Posts with tag: house hunters

Homebuyers are Pushing Through with Summer Transactions, Reports NAEA

Published On: July 25, 2017 at 9:06 am

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Homebuyers are pushing through with summer transactions, as property sales rose in June, according go the latest Housing Report from NAEA Propertymark (the National Association of Estate Agents).

Homebuyers are Pushing Through with Summer Transactions, Reports NAEA

Homebuyers are Pushing Through with Summer Transactions, Reports NAEA

Property sales 

The average number of property sales agreed per estate agency branch was up from ten in May to 11 in June, the report shows.

It’s good news for first time buyers, as the proportion of sales made to this category rose to 30% in June – the highest amount since January.

Housing demand 

The number of house hunters registered per estate agency branch increased by 10% last month. In May, there were 350 per branch, compared to 384 in June. This is also a 16% rise on June 2016, when 330 potential buyers were registered.

Property supply

Indicating that the gap between supply and demand is increasing, the average number of properties available per member branch dropped in June, from 40 in May to just 37.

Sale prices

Just 2% of properties sold for more than their asking prices in June – down by one percentage point on May.

The number of homes that sold for less than their asking prices rose, however, to 79% in June – up by 2% on May’s figure.

The Chief Executive of NAEA Propertymark, Mark Hayward, comments on the latest report: “In May, we saw a period of political uncertainty, with new buyers stalling their house search until after the election. In June, however, it seems the market has bounced back, with the number of house hunters rising.

“Although we have seen a decrease in the number of houses available per branch, we have seen a rise in the number of sales, which is typical of this time of year, as buyers and sellers push through their property transactions ahead of the quieter summer months.”

Details of the previous month’s Housing Report can be accessed here: /3-properties-sold-may-asking-price/

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Housing demand falls during April

Published On: May 26, 2016 at 10:47 am

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New research from the National Association of Estate Agents has discovered that estate agents reported a substantial drop in housing demand during April.

The number of house-hunters registered per member branch actually fell to the lowest levels seen by the firm since March 2014.

Housing demand drop

According to the report, 325 would-be homeowners were registered per member branch during April. Demand has dropped by 22% in comparison to March, where 417 members were registered.

In addition, the supply of houses available for potential buyers also fell significantly, by 35%. This was a fall of 54 properties available to just 35.

Of the total number of sales made in April, 26% were made to first-time buyers, a fall of 2% from March. This said, 33% of estate agents expect sales to this group to rise in the wake of the stamp duty changes affecting the buy-to-let market. In turn, less buy-to-let landlords are thought to have interest, freeing up properties for first-time purchasers.

Housing demand falls during April

Housing demand falls during April

Brexit fears

24% of estate agents said that they expect property prices to fall, with 23% expecting demand to decrease should Britain vote to leave the European Union.

Mark Hayward, managing director of the National Association of Estate Agents, noted, ‘it’s no surprise that demand dropped significantly in April. 80% of agents saw an increase in purchasers trying to beat the buy-to-let stamp duty changes before the April 1st deadline, so we expected to see a slow-down immediately following the deadline. Whilst the number of house-hunters registered per branch dropped in April, the supply of available housing to buy also fell quite sharply, so supply and demand are still moving in the opposite direction, rather than balancing out.’[1]

‘Additionally, the upcoming EU Referendum means we’ve entered a period of uncertainty, as buyers put off their hunt in anticipation of the result and what might happen to prices as a result,’ Mr Hayward added.[1]

[1] http://www.propertyreporter.co.uk/property/house-hunters-at-lowest-levels-for-2-years.html

Buyers Go £16k Over Budget When They Fall in Love with a Home

Published On: February 12, 2016 at 12:57 pm

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Homebuyers that fall in love with a property will spend £16,000 over their budget to secure the deal, according to a survey by Zoopla.

One in three (34%) homeowners admitted that they let their heart rule their head when buying their property, leading them to spend an average of £16,193 more than they had originally planned.

