News & Views Blog

These staggering findings have been revealed by Hamptons International, who go on to say that severely low stock levels in London combined with increasing numbers of prospective tenants coming to the market has pushed prices sky-high, forcing many desperate would-be tenants into a bidding war.

In an attempt to seal a deal, many tenants are moving swiftly, bypassing a second viewing and increasing original offers well over the asking price.

Regional Lettings Director for Hamptons, Lesley Cairns, concluded:

As house prices rise, so do the rental  prices, encouraging more and more people to renew their existing contracts. Statistics from the last month suggest that there has never been a better time to let a property.

If you're looking to rent then visit propertyfinder.com

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We have had an overwhelming response of people signing up to receive Property Alerts and entering the draw to win one of a 100 pairs of tickets to this The Ideal Home Show.

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Whats the best way to negotiate the lowest selling price from a vendor and is it ever an option to contact the vendor directly?

Nick Leeming, our property guru suggests:

This is a wide ranging subject and much will depend on the relationship that the vendor has with his agents...

If the property is stuck on the market, the guide price has been reduced and the vendor has to sell, then you are in a strong position to offer a low bid, sometimes as much as 15% below the guide price.

The agent should have a formal selling agreement with the vendor and this will state whether they have sole selling rights or not, however if you have seen the property advertised or promoted by that agent, then it is right to deal through that agent.

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Gordon Brown also announced a series of "green" measures in today's budget announcement including exempting all new zero-carbon homes worth up to £500,000 from stamp duty, reducing VAT on energy-saving products and grants of up to £4,000 for pensions to insulate their homes. 

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The Chancellor failed to announce any change in stamp duty thresholds which will come as a big disappointment to first time buyers hoping for an exemption to support their efforts in making a first step on the property ladder.

But what does this mean for first time buyers and younger groups trying to make their first step on to the property ladder?

With property prices rising by almost 11% per year according to the Government's own figures first-time buyers and families have been left worse off with stamp duty thresholds being left where they are.

The nature of stamp duty is considered increasingly unfair and this was widely regarded as Gordon Brown's last chance to do bring in changes.

Thisismoney.co.uk commented:

Stamp duty is a tax that hurts first-time buyers and families already struggling to move up the property ladder and until it is charged in a similar stepped way to income tax rather than its current slab charge it will remain the un-fairest tax around.

 

For more of Gordon Brown's announcement, visit our special Budget 2007 section.

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Gordon Brown used his 11th and final budget speech today to announce surprise tax cuts that would see UK rates reduced to their lowest level for 75 years. He also announced plans to raise the Inheritance Tax Threshold (IHT) from £285,000 to £350,000 by 2010.

But what does this mean for first time buyers and younger groups trying to make their first step on to the property ladder?

Nicholas Leeming, director of propertyfinder.com comments:

A rise in the inheritance tax threshold to £350,000 by 2010 actually means more homes are likely to fall into the inheritance tax bracket, not fewer as the Chancellor suggested.

Since the threshold was last set at £285,000, house prices have already risen a little over 10%. To reach £350,000 in three years, they need rise at only 3.7% per annum, barely more than inflation. Even with this modest increase, 15% of homes will be worth this much in three years’ time. The burden will fall disproportionately on regions with the highest house prices – London and the South East.

High house prices are making it much harder for younger generations to get on the housing ladder. As the Chancellor takes housing wealth from older generations when they die, less money is available through inheritance to help the finances of the younger groups. First-time buyers will therefore suffer too.

 

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Let us know what you think by completing our short survey.

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People stay put as the cost of moving rockets

The overall cost of moving house has rocketed over the last ten years, now standing just short of £10,000– increasing 225% over ten years - according to our latest survey.

On average, people looking to move home in the UK can currently expect to pay £450 in removal costs, £1,000 in lawyers fees, £3,027 in estate agent’s fees, and a massive £5,481 in stamp duty.  Ten years ago, these figures stood at £376, £857, £1,257 and £679 respectively.

