Posts with tag: Boomin

Property industry reacts to Chancellor Rishi Sunak’s Spring Statement

This year’s Spring Statement from Chancellor Rishi Sunak has received responses from professionals within the property industry.

Ben Beadle, Chief Executive of the National Residential Landlords Association (NRLA) comments: “We welcome the decision to scrap VAT on energy efficiency measures. However, it remains disappointing that the Government has again failed to explain what will be required of the rental sector when it comes to energy improvements. The sector needs clarity as a matter of urgency.

“More broadly, as renters, along with all others, face a cost-of-living crisis, the Chancellor should have reversed his decision to freeze housing benefit rates. Without this, those relying on the benefit will find it increasingly difficult to afford their rents.”

Matt Downie, Crisis Chief Executive, comments: “What’s clear from this statement is that people up and down the country will be pushed into homelessness. It will not give support to families facing the cost-of-living crisis.

“Achieving this relies on keeping people in their homes and yet this budget provided little relief for desperate people trying to keep a roof over their head as inflation runs rampant and energy bills skyrocket. The UK Government must urgently invest in housing benefit so that low-income families can cover the cost of their rent and increase benefits in line with inflation, so people have a fighting chance to put food on the table.” 

Alicia Kennedy, Director of Generation Rent, comments: “We are in a dangerous moment with millions about to be plunged into fuel poverty and people already in poverty facing desperate choices between heating and eating. When inflation is running at 7.4%, the Chancellor should have targeted help towards those least able to manage, by raising benefits at the same rate and making sure Local Housing Allowance covers rising rents. The higher National Insurance threshold will help many private renters but not our most vulnerable neighbours.

“Taking the National Insurance and income tax changes together, the Chancellor is stacking the economy against private renters who have to work for a living. While the Health and Social Care Levy will cancel out the planned income tax cut for workers, landlords will be better off because they don’t pay National Insurance on rental income. If he wants economic growth, the Chancellor should be shifting taxation from work to property wealth, and encouraging investment in more productive parts of the economy.

“The VAT cut on energy efficiency measures is welcome but until the Government acts on its promises to raise minimum energy efficiency standards for landlords and improve security of tenure, renters won’t feel the benefit.”

Paresh Raja, CEO of Market Financial Solutions, comments: “The Spring Statement was never likely to contain any major surprises as far as the property sector was concerned; at least not directly. But action was needed and, positively, it was taken to ease pressure on people’s finances in the short-term. In turn, this will help ensure the property market faces no nasty shockwaves.
“Rising inflation and interest rates are affecting both homeowners and homebuyers, impeding the amount they can borrow and save. So, it was positive to see the Chancellor cut fuel duty and financial support to households across the UK. The tax breaks for those making green improvements to their homes is also a welcome decision, encouraging the right type of property renovation.

“Looking to the property market, with demand still outweighing supply so significantly, it is likely that house prices will continue to rise as they have been. But for lenders, now is the time to act. We cannot leave it to the Chancellor alone to offer support to those hoping to get on or move up the property ladder. Rather, lenders’ focus must be on supporting their existing and prospective clients as best they can.

“Flexibility will be key; being too rigid in how and when you lend risks alienating certain buyers in the current climate, so lenders ought to consider how they can best meet each borrower’s particular needs and provide support to help them navigate the economic challenges they are facing.”

Marc von Grundherr, Director of Benham and Reeves, comments: “The biggest personal tax cut in the last 25 years and an early election Budget for sure. With such headline grabbing announcements, the lack of property focus will easily slip through the cracks. 

“That said, environmentally minded homeowners will welcome today’s announcement that VAT on green additions to their home will now be cut from the existing 5%. Of course, with inflation also being announced at 6% today, has this benefit already been negated? 

“While great for the planet, solar and hydro energy outlets can be expensive to implement and take some time before the return starts to outweigh this initial cost and so it remains to be seen how meaningful this move will actually be.”

Michael Bruce, CEO and Founder of Boomin, comments: “A Budget with nothing much for housing but a little for the household itself and this was largely to be expected. 

“The Stamp Duty holiday introduced during the pandemic was probably the biggest bone the Government has thrown home buyers in recent times, so to expect another to come so soon after the final December deadline is certainly wishful thinking.

“Especially when house prices remain so buoyant as, after all, a high rate of house price growth is the Government’s driving indicator of success and they’ll only stoke the fires when these flames are starting to fade.”