Buyers Go £16k Over Budget When They Falling in Love with a Home

Buyers Go £16k Over Budget When They Fall in Love with a Home

Around 44% of those that had gone over budget after finding a property too good to resist said it was love at first sight. We recently reported that over half of buyers purchase their homes because they’ve fallen in love with it. Read more: /buying-a-home-depends-on-whether-you-fall-in-love-with-it/

Fireplaces took the top spot for the property feature that is most likely to influence a buyer’s decision, with nice neighbours and good décor coming in second and third respectively.

Bay windows, original features, such as floorboards, walk-in wardrobes and freestanding baths can also sway property purchasers.

However, the property portal also found that falling in love with a property can cause rows between couples, with one in 12 pairs saying they argued when putting in an offer because one person was more infatuated with a home than the other.

The top ten reasons people fall in love with a property

  1. Fireplace
  2. Nice neighbours
  3. Nice décor
  4. Original features
  5. Bay windows
  6. Original floorboards
  7. Parquet flooring
  8. Walk-in wardrobe
  9. Range cooker
  10. Freestanding bath

Homeowners in the East of England have spent the most over budget for a home they love, paying £18,908 more than original planned. Those in the North West follow, spending £18,436 more, and Londoners, who fork out £17,386 more than they wanted to.

Homebuyers in Wales are more restrained, spending £9,591 over their budget. In Scotland, house hunters paid £14,152 more than they planned to.

The spokesperson for Zoopla, Lawrence Hall, says: “Buying a property is a significant financial commitment, and all house hunters want to find a home that they love, so it’s understandably a process often fraught with emotion.

“In a competitive property market where stock is low, demand is high, prices are rising and interest rates are at a historical low, it’s hardly surprising to see original budget levels creeping up.”

“However, buyers need to be careful to not let their hearts take over completely,” he warns. “The key to the process is to do as much research as possible before making an offer and striking a balance between the heart strings and the purse strings.”1

1 http://www.mirror.co.uk/money/16000–price-falling-love-7353275

Rightmove Reports Busiest Ever Month for Traffic in January

Published On: February 5, 2016 at 9:23 am

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Rightmove has reported its busiest ever month for traffic, with visits up by 21m in January compared to the same month last year.

The property portal also says that leads to agents and developers reached a new record high of more than 4.9m.

The surge in traffic follows a decline in available stock for sale, meaning it is likely that visitors could not find many new listings to browse.

There were over 127m visits to Rightmove last month, up by around 20% on January 2015 and surpassing the previous record of 118m set in August last year.

Rightmove Reports Busiest Ever Month for Traffic in January

Rightmove Reports Busiest Ever Month for Traffic in January

Phone and email leads also beat a past record of more than 4.8m set in July 2015.

In total, Britons spent the equivalent of over 2,000 years browsing Rightmove in January. The busiest day was Tuesday 26th, which saw 4.7m visits.

Additionally, page views for the month hit a new record of 1.7 billion, meaning that people searched through more than 1m more pages of property than in January last year.

The most popular areas that people searched for were London, Bristol, Cambridge and Milton Keynes.

Miles Shipside, the Director of Rightmove, comments on the data: “These January statistics should give both sales and letting agents confidence that an active year with plenty of business opportunities lies ahead.

“While January is usually a very busy month for home hunting, the scale of these records shows just how habitual Rightmove has become when people are starting their property search.”

He continues: “As Rightmove is the only place where people can search over 1m properties for sale and to rent, it’s clear that buyers, renters, sellers and landlords are all using us to search the whole market.

“The busiest ever start to the year gives a very confident outlook for the coming months, with some of the surge possibly coming from investors looking to make last minute deals before the changes to Stamp Duty come in on April 1st, as well as first time buyers looking to see if any of the schemes could help them get a foot on the property ladder.”1

We recently reported that landlords are rushing into the market ahead of buy-to-let tax changes this year. Find out more about the forthcoming amendments here: /landlords-rushing-to-avoid-buy-to-let-tax-changes/

Additionally, the Help to Buy London scheme launched at the start of this month, which could create heightened activity in the capital.

1 http://www.propertyindustryeye.com/its-a-record-rightmove-reports-busiest-month-for-traffic-ever/

UK property sales highest for 18 months

Published On: September 23, 2015 at 4:26 pm

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Categories: Landlord News

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There were more homes sold in the UK in August than in any month since February of last year, according to a new report.

