First time buyers london

 

The latest research from Connells Survey & Valuation shows that, during February, first-time-buyer activity soared to a market share of 36% – an 8% rise against February 2016.

The near zero base rate has ensured that mortgages remain more affordable than ever – with gross lending at its highest level since 2008.

First-time buyers have seized the opportunity to get on the property ladder. This group now accounts for a third of activity in the property market during February (36%) – the highest proportion of first-time buyers since July 2011 and the highest February since 2010.

John Bagshaw, corporate services director of Connells Survey & Valuation, said: “Continued affordable mortgages have provided first-time buyers with an ideal opportunity to take their first step onto the ladder in February. Lending to aspiring homeowners continues to rise, while the base rate remains so low. For those with enough savings for a deposit, now is a great time to buy. Many are taking advantage of the opportunities on offer.”

John said: “The stamp duty surcharge has succeeded in helping first-time buyers at the expense of landlords. But this may well be temporary. Less competition for today’s first-time buyers comes at the expense of tomorrow’s. Most people rent as they save for a deposit, but the steady investment into the rental market is running dry. With limited new homes being built for the PRS, rents will soon start to rise. This will devour tenants’ disposable income which would otherwise have been saved for a deposit. The problem will be exacerbated next month as mortgage tax relief is removed, forcing more landlords to exit the market or ramp up rents.

In the Housing white paper, the Government announced plans to boost build-to-rent and institutional landlords, but it will be years before anyone can move into the accompanying new homes. Rents remained relatively stable following the influx of investment before the stamp duty surcharge but tenants could soon feel the full force of recently announced Government policies.”

However, the increase does not mean the Government has succeeded in boosting the prospects of first-time buyers long-term, says Connells Survey & Valuation. The surge from 28 per cent last February to 36 per cent this February is only marginally higher than the 10 year average.  Over the course of the last decade first-time buyers have been responsible, on average, for 35 per cent of the market. And the 36 per cent of valuations that first-time buyers represented in February 2017 pales into insignificance compared to the 41 per cent peak in February 2010.

John continues: “The rapid growth in first-time buyer activity is a recovery from a lower position, rather than a substantial improvement in market conditions. It’s important to not just look at the snapshot numbers but take into account the long-term trends. It’s still incredibly difficult to get on the property ladder. Most aspiring home owners will tell you about the Herculean challenges they face to save for a deposit. Despite all the Help to Buy programmes, first-time buyer activity is only 1 per cent higher than it has been, on average, over the last decade.

We may be in the eye of the storm in Britain’s housing market – a brief period of calm before the turbulence begins again. The base rate can’t stay on the floor forever. With Brexit approaching, economic conditions may get tougher. First-time buyers may need to board the ladder now before it’s hoisted up again.”

 

Source: http://www.propertyreporter.co.uk/property/ftbs-storm-the-property-ladder-in-february.html?utm_source=Email+Campaign&utm_medium=email&utm_campaign=21136-197729-Campaign+-+15%2F03%2F2017+CT 

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Property owners in one in three areas in UK areas earn more from owning their home than they do from their work, new research has found.

Overall house prices outpace owners’ earnings in 119 areas and 17% of all local areas have seen average house prices increase by more than total average pay, according to a study from home lender the Halifax.

Average house prices have increased by more than total average employees’ net earnings in 31% of local authority districts in the past two years and the proportion of areas where house prices are outpacing earnings over the last two years has edged up from 28% in 2015.

More than nine out of 10 are in London, the South East, South West and the East of England with these four regions accounting for 111 of the 119 or 93% of areas.

The biggest gap between rising property values and earnings was in Haringey in London. House prices in the borough increased by an average of £139,803 over the last two years, exceeding average take home earnings in the area of £48,353 over the same period, a difference of £91,450, equivalent to £3,810 per month.

Haringey is followed by Harrow in north London with a price growth to earnings difference of £77,791, St Albans at £72,990 and Waltham Forest at £63,646. In total, six London boroughs appear in the top 10 districts, including Newham at £63,583, Redbridge at £56,528 and Hounslow at £54,569.

