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First Time Property Buyers News: First time buyers making most of stamp duty holiday

Wed, 22 Feb 2012 11:43:25 +0000

Last month more first time buyers took a trip to their local estate agent than at any stage since the beginning of last summer.

Figures from the National Association of Estate Agents (NAEA) show that 23 per cent of all property sales made in January came from people taking their first steps on the property ladder, a rise of two per cent on figures posted in December.

It marked the third month in succession that sales to first time buyers has risen and represents the largest proportion of total sales since May last year when it accounted for 24 per cent.

NAEA President Wendy Evans-Scott said: "First Time Buyers seem to be making the most of the Stamp Duty Holiday before it comes to an end in March.

"The NAEA and other property specialists campaigned hard for the government to introduce the tax exemption to support first time buyers, and these latest figures certainly suggest that stamp duty is a key factor for those on tight budgets purchasing their first home.

"We are deeply disappointed that ministers have axed this support for a crucial part of the housing market which has benefited so many house-hunters in getting onto the property ladder."

Overall property sales also rose last month, with an average of six per branch compared to five in December.

At the same time the number of properties available fell to its lowest level for 19 months, with just 60 properties being marketed by estate agents on average.

Santander recently estimated that the stamp duty exclusion for first time buyers has saved them a collective £319 million since it came into force in 2010.

It will end on Saturday March 24th, after which first time buyers will liable for the normal stamp duty rate which stands at one per cent on purchases between £125,000 and £250,000.

As before, purchases between £250,001 and £500,000 are eligible for tax at three per cent, between the £500,001 and £1 million the rate is four per cent and over £1 million it's five per cent.

First Time Property Buyers News: Leeds Building Society set to lend even more to first time buyers

Wed, 22 Feb 2012 11:42:10 +0000

Leeds Building Society has revealed that it loaned more £1.2 billion to home buyers in 2011, a 25 per cent increase on figures posted for the year previous.

Of that number £290 million (24 per cent) was advanced to first time buyers and with the society planning a range of 95 per cent loan to value (LTV) products this year, that figure is set to go even higher.

Overall last year, the average mortgage advance was 51 per cent LTV, a slight drop from 53 per cent in 2010.

Peter Hill, chief executive of Leeds Building Society, said that it will continue its commitment to helping people get a foot on the property ladder throughout 2012.

“We are in an excellent position to continue to focus on doing what we do best: providing good value for money products backed up by excellent service, delivered by our highly professional staff throughout this year and beyond," he added.

Landlord and Tenant News: Scrimping on home maintenance could cost more in the long run

Wed, 22 Feb 2012 11:41:15 +0000

A large number of people are putting their property's value at risk by not keeping on top of routine maintenance jobs.

Research from the AA found that 39 per cent of Brits are letting their homes fall into disrepair through either forgetfulness or as a way of saving money.

For landlords the problem could be even worse as it may lead to them to having to cover a hefty bill in the future.

Tom Stringer, head of AA Home Emergency Response, said: "Many homeowners seem to be mirroring the government's drive for austerity but this can be a false economy as problems tend to get worse in the home if you leave them unresolved."

The Landlord Syndicate recently advised property investors to do all they can to ensure that their properties are in tip top condition through these colder months.

It said that landlords should arrange a suitable time to visit tenants and make checks both to the inside and outside of the property as leaving things to chance could have dire consequences.

London Property Market News: Overseas buyers hot up competition in central London

Tue, 21 Feb 2012 14:43:48 +0000

Competition for property in prime London locations is fierce, according to property consultancy Cluttons.

A rise in the number of buyers from overseas has lead to a 25 per cent drop in the number of stock available.

Such is the height of the demand that properties in areas such as Chelsea and South Kensington have seen sales agreed within one hour of going on the market, often after just one viewing has been arranged.

On top of that, the demand is leading to many homes being sold for more than the initial asking price.

Charlie Noel-Buxton, partner for residential sales, said: “House hunters in Prime Central London, starved of options, are going to great lengths to secure a property when it comes onto the market, particularly those on the most desirable roads."

According to Hampton International's recent London property report, cash buyers from the former Soviet Union are the most active in the market, closely followed by wealthy business people from the Middle East.