Seasonally-adjusted data from HM Revenue and Customs indicate that 106,480 homes were sold during the month. This represented the third month in succession where more than 100,000 sales were recorded.

However, this total is still a long-way short of the 150,000 monthly sales seen in the housing boom of 2006.

Rises

The official data shows that UK property prices increased by 5.2% in the year to the end of July. This is a long way above general prices with CPI inflation standing at zero in August.

Housing commentator Henry Pryor said, ‘despite rising prices, buyers and sellers are able to transact.’ He asked peers to, ‘look out for the increasing impact of cash buyers in the months to come’ before continuing by saying, ‘figures from mortgage lenders suggest that around 40% of all homes today are bought without a mortgage leaving the government unable to dampen house prices as they once did-by raising rates.’[1]

UK property sales highest for 18 months

UK property sales highest for 18 months

‘As we saw last December, the chancellor now reaches for other levers to control the excess of the market,’ Pyror continued. ‘He had almost snuffed out the top end of the market with huge changes made to Stamp Duty Land Tax, making buying the most expensive homes very unattractive.’[1]

Peter Rollings, chief executive of Marsh & Parsons estate agents, said that rising demand, coupled with a chronic lack of supply, would ultimately result in house prices continuing to increase, particularly in the capital.

[1] http://www.bbc.co.uk/news/business-34324229?error_code=4201&error_message=User+canceled+the+Dialog+flow#

 

Many househunters unaware of mortgage changes

Published On: September 22, 2015 at 4:51 pm

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Alarming new research has found that two thirds of potential house buyers in Britain are unaware of new mortgage rules, which were introduced last year.

An investigation by mortgage lender and broker Ocean Finance indicates that some 31% of people who are looking to buy a property in the next two years are unaware of the changes. Another 35% said that they were aware of the changes, but said that they felt confused by the new regulations.[1]

Changes

In April 2014, the largest piece of mortgage regulation in a decade came into force. The changes, brought into force by the Financial Conduct Authority, means that lenders have to take further steps to make sure borrowers can only get a mortgage that they can realistically afford.

These new rules mean that borrowers will face greater scrutiny from lenders on features such as their incomes and their expenditure. This includes spending on things like childcare, holidays and entertainment.

However, 70% of people questioned said they did not know that lenders are permitted to look more closely at their spending. As a result, 25% said they have not made changes to their habits in order to qualify for a mortgage.[1]

Of those that are aware of the changes, over a fifth have cut their spending on treats, alongside stopping contributing to life insurance and pensions to keep a larger proportion of their income in their bank accounts.

Only 24% of aspiring home buyers questioned were aware that the new legislations test their ability to afford a mortgage should interest rates rise. Just 16% knew that the rules would also test their resolve should there be a change to their personal circumstances.[1]

Clarification

In order to ensure they were up to speed on the new regulations, over one-fifth of would-be buyers have sought advice from an independent mortgage broker. 30% looked online for their information on the rules, with 14% relying on friends and family for advice. Cause for concern came with the news that over one-third of potential buyers have not sought any advice on applying for a mortgage.[1]

Many househunters unaware of mortgage changes

Many househunters unaware of mortgage changes

Further data from the research shows that another third of buyers are that concerned about the more hardline mortgage rules that they expect to have to delay purchasing a property in order to save for a larger deposit.

‘More than a year after the new mortgage rules were introduced, potential buyers are still in a state of confusion about what they mean in reality,’ said Gareth Shilton, spokesperson for Ocean Finance. ‘Even more worrying is that a large chunk of people who are gearing up to apply for a home loan are not even aware that the mortgage rules have changed,’ he continued.[1]

He feels that, ‘as an industry, we need to do more to educate buyers and to guide them through a process which many people are finding understandably daunting. For anyone who plans to apply for a mortgage in the next, it’s key that their finances are in order, including checking their credit file and gathering all their paperwork early to show as evidence.’[1]

‘They would also be wise to cut-back on non-essential spending such as takeaways and subscriptions, and to ensure that bills are paid on time so they demonstrate that they can consistently live within their means and stick to a budget,’ he concluded.[1]

[1] http://www.propertywire.com/news/europe/uk-mortgage-change-research-2015092211009.html