James Forrester, Managing Director of Barrows and Forrester, comments: “Such a bold move on income tax is of course welcome, but let’s not forget that this is somewhat diminished by an increase in both personal and employer national insurance, as well as the impending hike in corporation tax. 

“This will cause further problems for homeowners across the nation who will have seen a sharp increase in the cost of running their home already this year, with both an increase in interest rates, rising energy costs and a jump in fuel prices all bringing additional financial strain. 

“So, while there’s been no real property initiatives announced today other than 0% VAT on energy saving initiatives, other announcements such as the cut in fuel duty and the increase to the household support fund will, at least, help reduce this overall cost of living. 

“This should provide some small amount of breathing room for those that are particularly hard pressed at present, although it’s unlikely to solve the issue completely.”

Geoff Garrett, Director of Henry Dannell, comments: “Although there was generally no expectation that the property sector would feature in today’s Budget, some may have been hopeful of a breadcrumb or two from Mr Sunak in order to keep the market moving forward against what could be described as gathering financial headwinds. 

“We’ve now seen a string of consecutive increases to the base rate and this is not only going to impact the monthly payments of those homeowners on variable rate mortgages, but it’s also going to reduce the bullish approach to borrowing that we’ve seen from homebuyers in recent years. 

“The impact is likely to be a slowing in the rate of house price growth as buyers commit to lower borrowing amounts and sellers are forced to adjust their valuation expectations.”

Property industry reacts to latest Nationwide House Price Index

The latest House Price Index from Nationwide reports an annual increase of 12.6% in February. This is up from 11.2% in January.

Month-on-month, prices are up 1.7%, with the average house price exceeding £260,000.

Michael Bruce, CEO and Founder of Boomin, comments: “We’re riding a wave of house price growth at present, driven by a market that is experiencing very high demand for homes that just simply aren’t available. It’s only natural that this wave will start to lose ferocity at some point, but there’s certainly no signs of that happening just yet, despite a squeeze on the cost of living and a double-digit increase in interest rates.”

Jonathan Samuels, CEO of Octane Capital, comments: “Although two consecutive increases in interest rates is always going to be food for thought for the nation’s home buyers, what we’re currently seeing is consideration, not concern.

“While some may have marginally adjusted the sums they are committing to borrowing, the sheer volume of new buyers entering the market remains very high and this is enough to keep house prices buoyant for some time to come.”

Marc von Grundherr, Director of Benham and Reeves, comments: “There’s arguably never been a better time to be a homeowner as, despite all that’s been thrown at it, the UK property market continues to go from strength to strength. This performance really is quite alarming when you consider the wider economic turmoil that we’ve faced for some years now and it proves that there really is no safer investment than bricks and mortar.

“Even across London where market conditions have remained far more muted, values have continued to climb and the capital’s property market is now poised to enjoy an accelerated rate of growth over the coming year.”

Chris Hodgkinson, Managing Director of HBB Solutions, comments: “Although top line market statistics paint a very positive picture, it’s important to remember that the UK property market is extremely fragmented in its nature. The key to a successful sale is understanding your own local market landscape, the demand for homes and pricing in accordance with these factors. 

“Failure to do so and pricing too high will only see your home suffer from a severe lack of interest, a protracted period of time spent on the market and a higher chance of turbulence further down the transaction timeline.” 

James Forrester, Managing Director of Barrows and Forrester, comments: “Yet another increase in property values demonstrates the current strength of the UK property market and the deafening silence coming from the usual band of property market naysayers is no better testament to this overall health. 

“Despite many prophesying the end of the market due to Brexit, the pandemic and the end of the stamp duty holiday, amongst other things, we’re yet to see a chink appear in the armour of what is perhaps the most defiant and dependable property market in the world.”

Government UK House Price Index report released for December 2021

UK house prices continue to increase, according to the Government’s latest UK House Price Index.

The annual price change is 10.8% for December 2021, with the monthly price change at 0.8%. Overall, the average price of a property in the UK was £274,712. 

Michael Bruce, CEO and Founder of Boomin, comments: “It’s only fitting that house prices should continue to climb in December, as the curtain falls on what has been quite an extraordinary year for the property market.  

“However, while the scales of supply and demand remain firmly tipped in favour of the nation’s home sellers, there’s a good chance that the high rate of house price growth seen during the pandemic will now subside, replaced by more incremental gains during the year ahead.”  

