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First Time Property Buyers News: 90 per cent LTV rates falling

Thu, 17 May 2012 11:30:58 +0100

Average rates on 90 per cent loan to value (LTV) mortgages have dropped over the past five years.

Research from Moneyfacts.co.uk shows that the current average interest rate on such mortgage deals is 5.55 per cent, down from 5.98 per cent last year and 6.38 per cent in May 2010.

There is also much more availability of 90 per cent LTV mortgage products for first time buyers, with 299 on the market at the moment, up from just 76 in May 2009.

"Demand for high LTV mortgages is, and always will, be high. Lenders have shown they recognise this by edging cautiously back into this area of the market with some competitive deals of late," said Louise Holmes, spokesperson for Moneyfacts.co.uk.

"However, strict underwriting and credit checks mean that approvals are at a premium."

A number of lenders have also introduced mortgage deals at 95 per cent LTV under the government's NewBuy scheme.

Santander recently announced a deal which offers an interest rate of 5.49 per cent over three or five years with a five per cent deposit.

First Time Property Buyers News

London Property Market News: Brits enjoy living near a pub

Wed, 16 May 2012 16:54:16 +0100

Those looking for London property to rent or buy are likely to be searching for a new home in walking distance of a good pub, according to a new study which shows that Brits think it is important to have a good local.

The study by Mintel, which was reported by the Sunday Telegraph, highlights that people think having a pub near their home demonstrates they are part of a community.

"It is almost as if a pub is a bit of a status symbol for a community, even if they don't use it much they want to know that they have the option to do so if they wish," said Mintel.

The study also found that twice as many people enjoy popping to their local for a drink rather than drinking at home, with six in ten adults over the age of 18 regularly visiting the pub.

However, people may soon find it harder to find a property near a good pub, with more than a dozen shutting their doors every week.

Previous research by Nationwide Building Society found that Londoners are happy to pay a premium for a property which is near a Tube station with people willing to pay as much as £27,000 more.

London Property Market News

First Time Property Buyers News: High LTV mortgages are a sign of a good time to buy

Tue, 15 May 2012 16:50:28 +0100

First time buyers hoping to take their first steps on the property ladder have been advised that when high loan to value (LTV) mortgages start appearing it is normally a good time to make a purchase.

According to Paul Holmes, chief executive officer at Firstrung, when lenders start offering mortgages with an LTV of 90 per cent and above it is a sign that lenders are eager for business.

"I would think that when first-time buyers see that availability of product readily available, it could be an indication that it is a good time to buy, but as to when that will happen, I really don't know," he added.

A number of lenders have announced mortgages at 90 per cent LTV in recent months including Santander which announced a five year fixed rate deal at 5.99 per cent for people with a ten per cent deposit.

Last month saw Moneyfacts reporting that the number of mortgages available at up to 95 per cent LTV has more than doubled during the past 12 months, rising from 27 to 61 in April.

First Time Property Buyers News

First Time Property Buyers News: Santander launches NewBuy mortgages

Mon, 14 May 2012 16:54:19 +0100

Santander has launched its range of NewBuy mortgages which at 95 per cent loan-to-value will help first time buyers get a foot on the property ladder.

The fixed rate deals are available over three, five or seven years with an interest rate of 5.49 per cent for the two shorter deals and 5.99 per cent over seven years.

All three come with an arrangement fee of £99.

The products also come with the Homebuyer solution which includes free valuation plus £250 cash back on completion.

Phil Cliff, director of Santander Mortgages, said: "Santander is delighted to be joining the NewBuy scheme and has launched a range of competitively priced products with low upfront fees which reflect our commitment to NewBuy and customers, particularly first time buyers looking to get a start on the housing ladder.

"The range will have wide appeal and is designed to meet the needs of both first time buyers looking to buy their first home and existing homes owners who are considering moving house."

The government's NewBuy scheme was launched on March 12th with the first mortgage by broker Mortgage Talk being arranged last month.

