Posts with tag: first time buyers

Number of House Sales Agreed Reaches Ten-Year High

Published On: March 31, 2017 at 8:18 am

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The number of house sales agreed in February hit a ten-year high, according to the February Housing Report from NAEA Propertymark.

House sales agreed

The number of house sales agreed increased to a ten-year high in February, to an average of 11 per branch. The last time this figure surpassed ten per branch was in September 2007, suggesting that buyer confidence is growing. In January, estate agents agreed eight house sales per branch, up from six in December.

Number of House Sales Agreed Reaches Ten-Year High

Number of House Sales Agreed Reaches Ten-Year High

Although high house sales were recorded in February, three in every four (74%) of the sales made were below the original asking price, indicating that sellers are taking a pragmatic approach to their property transactions.

Sales to first time buyers

The proportion of house sales that were agreed for first time buyers dropped to 22% in February, down from 30% in the previous month.

Housing supply

The number of properties available to buy on estate agents’ books rose to 44 in February. In January, just 38 were available per branch.

This figure has increased by 26% from last February, when agents had just 35 properties on their books.

Demand for properties

The number of homebuyers registered per estate agent branch remained at 425 in February for the second month in a row.

Housing White Paper

Only 7% of estate agents expect the remedies outlined in the Government’s Housing White Paper to be enough to fix the broken housing market.

Two fifths (43%) don’t think they will make a difference, while 39% believe the proposals could positively impact the market, but can’t yet tell how.

The Chief Executive of NAEA Propertymark, Mark Hayward, comments: “The number of sales agreed reaching a ten-year high indicates the housing market is moving in the right direction.

“However, first time buyers need to be a priority – the number of sales made to the group dipped in February, when it should be growing. As house prices continue to rise, the market’s most vulnerable buyers are being priced out and the only way to address this is to increase housing stock.”

He adds: “The Government has pledged yet again to build more homes, but our members aren’t feeling optimistic about the plans. If promises are kept and we see construction sites set up across the UK, we’ll be in a better position in a few years than the stark reality we will be facing if this doesn’t happen.”

First Time Buyers Increasingly Relying on the Bank of Mum and Dad

Published On: March 29, 2017 at 8:31 am

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A record number of first time buyers are relying on the bank of mum and dad to buy their own homes, according to a new report from the Social Mobility Commission.

First Time Buyers Increasingly Relying on the Bank of Mum and Dad

First Time Buyers Increasingly Relying on the Bank of Mum and Dad

The study found that 34% of first time buyers use loans or gifts from family members to fund their purchases, up from 20% seven years ago.

The findings arrive as researchers from the University of Cambridge and Anglia Ruskin University found that homeownership among 25-29-year-olds has dropped by more than half in the last 25 years, from 63% in 1990 to 31%.

The Rt Hon Alan Milburn, the Chair of the Social Mobility Commission, says: “The way the housing market is operating is exacerbating inequality and impeding social mobility.

“Owning a home is becoming a distant dream for millions of young people on low incomes who do not have the luxury of relying on the bank of mum and dad to give them a foot up on the housing ladder.”

The researchers expect the number of first time buyers to climb slightly in the short-term, before declining gradually over the next 25 years.

The report also shows that first time buyers who receive money from the bank of mum and dad can become homeowners 2.6 years earlier than those who fund their purchases themselves. In London, this rises to 4.6 years.

One in ten existing homeowners also use loans and gifts from family members to buy new homes, while another 9.6% use inheritance to fund a purchase.

Last year, Legal & General said that the bank of mum and dad was lending £5 billion a year to help their children onto the property ladder, lending an average of £17,500. The amount lent every year puts it in the top ten of mortgage lenders.

The Social Mobility Commission, which is an advisory public body, has urged the Government to build three million homes over the next decade – a million of which should be constructed by the public sector. It added that to hit these targets, homes should be built on the greenbelt.

Another recent study found that young people believe they can only afford to buy their own home if they have a partner: /young-people-impossible-buy-alone/

Just 186,000 Homes are Left for 2m Elderly Homeowners

Published On: March 27, 2017 at 8:47 am

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Just 186,000 Homes are Left for 2m Elderly Homeowners

Just 186,000 Homes are Left for 2m Elderly Homeowners

Last week, we reported that retired homeowners are cashing in on property wealth at the expense of struggling first time buyers. But there may be a very obvious reason for this – elderly homeowners have no smaller homes to move to.

In its Right-Size Report, Inspired Villages found that Britain’s elderly homeowners are not moving from their family homes because there’s a severe lack of variety and quantity of retirement housing stock.

