Posts with tag: property

Ministers advised to make homes energy efficient

Published On: February 28, 2016 at 10:17 am

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Ministers have been advised that bringing the older properties of the UK up to a more energy efficient standard should be a priority.

At present, the Government is consulting on mega-money deals for road and rail infrastructure, flood defences and energy sources.

Opposition parties and institutions have noted that energy efficiency should be taking the same priority.

Efficient

They argue that unless homes are sufficiently insulated, Britain will miss targets to end fuel poverty and slash carbon emissions

Think-tank Policy Exchange proposed the plan to make home energy efficiency a key part of the Government’s infrastructure. BBC News said it had found lots of support for this proposal, from parties including Labour, the Liberal Democrats, SNP and Plaid Cymru..

In the current moment, the Government has declined to comment, but its advisory body, the National Infrastructure Commission, said that it would consider whether to take the idea further.

Value

Policy Exchange said that improving home energy efficiency:

  • creates jobs
  • combats fuel poverty
  • cuts air pollution
  • reduces carbon emissions
  • minimises fuel imports
  • saves the need for new power stations

Richard Howard, of Policy Exchange, said, ‘it’s pretty much a no-brainer. Bringing people’s homes up to standard is incredibly good value for money. We don’t typically think of housing as infrastructure like we think of roads and railways-but we’ve got to change the way we approach this: housing is critical infrastructure.’[1]

Ministers advised to combat cold houses

Ministers advised to combat cold houses

Wrong assumptions

Professor Jim Watson, director of the UK Energy Research Centre, noted, ‘for too long, there has been an assumption that infrastructure includes energy supply and energy networks, whereas the type and quantity of energy we use (and might need in future) is heavily dependent on infrastructures that use energy such as buildings, vehicles and appliances.’[1]

Christopher Frei, General Secretary of the World Energy Council, also said, ‘this is such a no-brainer. It responds to energy efficiency, addressing fuel poverty, replacing new capacity requirement-and the financing is so much easier to do because the pay-back period is so short. But it needs the policies.’[1]

[1] http://www.bbc.co.uk/news/business-35459447

 

Young struggling to get onto property ladder

Published On: February 22, 2016 at 12:49 pm

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Another report has underlined the notion that young people are becoming trapped in the rental market, due to spiralling house prices.

An investigation by the independent Social Market Foundation think tank has revealed that an extra 1.8 million people have been unable to get their foot on the property ladder since 2001.

Young struggle

The report shows that if home ownership levels among 25-34 year olds during 2016 remained the same as 2001, an additional 1.8 million people in this age group would now be owner-occupiers. Despite this, they are being faced with barriers in getting onto the ladder due to high property values, tighter lending criteria and difficulties in saving for a deposit.

Data from the investigation underlines a lack of housing supply as the most prominent factor in the lack of young homeowners. Results indicate that Britan will see a shortfall of nearly 1.3 million homes by 2026, if current supply levels and lack of growth remain constant over the same period.

In addition, the report looks at how the market could grow over the next decade and warns that supply could continue to come up short in the face of rising demand.

Young struggling to get onto property ladder

Young struggling to get onto property ladder

Boosts

This follows results from a different survey released last week by the independent Resolution Foundation body, which indicated that home-ownership for young, working class households could slip to just one-in-ten by 2025.

Claiming crowdfunding could be used to boost savings of young, would-be buyers, the report also suggests that the supply of new homes could be increased by providing crowdfunded equity to small and medium-sized constructers.

Social Market Foundation economist Katie Evans, also the author of the report, said, ‘getting onto the housing ladder is becoming harder and harder for young people. Our failure to build enough homes means this problem threatens to stretch into the future. Property crowdfunding could be the means to tackle both demand and supply.’[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/2/another-report-shows-younger-people-locked-out-and-forced-to-rent

 

 

Buyers 10% better off than renters

Published On: February 22, 2016 at 10:06 am

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Categories: Finance News

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New research from Lloyds Bank indicates that those getting a foot on the property ladder are better off than those renting.

According to the data, first-time buyers are £865 per year more wealthy than tenants in the rental market.

Costly

The average monthly buying fees, inclusive of mortgage payments, attributed to first-time buyers purchasing a three-bedroom property stood at £672 in December 2015. This was £72 lower than the average monthly rent of £744 paid by renters in the same type of property.

This shows an increase of £105 over the course of the last year. Average monthly rents have risen more sharply, showing a 3% increase, in comparison to a 2% rise in monthly buying costs.