Stamp duty alone has rocketed 527% over ten years – even putting house price inflation aside, moving home has become a huge strain on people’s finances, prompting people to stay put and delay progressing up the property ladder.  Propertyfinder.com’s monthly confidence index suggests people currently expect house prices to rise by 6.4% over the next twelve months and 31% of home seekers would account a rise primarily to the fact that there are too few properties coming on to the market.

Warren Bright, Chief Executive officer of Propertyfinder.com commented:

Our research shows that the total cost of moving, before you have even paid for the house, stands at nearly £10,000 – a ten year increase of 214%! The majority of these costs are stamp duty. Lawyer fees and removal costs have risen in line with, or below wage inflation, whilst agents’ commission as a percentage of house price remains almost unchanged. Meanwhile, stamp duty has risen an unjustifiable 527% over ten years. It is no wonder that people are staying put, and that we are experiencing such supply problems at the bottom end of the ladder. If the government wants to stem house price growth, they would do better to lower stamp duty than raise rates.

Posted by Bronwyn at 06:20 PM | Permalink | Comments (0)

Consumer confidence in the housing market is on the rise according to the latest data from propertyfinder.com.

Despite confidence having fallen in February - a reaction to January’s rate rise, the two month reprieve has been enough for sentiment to recover slightly. Currently 81.9% of people expect house prices to rise over the next year, by an average of 6.4%. This is compared to the 77.8% who expected house prices to rise in February, by an average of 5.9% over twelve months.

Warren Bright, Chief Executive of Propertyfinder.com commented:

We have seen a slow down in the housing market inrecent months. The latest Inland Revenue data shows that house purchase transactions have dwindled recently, whilst some house price indices have reported a slow down in house price growth.

However, people have faith in the value of bricks and mortar, and as long as the UK housing market continues to experience such drastic supply issues, this is unlikely to change significantly.  Confidence in the housing market is fairly buoyant; what we are seeing now is a controlled slowing and a well needed adjustment of balance between buyers and sellers.

Gulf closes between buyers and sellers
Last month seller confidence far outweighed that of buyers, with 10% more sellers expecting house prices to rise by 2% more in value than buyers.  However, this month we see a tightening in the opinion gap, with an almost equal proportion of buyers and sellers expecting house prices to rise over the next year.  Warren Bright continued:

The fact that market confidence is shared by buyers and sellers is good news.  Last month’s figures indicated that the imbalance of power in the market had made sellers overconfident - and in the past this has pre-empted a significant decline in property transaction volumes.  Since recent data shows transactions are already down, a further decrease could have been too much.  This month the sentiment gap has closed.  The balance is redressed and any further cooling of the market should take place in a maintainable way.

Interest rates still a cause for concern
Despite the rise in confidence on last month, interest rates remain a concern for many prospective homebuyers, with 62.5% of people holding any fall in house prices over the next twelve months accountable to further rate rises.  54.2% of people also stated that mortgages are unaffordable.

A further 0.25% rise would mean someone buying a home would pay over £150 more in monthly mortgage payments than a year ago - a 25% increase.  Warren Bright concluded:

Whilst confidence has recovered this month, interest rates and affordability issues are still at the forefront of people’s minds.  This week’s budget could already impact upon people’s financial ability and willingness to move home - hikes in stamp duty, for one, are very likely.  We think the Bank of England has done enough to ensure that the market cools sensibly – a further rise next month may prove a step too far.  Hands off our houses now Mr. King!

Posted by Bronwyn at 12:45 PM | Permalink | Comments (0)

• People currently expect house prices to rise by 6.4% over the next twelve months and 31% of home seekers would account a rise primarily to the fact that there are too few properties coming on to the market.
• The percentage of people who believe house price rises are attributable to supply problems caused by a lack of properties being put on the market increased significantly over the last year, peaking this January but remaining high. (
• Whilst 31% of people blame undersupply on the lack of properties coming onto the market, only 24% currently believe supply problems are due to the rate of new builds.
• 13% of people currently looking for property have been searching for more than 11 months.

