UK Real Estate RSS News Feeds

London Property Price News: Vendors need to be careful when decorating before putting home up for sale

Thu, 19 Apr 2012 15:38:46 +0100

When looking to put your property on the market it often makes sense to first carry out a bit of DIY.

Indeed, a quick spruce up around the place can really add pounds to your home’s value, but doing it to your own individual taste can also have a detrimental effect.

Anne-Maria DeSouza editor of Build It and Home Improvement magazine believes that while a lick of paint here and some new shelves there could be an important step in maximising your properties appeal to potential buyers, if you do it to your own taste you could in fact put people off.

She says that the best thing you can do is consult your estate agent and ask them questions around what can add value, what is popular in the area and “what is going to make buyers give you that extra £2,000 for your home.”

She added: “Any home improvement work is going to add value to your home, but of course you need to offset that with the cost you've laid out to do it.

“You need to think about what you can afford – you're not going to go and put in a £20,000 kitchen if that's something you think won't add value to your home and you don't really use the kitchen anyway – you just need to balance it yourself.

“You need to think about what you're going to use and what people are going to be looking for when you sell on the home, and balance those against each other."

The National Home Improvement Council (NHIC) recently said that the area which usually has the biggest impact when it comes to wooing buyers is the kitchen and your attention should be focussed on making it as presentable as possible.

This is because kitchens are now largely seen as living spaces rather than places to just cook and prepare food so a good kitchen is extremely desirable.

London House Price News: Vendors willing to wait to get the right price

Thu, 29 Mar 2012 10:42:16 +0100

Property vendors are willing to wait longer to find a buyer than ever before.

According to a new study conducted by MeetMyAgent.co.uk, people are happy to wait longer to get the offer they want for their home rather than have reduce their price to entice people in.

Indeed, 41 per cent of estate agents questioned said that they are often showing 10 or more prospective buyers around a property before an offer is accepted.

Ashley Alexander, director of MeetMyAgent.co.uk, believes this is because staying in the property for long is affordable and thus people do not see any reason to rush into a sale.

“Because servicing their mortgages remains cheap, sellers can play a long game. With interest rates expected to remain at their current level for 2012 and on into 2013, this Mexican standoff could continue for some time yet,” he told MyIntroducer.co.uk.

Despite this, 93 per cent of agents said that vendors could make the sales process easier by being at least a little more reasonable with their value expectations.

London House Price News

Mortgage and Home Loan News: Coventry release new buy to let range

Tue, 27 Mar 2012 16:47:30 +0100

Coventry Building Society has launched a new range of buy to let mortgage products with low interest rates.

The headline product is a 3.75 per cent two year fixed rate at 65 per cent loan to value. It has a £250 booking fee with a £2,249 arrangement fee added to the loan.

It’s an attractive deal for those landlords looking to remortgage or purchase a higher value property, but obviously you’ll need to put down quite a hefty deposit or have a considerable amount of equity if arranging a remortgage and the fees are far from the lowest around.

Colin Franklin, sales and marketing director for the society, said that low rates are important for those which are looking to borrow higher amounts.

He added: “The fees attached to mortgage products are often perceived as something to avoid, but in some cases you can save money on your mortgage by paying a flat fee and getting a lower interest rate in return. So borrowers requiring larger mortgages may be better off with a flat fee rather than a percentage fee.”

Other rates on offer are two year fixed rates at 3.99 per cent and 4.25 per cent. They both have booking fees of £250 and the arrangement fees are £1,749 and £999 respectively.

UK Property Portal News: City house prices up 382 per cent over 25 years

Mon, 12 Mar 2012 12:59:45 +0000

A new study from the Halifax shows that house prices in the UK’s 66 cities have risen by an average of 382 per cent in the past 25 years.

According to the bank’s Price Index Link, the average home cost stood at £35,209 back in 1986 but is £169,707 today.

