Posts with tag: first time buyers

First Wave of Starter Homes to be Built This Year, Says Housing Minister

Published On: January 4, 2017 at 12:24 pm

Tags: affordable homes,first time buyers,housing crisis,starter homes

The first wave of the Government’s Starter Homes for first time buyers will be built this year, reports the Housing Minister, Gavin Barwell.

However, the pledge has run into immediate controversy over the prices of the Starter Homes and lack of rental properties on the sites.

Barwell promised that the first wave of the discounted homes on brownfield sites will be built this year in 30 local authority areas in England.

Labour and homelessness charity Shelter have insisted that it’s nonsense to describe the homes as “affordable”, as some will cost up to £450,000 each.

Furthermore, Barwell was unable to confirm how many Starter Homes will be built this year, making the original target of 200,000 by 2020 impossible, according to Labour.

Ministers had suggested that, under Theresa May’s leadership, the Government would refocus the Starter Homes scheme to include some properties to rent, as well as to buy.

The properties to be built this year will be made available exclusively to first time buyers aged between 23-40, at a discount of at least 20% below market value. A cap of £250,000 outside London and £450,000 within the capital will be put in place.

Yet, perhaps more controversially, the Starter Homes will count towards the Government’s wider target to build 400,000 new affordable homes.

First Wave of Starter Homes to be Built This Year, Says Housing Minister

Barwell insists: “This Government is committed to building Starter Homes to help young first time buyers get on the housing ladder.

“This first wave of partnerships shows the strong local interest to build thousands of Starter Homes on hundreds of brownfield sites in the coming years. One in three councils has expressed an interest to work with us so far.”

The first 30 local authorities have been selected because they have the ability to build the homes quickly, under a £1.2 billion Starter Homes Land Fund.

However, the housing spokesperson for Labour, John Healey, believes: “These so-called Starter Homes are a symbol of the Conservative record on housing.

“Ministers launched them in 2014, but will only start to build the first in 2017, promised they’d be affordable for young people when they’ll cost up to £450,000, and pledged to build 200,000 by 2020, but no one now believes that’s possible.”

And Roger Harding, the Director of Communications at Shelter, adds: “Efforts to build more homes are welcome, but these Starter Homes are only likely to benefit people who are better off and already close to buying.

“The Government recently signalled that it wanted affordable to start to actually mean affordable when it comes to building homes. We would urge them to keep to this, rather than continuing with Starter Homes, which have been shown not to work.”

The Managing Director of the National Association of Estate Agents, Mark Hayward, has mixed feelings: “Today’s announcement may feel like a welcome start to the New Year, but, as always, we need to see these plans put into swift action. The dream of homeownership is too far out of reach for thousands of aspiring first time buyers, and the building of new homes on disused brownfield sites, as well as a 20% discount for buyers aged 23-40, will go some way to bridging this gap.

“News that the Government will deliver 14 new garden towns and villages outside of existing settlements will also relieve some of the pressure on supply and demand, which should in turn act as a catalyst to help first time buyers fulfil their dreams of homeownership. However, we must not throw caution to the wind.”

He explains: “The Government has made promise after promise, and pledge after pledge to help first time buyers get onto the housing ladder, but until we see these houses built, we won’t hold our breath.”

The Government claims that the new developments will support wider growth and regeneration, including in some town centres.

The first areas will begin construction later this year, along with sites supported by the Homes and Communities Agency.

The Local Government Association has called for councils to be given discretion on building Starter Homes, to ensure enough properties to both buy and rent are available in each development.

Highest Number of Londoners Leaving the Capital for Nine Years

Published On: December 29, 2016 at 9:31 am

Author: Em Morley

Categories: Property News

Tags: first time buyers,homebuyers,London,property investment

The highest number of Londoners for nine years has left the capital this year, according to the latest analysis by estate agent Hamptons International.

In 2016, the amount of Londoners buying homes outside the capital reached the highest level since 2007, the research found. Some 74,000 Londoners bought outside the capital, which is 11,000 more than in 2015 and just 16,000 fewer than in 2007, when the highest number on record was seen.

Highest Number of Londoners Leaving the Capital for Nine Years

The average Londoner buying outside the capital spent £388,000 on their new home – a total of £29 billion, which is the highest since 2007, when 90,000 homes were purchased, totalling £32 billion.

The majority of Londoners leaving the capital stayed in the south. A huge 80% of those leaving London bought in the South East, South West or East of England.

One in every six homes sold in the East of England and one in every seven in the South East were sold to someone moving from London in 2016, shows the study.

Of the 17 local authorities that border the capital, more Londoners purchased homes than existing residents in ten of them. However, as house price growth across the south (9.1% annually) surpasses that in London (7.7% year-on-year), both the proportion and number of Londoners heading further north has been steadily increasing.

This year, 20% of those leaving London bought in the Midlands or the north, compared to 12% in 2014 and just 10% in 2012. In 2016, the amount of homes purchased by Londoners in the Midlands rose by 21% on last year, while in the north it was up by 13%.

As many Londoners leave the capital for a bigger home, almost three quarters (74%) of those leaving London bought a property with three or more bedrooms, spending an average of 18% more than local buyers.