London Property Market News: London leads the way in mortgage application surge

Tue, 21 Feb 2012 14:42:03 +0000

This year has got off to a great start in terms of the number of people looking for a mortgage to fund a home purchase, and unsurprisingly London is leading the way.

Across the country the average mortgage application in January stood around £140,000, but in the Greater London region it was an incredible £275,915, according to independent broker Mortgage Advice Bureau.

That's an increase of 12.5 per cent on December's average of £245,341.

Overall, the number of mortgage applications made last month was 25.8 per cent greater than it was in January 2011.

According to Brian Murphy, head of lending for the Mortgage Advice Bureau, products which offer stability against interest rate rises are proving the most popular for home buyers at present.

He said: "Fixed rates remain the product of choice for the majority of borrowers with almost three quarters of purchasers and more than two thirds of remortgage customers fixing their mortgages."

A glut of first-time buyers looking to seal a deal prior to the end of the stamp duty holiday next month is another factor in the number of mortgage applications rising.

Mortgage and Home Loan News: Profitability makes lenders return to buy to let market

Mon, 20 Feb 2012 14:47:30 +0000

Mortgage lenders are increasing the number of buy to let products in their ranges as they see it is a good way to make a profit.

This is according to Lee Grandin, director at Landlord Mortgages, who believes that despite many lenders shying away from the rental property market during the height of the credit crunch, they are not flocking back because it's good for their balance sheets.

Indeed, the number of deals done for people looking to purchase property to privately let has risen from 19.3 per cent of average intermediary's work to 23.3 per cent in the past 12 months.

"Lenders see buy-to-let to be a profitable mortgage for them, so they prefer to lend to landlords with a higher margin on the mortgage rates, than the highly competitive first-time buyer market," Mr Grandin stated.

He added that as more lenders come back into the buy to let arena, the competition will get stronger and this is likely to lead to more attractive rates being made available.

Mortgage and Home Loan News: Gross mortgage lending 10 per cent stronger than a year ago

Mon, 20 Feb 2012 14:46:21 +0000

Gross mortgage lending in January was 10 per cent stronger than 12 months earlier, suggesting that the market will continue to perform well into this year.

According to the Council of Mortgage Lenders (CML) last month's lending from banks and building societies stood at £10.5 billion, a full £1 billion higher than figures posted in January 2011.

It was the sixth month in a row that the lender was higher year-on-year and proved wrong the cynics who believed that there would be a fall last month due to people still recovering from the financial hangover of Christmas.

CML chief economist Bob Pannell said that the figures sport the body's view that the housing market is being boosted by first-time buyers seeking to complete purchases prior to the stamp duty concession ending on March 24th.

He added: "Should inflationary pressures continue to fall back, the squeeze on household finances should ease progressively and help support stronger economic recovery going into the second half of the year. This can only be good news for the housing market further down the track."

Santander recently estimated that the stamp duty exclusion has saved first time property buyers a collective £319 million since it came into force in 2010.

Landlord and Tenant News: Insurance firm issues warning to would-be Olympic landlords

Mon, 20 Feb 2012 14:45:00 +0000

Landlords hoping to make a quick buck during this summer's Olympic Games could come in for a nasty surprise if anything happens to the property or its contents.

Insurance firm Paymentshield has warned people looking to rent out their homes to visitors during the sporting extravaganza that they could if they don't ensure that they have the relevant cover in place.

One in three homeowners are said to interested in either letting their home to a visitor or taking in a lodger during the games, but many do not realise that this could invalidate their existing insurance policy.

Antony Osborne, head of product at Paymentshield, told MyIntroducer.com: “Many people don’t realise that their policies could be void if they don’t notify their insurance providers ahead of any changes.

"The worry is that people will only realise this at the point of making a claim, which could mean they end up covering the cost of any damage or losses.”

He advises that people should ensure that they check their policy and inform the provider if cover is not current adequate. They should also put a tenancy agreement in place and seek advice from a professional lettings agent to ensure peace of mind.

Landlord and Tenant News: Rental market boomed last month

Fri, 17 Feb 2012 13:25:05 +0000

Residential rental returns continued to grow last month according to the latest buy to let index from LSL Property Services Ltd.