But some area’s growth has far exceeded that performance, with Truro up by 550 per cent, Westminster by 522 per cent and Edinburgh by 509 per cent.

The research also shows that new cities have fared well also. In the past 25 years there has been 25 towns granted city status, and collectively these places have posted price rises of 379 per cent. While that is slightly below the figures posted for cities in total it is above the 347 per cent increase for the UK as a whole.

All three of the towns which became cities as part of the Millennium celebrations in 2000 (Brighton & Hove, Inverness and Wolverhampton) have far outperformed growth in their local region since.

However, the towns which became cities as part of the Queen’s Golden Jubilee in 2002 have posted mixed results. Newport in South Wales has outperformed its local region, but Preston, Stirling and Lisburn have, according to the Halifax, “underperformed”.

Martin Ellis, housing economist at Halifax, said: "Cities have typically seen higher house price growth than the UK average over the past 25 years. The majority of cities have also outperformed their region.

“City house prices are generally supported by demand from those looking to gain from the economic and lifestyle benefits often associated with residing in major urban areas.

“The experience of towns that have been made cities during the past quarter of a century has been mixed. Some have gone on to outperform their region after gaining city status whereas they had underperformed previously. This, however, has not always been the case.”

Some 26 towns have applied for city status as part of the Queen’s Diamond Jubilee celebrations this year. They include Luton, Doncaster, Tower Hamlets in London and Croydon.

London Property Market News: English-speaking nations lead way in overseas property searches

Tue, 06 Mar 2012 13:39:06 +0000

New research has revealed that English-speaking nations lead the way when it comes to online searches for British property from overseas.

According to PrimeLocation.com, which carried out the study, 21 per cent of all foreign internet searches for homes here in the UK came from people in the United States.

Second highest was Australians at nine per cent, followed by Canadians at seven per cent. France was the only non-English speaking nation to make the top five, with six per cent of searches, while Ireland rounded off the top five at five per cent.

Nigel Lewis, property analyst at PrimeLocation.com said “London leads the charge here and in recent months many agents have reported up to 60 per cent of buyers hailing from overseas, which has helped drive up demand and therefore prices in central London exponentially."

Despite the US topping the online searches tables, figures from Hampton International suggest that the bulk of foreign buyers in London hail from Russia and China.

London Property Price News: House values edged up again in February

Thu, 01 Mar 2012 17:09:21 +0000

The housing market continued to buck the current economic trend, with home values right across the UK feeling some kind of value rise.

According to the Nationwide’s House Price Index, the average UK property price grew by 0.6 per cent last month, taking the total level of increases for 2012 to 0.9 per cent.

The figures may not sound a lot, but they do show that the housing market is still moving forwards and some regions' values are moving in greater margins than others.
Indeed, house prices in some parts of London have risen by around 2.7 per cent, according to subsequent research from Knight Frank.

And that’s not the only good news.

Robert Garner, Nationwide’s chief economist, said: "Measures of activity in the housing market have also picked up, with the number of housing transactions rising by 23 per cent year on year in January and the number of UK mortgage approvals - a leading indicator of sales - up 36 per cent.”

First Time Property Buyer News: Government's building plans are 'very positive'

Fri, 03 Feb 2012 16:03:39 +0000

The Home Builders Federation (HBF) has hailed the government’s plans to invest in new properties as a “very positive” move.

The Department for Communities and Local Government recently identified land suitable for 80,000 new homes to be built on as part of its commitment to get the housing market moving, particularly for first-time buyers.

Homes constructed on the sites will form part of the NewBuy scheme, which launches next month, and buyers to get on the property ladder with a smaller than normal deposit.

“After mortgage availability, a lack of viable and developable land is the next main constraint. The government has recognised this and is working with the industry to identify land for developments. It is a very positive move,” said Steve Turner, head of communications the HBF.

On top of enabling people to get a foot on the property ladder, the government said recently that its Get Britain Building scheme will also create around 30,000 new jobs in construction.

