The London property market is more resilient than most other parts of the country. Despite hype about the reliance of London on financial services, the city has a strong and diverse labour market which shows little sign of faltering.
Nicholas Leeming, major client director of propertyfinder.com comments:
The stamp duty paid on a home in the UK has reached an average of £4,950 this tax year, according to the latest research by propertyfinder.com, based on predictions using HMRC data.
This is up from £3,828 last year and just £709 ten years ago (a ten year increase of nearly 600%). During the tax year 2007/2008, the HMRC will have collected a total of £6,863m from home buyers.
Continue reading "Stamp Duty bills soar far above home buyers' expectations" »
After searching for so long to secure your dream home – and finally finding it - the desire to fast-track the contract and paperwork makes it really easy to overlook problems with the home, some of which may in fact be quite prominent.
The average home-buyer can save £55,000 by having a three bed home built for them, compared to buying a new build from developers, according to new research from propertyfinder.com. Buying a home in England costs approximately £267,600 whereas the cost of land, materials and labour would total only £212,850 - a saving of more than 20 per cent.
Nicholas Leeming, major client director of propertyfinder.com comments on the London Property News, "Recent data shows that the UK housing market is cooling. Prices are stagnating and transactions are down. But the market in London and the south east is expected to remain resilient, and the rental market is very perky indeed.
Phenomenal house price growth has put a strain on household finances nationwide, with the house price to income ratio doubling over the past 10 years.
London house prices in particular have soared – rising a third faster than the rest of the UK. However, according to the latest research from propertyfinder.com, the average rate of decline in affordability in the capital has kept pace with the rest of the country – the house price/income ratio is just over twice its level of 10 years ago. The ratio in London stands at 8.3 compared to 7.2 for England. The figures mask wide variation in the changing pattern of affordability from borough to borough in London.
The housing market’s resilience in the face of higher rates was remarkable in 2007 and testified to the underlying strength of household finances. The high proportion of borrowers on fixed interest rates and fierce competition among mortgage lenders insulated the market from the Bank’s attempt to slow the market.
420,000 dwellings stand empty in a state of disrepair – equivalent to more than the number of households in Birmingham – according to the most recent research by propertyfinder.com. Meanwhile, the recent Barker report states that there is a shortfall of 600,000 homes for England’s current needs, let alone predicted demand.
Continue reading "Housing supply buckles under strain of demand" »
Continue reading "Coastal property markets shine as holiday fever hits" »
Continue reading "Profit from holiday homes: how it works" »
Continue reading "Ten years of Blair in the housing market" »
Continue reading "Rate rise fears dent confidence in future house price growth" »
The housing market is not in trouble, but today’s data serves as a timely reminder that we are still experiencing the effects of the three rate rises between August and January. March DCLG figures show a gradual slowing in house price growth, even before another burden was placed on home owners last week. The latest rise means an average homebuyer is facing nearly £1,700 extra in mortgage repayments than a year ago and this is certain to have a further cooling effect. The housing market is reacting slowly but surely, another 0.25% hike this summer would be heavy handed to say the least. If the MPC acts again before the effects of four rate increases have been fully absorbed, the housing market could be the victim of fools rushing in.
The Bank of England today announced plans to lift interest rates to a six-year high to curb inflation, currently at a 14-year peak. The quarter of a point raise, to 5.5, per cent pushes the cost of borrowing to its highest level for six years.
Continue reading "UK Nimbies demand more housing - in someone else's backyard" »
Lenders are preempting a Bank of England (BoE) interest rate rise by starting to withdraw their fixed-rate mortgage products. On Wednesday, the UK inflation rate rose to 3.1%, higher than expected, and a result Alliance & Leicester pulled its fixed-rate offering - with other major mortgage lenders expected to follow suit.
Continue reading "Lenders veering away from fixed-rate mortgages" »
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.
Continue reading "Shortage of houses coming onto the market" »
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.