The research found that, in total, there are around 720,000 homes across various retirement housing types in England and Wales – enough to house just 7% of the nation’s elderly homeowners.

The Right-Size Report, which maps the supply and demand of Britain’s retirement housing, also found that 1.8m elderly homeowners who would normally leave their family homes can’t because there is nowhere suitable for them to move to.

If you are looking to move, however, Portsmouth is the best place to consider, as it has the most retirement housing units for ownership.

Hyndburn and Caerphilly are the worst, with the fewest number of units available.

A quarter (25%) of people say they would like to invest in a retirement property, despite there being only enough units for 2.7% to do so.

And housing supply is definitely the problem – since 2000, while the older population has grown, as few as 5,500 retirement housing units per year have been built on average.

Using this data, Inspired Villages mapped the supply and demand of Britain’s retirement housing, considering what it could be like in 20 years’ time as a result of the country’s rapidly ageing population.

While it certainly appears that Britain’s elderly homeowners would like to move into smaller properties to free up homes for younger first time buyers, it doesn’t look like a likely solution until the country’s housing stock rapidly increases.

Retired Homeowners Continue to Cash in at the Expense of First Time Buyers

Published On: March 22, 2017 at 9:57 am

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Retired homeowners are continuing to cash in at the expense of the country’s hopeful first time buyers, shows new research from KeyRetirement.com.

Retired Homeowners Continue to Cash in at the Expense of First Time Buyers

Retired Homeowners Continue to Cash in at the Expense of First Time Buyers

The firm found that retired homeowners have earned £1.7m in property wealth in the last three months alone, with the property wealth of over-65s who have paid off their mortgage reaching a record high of £1.072 trillion in February.

Since KeyRetirement.com started its index in 2010, average retired homeowners have enjoyed an added £66,000 of property value – a 37% increase.

While the firm has been quick to praise the latest figures as a success story, online estate agent eMoov.co.uk doesn’t believe this is a positive story, particularly for those who are struggling to buy their own homes.

Nationwide figures show that the average first time buyer house price to earnings ratio across the UK is 5.3 – the highest since 2007. This is, of course, considerably higher in the nation’s pricier markets, peaking at 10.1 in London.

On top of that, recent house price indices from Rightmove and Halifax show that UK property values have continued their upward trend, despite the current turbulence in the market.

The CEO of eMoov, Russell Quirk, believes that this highlights a severe dysfunctionality in the property market and is a key contributor to the current housing crisis.

He explains: “Whilst those lucky enough to have climbed the UK property ladder continue to see their assets increase in value, beleaguered first time buyers continue to struggle, due to the constant inflation of UK house prices.

“This is by no means an attack on previous generations and anyone who has worked hard enough to earn their own piece of our pleasant land, regardless of what they paid at the time, should be commended for doing so, not ridiculed.”

He continues: “Most of us rely on our property investment for retirement and to leave a legacy to our children, but now it has reached a point where inheritance is the only viable method for the majority to get on the ladder, and many are holding out to maximise the amount they can make on their property.

“As a result, whilst they remain in large family houses years after their children have fled the nest, young families elsewhere are unable to get on the ladder due to a severe shortage of stock. This is undoubtedly a contributing factor behind today’s housing crisis and should be addressed and rectified, not celebrated as these latest figures seem to do.”

One in Four Young People Believe it’s Impossible to Buy Alone

Published On: March 20, 2017 at 9:16 am

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One in four young people believe it’s impossible to buy their own home without a partner, according to a study by Post Office Money Mortgages.

One in Four Young People Believe it's Impossible to Buy Alone

One in Four Young People Believe it’s Impossible to Buy Alone

Of young couples (aged 18-34) that own their own homes, 27% feel that they would only have been able to buy a home together.

On average, around half of young people living in couples are private tenants, while slightly fewer couples own their own homes (45% and 44% respectively).

A large number of couples are motivated by practical reasons when taking a step onto the property ladder, while young people aged between 18-34 will spend four years together on average before deciding to buy a home.

The research also found that the average price of a first time buyer home has risen by 7% (£12,785) over the last year, to reach £183,385, while the average earnings of a first time buyer household in the UK is £50,000 – almost double the average annual salary of a single person (£27,274).

However, despite joining their finances in order to buy their first home, 34% of young couple homeowners admit they didn’t contribute equally and, for some (20%), this eventually led to tension in their relationship.