While many Londoners take advantage of being able to get more for their money, for others, leaving the capital is the only way of getting onto the property ladder. Around 40% of first time buyers living in London end up buying outside the capital, up from 20% in 2012.

The Head of Research at Hamptons International, Johnny Morris, says: “A move out of London has generally had more to do with changing priorities as people get older and start forming families than the housing market. But with affordability in the capital stretched, more Londoners are looking elsewhere to buy their first home. More too are likely to go further afield, with increasing numbers heading to the Midlands and north.

“It is likely 2016 will be a peak for London leavers. While overall the year saw growth in Londoners buying outside the capital in recent months, the pace has been slowing. A slower housing market in 2017 will likely mean that we see fewer Londoners buying outside of the capital than in 2016.”

Although the research suggests that many Londoners are deciding to leave the capital, landlords must be aware that the study only covers homebuyers. As purchasing a home is still as difficult as ever for many young people, investors should choose the right areas to cater to the high number of renters in the capital.

If you are looking for a lucrative investment property, one of these London hotspots may provide a great opportunity: https://www.justlandlords.co.uk/news/landlords-buy-london-2017/

First Time Buyer Sales at Highest Level on Record

Published On: November 29, 2016 at 9:27 am

Author: Em Morley

Categories: Property News

Tags: first time buyers,housebuilding,property market,property sales

The number of first time buyer sales in October was at the highest level on record, according to the latest Housing Market Report from the National Association of Estate Agents (NAEA).

First Time Buyer Sales at Highest Level on Record

Last month, a third (32%) of total property sales were made to first time buyers – up by 9% on September and the highest number since records began 16 years ago in 2000.

The last time the number of first time buyer sales was at a similar level was in October last year, when 31% of sales were made to these purchasers.

The number of sales agreed per NAEA member branch stayed steady in October, at an average of nine.

Property supply

The amount of properties available per branch in October was 43 – up by 7.5% on September and the highest number recorded since March this year.

Property demand

In October, the average number of house hunters rose by a third (32%), from 333 to 440 registered per member branch. This is the highest level seen since February this year, when there were 463 prospective buyers on estate agents’ books.

The Managing Director of the NAEA, Mark Hayward, comments: “This month’s report paints a positive picture for the UK housing market. Our findings over the last few months indicated mild uncertainty immediately following Brexit and, last month, we even saw sales to first time buyers fall. After shrugging off the uncertainty, we have seen an increase in supply and a rise in the number of sales to first time buyers this month – proof the market is beginning to bounce back.

“Clearly what we need now though is a clear plan as to how the Government is going to tackle the chronic shortage of homes that we are facing. During the Autumn Statement, the Chancellor announced a boost to housebuilding, which is a start, but sadly nowhere near enough. We have high hopes for the Housing White Paper, as this will set the housing strategy and intent for this Government going forward.”

With first time buyer sales now at a record high, will landlords begin to see a slowdown in potential tenants? LandlordNews.co.uk will continue to keep you updated on tenant demand and the wider property market, and how this will affect you.

Does the Redfern Review Have Any Real Solutions to the Housing Crisis?

Published On: November 17, 2016 at 12:03 pm

Author: Em Morley

Categories: Property News

Tags: first time buyers,homeownership,housing crisis,Redfern Review

The Redfern Review, an independent assessment of the decline of homeownership, has now been released, after being commissioned in February by the Labour Party.

Led by Pete Redfern, the Chief Executive of housebuilder Taylor Wimpey, the report reviews the state of the property market in the UK and how this has created the current housing crisis. The full study can be accessed here: http://www.redfernreview.org

Fortunately, Redfern’s review isn’t obviously stuffed with measures that would benefit housebuilders.

Does the Redfern Review Have Any Real Solutions to the Housing Crisis?

For example, it doesn’t recommend that the Government throw yet more schemes at homebuyers, in the style of the former chancellor, George Osborne. Instead, the Redfern Review states that Help to Buy schemes are inflationary and should be restricted to first time buyers seeking lower-priced homes.

And the report doesn’t simply focus on homeownership either.

“A fair housing market also needs both a healthy private rented sector and a supportive social housing sector,” it insists.

Over the past 30 years, past governments’ focus on homeownership has deprived local authorities of the funds needed to build affordable homes to rent. Positively, the review argues that all tenure types require equal support.

Disappointingly, however, the report does not offer fresh insight into why homeownership levels dropped by 6.2% between 2002-14. The main finding is exactly as you’d expect: Fewer young people can afford to buy their own homes. Also unsurprisingly, it confirms that house prices rose rapidly before the banking crisis, credit constraints then kicked in, and incomes of those aged 28-40 have declined in relation to older people.

But Redfern does have one original suggestion: Set up an independent housing commission, modelled on the new Infrastructure Commission, to provide long-term thinking on housing. Although this does not provide an instant resolution to the housing crisis, it does highlight the fact that longer-term plans must be put in place to sustain the supply of homes.

While Labour commissioned the report, Theresa May could use its suggestions to form a new housing policy that may indeed go some way to resolving the crisis.