At present, the financial gap between buying and renting (£865) is more than double the saving of £397 recorded in 2010. In this period, average rents have gone up by 23% (£139) per month from £605 and buying costs have risen by 17% (£100 per month) from £572,

Since 2009, buying has been the cheaper option.

Regional variations

Average monthly buying costs in the South East (£965) are £65 greater than the average rental costs in the UK. This is the only region in Britain where renting is the more cost effective option.

Alternatively, buying is more affordable than renting in monetary terms in the North West, where the average first-time buyer pays £133 per month less than the average renter. This was followed by Scotland, where owner-occupiers pay £120 less and Wales, where buyers enjoy savings of £103.

Buyers 10% better off than renters

Buyers 10% better off than renters

First-timers

First-time buyer numbers hit 310,000 in 2015, slightly down from the 311,700 recorded in 2014. However, this is a rise of 60% since first-time buyer totals fell to a low of 193,700 in 2011.

The number of first-time buyers made up 46% of house purchase made with a mortgage during 2015. This was up from 36% at the beginning of the downturn in 2007.

Mike Songer, Mortgage Director at Lloyds Bank, observed, ‘we’ve seen a significant shift over the past five year, with people consistently paying less on average per month when owning their property as opposed to renting. In 2015 this gap widened by over £100 to an annual saving of £865.’[1]

‘This has been helped by record low mortgage rates and rising private rents, making owning a home a much more attractive proposition than renting. This steady improvement in the costs of buying compared to renting has helped to boost the number of first-time buyers over the past few years, who now account for 46% of all home sales in 2015-up from 36% in 2006. Official government schemes, such as Help to Buy have also played a part in helping first-time buyers as have improving economic conditions,’ Songer added.[1]

[1]  http://www.propertyreporter.co.uk/finance/buying-10-better-off-than-renters-says-lloyds.html

RLA issues warning to Gumtree over letting scams

Published On: February 19, 2016 at 2:27 pm

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Categories: Landlord News

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The Residential Landlords’ Association (RLA) has called on a leading classified online listings service to issue clear guidance over possible scams involving bogus letting scams.

A warning was issued to Gumtree by the RLA after fraudsters posed online as landlords to post ads on the site asking for money in exchange for property viewings.

Scams

In certain cases, the advertisements posted online show affordable and attractive dwellings. However, when potential tenants attempt to arrange a viewing, they are told that the landlords lives a long way away and that they must provide a deposit in order to secure a viewing. Sometimes, these fees cost £1,500!

The criminals behind these scams have cloned websites’ logos, including that of the RLA’s Deposit Guard Scheme. As such, the schemes look genuine to would-be tenants.

Once tenants pay cash for their fake viewing, they never hear from the fraudsters again and their money is lost.

RLA issues warning to Gumtree over letting scams

RLA issues warning to Gumtree over letting scams

Demands

To stop more innocent renters becoming victims, the RLA has now contacted Gumtree demanding visible warnings on its website.

‘Often, the victims in this type of fraud are young foreign students, who have limited knowledge of how the rental market works in the UK,’ said a spokesperson for the RLA. ‘The fact that our DepositGuard logo is being used in this manner is something we are taking extremely seriously and we have approached Gumtree asking for clear warnings about scams of this type to be included on its website,’ they added.[1]

Any victims of this kind of fraud are being advised to call Action Fraud on 0300 123 2040.

[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/2/industry-group-asks-gumtree-to-issue-public-warning-about-letting-scams

Where are Buyers and Tenants Moving to? (So Where Should You Invest?)

Published On: February 18, 2016 at 11:27 am

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New research from Urban.co.uk has revealed the top places that people in different age groups are moving to in the UK. By analysing the data, landlords may be able to work out where they can buy a profitable investment.

Online estate agent Urban.co.uk has evaluated Office for National Statistics (ONS) internal migration statistics to find out which cities in England and Wales are the most popular to move to.

Birmingham was the only area included in the top ten destinations for all age groups – 18-21, 22-29, 30-64 and over-65s.

Alongside Birmingham, Manchester, Nottingham and Leeds are all becoming increasingly attractive locations compared to London for those aged 18-21.

The 22-29 age group is also heading north, with many favouring Birmingham, Manchester and Leeds over the more traditionally popular London boroughs of Islington and Hackney.

Birmingham was the most popular area to move to for those aged 30-64, while the over-65s prefer greener regions, such as Wiltshire and Cornwall.

The main finding from the study is that young people are increasingly leaving the capital.