The average rent in England and Wales rose by 0.1 per cent to an average of £712 per month, taking the total annual rent inflation from 4 per cent in December to 4.3 per cent.

Putting that into simpler terms, it means that on average a rental property is providing its landlord with around £30 per month more than it was a year ago.

The largest annual increases have unsurprisingly come in London. Buy to let properties in the nation’s capital city now yield a 6.3 per cent better yield than they did at the beginning of 2011.
David Brown, commercial director of LSL Property Services, said: “The rental market burst back into life unseasonably early in January, with tenants on the move trying to take advantage of what is usually a quieter period for the rental market.”

And the supplier of rental stock is set to increase this year as recent indications suggest that a large number of landlords are currently looking at expanding their portfolios.

First Time Property Buyers News: Rightmove enjoys record interest from potential home buyers

Fri, 17 Feb 2012 13:22:51 +0000

The number of people searching for a new homes last month was at its highest ever level for a January.

According to Rightmove, home-hunting activity led to it enjoying almost 800 million hits.

The 795,280,583 page views recorded was the highest number on the site, surpassing figures set in May 2011, and equated to one million hits per hour.

The figures propelled Rightmove to seventh place on the most view chart from UK website analysts Experian Hitwise.

Indeed, only online giants Google, Facebook, eBay, Youtube, Amazon and Yahoo rank higher for hits the UK and the nearest property-related site is Zoopla way back in 83rd place.

Rightmove director Miles Shipside said: “We’re seeing more traffic than ever on Rightmove as the home-moving public turns its attention to the property market for the year ahead.

“Agents looking to gain an early competitive edge should be considering what they can do to win their share of their local audience and steal a march on the competition as we build towards the spring moving season.”

The upcoming end of the stamp duty holiday for first time buyers has been cited a key reason for the spike in property interest over the past few months.

Government urged to help developers convert commercial properties to residential

Fri, 17 Feb 2012 13:20:48 +0000

The government should look to put schemes in place to help developers convert unoccupied commercial premises into much needed housing in certain parts of the country.

This is according to the National Association of Estate Agents (NAEA), which believes quick thinking developers should be given the support needed to transform the UK’s town and city centres from rows of empty shops to classy residential developments.

Peter Bolton King, chief executive of the NAEA said: "Commercial property owners are facing high business rates for buildings that no-one occupies. Therefore, in the right circumstances, converting these buildings for residential use could have an aesthetic and economic benefit.

“However, such renovations are not simple undertakings. We advise that a thorough evaluation of the work involved is carried out beforehand to avoid additional cost burdens.”

He added that city centre housing developments often provide better than standard yields because close proximity to amenities adds extra value to any project.

The NAEA, however, published a list of dos and don’ts for people considering moving into the central developments market.

Top of the list was weighing up if the cost of converting an existing commercial plot was effective when compared to building a new property from scratch on a separate site.

It also suggests that all legislation around “change of use” is thoroughly checked as building extensions or changing the front of shop may be subject to additional planning permission requirements.

Lastly, be prepared to wait. Some local authorities have a rule which states that commercial property must have been on the market for between six and twelve months. This is to show that there is no market for it to remain in commercial use before permission to convert is granted.

You are unlikely to see many change of use applications in prime central London though as Jones Lang LaSalle has forecast a buoyant year for the sector in that part of the capital.

Mortgage and Home Loan News: Longer term deals are becoming more attractive

Thu, 16 Feb 2012 15:39:48 +0000

Brits could look to take out longer term mortgage deals in the future.

Ben Wilkie, editor of What Mortgage magazine, believes that economic uncertainty coupled with changes in the ways in which people source their deal is likely to mean that many people opt for products which offer a longer period of stability.

In the past homebuyers have shied away from longer deals, but they have always been popular amongst buyers on the continent.

"It is certainly a possibility that longer-term rates will become more attractive to borrowers, especially as the national economy doesn't suggest that we will see huge pay increases in the future," Mr Wilkie stated.

And currently there is a wealth of new fixed products available on the market, many of which are at lower rates of interest than they were in late 2011.

MyMortgageDirect recently told potential first-time buyers that they should not follow the misconception that deals are hard to come by and spend some time shopping around before making any decisions.