UK Property Portal News: Confidence in buying a house rises in 2012

Fri, 27 Jan 2012 17:06:27 +0000

Brits have more confidence in buying a home in 2012 than in previous years.

A study published this week by Santander shows that 3.7 million people will be looking to a buy a new home this year.

This figure builds on recent statistics from the Council of Mortgage Lenders (CML) which stated that mortgage applications rose by four per cent in November compared to October.

And younger people now seem to be leading the way, with 12 per cent of 18 to 34 year-olds surveyed saying that 2012 is likely to be the year in which they dip their proverbial toe into the property market.

Phil Cliff, director of Santander Mortgages, said: "People are becoming more upbeat about their prospects of purchasing a new home this year.

"It's been a tough few years for the property market overall, but prices have made a steady recovery so there's every reason to feel cautiously optimistic."

Online advisory service unbiased.co.uk said that the past 12 months has seen a sharp rise in first-time buyers coming to them for mortgage information.

Property Repossessions News: Repossessions will rise this year

Mon, 23 Jan 2012 13:44:12 +0000

This year is likely to see a rise in the number of people having their homes repossessed.

According to the Council of Mortgage Lenders (CML), continued economic uncertainty is resulting in more and more people falling behind with their mortgage repayments and the end result will be a increase in the number of those forced out of their properties.

Bernard Clarke, communications manager at the CML, said: "An increase in the number of people falling into arrears is likely to also result in an increase in the number of cases of possession.

“We have forecast an increase in the number of mortgages that will be in arrears of 2.5 per cent or more of the outstanding balance at the end of the year, to be 180,000 as opposed to 166,000 at the end of 2011.”

However, he pointed out the issue is not likely to reach anywhere near the level that it did during the recession of the early 1990s.

Despite this, the National Association of Estate Agents (NAEA) said recently that that this year will see the housing market gradually recover to transaction levels seen prior to the credit crunch.

Landlord and Tenant News: Lenders preventing longer-term tenancies

Tue, 17 Jan 2012 12:56:29 +0000

Mortgage lenders are preventing landlords from signing tenants up to longer agreements, claims one industry expert.

David Lawrenson, founder of LettingFocus.com, believes that longer tenancy agreements would benefit both tenants and landlords as it would mean longer security and a protection against cost rises.

However, he feels that banks and building societies are preventing this by insisting that all their buy-to-let customers adhere to the industry standard six month agreement, but feels a change could be near.

"Despite popular perceptions, our findings are that the majority of landlords actually want to hold on to good tenants for a long time - even if it means they have to accept less than market rent,” Mr Lawrenson said in a blog for the Guardian.

“Our work with lenders has challenged the logic of this and I'm sure we will see longer-term assured shorthold tenancies become the norm in the future.”

The Tenancy Deposit scheme also recently advised landlords that the best way to ensure a harmonious relationship with tenants is by using the services of a professional lettings agent in the first instance.

London House Price News: Values rise again reveal Nationwide

Tue, 29 Nov 2011 13:55:36 +0000

The Nationwide's UK house price index shows that values have continued to creep up in November.

The average property say a 0.4 per cent increase compared to figures posted at the end of October.

It means that annual growth now stands at 1.6 per cent and a typical UK home is worth £165,768.

Robert Gardner, Nationwide's chief economist, said that despite an otherwise subdued economy, property is proving to be one area which can maintain value, but added that in part is due to a lack of houses on the market.

"Given the challenging economic backdrop, much of the current resilience in house prices reflects the lack of supply on the market at present. Indeed, the pace of building in recent years has fallen well below the pace of household formation, especially in England."

Ed Harris, managing director of EH Landlord Services, said recently that he expects house prices to continue to rise over the next ten years.

