Posts with tag: property

Could the North East lose thousands of cheap rental homes?

Published On: January 19, 2017 at 10:00 am

Tags: Buy-to-Let,North East,property,renters

It has been estimated that up to 26,000 of the North East’s cheapest rental properties could be lost by 2020. One property campaigner in particular feels that this gives more evidence that renters should be given better deals.

Figures

Official Government figures released last week indicated that the number of affordable homes available at social rent in Britain fell by 120,000 between 2012 and 2016. This was largely as a result of Right to Buy.

Forecasts from the Chartered Institute of Housing predict that this number will rise to 250,000 by 2020-which will be an overall drop of 10%.

Should these figures be replicated in the North East, it would leave 25,951 less cheaper homes in the region. By area, this would be a reduction of:

Newcastle-3485

Sunderland-3240

North Tyneside-2494

South Tyneside-2120

County Durham-4500

Northumberland-2584

Could the North East lose thousands of cheap rental homes?

Deals

Ajay Jagota, founder of sales and lettings firm KIS, said on the figures: ‘This is yet more evidence of the burning need to give renters a better deal.’[1]

‘It’s no secret that there has been a long-term shift in the UK away from social housing towards the private rented sector. The problem is that the private rented sector hasn’t necessarily evolved to meet the needs of that demand. The biggest example of that is tenancy deposits, which place a huge financial burden on some of our poorest tenants – leaving good people left priced out of good homes rented from good landlords,’ he continued.[1]

Mr Jagota feels that: ‘The easiest way to help them would be to abolish tenancy deposits and for the industry to use sophisticated insurance policies instead. Such a move could save the average renter £1400 while actually protecting property investors assets more effectively.’[1]

‘The craziest thing is that the majority of social landlords do not take deposits, and they seem to manage perfectly well without relying on an out-dated and draconian deposit system. If privately rented homes are the future, why is the privately rented sector stuck in the past?’ he concluded.[1]

[1] http://www.propertyreporter.co.uk/landlords/thousands-of-the-north-east%E2%80%99s-cheapest-rented-homes-to-be-lost-by-2020.html

Is inflation a bigger threat than Brexit?

Published On: January 18, 2017 at 2:19 pm

Author: Em Morley

Categories: Finance News

Tags: Brexit,housing market,inflation,landlords,property

A leading estate agent has moved to express his view that inflation is a bigger threat to the confidence of the housing market than Brexit.

In a statement, former RICS residential chairman and London estate agent Jeremy Leaf, said: ‘If the cost of everything is going up, people feel poorer and less inclined to take on further debt. With the housing market it always comes down to confidence and if people see bad news, they tend to overreact, sit on their hands and do nothing.’[1

Announcement

The statement from Mr Leaf comes on the heels of an announcement that inflation has risen to 1.6%, the highest for 18 months. This increase was larger than expected and was attributed to the effects of the fall of Sterling since Britain decided to leave the EU.

Leaf’s comments also came after the ONS released its figures for house price rises over the year to November.

Is inflation a bigger threat than Brexit?

According to this report, prices increased by an average of 6.7%, up from 6.4% in October.

The average price of a property in the UK was £218,000, £14,000 greater than November 2015 and £2,000 more than in October. The average price of a property in England is now £234,000.

Wales saw prices increase by 4.1% in the same period to £147,000 and in Scotland, by 3.3% to hit £143,000.

‘The house price index findings are not too surprising because … they are a little bit historic. We expect to see some moderation in price growth in future as we have already seen on the ground in the past month or so. Shortage of stock and increased nervousness is showing itself in only slightly higher prices and lower activity,’ Leaf concluded.[2]

[1] https://www.estateagenttoday.co.uk/breaking-news/2017/1/inflation-bigger-problem-for-housing-market-than-brexit-claims-top-agent

Renting could be more financially sound then estimated

Published On: January 12, 2017 at 2:19 pm

Author: Em Morley

Categories: Finance News

Tags: homeownership,property,renting,rents

Interesting new research reveals that the financial benefits of renting a property as opposed to owning could have been underrated.

Financial researcher at the University of Stirling, Dr Isaac Tabner, believes the cost of renting includes expenses such as homeowners, such as property maintenance and insurance.

Hidden costs

Dr Tabner said just a simple comparison between rent and mortgage costs can overlook hidden fees, thus overestimate the financial benefits of owning a property as opposed to renting.

The research, published in the International Review of Financial Analysis, gives a detailed explanation of how costs of owning versus renting a property could be assessed. Tenants’ and owners’ personal circumstances and macro-economic conditions are also taken into account.

When reviewing transaction costs, rental yields, inflation and length of ownership, the study reveals that in periods of deflation or zero inflation, people who rent are usually better off financially than those owning outright.

Favourable

In addition, the report found when economic conditions return to be favourable, households could need to own their home for between five and ten years before the costs of rent they no longer pay are sufficient to compensate for buying transactions costs.

Of course, rising inflation could serve to favour homeowners.

Renting could be more financially sound then estimated

Continuing, Tabner said: ‘It is often thought that buying a house makes more financial sense in the long run: however, renting is frequently more worthwhile than buying for financially-constrained households, as well as households likely to relocate within 10 years.’[1]

‘As well as a reduced ability to recover transaction costs, households relocating within a few years face a higher risk that medium-term prices will move against them, thus reducing or eliminating their equity, while financially-constrained households face much higher mortgage costs,’ he added.[1]

A full transcript of the research can be sourced here.

