News & Views Blog

As Jude Law and Kate Winslet's new home swapping film The Holiday comes to our screens on 5th December, our latest survey shows how house swapping is not confined to the silver screen. Thousands of Britons are exchanging homes with others around the world every year.

Who does home swaps?
We asked nearly 1,000 people about home swapping that it is surprisingly popular. Half of respondents knew about home swapping and 18% said it was something they would consider, although less than 3% had actually done it.

The people most likely to do a home swap were between the ages of 31 and 35 with 63.8%  of this age group saying they would consider exchanging homes for a holiday. However, unlike the film, single people emerged as the people least likely to consider a home swap, perhaps opting for more sociable holidays. People with families were the most enthusiastic respondents, citing affordability as the most popular reason for choosing a home swapping holiday.

Top home swapping destinations
The USA is the top destination respondents would choose, as 15% opted for that country. Surprisingly, a swap with someone elsewhere in Britain came second, while Australia, Canada and New Zealand all scored above 10%.

Who don't people want in their homes?
The research shows that people inthe UK are reluctant to let some people into their homes, particularly those who don't speak the same language as them. The results showed that the respondents were more trusting of most English speaking countries, although 19% said they would not trust a fellow Brit in their home! 

People are clearly drawn to English speaking countries with strong cultural affinities to the UK as the top five most popular destinations are English speaking. With house swapping often a cheaper alternative to many holidays, people can afford to travel further, perhaps offering an alternative explanation for why we are not so keen to swap with our European neighbours.

Posted by Bronwyn at 12:49 PM | Permalink | Comments (0)

I've moved into drafty Victorian house and want to fit double glazing. Will PVC windows impact on the value of my property?

Mattew Fine from Bairstow Eves in Marlebone suggests:

PVC windows should not affect the value of your home. They have come on a long way since the Seventies and the new double glazed sash cord windows look great. With the advent of Energy Certificates being issued on all properties being sold from next year and the energy savings from PVC, double glazing and secondary glazing windows I can only surmise that this will only affect the value of your property in one way, upwards.

Do you have a question for our estate agents and property experts? Please let us know below, or read our previous Q&As.

Posted by Bronwyn at 06:21 PM | Permalink | Comments (3)

I rent out rooms in my house, and I am thinking of converting the large living room into two separate rooms so that I get an extra bedroom to rent out. Will this gain or lose value in the property?

Sarah Shelley, Partner at Knight Frank in Wapping suggests: 

Try and ensure that you have a reasonable sized reception room after you have done the division and that any partition is easily removable and does not damage the walls, coving etc as I suspect that you have a handome living room at present which is important to the value of the house. 

You might also find it useful to look at propertyfinder.com's Price of a bedroom survey, which discusses the value an extra bedroom can add to your property. 

Do you have a question for our estate agents and property experts? Please let us know below, or read our previous Q&As.

Posted by Bronwyn at 06:04 PM | Permalink | Comments (1)

I have a very large garden, half of which I have fenced off as I don't use it. It has rear access and I would welcome advice on how I go about selling off that part of the garden. I believe it will be more 'sellable' if I can sell it with planning permission.

Nick Leeming suggests:

In general it is right to explore any planning opportunities as a change of use consent may substantially increase the value of your property. The likely outcome to any planning application will be wholly dependent on the site's uitability, location and the detail of the local development plan. The best person to advise on this will be a local planning consultant who understands the issues in the area and who knows the planning authority, although you will also have to take advice on the value that such a consent may result in so as to judge the likely net benefit to you after all costs are deducted. Be aware that this process can take some time to come to fruition! 

Do you have a question for our estate agents and property experts? Please let us know below, or read our previous Q&As.

Posted by Bronwyn at 05:21 PM | Permalink | Comments (0)

Here are the results from our latest Consumer Confidence Survey, where you tell us what is happening in the property market in your area.

Confidence inthe housing market slipped in November as home buyers and sellers absorbed the news that base rates had risen to 5% and that further increases may be on the way.

On average, respondents expect house prices to rise 5.2% over the next 12 months, down from 5.5% in October.

Although 79% of respondents expect the market to continue to rise and only a small minority expect price falls, three quarters (72%) fear further interest rate increases, while half (52%) fear mortgages will become affordable.

North-South divide - prices towards the north to rise less than earnings
The overall UK picture conceals very wide regional variation. In England, regions to the south expect a far stronger market than regions to the North. A number of regions in the Midlands and North of England expect house prices to grow more slowly than average wages.

Since October, optimism in the capital has actually increased with respondents increasing their expectations for price rises from 6.3% to 6.6%. Elsewhere in the UK, people are trimming their expectations for the housing market. Warren Bright, Cheif Executive of propertyfinder.com commented:

North of a line from Cheltenham to Chelmsford, there is a dramatic change in sentiment on the housing market. The strong performance of the City is driving the economy in the south, with rich bonus pickings supporting prices.