London House Price News

London Rental Property News: Student Landlords need to know their stuff before buying

Thu, 03 Nov 2011 11:35:51 +0000

People looking to buy student accommodation in London should 'research, research, research' according house and flat sharing website Easyroommate.co.uk

Jonathan Moore, director of the site, says that would-be property investors need to ensure they know their prospective location inside out, but they should also seek the assistance of a professional lettings agency.

He added: "It's vital to pick a property near to the university campus, amenities, parks and public transport hubs. Students' first port of call will be to look at exactly how far their potential digs are from lectures and the town centre."

Mr Moore also said that while rent yields for student properties are often significantly higher than can be obtained by letting to families, landlords need to consider that more frequent maintenance is required in student properties.

Recent figures issued by specialist mortgage provider Paragon shows that students lets provide the highest yield of all rental types at 7.56 per cent.

London Rental Property News

UK Property Portal News: Owning property 'cheaper than renting'

Tue, 27 Sep 2011 12:14:44 +0100

More people could be searching for flats and houses for sale in Mapesbury, London, after research showed buying property is now cheaper than renting it in the capital.

A survey by Zoopla found securing property to rent in London now costs £5,959 a year more than owning it, while an average renter in the UK shells out an extra 13 per cent each year than their owner counterparts.

In the capital, the average monthly rent is 28 per cent higher than the cost of ownership, the research found.

Nicholas Leeming of the property portal commented: "With house prices down, low interest rates and sky-high demand in the private rental sector, buying has never been a better option for those able to secure a mortgage.

"With owners reducing prices further in order to achieve a sale before Christmas, there may well not have been a better time to buy in recent times," he added.

UK Property Portal News

London Estate Agents News: Online heatmaps show London property prices

Fri, 29 Jul 2011 17:21:42 +0100

Prospective homeowners searching for flats and houses for sale in Hampstead, London, can now use an online tool to work out which parts of the city best suit their budget.

Property website Zoopla.co.uk has launched heatmaps showing how much, on average, house hunters can expect to shell out for a home in London or other parts of the UK.

Users can also have a look at how much different types of property are likely to set them back, with a one-bedroom flat in London costing on average £280,254.

Families looking for something larger might be interested to learn that a five-bedroom house in the city costs an average of £1.28 million.

Alex Chesterman, founder and chief executive of Zoopla, commented: "The addition of heatmaps to our site allows users to easily visualise the relative property values in any area of the country.

"Together with the unique market data we are now making available, this is all part of our mission to empower users with the information they need to make the right property decisions and to become the most useful property resource in the UK," he added.

London Estate Agents News

London Housing Market News: Overseas buyers spend £3bn in London each year

Tue, 14 Jun 2011 17:03:01 +0100

Overseas property buyers in London are increasingly coming from emerging markets, such as China, India and Russia, according to reports.

The Moscow Times cites figures showing foreign property buyers invest more than £3 billion a year into the London housing market, of which around £2.7 billion is used to purchase homes in the upmarket neighbourhoods of Chelsea and Mayfair.

Eastern Europeans and those from the former Soviet Union are particularly big spenders in the UK capital, with these investors buying at an average of £6.2 million, while people from the Middle East put down an average of £4 million.

Property consultant Siqi Zhang told the London Evening Standard that buyers from China and Hong Kong are also turning to London for property investments.

"London now offers much better value than Beijing, Shanghai and Hong Kong. For a normal £400,000 investment you can buy a freehold property in London. But in Beijing you can't even get a central apartment," she added.

London Housing Market News

London Housing Market News: London is increasingly attractive to overseas buyers

Fri, 27 May 2011 17:01:18 +0100

High end property sales and rentals in London are increasingly being sought by overseas investors, according to SPF Private Clients.

Mark Harris, chief executive of the wealth management company, told the Evening Standard that around three out of five people searching for property worth £5 million or more are from other countries.

"In recent months, there's been a huge rise in demand from southern Europe. There's a lot of wealth around these areas, and people see London as being safe," he revealed to the newspaper.

