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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
London Property Market News: New mayor needs to prioritise affordable housing schemes in London
Tue, 08 May 2012 14:00:57 +0100
Whoever wins the Mayoral election must prioritise the need for affordable housing in London.
This is according to Grenville Turner, chief executive of Countrywide. He believes that the person elected to office needs to ensure that more is done to help people in the capital find a home which is both suitable for their needs and also not too heavy on their pocket.
Mr Turner said that without question London is the “property capital of the world”, but he is concerned that too many people are being priced out of the market in certain regions by investment from overseas.
“We urge the new mayor to recognise the importance of each sector in the London market and place the issue of the shortage of affordable housing in the city high on their agenda,” he said.
He added that restrictions in mortgage lending was another key problem faced by Londoners at present.
London Property Market News
HMO, Hostel & Care Home News: Millions selling their property to pay for care
Tue, 08 May 2012 13:58:52 +0100
As people get older the need to move into a private care home of local authority housing care becomes an inevitability of many, but new research shows that people are increasingly having to take money out of the family home to meet costs.
According to the first Partnership Care Index, 41 per cent of people aged between 45 and 85 said that they would be forced to either rent out their property or sell it in order to raise the funds required for their care in old age.
Property financing was the third highest method of payment amongst respondents, behind state funding and income from pensions.
Chris Horlick, managing director of Care for Partnership, said: "The realisation that property is likely to be a key source of funding for any care costs is becoming more widespread.
“Estimates suggest that over 65s have unmortgaged equity of nearly one trillion pounds”.
HMO, Hostel & Care Home News
London Property Market News: Londoners have gone parking mad
Thu, 03 May 2012 16:19:46 +0100
While finding affordable housing in London is a challenging task, it seems finding reasonably priced parking is also.
Just recently a garage on a street in Knightsbridge was put on the market for an incredible asking price of £525,000.
That's three times the national house value of £160,000.
Located on Rysbrack Street, the double garage is walking distance from Harrods and is priced to reflect the rarity of such premises in the much sought after area.
"It is very rare to get a freehold garage in Knightsbridge, so it is exceptionally valuable," explained Robert Lewis of W A Ellis.
"We anticipate interest from those already living within a two to three minute walk of the garage, for example the large houses on Walton Place, where there is no off street parking."
Recently a flat roofed brick-build shed in Highgate was put on the market for a cool £259,950.
London Property Market News
Mortgage and Home Loan News: Halifax offers to pay half of stamp duty for FTBs
Wed, 02 May 2012 14:59:17 +0100
Despite the stamp duty holiday for first time buyers (FTBs) ending in March, the Halifax has said that it has a solution for people looking to make their maiden move into the property market.
The bank is set to a launch a new range of mortgage products which pay half of the stamp duty liability on the purchase of properties up to £250,000.
This would reduce a buyer's costs by up to £1,250.
A recent study by the Halifax found that 49 per cent of all people buying a home during the first three months of this year paid between £125,000 and £250,000, although in London the rate was slightly lower at 39 per cent.
Stephen Noakes, mortgage director of the Halifax said "We have seen over the last two years that support provided to buyers has a positive impact, with the stamp duty exemption helping over 40 per cent of first time buyers.
"We're keen to assist homemovers to purchase their next home, and support with their stamp duty bill does just that."
Mortgage and Home Loan News
UK Property Portal News: Simple improvements are best way to maximise property value
Tue, 01 May 2012 11:13:22 +0100
People looking to sell their home quickly should think less about cleaning the place up and spend more time buying flowers and painting doors.
This is according to mortgage lender HSBC, whose research found that millions of people plan on spending the spring bank holiday doing home improvements so that they can attract both first time buyers and experienced property professionals.
Some 52 per cent will attempt to improve the appearance of their home this May Day bank holiday, but according to HSBC the best way to add pounds to a property is to simply de-clutter, although cutting grass and repairing paint chips will increase the chances of a sale.
Peter Dockar, Head of Mortgages at HSBC, said: “Many householders spend the Bank Holidays on DIY projects to help boost property value and saleability.
“However it is often the smaller jobs like painting the front door that can make all the difference when looking for a quick sale.”
UK Property Portal News
Landlord and Tenant News: Knowledge gap exists for accidental landlords
Fri, 27 Apr 2012 13:40:48 +0100
The number of accidental landlords in London has grown significantly over the past couple of years, but one property expert is concerned that the trend is leading to a culture of people letting out their home without first learning what it means to be a property professional.
Marie Parris, managing director of George Ellis Property Services feels far too many people have jumped into the private rental sector out of desperation to move rather than a real desire to make money out of their home.
Accidental landlords are people which due to the current state of the housing market have decided to rent out their existing property and then move to a new one.
It can be a smart move if you happen to live in an area where rental yields are high and profit is easily made.
But many people do it just as a way of playing the system because they’ve seen a house and like Verucca Salt they ‘want it now’ rather than getting into a chain involving the sale of their own property.