The figures found that Birmingham is London’s biggest rival for all of those aged under 65. In the over-30 category, 12,500 home movers relocated to Birmingham during the past year.

For 22-29-year olds, Birmingham was the third most popular city to move to, coming in ahead of previously popular London boroughs such as Tower Hamlets and Southwark.

Birmingham was also in the top five cities for 18-21s, with Leeds, Nottingham and Manchester making up the top three. Over 45,000 youngsters moved to these areas in the last 12 months, indicating affordability pressures and a definite trend of migration towards the north. This may be due to the quality of educational facilities and the student populations of these cities.

The co-founder of Urban.co.uk, Adam Male, says: “The range and quality of educational institutions north of London, in places such as Leeds, Nottingham and Birmingham, have undoubtedly played a large part in attracting more and more young people away from London and its surrounding regions.

Where are buyers and tenants moving to?

Where are buyers and tenants moving to? (So where should you invest?)

“The interesting trend here is that young people appear to be staying in these regions after university and this is something we can expect to see more of in the coming years, due to their lively culture, increasing job opportunities and a competitive property market.”1 

Older generations are choosing more peaceful and greener spots, such as Wiltshire, Cornwall and the East Riding of Yorkshire over London. Birmingham was also included in the top ten for over-65s.

Visit Birmingham’s Emma Gray believes: “People are increasingly seeing our region as an obvious choice to build a career and raise a family, thanks to excellent schools, outstanding connectivity and affordable homes and amenities.”1 

Indeed, compared with London, Birmingham offers a competitive property market.

As first time buyers continue to struggle getting onto the property ladder, house hunters in Birmingham will find that the average house price is a huge £300,000 cheaper than in the capital.

The Birmingham suburb of Moseley Village was even named the best place to live in the UK by the Sunday Times, beating Mayfair in London.

Investment in the city, including HS2 and the Curzon Street regeneration, has also boosted Birmingham’s reputation as a business centre, making it a hotspot for start-ups and small businesses, in turn creating more job opportunities and investment potential. The city has been named, for the second time, the most investable city, above prime spots like Madrid, London and Paris, in an annual survey by the Urban Land Institute and PwC.

If you are seeking to invest in buy-to-let and beat the 1st April deadline for an added 3% Stamp Duty, could Birmingham be the best place to do it?

1 http://www.propertyreporter.co.uk/property/where-is-currently-the-most-popular-place-to-move-to-in-the-uk.html

£1m Homes To Triple by 2030, says Santander

Published On: February 18, 2016 at 9:46 am

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The amount of properties in the UK that cost £1m or more is expected to more than triple by 2030, according to research by Santander Mortgages.

At present, less than half a million homes in the UK are valued at £1m or more, but this is set to increase to over 1.6m properties in the next 15 years.

Santander, alongside economist and the London School of Economics’ Paul Cheshire, studied the future of the UK property market, focusing on £1m-plus homes and what fuels house price growth.

The Property Millionaires: The Growing Housing Divide report found that by 2030, 25% of housing stock in London will be valued at £1m or more, reaching 70% of all homes in two London boroughs.

While 7% of properties in the South East are set to cost £1m or more by 2030, less than 1% of homes in the North East, Yorkshire and the Humber, the North West, Scotland and the East Midlands will hit the same value, highlighting a clear geographical divide.

Around the UK, the average property price – currently £283,565 – is expected to rise by 23% by 2020, to £349,300.

£1m Homes To Triple by 2030, says Santander

£1m Homes To Triple by 2030, says Santander

In 15 years’ time, the average UK house price will have almost doubled and surpassed the half a million pound mark, at £557,444.

While house prices are expected to spiral, forecasts suggest that incomes will not keep pace, causing an overall decline in affordability.

Currently, the average UK property price is 7.9 times the average wage. However, by 2030, it is expected to reach 9.7. Again, this trend will be more prominent in the capital, where prices are currently 11.5 times incomes and are predicted to increase to a huge 16.5 by 2030.

The Managing Director of Mortgages at Santander UK, Miguel Sard, comments: “Property price inflation will tip many existing homeowners into the million pound price bracket, but could also price some aspiring buyers out of the market if they don’t have the right support.

“The current property market is buoyant and the deals available to new and existing owners are extremely competitive, so those wishing to buy or move shouldn’t be put off.”1

1 http://www.ft.com/cms/s/0/561a2c28-d588-11e5-8887-98e7feb46f27.html#axzz40Vm1ymxb