First Time Property Buyers News

First Time Property Buyers News: People optimistic about detached homes

Thu, 10 May 2012 16:30:34 +0100

Brits today have higher long term property aspirations than people did in the 1980s and 1990s, according to new research.

A study by AA Home Emergency Response found that first time buyers who have purchased property in the past four years are positive that they will upgrade in the future, with 37 per cent aspiring to have a detached house.

In comparison, 33 per cent of first time buyers in the '80s and 32 per cent in the '90s thought they would own such a property.

Buyers today also think that they will move into a much larger home, with a greater number of people expecting to move into a four or five bedroom house one day.

"This research has revealed that the troubles in the housing market over the last three years have not dented the aspirations of recent first time buyers. In fact, new entrants to the market are more positive about their long term prospects than those entering in the last thirty years, something which could bode well for recovery in the market," said Tom Stringer, head of AA Home Emergency Response.

Halifax's latest Housing Market Confidence tracker also hinted at optimism in the housing market with one in three people feeling that house prices nationally are set to rise.

London Property Market News

Britain's 'cheapest house' sold for £8,000

Fri, 30 Mar 2012 09:00:15 +0100

A house thought to be Britain's cheapest property has been bought for a bargain £8,250.

Bidding started at just £1 for the two-bedroom terrace in the village of Ferryhill Station, County Durham.

The property is in need of major refurbishment – it has been empty for more than ten years – but is described as a real bargain.

"As far as I am aware it is the cheapest house in Britain," said Jamie Cook, director of iam-sold, who managed the sale.

"A garage in London would have sold for more than this."

It was thought the house would sell for between £6,000 and £12,000.

The Co Durham house sold for £1,750 less than a Burnley property which was previously thought to be Britain's cheapest house.

Mr Cook said the house could be a lovely family home for first time buyers.

"But it needs a lot of work and the price reflected that," he said.

London Commercial Property News: Former Beatles HQ sold for 31.85 million

Fri, 16 Dec 2011 17:03:22 +0000

An iconic commercial building, which was once the headquarters of The Beatles, has been sold to a private investor for a cool £31.85 million.

The property at 3 Saville Row in London’s swanky Mayfair district was where the famous foursome played their last ever set together when they famously jammed on the roof in January 1969.

Newly incorporated company, GHSR LLP, purchased the building from Kier Property at a yield of 3.76 per cent.

The deal is conditional on a lease being granted to a tenant paying a rent of £1.2 million each year.

The building was home to Apple Records, which The Beatles set up in 1968. The label was responsible for the Fab Four’s release of ‘Hey Jude’ as well as releases from Mary Hopkin and Badfinger.

In June this year the property was worth £13.7 million but considerable renovation work has seen its value soar.

Figures published by the Investment Property Databank (IPD) in September shown that the demand for commercial property in London has continued to grow in 2011 despite a subdued economic climate.

Mortgage Rate & Home Loan News: House prices in the UK stay steady

Fri, 09 Dec 2011 12:38:04 +0000

There was no movement for house prices in the UK in November, according to the latest England & Wales House Price Index from LSL Property Services/Acadametrics.

However, just because house prices have remained static, people should not assume that they are not becoming more affordable.

David Brown, commercial director at the firm, said that zero growth means that in real terms houses are becoming more affordable.

"With inflation running at five per cent the real cost of property is getting smaller and smaller, which is good news for buyers and mortgage borrowers alike," he added.

The data showed that the average house price in the UK now stands at £220,043.

Mr Brown said that while over the past year house prices have dropped 0.7 per cent, low mortgage rates, the stamp duty holiday and the government's FirstBuy scheme have prevented larger falls.

Recent data from Halifax showed that 2011 has so far seen five months of price falls and the same number of rises, with one month of no change.

Mortgage Rate & Home Loan News

Mortgage Rate & Home Loan News: First time buyer mortgage repayments lowest in 8 yrs

Fri, 09 Dec 2011 12:35:41 +0000

Mortgage payments for first time buyers have hit an eight-year low thanks to low interest rates.