The Policy Manager of Generation Rent, a tenant lobby group, Dan Wilson Craw, responds to the findings of the Redfern Review: “The decline in homeownership is creating significant problems for the future, particularly once renters reach retirement age and depend on the state to put a roof over their heads. The solution is not to load first time buyers with more debt, but to restrain house price inflation so wages can catch up.

“The desperation of private renters to escape their expensive, unstable tenure makes subdued first time buyer numbers a bigger problem than it ought to be. Alongside investment in new homes, the Government should reform renting so it offers tenants stable homes and a genuine choice of tenure.”

Is the Cost of Moving House Pushing Homeownership Further Out of Reach?

Published On: November 2, 2016 at 10:04 am

Author: Em Morley

Categories: Finance News

Tags: buying a house,first time buyers,moving house,property market

While we all know that prospective first time buyers are facing sky-high house prices, a new study has also revealed that the cost of moving house is pushing homeownership even further out of reach.

On top of paying off a mortgage, many buyers don’t realise just how expensive moving house can be, according to CompareMyMove.com.

With Stamp Duty, surveyors, estate agents and conveyancers to pay, the average cost of moving house has now soared to a whopping £10,996.

Alongside rising house prices, the high cost of moving house is making it more difficult than ever to get on the property ladder. However, the removals comparison site believes that through careful planning and some nifty scrimping, buyers could save up to £3,600 on moving costs.

CompareMyMove.com has put together some interesting facts on how moving costs have changed over the years:

Is the Cost of Moving House Pushing Homeownership Further Out of Reach?

Many of these costs have risen in line with inflation, although buyers now have new costs to think about, such as Energy Performance Certificates (EPCs), which were not a requirement back in 2006.

Following an overall price increase of 25%, moving house now costs a huge £10,996, which is 40% of the UK’s average salary.

The cost of moving house across the UK

Depending on where you’re moving to, these costs can be more or less expensive than the UK average.

Unsurprisingly, London has been named the most expensive place to move house in the country, costing over £30,000. This is primarily due to high house prices, which drive up the cost of commission-based fees, such as estate agents and conveyancers.

At the bottom end of the list is Northern Ireland, which costs just £5,401.

Find out how much it costs to move house in your area:

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How to cut the cost

Moving house does not have to be so expensive, insists CompareMyMove.com. Depending on your location, you could save over £3,600 by following these simple tips:

Online estate agents – Most online estate agents charge a fixed rate for their services, starting at £399. This means that the average household could save between £2,000-£4,000.
Conveyancing quotes – Either compare conveyancing quotes yourself, or use a website like Money Supermarket. Using an online conveyancer offering fixed rate fees could also save you up to £500.
Removal companies – Using a site such as CompareMyMove.com allows you to compare the costs of several removal firms in your area. You could save up to 70%.
Second-hand packing boxes – Go to your local supermarket and ask for free, quality boxes. This could save you over £100.

Following these steps will help you cut the cost of moving house, which could be enough to get you on the property ladder!

Landlords, remember that many of your tenants will be struggling to afford their own home at this time, so ensure that your rents are reasonable and you support them in any way you can.

If You Own Your Own Home, You Will Live Longer, Says HomeOwners Alliance

Published On: October 14, 2016 at 9:05 am

Author: Em Morley

Categories: Property News

Tags: first time buyers,homeowners,homeownership,housing crisis,life expectancy

If you own your own home, you are likely to live longer, according to analysis from the HomeOwners Alliance.

The latest study shows that across most of the UK, there is a direct correlation between homeownership levels and life expectancy. The HomeOwners Alliance found that where homeownership levels are higher, so is life expectancy.

However, homeownership levels have been in decline for the past decade, peaking at 69.7% of the total housing stock in 2002, down to 63.8% today.

High demand for homes is pushing house prices to unaffordable levels, making it incredibly difficult for first time buyers to get onto the property ladder.

Political parties, industry experts and the Government all agree that the underlying cause of the housing crisis is that the country has not been building enough new homes for decades.

Recently, however, the Government pledged to shift focus onto housebuilding, rather than reducing the deficit: /chancellor-hammond-put-housing-deficit-reduction/

Homeownership vs. life expectancy

If You Own Your Own Home, You Will Live Longer, Says HomeOwners Alliance

The decline in homeownership is having, and will increasingly have, profound, long-lasting and adverse economic and social consequences, warns the HomeOwners Alliance.

For example, the organisation explains that fewer homeowners mean greater poverty among pensioners, more social problems for children raised in insecure rental accommodation, poorer living standards among lower and middle-income earners, a higher benefit bill, and further inequality. In addition, as the study shows, it also has an impact on life expectancy.

The only exception to the correlation between homeownership and life expectancy is in London, where life expectancy and homeownership are not strongly linked.

The CEO of the HomeOwners Alliance, Paula Higgins, believes: “Reversing the decline in homeownership should be one of the Government’s highest priorities. We know that homeownership in this country has tangible benefits, including longer and happier lives. But the high costs mean it is out of reach for more and more people, widening the gap between the rich and poor and fuelling social inequality.”

She insists: “The UK urgently needs a functioning and stable housing market, as the current housing situation is deeply unfair.”