And it’s these people Ms Parris is worried don’t have the knowledge to be a landlord effectively.
“As landlords there are myriad laws, regulations and guidelines we need to adhere to. Accidental landlords are likely not to have that knowledge, and you tend to find it's those landlords who are getting into problems,” she said.
Landlord and Tenant News
London Property Market News: Vendors need to realistic when selling
Thu, 26 Apr 2012 12:56:39 +0100
While many areas of the UK are seeing healthy property price rises, it’s important to be realistic when it comes to putting your home on the market.
Jane Marr, commercial director of the Little House Company, believes that while the market is still moving some vendors are not helping themselves by setting their asking price too high.
“Determined sellers should be realistic and price a property to sell,” she said.
“Hopefully those who are being unrealistic will drop prices once they see the sort of offers serious buyers are prepared to make.”
She added that movement of homes in some areas is slower than it should be because of price hikes. In particular, first time buyers are finding it difficult to get their first step on the property ladder.
In the South East the average home value is £250,045 according to the Land Registry, making it 9.21 times the average London salary of £27,128.
London Property Market News
London Property Market News: Londoners willing to shell out for homes near stations
Thu, 26 Apr 2012 12:53:24 +0100
A new study by the Nationwide Building Society has found that people looking to buy a property in London are willing to pay as much as £27,000 more for one if it is close to a tube station.
London property prices have remained stable throughout the economic downturn but it seems that home which have easy commuter links are the most desirable.
Nationwide says that homes close to the Circle Line are the most expensive, while those near to Metropolitan line are the cheapest. However, property values in all areas on the London underground network have seen significant rises in the past two years.
Robert Gardner, chief economist at the building society, explained: "People are willing to pay a significant premium to be close to a station and suggests that this premium has increased relative to two years ago."
“A property located 500 metres from a station attracts a nine per cent price premium (approximately £27,000 on a typical London home) over an otherwise identical property 1,500 metres from a station”
London Property Market News
Mortgage and Home Loan News: Five year fixed rates fall to two year low
Wed, 25 Apr 2012 13:34:07 +0100
Good news for people looking to buy a property, UK mortgage rates have come down slightly in the past 12 months.
A new study by Moneyfacts.co.uk has found that the average five year fixed mortgage rate has fallen from 5.59 per cent last year to 4.89 per cent today.
And that’s even lower than in April 2010, when the average five year fixed product stood at 5.87 per cent.
Louise Holmes, spokesperson for Moneyfacts.co.uk, said that fixed rate mortgages remain popular amongst those looking to step on to the property ladder as well as those remortgaging because they offer the reassurance of a set monthly payment.
This is particularly beneficial when it comes to planning budgets.
She added: “Interest rates are predicted to stay at the historical low of 0.50 per cent for the foreseeable future. Borrowers would be wise to take advantage of the low mortgage rates, however, as lenders will begin increasing product rates once interest rates rise.”
However, the rate is often not the biggest concern for potential first time buyers, raising an adequate deposit is.
Mortgage and Home Loan News
London House Price News: Confidence in housing market on the up
Wed, 25 Apr 2012 12:42:37 +0100
Confidence in the housing market is increasing despite the current economic climate.
The Halifax’s latest Housing Market Confidence tracker found that one in three people feel that house prices nationally are set to rise, almost double the number which predicted a fall.
Londoners remain the ones who are the most confident, followed by the East of England, the South West and the South East.
Some 71 per cent also predicted that the cost of renting in the private sector will also rise in the next year, with just two per cent believing there will be fall.
Martin Ellis, housing economist at Halifax, said: "It is encouraging that the level of consumer confidence in the housing market continues to improve, albeit from a very low base.”
And London house prices are likely to increase further when public transport improvements are completed.
Steven Herd, managing director at MyLondonHome, recently said that the Cross Rail network in particular will provide a significant boast to the housing market.
London House Price News
London House Price News: A loft conversion could add significant sums to your home value
Mon, 23 Apr 2012 17:32:31 +0100
No matter what your budget is you can add to your home’s value and desirability with a few simple improvements, the editor of one leading DIY magazine has stated.
Vendors should always think hard about how they can maximise their asking price when putting a property on the market.
Jason Orme, editor of Homebuilding and Renovating magazine, said if you’ve only got a few hundred pounds to spend then redecorating and changing old carpets could be a good move.
But he says if your budget is bigger, then work at the top of the house will significantly add value.
"If you are looking at £10,000 to £30,000 then there is the potential for a loft conversion or small extension. That may well be the way to maximise the value there,” Mr Orme said.
Loft conversions are considered to be ‘permitted developments’ so in most circumstances planning permission is not required. However, if you extend or alter the roof space an application may have to be made.
London House Price News
London Property Market News: Capital boon for investment
Mon, 23 Apr 2012 09:26:44 +0100
London letting agents and investors have reason to be cheerful as the property market in the capital and south-east is likely to remain buoyant throughout this year.