Conversely elsewhere in England, more subdued expectations for house prices suggest housing affordability may actually improve when compared to wages. 

This presenty the Monetary Policy Committee with a dilemma. Another interest rate increase is clearly not necessary for well over half the country. Punishing everyone with higher rates to control house prices in the south risks destabilising the whole market.

Fortunately, people have healthy levels of equity in their homes, giving them an important cushion when they move. On average, buyers want a mortgage worth 61% of the value of their new home meaning that they have over £80,000 of equity to invest.

 Regional results

London and the South East
The most bullish regions in the UK, both expecting house prices to rise significantly ahead of average earnings. In London respondents strongly believe their areas are up and coming while those in the South East see net migration boosting the market.

South West
More than any other region, the South West expect people to keep moving to the area, pushing up house prices on average by 4.8% over the next 12 months. However, it is also the region that most fears the interest rate increase. 90% expect rates to rise again.

East Anglia
Although East Anglican respondents expect prices to rise at least (+2.4%), their views are less polarised than other regions. A healthy 77% expect prices to rise, but there are few who expect either large increases or larger falls. East Anglians particularly highlighted net inward migration as a reason for the market to be supported. The large influx of Eastern European migrants is certainly supporting the housing market there, principally the rental sector.

East Midlands
People in the East Midlands also have less polarised views than average. 80% expect prices to rise by 3.9% on average. People believe the region is a good bet with property investors for rental purposes, although people are more likely here than elsewhere to believe that house prices are high relative to incomes (perhaps explaining why they believe prices will rise less than earnings).

West Midlands
In the West Midlands people are also opptimistic on the region's property investment potential. 76% believe prices will rise. On average people expect prices to rise 4.1%. As in the East Midlands, people are more likely here than elsewhere to believe that house prices are high relative to incomes. They believe prices will rise in closely line with average earnings.

Yorkshire & Humberside
With house prices almost 20% below the England and Wales average*, people again see investment potential for the region. Overall they expect prices to rise 4%, just in line with average earnings.

North
This is the least optimistic region in the country. Just 63% on average expect prices to rise, 3.6%. A quarter of respondents expect prices to be flat in the North.

North West
Like the North, the North West is relatively cautious.Here, 67% expect prices to rise, by an average of 4%. Relative optimism in manchester is reponsible for pullin up the average for the region.

Scotland
Buoyant confidence in Scotland reflects continued momentum inthe country's market and the strong contribution that financial services make to its economy. Booming financial markets have a disprportionate effect on the housing markets in Edinburgh and Glasgow.

Wales
Wales is still paying catch up. With average house prices 23% below the average for England and Wales together*, there is stil room for growth in the Principality.

Posted by Bronwyn at 12:02 PM | Permalink | Comments (0)

This week's question is from C. Rodriguez:

I am currently in the middle of selling my house. When I first invited estate agents to value the property I was given three different valuations from three different estate agents - £375,000, £385,000 and £395,000. I was insistent that we could get more for the house and put it on for £430,000, and we have since secured a purchase price (subject to contract) of £423,000. Here are my questions:

1) Should I ask for a discount from the estate agent?

2) Do you think the estate agents I contacted where only interested in turning over the property quickly?

3) If not, why would three estate agents by so wrong, lets face it the market has been relatively fast moving for a while now?

Nick Leeming, Propertyfinder.com's property expert (and chartered surveyor/former estate agent) suggests: 

This is an interesting case and reflects something that every agent knows....property valuation is an imprecise art! That three, presumably reputable firms were so close in their figures may well indicate that this is the level at which comparable properties were trading at in the area.

However, some purchasers have an alternative view of value which reflects more their own need, how much they liked the property and whether there were other considerations which made them prepared to pay a premium. It may be that the purchaser didn't know or didn't care about comparable values in the area.

The likelihood of any discount from your fee will very much depend on the agent and the wording of the agency agreement which you signed with them. Many clients would be delighted that their house had outperformed the market and reward their agent accordingly!

Do you have a question for our estate agents and property experts? Please let us know below, or read our previous Q&As.

Posted by Bronwyn at 06:37 PM | Permalink | Comments (0)

Purchasers are becoming increasingly savvy about bargaining power to get money off a property.

Research shows that 80% of purchases would negotiate money off if the roof was in a state of disrepair, and more than two thirds would negotiate up to £10,000 off the asking price if the survey highlighted dodgy electrics. Other top negotiating issues include rising damp and timber/dry rot, and length of leashold.

However, purchasers have to appreciate that if it's not a significant issue concerning the habitability of the property, they're better off taking a view. Nick Leeming, our resident property expert suggests:

There are many ways in which purchasers can argue a reduction in the price that they have agreed to pay for a property and these may range from the perfectly reasonable to outright blackmail!