‘Buoyancy in the housing market over the past two to five years has resulted in homes increasing in value by more than total take home earnings for the average homeowner in many areas, though mostly in southern England,’ said Martin Ellis, housing economist at the Halifax.

‘While it’s no longer unusual for houses to earn more than the people living in them in some places, there are clearly local impacts. Home owners in these areas can build up large levels of equity quickly, but for potential buyers whose wages have failed to keep pace, the cost of buying a home has become more unaffordable during that time,’ he explained.

Four areas have recorded a differential of over £100,000 over the past five years. The greatest was again Haringey, where average property prices have increased by £242,121, surpassing average take home pay during the period by £124,300. Then Harrow at £115,522, Waltham Forest at £105,195 and Three Rivers at £101,082 with nine of the top 10 performers in London.

 

Source: http://www.propertywire.com/news/uk/research-reveals-much-home-earns-owner/?utm_source=Property+Wire+News&utm_campaign=016843e7c3-RSS_EMAIL_CAMPAIGN&utm_medium=email&utm_term=0_cb0fe1dd73-016843e7c3-108361813&goal=0_cb0fe1dd73-016843e7c3-108361813 

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If you haven’t ever heard of Japanese Knotweed, the Environment Agency describe it as “indisputably the UK’s most aggressive and destructive plant”

Growing up to an inch a day, Knotweed has the ability to mature rapidly across a large surface area, with the slightest trace causing continuing problems.

Japanese Knotweed (or Fallopia Japonica) is a large, invasive plant species which finds its way into the fabric of a building, e.g. joints in concrete, cavity walls, weaknesses in broken mortar between paving slabs or bricks, and in severe circumstances, can cause major structural damage to properties.

In a landmark legal case, Network Rail is now facing compensation claims after they ignored pleas by residents to remove the Japanese Knotweed growing on its land after it encroached on to their homes.

Neighbours Robin Waistell and Stephen Williams saw the value of their homes halved after the weed spread into the foundations which resulted in Mr Waistell unable to sell his house. It is virtually impossible to secure finance on land or property with Japanese Knotweed on or adjacent to it as UK banks and lending institutions will not give mortgages on properties affected by knotweed.

After a four-day hearing at Cardiff County Court, the rail giant was ordered to pay £4,320 to each of the men to treat the knotweed and £10,000 each in compensation for the fall in value of their homes. The judge added that if the knotweed was not treated, they could also claim for the full drop in value, a substantial £66,000.

So, what advice can you give to your customers on how best to spot and tackle Japanese Knotweed?

Knotweed is often identified during site surveys. Whilst it may look small and contained, do not underestimate the scale of the potential problem; the plant can grow up to nine feet in height and roots up to three metres deep. It is important to have the plant treated as soon as possible to avoid further growth and prevent the property sale from falling through.

Financially, eradication of Japanese Knotweed can become costly if left untreated.

Source: http://www.naea.co.uk/

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The latest survey from home services marketplace, has revealed that a new kitchen is the most effective home improvement for influencing a potential buyer’s final decision as well as their offer.

According to the data, when looking to buy a new property, 47% of potential homeowners would be influenced by it having a recently fitted kitchen. 28% would also be more likely to offer a higher price for this feature. Having a new bathroom also has a strong influence on home buyers; 46% would consider this when deciding whether to buy and 27% would potentially be willing to offer more money.

The order of rankings then somewhat divides. Looking at home improvements affecting the final decision to buy, new windows (45%) ranks third, followed by a new boiler (43%), a new extension (34%) and new loft insulation (33%). At the other end of the table, 31% of home buyers claimed that a new conservatory would affect their decision to buy. New garden landscaping (29%) follows this and new lighting (23%) sits at the bottom of the table.

It’s interesting when this order is compared to how home improvements affect the buyer’s decision to offer a higher price. New extensions climbs the rankings to take 3rd with 26%, whilst a new conservatory is also ranked highly with 23% of home buyers feeling this warrants a higher price. Extensions to the property clearly have a stronger influence on the offer than the decision to buy for potential buyers.