Continue reading "Dream homes are pie in the sky for most home buyers" »
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:
Continue reading "UK house prices pushed around by population movement" »
Continue reading "Men and women have different ideas about the perfect property" »
The Council of Mortgage Lenders (CML) reported today that the number of houses being repossessed by mortgage lenders in Britain rose in the second half of last year by 9% on the first half.
British aspirations for home ownership remains undiminished according to our latest survey, however Brits are unrealistic about their chances of success in getting on the property ladder, and we get more unrealistic as we get older.
Continue reading "The British dream of home ownership is just that ..." »
Continue reading "Update: Finding your dream home in Leeds just got a whole lot easier" »
Today the Bank of England raised interest rates to 5.25%, raising them to the highest point in five and a half years and a surprise to analysts, who were predicting the rise in February.
It is reported that the Committee judged a 0.25% increase was necessary to bring the CPI inflatuion back to the target in the medium term.
Warren Bright, chief executive of Propertyfinder.com, said:
Today's interest rate increase is bad news for the housing market. The impact of the August and November rate hikes still needed some time to take effect and this move by the MPC will prematurely increase pressure on home buyers. We expected the market to slow naturally in 2007 but a more abrupt adjustment is now more likely.
Go to Radio 5 to hear listen to more from Propertyfinder.com and other experts on this topic.
Propertyfinder.com likes to be at the forefront of innovation and doing things differently in the property portal market.Continue reading "Finding your dream home in Manchester just got a whole lot easier" »
Today the Bank of England's Monetary Policy Committee voted to keep borrowing costs steady at 5%. It is reported that most economists are thinking the Bank is in a wait-and-see mode with the pound to the dollar running at a 14 year high. Economists polled by Reuters earlier this week were undecided about any movement in rates into 2007. Thirty four of the 50 polled said rates would stay the same at least until March, and 16 predicted an increase.
Continue reading "Sharing your details: Righmove agents sell home details to tax inspectors" »
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.
Continue reading "House swapping - homely holiday or residential road-test?" »
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:
Continue reading "Tips for buyers: how to negotiate a bargain" »
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.
The Daily Express reported on Saturday that buying a house has been the best investment most people have made in the past ten years. According to some research, an average house bought for £62,000 in 1996 has increased by 187 per cent. Our own CEO, Warren Bright contributed to the story:
“For most ordinary Britons, their home is the best investment they have ever made or are ever likely to make. Over the past 10 years, housing has outperformed stocks and shares or bank savings accounts, and has risen more quickly than either wages or consumer prices.
The average British home owner has seen the value of his property triple over that time. In some hot spots such as London and parts of the Home Counties people have done even better, reflecting the strength of demand in those areas.
With a growing population in this country and a severe shortage not just of homes but also of land to build them on, property is likely to remain a great bet over the next decade as well.”
Read the full story on the Daily Express website.
For centuries, the rich and famous have owned private islands, but while the picture of palm trees, white beaches and turquoise waters sounds alluring, there is an even greater allure.. PROFIT!
A private island is one of the best investments money can buy. Buying the right island in the right time and place can be one of the most profitable investments you could ever make. You have not only an affordable retreat for family and friends, but a strategic investment that increases exponentially in value over time.
In a house-hunter survey comparing how well surveyors, estate agents, lawyers and mortgage lenders perform in the house buying process, respondents voted lawyers the worst. Lawyers were voted as not only providing the poorest quality of service but also as the most obstructive in the buying/selling process. One respondent commented, 'My lawyer insists on writing three letters when one email or phone call would have been perfectly adequate.'
Lawyers also scored badly on value for money. Women were particularly hostile to the legal profession: 61% of female respondents thought they were bad or terrible value for money.
At the other end of the spectrum, estate agents were top performers on minimising delays, and both buyers and sellers found them the easiest to get hold of, particularly because the work at weekends. However, they scored less well on quality of service and came bottom on value for money.
Property prices in Ramsgate have increased by 73% over the past five years, under a backdrop of extensive regeneration to boost the tourist industry, according to a survey by SpicerMcColl.
Since 2001, house prices in the historic town, fronted by Regency and victorian terraces overlooking the waterfront, have increased by two-and-a-half times the average for the South East, which has only grown by 29%.
