordtoday.co.uk/breaking-news/2016/11/rents-set-to-rise-significantly