Warren Bright, Chief Executive Officer of Propertyfinder.com, commented:

The number of buyers in the market is disproportionate to the number of properties being sold.  Not only are our estate agent customers recognising this, but so are home seekers.  People are genuinely worried about the fact that whilst supply remains such an issue, house prices will continue to rise, making homes less affordable.  The problem is, people simply can not afford to move house – hence the lack of homes on the market.

Our research shows that the total cost of moving, before you have even paid for the house, stands at nearly £10,000 – a ten year increase of 214%!  The majority of these costs are stamp duty.  Whilst agent and lawyer fees have risen in line with, or slightly below inflation, stamp duty has risen an unjustifiable 527% over ten years.  It is no wonder that people are staying put, and that we are experiencing such supply problems at the bottom end of the ladder.  If the government wants to stem house price growth, they would do better to lower stamp duty than raise rates. 

Posted by Bronwyn at 12:24 PM | Permalink | Comments (0)

A clear link between the cost, public preference and supply of property from different architectural periods has been established by new research from propertyfinder.com.

Propertyfinder.com focused the study on three bedroom properties in a selection fo UK towns, chosen for their range of architectural styles. Georgian housing, the oldest surveyed, topped the tables in every category - representing the least common, most expensive and most desirable dwellings. Houses built between 1950 and 1980 proved to be the least popular, whilst also making up the highest percentage of housing stock and demanding the lowest average asking price.

There is a strong correlation between the age of a property and its value, with older houses tending to command greater sums than properties built in a later period. Bucking this trend are contemporary and 1990's developments, the average price of which exceeds properties in both the 1950's to 1980's, as well as inter-war housing categories. Warren Bright, Executive Officer of Propertyfinder.com said:

The results have shown the British public's preference for period homes, and this goes some way towards explaining homebuyers' liking for properties built in the last twenty years. With so many new developments in a period style, these new homes represent a good opportunity for everyone to won a piece of history - with none of the planning constraints and maintenance.

Golden Oldies
The results from properties in Bath, Brighton, Cambridge, Edinburgh and York, show Georgian property to be worth the most (at over £390,000 for a typical home), whilst also being the most popular amongst house hunters (with 46.7% regarding it as attractive of essential in their property choices). It is also the rarest, accounting for less than 4% of the nations housing stock.

Victorian and Edwardian houses - the next oldest - were also the next highest on the list. House hunters can expect to pay around £320,000 and £328,000 respectively for properties from these periods. Their popularity is high, attracting around 45% of people, and they are also compararively rare, accounting for only 15% of total housing stock. The marginally greater cost for an Edwardian period property over a Victorian counterpart in these areas is explained by smaller supply, together with slightly more generous proportions. 

At the bottom of the table came post-war property (housing built between 1950 and 1980). This was least popular with the nation - with only 8.5% of people saying that it would attract them to a street. Post-war property was also the least rare

making up 56% of housing stock nationwide, and at just £235,000 was the lowest valued.

Georgian homes are the most desirable, but the smaller supply and extra cost may be prohibitive for some buyers. Victorian and Edwardian properties have also proven to be extremely popular, reflected in current asking prices. We have experienced first-hand the demand for period properties and this research highlights the gulf between house hunters' expectations and supply.

One thing that is clear is the public is turned off by post war housing. It remains to be seen whether it will be topping the charts in a few hundred years' time. 

Posted by Bronwyn at 10:24 AM | Permalink | Comments (1)

A brand new feature includes Advice Centres which will provide useful information on a wide range of topics from property, gardening and renovations to interiors, and the exciting Home of the Future that offers the latest in home technology.

'MUST SEE' features include:

• Sustainable living - A return to community
• Advice centres
• At Home with Madame Tussauds
• 'The Connected Home'
• Exclusive French Market

 
And to refresh the memory on other classic show highlights or book tickets, visit the website.

Posted by Bronwyn at 04:18 PM | Permalink | Comments (0)

As a buyer, do you need to carry out a building survey and /orhome buyer survey and valuation for a ground floor flat of which the Local Authority is the freeholder? Please advise.