[1] https://www.lettingagenttoday.co.uk/breaking-news/2017/1/renting-may-be-financially-more-worthwhile-than-previously-thought

Airbnb 90 day limit should be introduced in other cities-AIIC

Published On: December 22, 2016 at 3:08 pm

Author: Em Morley

Categories: Property News

Tags: Airbnb,lettings,property,rents,tenants

The proposal from Airbnb to stop London hosts from short-letting their properties for any longer than 90 days per year without consent should be extended to four other cities, according to the head of the AIIC.

Patricia Barber feels that this limit, being introduced from April 2017, should also be in operation in Bristol, Liverpool, Manchester and Newcastle.

Limits

Airbnb has moved to introduce this system in London after criticism that many of its hosts last for longer than 90 days. This means that sometimes it takes hitherto long-term let property off the market, reserving it only for short-let tenants and allowing higher rental income.

The Residential Landlords Association has claimed that earlier this year, more than 60% of London properties listed on Airbnb were advertised as being available for longer than 90 per year. This is despite this contravening planning laws and Airbnb’s own policies.

The platform hit back with its own statement, claiming that the RLA’s research was misleading and had deliberately confused availability with nights booked. From April, it is to notify hosts of their statutory responsibilities as their lettings hit 90 days within the yearly period.

Airbnb 90 day limit should be introduced in other cities-AIIC

Extensions

The AIIC believe that this should be extended to other key English cities, stating that Airbnb tenants and landlords leave themselves susceptible to damage or financial implications as a result of the minimal checks and paperwork needed to let a property via short-let websites.

An absence of mandatory deposit protection and the unlikelihood of inventories are two of the biggest issues, the Association argues.

Barber states: ‘Short term lets are supposed to be short term for a reason and landlords who are not adhering to the rules could be putting the future of their investment at risk.’[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/12/call-for-airbnb-90-day-limit-should-exist-in-four-other-uk-cities

Over 80% of properties sold for less than asking price in November

Published On: December 22, 2016 at 11:19 am

Author: Em Morley

Categories: Property News

Tags: buy-to-let landlords,property,property sales,supply of stock

The most recent data from the National Association of Estate Agents has revealed that over four in five properties was sold for less than their asking price during November.

This was the highest number of homes purchased for less than their valuation since records began in 2013 In October, 82% of properties were sold under their asking price, in comparison to 76% in November 2015.

Supply and Demand Falls

In addition, the report indicates that both supply of stock and overall demand fell during November, as did the number of overall sales.

House hunters slipped by 22% from October to November, from 440 to 344 members per branch respectively.

The number of properties registered was 39 during the last month, representing a 9% decrease from October, when 43 were recorded.

29% of sales were made to first-time buyers in November, 3% down from October.

Over 80% of properties sold for less than asking price in November

Lack of Confidence

Mark Hayward, Managing Director, National Association of Estate Agents, observed: ‘Following the EU referendum earlier this year, we faced a few months of low confidence from buyers and sellers, although in October the market bounced back to full form. We expect this is still the case, and this month’s slow-down is simply down to seasonality – many sellers hold off until January to put their properties on the market, and likewise buyers are more inclined to start the year with a property search, rather than attempting it over Christmas. Likewise, although a large number of sales were made below asking price in November, this can also be put down to the time of year.’[1]

[1] http://www.propertyreporter.co.uk/property/4-out-of-5-properties-sold-for-less-than-asking-price-in-november.html

What are the values of some iconic homes from Christmas movies?

Published On: December 21, 2016 at 3:23 pm

Author: Em Morley

Categories: Property News

Tags: Christmas,Christmas films,homes from Christmas movies,property

To celebrate the festive season, online estate agent eMoov.co.uk has made a list assessing the values of some memorable homes from classic Christmas movies.

There is nothing better when your halls are decked, presents are wrapped and mulled wine poured than to settle in watching a Christmas film. But just how much would some iconic properties go for in the current market?

Big Screen, Big Prices

One of the most famous properties from a Christmas movie is the house Kevin McCallister fought so hard to defend in Home Alone. A potential purchaser looking to buy a property similar to this in Chicago will need to cough up more than £1.5m.

Those feeling particularly flush might also want to consider investing in 55 Central Park West, Manhattan, home of Elf’s grouchy father Walter. A one-bedroom property here costs an eye-watering £1,055,322.

Back over the pond, Hugh Grant’s bachelor pad as seen in About a Boy would cost roughly £1.5m. Meanwhile, a terraced home in the ‘dodgy’ area of Wandsworth, location seen in Love Actually, costs around £1.1m. Incredibly, the average house price in the region in 2003, the year the film was released, was just £255,024.

A similar Surrey cottage to the one seen in The Holiday (Cameron Diaz not included) is valued around £725,000. When the film was released, the average value of a property here was £474,561.

What are the values of some iconic homes from Christmas movies?

Relaxed

Russell Quirk, founder and CEO of eMoov.co.uk, observed: ‘With the Christmas season in full swing, it is always nice to get into the spirit to relax and watch Christmas films. It acts as a great way to spend time with family.’[1]

‘Since it is a family based holiday mostly set in the home, it is fitting to look at property prices from the favourite movies of the season,’ he added.[1]

[1]