Data from the Council of Mortgage Lenders (CML) highlighted that although people still need large deposits to get on the housing ladder, once they have a property their monthly outgoings are more manageable.

Monthly interest payments have dropped in recent months and now stand at around 12.3 per cent of people's income, the lowest level since January 2004.

Figures from the council highlighted that first-time buyers took out 16,400 loans, worth £2 billion, in October, a ten per cent drop from the previous month.

CML director general Paul Smee says: “Despite the fall in lending in October, it is possible that we will see signs of increased activity by first-time buyers in the early months of next year, as we approach the end of the government’s Stamp Duty concession at the end of March. The underlying picture of the market overall, however, is level, albeit at low levels of lending activity.”

The CML recently described the George Osborne's decision not to extend the temporary stamp duty exemption for first-time buyers as “disappointing”.

Mortgage Rate & Home Loan News

First time buyer news: First time buyer activity driving mortgage market

Thu, 08 Dec 2011 18:17:40 +0000

Resilient first time buyer activity helped drive the mortgage market in November, according to the latest Housing Market Activity Report by Connells Survey and Valuation.

Figures from the firm show that there was a month-on-month three per cent rise in the number of valuations carried out with the total number carried out marking a 73 per cent yearly rise.

The number of valuations for first-time buyers rose seven per cent compared to October.

John Bagshaw, corporate services director of Connells Survey and Valuation, comments: “In November, first-time buyers exploited a short window of opportunity as rates for higher LTV mortgages improved briefly. With house prices steadily declining, affordability has improved for new buyers, many of those able to secure mortgages have been acting quickly to complete before Christmas."

He added that the chancellor's decision to not extend the stamp duty holiday for first-time buyers is likely to inspire many to move before March.

The government claimed that the policy had failed to attract first-time buyers.

First time buyer news

London Property Market News: Demand for property up in October

Tue, 08 Nov 2011 11:15:00 +0000

Demand for property and sales both rose during October, according to the latest Royal Institution of Chartered Surveyors (RICS) UK Housing Market survey.

During the month, some eight per cent more chartered surveyors questioned said that they had seen a rise in newly agreed property sales, representing a solid comeback compared in activity to September's figure of -3 per cent.

It means that, according to chartered surveyors at least, that the property market is in the best condition in more than 18 months.

Some surveyors believe this increase is caused by many vendors being more realistic about property prices and being more flexible in order to secure a sale.

The report, released on Tuesday (November 8th), also stated that the rise in sales equated to an average of 15 per surveyor or branch. But, respondents noted that the figure would be even higher if potential buyers had access to more finance and/or better borrowing terms.

The number of new buyers making enquiries also edged up by seven per cent.

Regionally, London housing prices are continuing to perform the best, recording yet more value rises.

"It is encouraging that activity levels appear to have edged upwards over the past month. Indeed, chartered surveyors are generally upbeat about the near term prospects for transactions," RICS housing spokesperson, Ian Perry, said.

James Perris MRICS, of London-based surveyors De Villiers, added: "At present, agents are reporting reasonable demand for prime property mainly from international buyers."

Indeed, a recent survey by US business aircraft manufacturer Hawker Beechcraft found that many cash rich business men from eastern European and the Middle East are flooding into Britain with the intention of making a sound investment in the London property market.

It is estimated that millionaires from the United Arab Emirates alone have purchases 198 properties worth in excess of £1 million this year, making a total investment of around £320 million.

London Property Market News

London Property Investment News: Middle Eastern businessmen find London a sound property investment

Fri, 04 Nov 2011 11:37:16 +0000

Cash rich businessmen from the Middle East are increasingly purchasing property in London as they feel it represents a solid investment.

People from the United Arab Emirates now form the capital city's second-largest group of foreign buyers behind Russian investors in the £1 million plus bracket, according to new research by US business aircraft manufacturer Hawker Beechcraft

Middle Eastern investors have a long history in the London property market, but the number of buyers from the UAE has risen dramatically in the past 12 to 18 months.