In general terms a buyer will agree the price for a property on the basis of what has been disclosed in the sale particulars and from visual inspection. Once an offer has been accepted most purchasers or their lenders will then commission a survey and valuation. In any event a solicitor will look at the title and report, among other things, on any legal restrictions which might affect the enjoyment of that property. Where problems are identified in these processes and where they have not been disclosed by the vendor or their agents, then there may well be a good argument to a reduction in the price offered so as to reflect the cost of remedial works or, where that is not possible, the loss in value to the property.

At the other end of the spectrum are the opportunist buyers who seek to delay an exchange and put the vendor in such a position that they are forced to accept a last minute reduction in offer. There may however be reasons outside the control of both the agent and vendor, such as when a mortgage offer is insufficient to enable a purchaser to proceed or a chain has been broken, when both parties feel aggrieved.

In all cases the likelihood of a vendor accepting a reduced offer will depend on the circumstances. The owner who has already contracted to buy elsewhere and has no other bidders to fall back on may have little option but to accept a lower offer. But where the market is strong, the vendor can wait and there are plenty of other interested parties circling, then the response to a reduced offer may be a curt one!

At the end of the day a successful sale requires communication between both parties and, if there is a genuine issue, then do first discuss it with the agent. Remember that an aggrieved vendor can make the final completion of a property sale anything but a routine process.

Thanks to Linda Bird from London Property News.

Posted by Bronwyn at 03:57 PM | Permalink | Comments (0)

Our friends from the London Property News have some handy hints on how to make your home warm this winter.

Wrap up your windows
Swap those soft voiles and cool lightweight summer cottons for rich textured fabrics and cosy throws.

Be lavish with window dressings - think multi-layers, and stick to plain blinds against the window, then frame them with thick curtains in rich, ornate patterns. Let them trail elegantly on the floor and you'll cut out drafts. 

Sumptuous velvets, corduroy and chenilles are warming winter fabrics for curtains, upholstery or bedding; think welcoming boudoirs, beds piled high with cushions and covers.

Toast your toes
You'll save money on heating bills (and slippers) by installing underfloor heating this winter. Radiators work by sending (expensive) warm air to the ceiling, whereas with underfloor heating, you heat only the lower part of the room.

 It's low maintenace, installation is easy, and it works over most flooring from tiles, to laminates or carpats. It can even be laid over an existing floor and covered with tiles.

 
Warm up the walls
You can raise the temperature in a room a few notches by re-thinking colour schemes. Earthy and spicy tones, or bold, bright shades can thaw out a cool room. Think chocolate browns, mink, rich cherry, deep plums or raspberry, and burnt orange, but beware of red unless you have a large room as it has the effect of making the walls soom closer.

If you haven't the bottle to go totally wild with colour, instead gather splashes of tropical colour, instead gather splashes of tropical hot pinks, oranges or reds together - vases on a mantelpiece, cusions on a sofa, a cluster of photo frames on a shelf. 

Posted by Bronwyn at 02:46 PM | Permalink | Comments (1)

propertyfinder.com analysed property for sale around the UK and analysed just how much value that extra bedroom can add to a property. Getting a foot on the property ladder is a dfficult but hugely satisfying step for most first time buyers. But once the home owner is ready to upgrade, each successive rung on the ladder is a much greater step than the last, forcing homebuyers to stretch themselves further and further every time they trade up.

On average across the nation a two bedroom home costs £38,620 more than the price of a one bedroom home.

Table 1 - UK average property price - by number of bedrooms

Warren Bright, Chief Executive of propertyfinder.com said:

Of course, larger houses have additional reception rooms and bigger gardens, but the number of bedrooms still provides a reliable guide to the UK's property ladder. This research shows how, far from getting easier, the climb gets tougher and the sums ever greater as you seek a larger home. A fourth bedroom costs not far off the same price as an entire one bedroom property!

Regional variation
The starting point for a one bedroom property varies widely across the nation, costing £173,000 more in London than it does in Liverpool. But as you trade further up the ladder, the variability by area becomes more significant. London is the most expensive place to move up to a fourth bedroom, costing an extra £232,000 for a four bedroom property.

To buy or to build
An obvious  solution to needing more space is to extend your existing home. An additional room may only cost £20,000 to £35,000 to build, depending on where you are in the country. In most cities, this is well below the cost of buying a larger home, especially when you consider the impact of stamp duty.

National Property Prices - average per size category

 Warren Bright said:

A sensitive, well-planned extension can be an excellent way of adding space and value to your home. However, cities such as London are very densley built and additional rooms may be impossible to fit in or be prohibited from a planning and conservation perspective. A badly planned addition can be a disaster and can detract from rthe value of your house.

With a fourth bedroom costing up to £230,000 you could just take an up market hotel room whenever you need some extra space!

Posted by Bronwyn at 02:38 PM | Permalink | Comments (0)