Stephen Jury, spokesperson for Plentific, said: “Many property buyers keep an eye out for particular home renovations when searching for their next home. It goes without saying that costly renovations are high on the wish list for most buyers. These can add significant value to a property and incentive buyers to offer a higher price. If a seller is looking to get a better offer, our insight could provide useful guidance on which home improvements to invest in.”

Source: http://www.propertyreporter.co.uk/property/kitchen-is-king-when-it-comes-to-influencing-potential-buyers.html?utm_source=Email+Campaign&utm_medium=email&utm_campaign=21136-194723-Campaign+-+24%2F02%2F2017+SHAW 

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The latest report from Halifax has shown that more first-time buyers climbed on to the property ladder in 2016 than in any year since 2007.

However, it comes at a cost as the lender revealed would-be home owners now need to raise more than £32,000 for a deposit.

Deposit sizes have more than doubled over the last decade. In 2006, the average first-time buyer deposit across the UK was £15,168. Now it is £32,321 – around 16% of the price of a typical first home.

According to the report, those buying their first property can expect to pay more than £200,000 across the UK generally and an “eye-watering” £400,000 in London. On average, in the capital, a first-time buyer’s deposit is more than £100,000, assuming they can also cover moving costs and stamp duty.

First-time buyers in London put down a 25% deposit on average in 2016, amounting to £100,445.

Halifax also revealed that during 2016, the average house price paid by first-time buyers was £205,170 – the highest on record. This average has grown by 7% over the last year, pushing it over the £200,000 mark.

In London, first-time buyers can expect to pay £402,692.

The number of first-time buyers is estimated to have reached 335,750 in 2016. This is the highest figure since 359,900 in 2007, and marks the third year in a row that the number has topped 300,000.

Halifax said the number of first-time buyers in 2016 was 75% higher than a low point in 2009, but 17% below a pre-crisis peak of 402,800 in 2006.

As the cost of housing has increased, first-time buyers have been taking out longer mortgages. In 2006, just over a third (36%) had mortgages lasting beyond the traditional 25-year period. In 2016, 60% of mortgages were for 25 years or more.

More aspiring first-time buyers are also having to factor stamp duty into their costs. Less than a third (29%) of first-time purchases in 2016 were below the £125,000 stamp duty threshold. This share was 45% in 2013.

The average age of a first-time buyer is 30, ranging from 27 in Carlisle in Cumbria and Torfaen in South Wales to 34 in places such as Slough in Berkshire and the London boroughs of Barnet and Ealing.

   Martin Ellis, a housing economist at Halifax, said record low mortgage rates, high employment levels and Government schemes such as Help to Buy have helped first-time buyers. The UK-wide Help to Buy mortgage guarantee scheme ended in 2016, but other schemes are still available.

   He added: “Across the regions there is a contrasting picture. In London – which has one of the youngest populations in the UK – the average house price for a typical first-time buyer is now more than an eye-watering £400,000 with an average deposit of over £100,000 – more than twice that in the South East, the next most expensive region.”

   Jeremy Leaf, north London estate agent and a former RICS residential chairman, says: ’The Halifax’s findings are good news in terms of the increase in number of first-time buyers but are also indicative as to what parents and grandparents put themselves through so that they can afford those deposits – with more than £100,000 required in London.

If the housing market is going to function properly, as the government has told us so many times it should, then we need to protect first-time buyers. First-time buyers are the life blood of the market as they tend to buy at the bottom and trade up whereas investors buy at one level and stay there.

Although lenders are supposed to be providing support via Help to Buy now that the mortgage guarantee element has been withdrawn, on the ground we are finding it is not happening in all cases and more flexibility on lending criteria at higher loan-to-values is required.’

Source: http://www.propertyreporter.co.uk/property/ftbs-at-10-year-high.html?utm_source=Email+Campaign&utm_medium=email&utm_campaign=21136-188156-Campaign+-+13%2F01%2F2017+MC
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