The Managing Director of Post Office Money, Owen Woodley, comments on the findings: “It’s natural that once couples get serious, they want to start building a life together, particularly when they see the potential of their shared income. However, saving towards the purchase of a home can be understandably daunting, and the joint effort to reduce your shared cost of living and boost your savings can sometimes lead to friction in a relationship.

“As a provider that works with a large number of first time buyers, Post Office Money Mortgages knows that saving towards a deposit can be a stressful time. As such, as have introduced a new range of fee-free mortgages which only require a 5% deposit, so the prospect of homeownership feels like a more achievable goal.”

It is vital that landlords understand the struggles facing young people, so that they can provide the secure homes that they need. We will continue to deliver the latest property market news at Landlord News.

10 First Time Buyer Hotspots in London that make Great Investments

Published On: March 14, 2017 at 10:56 am

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Wherever first time buyers are heading, that’s usually where landlords can secure a great investment opportunity. As such, London estate agent Portico has highlighted ten first time buyer hotspots where landlords can receive high tenant demand and strong yields:

  1. Walthamstow

Walthamstow is a vibrant and thriving postcode that is rapidly redeveloping. Fashionable cafes and independent shops are popping up constantly, and first time buyers are flocking to this part of Zone 3, conveniently located at the end of the Victoria Line.

Property here is excellent value for money, with the average flat costing around £300,000.

  1. Peckham

The fictional home of Del Boy and Rodney Trotter is now a hipster paradise, with rooftop bars on top of multi-storey car parks, anti-chain restaurants and affordable properties.

The average price of a one-bedroom property stands at a reasonable £350,000, although you could secure an ex-council home for around the £250,000 mark.

  1. Finsbury Park

With house prices in London at an all-time high, a lot of first time buyers are turning away from the more expensive parts of the capital – like central Islington – in favour of cheaper yet well connected postcodes, like Finsbury Park. It’s just a couple of stops from King’s Cross, so it’s ideal for commuters.

In fact, there are many good value pockets of north London that are attractive to buyers and tenants, such as Holloway, Caledonian Road and Stoke Newington.

  1. 10 First Time Buyer Hotspots in London that make Great Investments

    10 First Time Buyer Hotspots in London that make Great Investments

    Wandsworth 

Average house prices in the Battersea area are high compared to other parts of the capital; it’ll set you back around £485,000 for a one-bedroom property. But that doesn’t stop Wandsworth in Battersea being an extremely desirable place to call home.

The average age of a first time buyer in London is edging closer to 40, and that fits the demographic of this area – young professionals in their 30s looking for two-bedroom properties, great schools, a middle class feel, open space and fantastic amenities.

  1. Bethnal Green 

Huge numbers of buyers are heading to Bethnal Green in search of warehouse conversions, quirky properties and a young, trendy vibe.

This east London location is also already popular with landlords, as rental yields are high (around 5.3% near Bethnal Green station) and demand from tenants is strong.

  1. Acton/Ealing 

Crossrail will soon be launching in Acton, making it an excellent choice for young first time buyers and tenants who work in the City or West End.

As well as an imminent transport upgrade, the W3 postcode offers period property and a quaint village feel – perfect for those thinking of starting a family. There is also a string of healthy brunch spots, bakeries and traditional pubs to enjoy on the lively Churchfield Road.

  1. Stoke Newington

Stokey, as it is affectionately called by locals, has come on leaps and bounds in terms of regeneration over the last five years, with a large number of new apartments popping up to accommodate growing demand.

First time buyers are attracted to the Victorian property stock, the arty, creative vibe and the village feel. There’s a farmer’s market on the high street at the weekend, and shops are brimming with indie labels and vintage finds.

  1. Leytonstone 

If you’re looking for a fantastic investment, Leytonstone will not disappoint.

Still revelling from the Olympic effect, Portico expects house prices in affordable Leyton to continue rising this year, so your property investment could get a big boost from both cosmetic renovation and capital growth.

  1. Tottenham

Crossrail has powered Tottenham’s popularity and regeneration, transforming the area into an up-and-coming hotspot.

And with journey times of just 15 minutes into central London, the area is slowly becoming a firm favourite with those looking for value and space for their money.

  1. Ilford

Ilford is one of the best value areas in London and, although house prices have been rising since the announcement of Crossrail, the average price of a two-bedroom property is still an extremely reasonable £280,000.

Better still, buyers looking at this part of east London can jump straight into a house rather than a flat – this will also appeal to tenants, making it a great investment hotspot.

Are you looking at any of these areas for your next buy-to-let property?