Nick Leeming, our property guru suggests: 

This depends on the wording of their responsibilities as freeholder and whether you trust them to comply with them! It would be brave to move into any building that is likely to suffer from major structural problems such as roof, walls or foundations as any problems in these areasr may cause you inconvenience, particularly when remedial work is being carried out. You might sleep better if you have had a survey carried out while your Building Society may insist on it.

Posted by Bronwyn at 05:47 PM | Permalink | Comments (0)

The extra demand for housing that migration and immigration cause explain much of the regional difference in house price performance around the country, according to our latest research.

Propertyfinder.com looked at regional population changes brought about by both internal and international migration and compared them to house price changes.

There is a 73% correlation between regional population growth and house price growth. Regions with the highest inward migration have seen the highest house price increases, while the least popular regions have seen house prices underperform. Exclude the North East, an exception to the trend, and the correlation is an astonishing 94%. Warren Bright, Chief Executive Officer of Propertyfinder.com said:

The overall level of house prices depends largely on the wider economy. However the relative strength of regional housing markets is very clearly due in large part to population movement. Whether it is people wanting to buy their own home to live in, or investors providing rental accommodation to newcomers, demand for housing in the most popular regions has caused prices to rise the fastest. While these population trends continue, our research suggests that the best performing regions which have been attracting the most migrants will continue to see house prices outperform over the medium term.

Supply is unable to match demand in popular regions
London is a case in point.  It has seen the fastest population growth over the last ten years (8%) and the fastest growth in house prices over the same period (216%). This is well above the UK average of 5% and 191% respectively. House prices are well above the national average and population density is ten times that of the second most densely populated region in Britain.  Regions in the North of England have seen lower population growth and slower rises in house prices. Warren Bright continued:

This highlights the chronic supply/demand imbalance for housing in the UK. On average the population of the south is growing almost twice as fast as the north. The provision of new housing is lagging far behind, and prices, not surprisingly, keep on rising. London’s population alone will double by 2050 if its current rate of expansion continues – imagine the impact on house prices then.

The North East is the exception to the trend.  Despite having an exceptionally low growth in population, house prices have seen a significant rise over the last ten years.  This is primarily because house prices were so low ten years ago that some degree of catch up was warranted.  Even so, the region still has the lowest average house prices nationwide (£137,229). If you exclude the North East, the correlation between regional population increase and house price increase soars to 94%.

Immigrants and UK migrants do not favour the same regions
London in particular is experiencing the fastest rate of population growth and rise in house prices, largely due to the fact that 36% of all immigrants set up home in the capital. Despite London being the choice destination for immigrants, British residents are moving out of the capital faster than any other area.  2004 figures show net migration of British citizens away from London stood at -116,200 but the city continues to grow faster than any other area of the UK with immigration rates ensuring London’s net population increase of 1.61% annually.

Top destinations for immigrants from outside the UK are London (36%), the South East (12%), and the East (8%). In contrast, London has the highest number of British citizens moving out, and the top destinations for them to set up home are the South West (0.67%), Wales (0.48%) and the East Midlands (0.42%). Warren Bright concluded:

UK residents of England’s two biggest cities, London and Birmingham, are clearly keen to seek a life in a less hectic environment and are moving away from these regions.  The figures for London show extraordinarily high turnover in population.  Newcomers from abroad are attracted to Britain’s big cities where work is easy to come by.  After a time, city life can be pretty draining and once people are established they seek a less hectic life elsewhere and move out.

Population growth set to continue
According to the Treasury’s December pre-budget report, Net immigration is forecast to continue at a rate of 185,000 - 190,000 – an increase on previous central predictions. National statistics predicts that net population will grow to 67,013,000 by 2031.
   
Household numbers are on the up too
Local government figures also show that household formation is on the up, due not only to population increase, but also the significant rise in the number of single person dwellings. With the DCLG’s projected increase in households of 209,000 per annum until the year 2026 the current new build rate of 170,000 new homes a year falls seriously under requirements. Warren Bright added:

Household formation is growing even faster than the population.  That will only exacerbate the trends, pushing demand for housing further ahead of supply. Once again, regional differences will come to the fore.

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