"As one of the most desirable cities in the world, it's no surprise that London's property market is attracting a large number of overseas buyers," said Sean McGeough, Hawker Beechcraft's president for Europe, the Middle East and Africa.

Emiratis have bought an estimated 198 properties worth more than £1 million this year making a total investment of almost £320 million.

Recent research by Lloyds TSB shows that the number of property sales for more than £1 million now stands at its highest level since 2007.

London Property Investment News

London Property News: Greeks flock to security of London property market

Fri, 21 Oct 2011 10:12:17 +0100

With their own economy continuing to flatline, growing numbers of Greek nationals are opting to put their money into London property investments, it has been reported.

Over the past couple of years, property industry experts have noted a marked rise in the number of cash-rich foreigners snapping up assets in the capital, for example UAE residents purchasing flats and houses for sale in Maida Vale and Belsize Park.

Now, the Evening Standard has revealed that Greeks are the latest group to join in the rush for homes in the city, citing Knight Frank figures that show they have invested a collective £250 million in the residential property sector over the last 12 months alone.

Furthermore, this trend is set to continue as wealthy Greeks look to move their money so as to avoid ongoing efforts to boost the national coffers through higher taxes.

Meanwhile, Australian action man Hugh Jackman has become the latest big-name celebrity to be linked with a new London home after he told the website findaproperty.com that he regrets giving up the property he once owned in Pimlico.

London Property Market News

Buy to let investment news: Demand for rental properties soaring

Wed, 19 Oct 2011 14:06:03 +0100

Landlords are struggling to keep up with the growing demand for rental property right across the UK, it has been revealed.

Indeed, such is the strength of demand for properties to rent, the Association of Residential Letting Agents (ARLA) has reported that new tenancies are becoming increasingly thin on the ground.

While this may spell bad news for those looking for a new place to rent, those with money invested in buy to let property are benefitting from continued strong demand as well as the fact that competition for properties is helping to push average rents up.

Additionally, landlords are also enjoying extra stability, with the latest ARLA research revealing that the average tenant now stays in one place for a record high of 19 months.

Notably, the new report also states that supply of rental accommodation is particularly acute in London and the south-east of England in general, thanks largely to the fact London house prices are out of the reach of many people.

This comes soon after the publication of a separate report from Rightmove, which revealed the gap between the north and the south of the country is growing when it comes to average house prices.

London estate agents News: Overseas buyers dominate luxury end of market

Tue, 18 Oct 2011 13:44:45 +0100

The number of cash-rich overseas buyers putting money into the luxury end of the London property market has continued to rise over the past few months, it has been revealed.

Newly-published figures show that the number of properties being sold for £5 million or more totalled 262 over the first nine months of the year.

This compares with the figure of 200 recorded for the same period of 2010, showing even the highest London property prices are not deterring high-wealth individuals from buying in the capital.

Notably, Savills, which has compiled these latest figures, has also revealed that overseas buyers now account for 65 per cent of all the sales completed in this top end of the sector, with most of them keen to buy in Mayfair, Knightsbridge and Belgravia.

Additionally, the figures show buyers from the Middles East and the former Soviet Union to be the best-represented at this end of the market, while growing numbers of buyers from North Africa are also now putting serious money into the London residential property sector.

Just last month, a report released by Savills revealed London to be one of the ten most expensive global cities to live in, though Hong Kong trumped it to the number one spot.

London House Price News

Buy to Let Investment News: Overlooked locations may be best bet for new investors

Tue, 18 Oct 2011 09:41:44 +0100

First time property buyers keen to enjoy a good return on investment should look to unspectacular locations, the findings of a new study suggest.

According to the latest property sales report from the Halifax, the UK's top housing hotspot is not in the south-east of the country - though London house prices have risen steadily over recent months - but in the north.

More specifically, the lender has pinpointed Bury as the top property hotspot in England and Wales right now, with the number of house sales being completed in the Lancashire town having increased by 44 per cent over first six months of 2011 alone.