Kimberley Gates, Head of Corporate Partnerships at Sirius Property Finance, comments: “We’ve seen many buyers push their budget that little bit further over the last 12 months due greater levels of mortgage affordability and a stamp duty saving. This has helped drive top line house price growth across the UK and we’ve seen the market continue to go from strength to strength as a result.  

“With interest rates increasing and the opportunity of a stamp duty saving now long gone, we expect to see a more measured market performance over the coming year.  

While there’s certainly no reason to panic, the monthly cost of a mortgage will start to climb for those that aren’t locked into a fixed rate and this will impact the price buyers are willing to pay to climb the property ladder.” 

Geoff Garrett, Director of Henry Dannell, comments: “The general expectation is that the Bank of England will impose at least two further interest rate increases over the course of this year. This will bring the base rate up to one percent at the very least and while this remains comparably low to historic highs, those on tracker or variable rates will notice the monthly cost of their mortgage climb significantly. 

“We’ve already seen a huge uplift in the number of lenders withdrawing or increasing their fixed rate offerings and we believe this will continue. So for those considering a purchase in 2022, it’s important not to overstretch financially and the best plan of action is to enter the market with plenty of breathing room to help absorb this hike in the cost of borrowing.” 

Jonathan Samuels, CEO of Octane Capital, comments: “The market remains in fine form having defied all expectations during the pandemic and there is little sign of any significant decline on the horizon.  

“Increasing interest rates and a sharp jump in the cost of living will, of course, have some impact. 

“We expect this will come in the form of a more conservative approach to borrowing from the nation’s homebuyers in contrast to the gung ho approach seen during much of the pandemic, as they are no longer buoyed by the race for more space and a stamp duty saving. 

“The result of which will be a slow in the rate of house price growth rather than a property market crash.” 

Chris Hodgkinson, Managing Director of HBB Solutions, comments: “We’re yet to see a let up in the torrential downpour of homebuyer demand that has washed over the property market pretty much since the start of the pandemic. As a result, those looking to sell are achieving a very good price which is driving property values ever higher. 

“Current market conditions are so strong that even when transactions are falling through, sellers are securing another buyer immediately and for a higher price than they had agreed during their original sale. 

“This won’t last forever though and those entering the market this year should tread with a little more caution. Although demand levels are likely to remain robust, buyers will start to feel the pinch caused by an increase in both the cost of living and borrowing. So sellers who persist with unrealistic asking price expectations will struggle to see them met.” 

Marc von Grundherr, Director of estate agent Benham and Reeves, comments: “The market outlook for the year ahead remains positive despite dark cloud gathering in the form of increasing interest rates and an inflated cost of living. While these factors will certainly influence the market to some extent, they are unlikely to dampen our appetite for homeownership and with stock levels remaining insufficient, market values are unlikely to decline anytime soon.  

“That said, it is likely that the wider UK market will now shift down a gear or two where the rate of house price growth is concerned, with early signs suggesting that London is once again poised to take house price pole position. 

“Buyer demand for central London flats has picked up considerably and this is a very promising sign given it’s really the core segment of the central London market. This growing demand will continue to be bolstered by a return to the workplace and most notably, the return of foreign buyers and renters, with these factors continuing to pull London out of the doldrums where it’s sat for much of the pandemic.” 

James Forrester, Managing Director of estate agent Barrows and Forrester, comments: “It’s hard to remember a time when the property market has been firing on all cylinders for such a sustained period and we continue to see numerous areas driving top line market performance forward at quite some rate.  

“Of course, this rate of growth isn’t sustainable for ever and we expect to see some natural correction in the coming months. This certainly won’t come in the form of a house price collapse, but those thinking of selling would be wise to do so sooner, rather than later. 

“There is currently an incredible shortage of stock available on the market and we’re seeing numerous buyers fight it out over a single property. With such an imbalance, those that do bring their home to market are sure to achieve very close to asking price and, in some cases, quite a bit more.”

Research reveals average house prices on roads with romantic names

Published On: February 14, 2022 at 9:25 am


Categories: Property News

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Research from property platform Boomin has looked at average house prices on roads with romantic names, just in time for Valentine’s Day.

Boomin analysed sold prices across property sales completed in 2021 that contained one of eight romance-themed terms within the road name. This included Love, Valentine, Heart, Arrow, Sweet, Rose, Flower and Kiss or Kissing.