London Property Market News: Investors are increasingly turning to large luxury flats

Thu, 16 Feb 2012 15:38:26 +0000

Property investors in London are switching their attention from traditional townhouses to luxury super-sized apartments, it has been claimed.

According to Stephen Dyer, managing director of Ideal Property, cash rich buyers from overseas are shying away from the giant houses of Chelsea and Kensington are instead looking to move into spacious new developments.

And as a result of this, professional investors are following the trend and restructuring the types of properties in their portfolios.

"If the only market appears to be from these super-rich people from abroad then that's who you're going to develop for, so I guess you would have to find buildings that exist in London that you can develop in that way," Mr Dyer said.

He added that a number of new developments are already under construction and the market is set to grow considerably this year.

A recent study from Hampton International’s found that biggest number of overseas buyers last year came from Russia.

First Time Property Buyers News: Stamp duty holiday has saved first time buyers Â£319 million

Wed, 15 Feb 2012 12:59:36 +0000

First time buyers have saved a collective £319 million since the stamp duty holiday came into effect in March 2010, new analysis claims.

Santander estimates that around 170,000 first time property purchasers have benefitted from the exemption and is urging people to take advantage of it before it ends next month.

After the deal ends, home buyers will be required to pay a one per cent tax on property purchases over £125,000, a three per cent tax over £250,000 and four per cent over £500,000.

Phil Cliff, director of Santander Mortgages, said: "The end of the stamp duty tax holiday is looming so we're urging new buyers who are in the process of purchasing a home or even those hoping to do so in the immediate future to act fast.”

He added that if you are in that position you should let the seller and your solicitor aware of the situation as soon as possible.

Landlord and Tenant News: Drawing up an inventory protects both parties

Wed, 15 Feb 2012 12:57:58 +0000

As tenants are staying in rented properties for longer, landlords are being warned that they must ensure that everything is in place when the agreement starts of risk hefty costs in the future.

Recent figures from the Association of Residential Lettings Agents (ARLA) shows that tenants are staying put for an average length of 19.3 months, an increase of 17 per cent on the previous recorded length of 16.5 months.

With this in mind ARLA is calling on both landlords and tenants to draw up a comprehensive inventory at the start of each letting agreement so that they both know what is what in the property.

Ian Potter, Operations Manager at ARLA said: "This increase in the length of tenancies will inevitably lead to greater wear and tear in rented accommodation and fewer opportunities for ‘downtime' between tenancies for landlords to make improvements.

“Landlords and tenants alike should remember that disputes over deposit returns can be one of the biggest headaches facing both parties, but these can be easily avoided if a professional inventory is prepared."

The inventory should include the condition of fixtures and fittings as well as the property itself.

ARLA recommended that both landlords and tenants should speak to a professional lettings agent about the best way of putting an inventory together.

There may be a charge when drawing the inventory up and this, as it is for the benefit of both parties, should be paid for equally by the tenant and the landlord.

Other advice given by ARLA is to take pictures of the property’s condition to provide evidence in the event of any dispute and to check utility readings to ensure that there are no issues over the size of bills.

And it seems there are set to be more landlords coming into the market this year as the Council of Mortgage Lenders (CML) recently confirmed that number of mortgage approvals for buy to let products is on the rise after increasing by 84,000 in 2011.

Licensed Property News: 2012 could be a good year to buy a pub

Tue, 14 Feb 2012 17:13:47 +0000

This year looks like being a good time to invest in the pub trade.

Despite stories of doom and gloom, a survey conducted by business advisory firm Zolfo Cooper shows that the number of people visiting public houses is on the up.

On average Brits visit the pub 4.6 times a month. This is up from 4.3 per cent per month since last summer and significantly higher than in 2010.

However, the research shows that the average person is spending a little less on each visit, not that it really matters to landlords when they are calling in more often.

Similarly, UK restaurants and night clubs are reporting that while spending has slightly decreased the number of visits has risen.

Paul Hemming, partner of corporate advisory services at Zolfo Cooper, said: “Consumers now recognise that they still afford to go out regularly and enjoy themselves, provided they spend a bit less on each night out.”

Pete Brown of the Publican’s Morning Advertiser recently pointed out that 2011 was actually a very good year for the licensed trade despite stories to the contrary.