Despite these rises, properties for sale in Ramsgate are still well below the regional average of £207,400, making it one of the best seaside towns in the South East.
The regeneration of the waterfront and town centre in Ramsgate has given the town a new vitality and greatly improved the lifestyle for residents and visitors. The Royal Harbour and Marina is home to a diverse arraty of new cafes, restaurants and bars and the town also ahs the designated Westcliffe Conservation Area with a number of sought-after period properties.
Buyers are moving to the town from London and traditional hotspots further along thesouth coast, such as Brighton, which has seen prices rocket over recent years. The high speed rail link between Ashford and Stratford, set to be completed in 2007, will make Ramsgate more accessible from London and further increase its desirability as a location for first and second homes. Lawrence Mayne, manager at Spicer McColl said:
A growing number of professionals with young families are moving down from London because of the good choice of grammar schools in the town. Affordable prices and attractive period properties are pulling people from other seaside areas such as Brighton where properties are more expensive.
A second trend is the increasing number of properties purchased as second homes by Londoners and people living further north. The easy journey out from the dcapital compared to those for coastal towns in the South West has encouraged Londoners to choose Ramsgate as their preferred holiday home location for weekends and summer months.
As was widely expected, the Bank of England's Monetary Policy Committee decided to leave the interest rate unchanged this month. The majority of experts are predicting a rise to 5% is needed and could happen next month. Watch this space...
Read more from the Financial Times.
Homebuyers and sellers are to be given more information by estate agents under a stricter code of conduct.
The Ombudsman for Estate Agents (OEA) - which represents around two-thirds of agents in England and Wales - will launch the strengthened code on October 1.
Estate agents will now have to tell anyone viewing a property if an offer has already been accepted on it. And, if a buyer has made an offer, they will also have to confirm in writing that their approach has been passed to the seller.
To make charges more transparent, agents whose fees are based on a percentage of the selling price must express the sum as an actual amount. If the selling price is higher or lower than the asking price, they must outline the corresponding change in fees.
Propertyfinder.com recently found a discrepancy between the aspirations of young people and how they expect to be living in retirement to their actual reality when it comes to their retiring years.
According to Girlings Retirement Options, renting property in retirement is becoming increasingly popular. Girlings Retirement Options Limited, has seen an increase of 78.5% in the number of reservations in the first half of this year, compared to the same period in 2005.
This increase can be attributed to more people recognising the financial benefits of renting in retirement on an assured tenancy basis as well as a rise in retirement property prices.
The Institute of Public Policy Research (IPPR) recently reported that one fifth of retired people living in poverty own more than £100,000 in housing wealth, amounting to 4.4% of the overall retired population having more than £77bn tied up in their homes. Many retired people are finding that they are financially better off if they release capital from their existing homes and rent.
Another factor influencing the trend towards renting in retirement is the availability of the Assured Tenancy rental through Girlings which unlike any other rental contract, provides tenants with security of tenure for life. Consequently, Girlings is currently receiving over 500 enquiries a month.
The number of first-time buyers (FTB) looking for a home in August dropped significantly following the Bank of England’s interest rate rise to 4.75%. These findings are revealed by the latest survey carried out by Propertyfinder.com.
After a very optimistic start to 2006, when first-time buyers returned to the market in force, as a proportion of overall house hunters they have been declining since the spring, falling from a February high of 38% to 30% in August.
Meanwhile, HSBC recently reported that first-time buyers are increasingly teaming up with friends to get a toehold on the property ladder while Alliance and Leicester's borrowing monitor shows some potential first time buyers are putting their plans to buy on hold due to September's higher mortgage payments.
While confidence in the market overall remains relatively optimistic, it is clear that many potential first-time buyers are feeling the strain.
Getting a foot on the property ladder is a difficult, but hugely satisfying step for most first-time buyers. However, those ready to move off the the first rung to a bigger home must be prepared to be further away than the last.
We have analysed property for sale across London at the end of August 2006 to reveal some surprising results.