Other towns establishing themselves as hubs of housing market activity over the past few months include Great Yarmouth, Rugeley and Houghton Le Spring.

At the same time, the figures also show that a number of smaller towns in the south of England suffered from the biggest drop in housing market activity over the first half of the year, again highlighting the benefits offered by the stability of London property.

Earlier this month, the website firstrungnow.com called on would-be first-time buyers to make real sacrifices in order to get themselves on the property ladder, with holidays and new clothes singled out as places where savings can be made.

First Time Property Buyers News

London House Price News: Capital driving 'north-south property divide'

Tue, 18 Oct 2011 09:39:54 +0100

London house prices are continuing to surge ahead of those in the rest of the country, with the capital at the very heart of an increasingly-marked 'north-south' divide.

That's the picture being painted by the latest figures from Rightmove, which show that the average asking price in the south is now considerably higher than in the north of England.

Indeed, the website's fresh research has revealed that, compared to an average asking price of £164,367 in the north of the country, in the south, prospective buyers are being faced with an average asking price of £336,743.

As a result, London house prices are helping to push the figure up well beyond the national average.

Furthermore, according to Rightmove director Miles Shipside, this gap shows no sign of decreasing in size, with ongoing problems with liquidity in the residential property sector expected to make this "two-tier" system even more pronounced in the months ahead.

The publication of these latest figures comes just days after the PricedOut campaign warned Britons to expect some "sharp swings" in the housing market over the next few months as ongoing economic uncertainties impact upon the sector.

London House Price News

London House Price News: House prices 'will undergo sharp swings'

Fri, 14 Oct 2011 09:59:23 +0100

London house prices, as well as those in other areas of the UK, could be subjected to "sharp swings" this year because of various factors, PricedOut has stated.

Matt Griffith, spokesman for the campaign organisation, commented that Britain's housing market tends to behave like "a rollercoaster".

"This volatility is underpinned by its two most important factors - a very unhealthy record of house building and a mortgage industry that has specialised in excesses, both during the boom and during the credit crunch," he noted.

"These two issues will continue to leave the UK vulnerable to sharp swings in prices."

Mr Griffith argued that the government should address the causes of this volatility by increasing support to house building and tackling the UK's "dysfunctional" planning permission system.

His remarks come after a Centre for Economics and Business Research report predicted that the market's recovery will stall this year, leading house prices to fall 1.7 per cent on last year's values.

London House Price News

London Property Market News: Supply is set to increase

Fri, 14 Oct 2011 09:00:45 +0100

Now is a good time to look for high end property sales and rentals as more supply is set to come onto the market.

This is the view of property expert Nigel Ellis, who said: "My experience is that there are more people perhaps beginning to think that now is the time to take the profit and take advantage of the situation.

"The attitude is, 'I will stick it on at a high price and if I don't sell then I don't mind because the mortgage isn't killing me'," he explained.

Therefore, as more supply comes onto the London property market, prospective homeowners will have a larger choice and sellers might be more willing to negotiate.

Mr Ellis' remarks come after research showed the top end of the London property market is appealing to international investors as much as the domestic rich, so price performance is being capped by global economic and wealth trends as well as by national factors.

London Property Market News

First Time Property Buyers News: 'Change in spending culture' is needed for first time buyers

Thu, 13 Oct 2011 15:49:54 +0100

First time property buyers should try to focus on getting together a deposit so that they can secure their first home, according to Firstrungnow.com.

Helen Adams, managing director at the website, said moving into shared accommodation or even moving back home are two options those looking to get onto the housing ladder can consider to save themselves some money.

"There is a whole cultural change that needs to be considered; which is that there is a huge cultural spending habit - it is not everybody, but [people are] going out a lot, buying clothes and buying holidays," she noted.

"In former times, people did spend less on those sorts of things as a percentage of their income, but it has become a way of life - shopping has become a hobby. It is harder to save because people are spending more."

Ms Adams' remarks came after research from Santander revealed that British consumers are actually saving 12 per cent more money each month this year than they did in 2010.

First Time Property Buyers News