This could be connected to the financial crisis in Greece last year and to the 'Arab Spring' - the political upheaval witnessed in many parts of the Middle East, Mr Harris explained.

A favourable exchange rate could also be temping overseas investors to opt for London over other international cities.

Mr Harris' remarks follow research from Knight Frank showing almost 60 per cent of new build properties in London are sold to Asian buyers.

London Housing Market News

NAEA News: April sales remained strong

Thu, 26 May 2011 17:04:43 +0100

Purchases of flats and houses for sale in Maida Vale, London, and in other parts of the UK remained strong throughout April, despite the Royal Wedding and other disruptions to the norm.

Research from the National Association of Estate Agents found the average branch sold eight properties last month, with no change from March or February.

Michael Jones, president of the organisation, commented: "Although regional variations do remain, this latest report indicates that the housing market is showing some overall resilience to economic pressures. Despite the expected lull in activity during the Royal wedding celebrations as people took advantage of the series of bank holidays to go abroad, sales remained stable."

He noted that this could be due to the Easter break, which saw increased levels of house hunter activity.

The research also suggested sales made to first time buyers was down slightly, decreasing from 23 per cent of total sales in March to 21 per cent in April.

NAEA News

London House Price News: House prices rise 0.5% in March

Thu, 31 Mar 2011 15:30:02 +0100

London property prices and homes across the UK saw values rise by 0.5 per cent in March, figures from Nationwide Building Society show.

The average home now costs 0.1 per cent more this month than it did in March 2010, while the three-month on three-month reveals property prices rose by 0.6 per cent.

Robert Gardner, chief economist at Nationwide, commented: "The outlook remains uncertain, but all things considered, this is unlikely to mark the beginning of a strong upturn in prices.

"While demand is likely to remain fairly soft, a rapid increase in the supply of properties also appears unlikely. Low interest rates and a stabilisation in labour market conditions have prevented a rise in forced selling and the subdued market outlook is deterring many sellers from entering the market," he added.

Meanwhile, research from Knight Frank shows London house prices have risen 30 per cent since March 2009.

London House Price News

London House Price News: House prices 'rise 4% in one month'

Mon, 21 Feb 2011 19:32:06 +0000

London house prices have risen by an average of 4.2 per cent in the last month, according to research from Rightmove.

The property website's House Price Index reveals that potential homeowners hunting for properties in the capital will be part of a three-tier market consisting of the low loan to value 'elite', the 'bargain-hunting bottom feeders' and the average buyer in the middle.

The middle tier is suffering from "paralysis" because of a lack of UK mortgage offers and "insufficient equity to trade up", the website said.

Miles Shipside, director of Rightmove, commented: "With lenders stating that they expect mortgage lending to remain static at around 2010 levels throughout 2011 and new seller numbers practically unchanged year-on-year, what might have been seen as a passing phase of low transaction levels in the housing market now looks set to be the norm for the foreseeable future."

London House Price News

Mortgage Rate & Home Loan News: Mortgage repayments 'should be a priority'

Mon, 21 Feb 2011 16:13:27 +0000

The paying off of UK mortgage debt should be a priority for homeowners in the next few months, according to Nationwide.

Martyn Dyson, mortgage specialist at the building society, noted that some householders will find it a shock when interest rates increase again.

"We have done some research recently and that shows customers have got a different attitude to their mortgage than other things. They seem to spend a lot of time planning for big-ticket items, but when it comes down to mortgages, it doesn't seem to be the same."

He pointed out that now is a good time for borrowers to "take stock of their position", speak to their UK mortgage lending company and find out about their options.

"There is a real opportunity for people to start planning their mortgage now and maybe even save some money which would put them in a better position for when the base rate does start to increase," Mr Dyson added.

His comments come after a Nationwide survey revealed that three-quarters of homeowners with mortgages have not yet made any provisions for when the base rate is hiked up.

Mortgage Rate & Home Loan News