First Time Property Buyers News: Surveyors see jump in first time activity

Tue, 14 Feb 2012 17:11:31 +0000

First-time buyers clambering to take advantage of the stamp duty holiday as pushed house prices up in the past month, claims the Royal Institute of Chartered Surveyors (RICS)

According to the body’s UK Housing Market survey, twelve per cent more surveyors across the country have a rise in sales activity since the beginning of the year compared to the same period in 2011.

A particular driver has been people looking to get on the housing ladder quickly because they wish to avoid paying stamp duty.

As of March 24th, first time buyers will no longer be exempt from the land tax on property purchases for less than £250,000 and surveyors have noted that this has pushed up activity at the lower end of the market.

Michael Newey, RICS housing spokesperson, said: "With first time buyers no longer exempt from stamp duty as of the end of March, it seems that some are looking to purchase homes before the deadline and, as a result, surveyors are relatively optimistic for the coming months.”

The numbers back up figures released this week by the Council of Mortgage Lenders (CML), which showed that the number of people looking for their first home rose sharply in November and December.

Landlord and Tenant News: Landlords is rush to take advantage of buy to let deals

Tue, 14 Feb 2012 17:09:53 +0000

According to specialist mortgage provider Paragon, more than a third of intermediaries saw influx of people looking for a buy to let mortgages in the final three months of 2011.

Paragon’s Financial Adviser Confidence Tracking survey (FACT) found that four out of ten landlords were taking out new buy to let products because they are expanding their portfolios.

While, a third were looking for new products so that they could remortgage for either a better rate of interest or to raise funds for other investments.

Most striking of all though was the number of first time landlords applying for funds, rising from 19 per cent in quarter three to 23 per cent in quarter four.

John Heron, Managing Director of Paragon Mortgages, said: "The final quarter of 2011 was for many intermediaries a successful one, with increased optimism about the coming months and a steady improvement in the level of buy-to-let business being written.

With record levels of rental demand being reported it is good to see that existing landlords are increasing the size of their portfolios but it is particularly notable that the proportion of new landlords is also increasing."

According to the Council of Mortgage Lenders, buy to let borrowings grew by 84,000 overall last year.

First Time Property Buyer News: Market misconceptions means higher LTV deals are being missed

Mon, 13 Feb 2012 13:37:25 +0000

Potential first-time buyers are missing out on mortgage deals at 95 per cent loan to value (LTV) because they fail to realise that they exist.

Brian Murphy, head of lending at Mortgage Advice Bureau, says that there are now more higher LTV products available on the market than there has been at any time since 2007.

But would be homeowners are missing out because they are under the misconception that they need to raise a deposit of at least 15 or 20 per cent to get their foot on the ladder.

“Well over 85 per cent of young renters aspire to become homeowners, but the vast majority of these say the fact they cannot raise a deposit is the key reason for not buying,” Mr Murphy said.
“They just don’t realise that there are now a lot more competitive 90 per cent and 95 per cent LTV mortgages back on the market.”

Despite this, online advisory service unbiased.co.uk said that inquiries from first-time buyers in January was at its highest level for 23 months.

London House Price News: House values have risen by 84 per cent in ten years

Mon, 13 Feb 2012 13:35:22 +0000

According to new research from the Halifax, the total value of UK housing stock has risen by £1.8 trillion (84 per cent) in the past decade.

This rise works out to be the equivalent of £68,500 per household.

However, while the value of homes has shot up in the past ten years so has the amount owed on mortgages.

Indeed, the amount currently loaned out by banks and building societies to homebuyers is 111 per cent greater than it was back in 2001.

The research also shows that the North-South divide has narrowed, with homes in the north rising by an average of 90 per cent compared to 79 per cent in the south.

Martin Ellis, housing economist at Halifax, said: "The value of UK's housing stock has soared in the decade to 2011 notwithstanding the decline in house prices seen since autumn 2007, rising by 84 per to just under £4 trillion at the end of 2011.

“Whilst outstanding mortgage debt has more than doubled over the last ten years, the value of the housing stock has risen by more in monetary terms. As a result, the total value of housing equity has shown a healthy increase.”

Recent research from Knight Frank shows that the value of prime property in Central London has risen by 2.7 per cent in the past three months alone.