In total, 2,494 Valentine’s homes sold across the nation. Homes on roads with Rose in the name were by far the most popular, with 1,887 transactions. 

Boomin also reports that homes sold across these roads with romantic names averaged £293,813 over the last year. This is 4% higher than the current national average across England and Wales. What’s more, they’ve increased in value by a 20% compared to the previous year, the property platform says.

Roads with ‘Love’ in the name were sold for the highest amount of all included in the research. In the last year, they averaged £349,000, 29% more than the current national average.

‘Love’ is also the second most popular result, with 306 transactions taking place across the likes of Love Lane in Spalding, Love Road in Lowestoft and Love Row in Milton Keynes.

Streets with ‘Flower’ in their name, such as Flower Hill in Reading or Flower Avenue in Nottingham,also placed highly. A total of 57 transactions saw an average sold price of £332,500, up 33% in the last year.

‘Valentine’ named roads saw properties sell for an average of £325,000. Homeowners also secured more than £300,000 on average across roads with ‘Sweet’ in the name (£311,000).

Homeowners on ‘Heart’ related road names have enjoyed the biggest boost in values, with the average sold price climbing by 55% compared to 2020.

‘Arrow’ (£268,000) and ‘Rose’ (£265,000) also enjoyed strong sold price performances, as well as year-on-year increases in property values.

However, houses on roads with ‘Kiss’ or ‘Kissing’ in the name, such as Kissing Gate in Hull, did not do so well. Not only did they see a below average sold price of £215,000 in 2021, but this value also fell by -23% on the previous year.

Michael Bruce, CEO and Founder of Boomin, comments: “It’s fair to say that as a nation we’re infatuated with our homes and this love has grown even stronger during the pandemic, as we spent plenty of time buying, modernising, expanding and enjoying them during lockdown. 

“While it’s always hard to let go of a loved one, those that are planning to sell up in 2022 could be head over heels when they come to value their home in current market conditions, as house prices have boomed during the pandemic.”

Boomin used sold price data sourced from the Land Registry Price Paid data records for residential property sales in England and Wales between January and December 2021, excluding secondary purchases or properties listed by type as ‘other’.

Are Deliveroo options increasing average house prices in England?

Published On: August 10, 2021 at 8:20 am


Categories: Property News

Tags: ,,

Living in an area with a large variety of restaurant and takeaway options can add an average of £36,000 to your home’s value, research from property portal Boomin finds.

Researchers reviewed house price increases across the nation and their correlation to the number of restaurant options each postcode had nearby. The study says that those with approximately 100 different options on the popular takeaway app can expect their home’s value to be boosted by more than £35,000.

With takeaway apps having become more important throughout the pandemic, the study looked at house price values in areas near specific food brands. Some of these brands have been found to add more value than others, such as Papa John’s, at an average of £11,355. Meanwhile, a postcode within delivery range of a KFC could bring an additional £13,008 of value.

Nearby restaurants were also found to make a substantial difference. Homes nearby a Gourmet Burger Kitchen apparently cost on average an additional £27,274. Home close to a Wagamama have an average value increase of £30,887.

Of all the brands included in the research, homes near a Byron Burger have the biggest average increase at £33,132.

The food brands that add the most value to your home

BrandAverage Value Increase (based on whether delivery is available to a postcode)
1. Byron Burger£33,132
2. Turtle Bay£31,417
3. Wagamama£30,887
4. Gourmet Burger Kitchen£27,274
5. Prezzo£26,889
6. Harvester£26,113
7. Franco Manca£21,326
8. Bella Italia£17,637
9. Roosters Piri Piri£15,308
10. KFC£13,008

Michael Bruce, CEO and Founder of Boomin, commented: “Within just the last 5 years, what buyers are looking for in a home has changed drastically. Choice seems to be leading the way, with owners wanting more things to do, to see and evidentially, to put on their plates.

“Living in a location with good restaurants adds to the general ‘feel’ of an area, so much like certain supermarkets adding value to a home, it’s no surprise that particular restaurant brands have the same power to influence prices too. What was surprising however, was just how much an effect Deliveroo and having a good amount of choice on the app has changed things. Deliveries were essential during the pandemic, and the knock-on effect has been beneficial for home owners living in areas with more variety. As we become more reliant on speedy deliveries and having a whole host of choice at our fingertips, I can only see this value rising further in the future.”