The National Landlords Association (NLA) has said that the London housing market has outperformed the rest of the UK in recent years and it sees no reason for that trend to change in the remainder of 2012.
Chris Norris, policy manager at the NLA, said: "Prospects for investment in London and the south-east remain very strong, in spite of the financial downturn of the last few years. House prices in London have fared well, compared to the much of the UK."
He added that with many lenders now re-entering the buy to let market, the opportunity for people to move into property development or expand an existing portfolio will become easier although loan to value (LTV) ratios are still much lower than they were prior to the credit crunch.
London Property Market News
Buy to Let Investment News: Buy to let market to continue growth
Mon, 16 Apr 2012 10:46:51 +0100
The buy to let market is set to continue flourishing this year despite concerns to the contrary, a mortgage brokers firm has claimed.
A new report from Paragon Mortgages estimates that landlords will significantly add to their existing portfolios during the remainder of 2012, while 23 per cent of all buy to let business will be conducted with people investing in property for the first time.
The brokerage says that mortgage enquiries from established and would-be landlords made up more than a fifth (21 per cent) of all the enquiries it dealt with during the first three months of this year.
"It is particularly interesting to see the increase in first-time landlords entering the market, this not only demonstrates confidence in the market but also that buy-to-let remains an attractive business," John Heron, director of Paramount Mortgages, said.
Figures produced by the Council of Mortgage Lenders (CML) show that buy to let market grew by 20 per cent in 2011.
London Property Market News: Transport improvements will boost market further
Thu, 12 Apr 2012 11:37:28 +0100
The value of properties right across London will be boosted further when plans to enhance the capital’s transport links are completed.
This is according to Steven Herd, managing director at MyLondonHome, who believes that schemes, Crossrail in particular, will add pounds to London house prices because one of the key things people look for when buying a home is good commuter links.
“As well as easing many of London's transport headaches, it will also provide access to thousands of job opportunities and encourage regeneration,” Mr Herd said.
“It is sure to have a positive effect on London as a whole. As the Crossrail project does not have direct routes into the south-east the benefits are questionable to the immediate area."
When completed Crossrail will link towns and districts on the western edge of London with station’s in the centre of the capital. It is expected to be completed in either 2018 or 2019.
London Property Market News
First Time Property Buyers News: Hunger for property continues
Tue, 10 Apr 2012 12:29:41 +0100
The stamp duty holiday afforded to first time buyers ended last month, but this has not quashed people’s hopes of getting a foot on the property ladder.
Until the 24th of March, people looking to buy their first home were exempt from paying stamp duty on purchases up to £250,000.
However, an expiration of that levy now means that they are eligible to pay the same levels of duty on transactions above £125,000 that everyone else is liable for.
Still, according to Stuart Law, chief executive of Assetz, first time buyers’ hunger for home ownership has not been supressed and they are now working harder than ever to ensure that their dream comes true.
"People in their early 20s are saving up for houses and committing to buying a house rather than renting,” he said.
“We are seeing a lot more serious people like that than we have seen in recent years. Whilst I accept that it is very difficult, we are seeing quite a lot of people working hard to save their deposit."
London Property Development News: Sardine apartments popping up all over London
Thu, 05 Apr 2012 13:15:31 +0100
The strength of the London rental market has brought about a rise in so-called sardine apartments.
This is where landlords have applied for change of use planning permission to convert areas such as roof space or storage rooms in buildings into flats to rent out.
However, this is often to the annoyance of existing residents but there is little they can do about it.
Paul Williams, a director of Savills, said that while longstanding tenants may feel that a new apartment being added to their building will cause disruption and in some cases spoil the property's character, it is easy to see way a landlord would consider it as an option.
“Because the freeholder owns the land already it is going to be a very profitable business, which is why they are keen to do it,” he told the London Evening Standard's Homes and Property website.
According to Lloyds TSB, the average rental property in London provides a landlord with an average yield of 4.8 per cent
Social Housing News: Revamped Right to Buy scheme launched
Wed, 04 Apr 2012 13:08:45 +0100
A new updated version of the Right to Buy scheme has been launched by the prime minister and housing minister Grant Shapps this week.
The reinvigorated scheme will allow 2.5 million social housing tenants the opportunity to become first time buyers in their existing home.
They will be incentivised with significant discounts on the property's real market value, depending on how long they have been a tenant there.
The move is the first of its kind since Margaret Thatcher sold off many of the nation's council properties during the 1980s.
In recent years, a lack of discounts to tenants has slowed the number of people looking to own their home. Indeed, last year there were fewer than 3,700 sales. Whereas a decade ago there was a peak of 84,000.
The government intends to make a range of materials available to tenants so that they are aware of their options should they decide that right to buy is the best option for them.
The government have also stated that this is not a fire-sale of affordable properties and for every property sold a new home available at reasonable rent will be constructed.
Prime Minister David Cameron said: "I want many more people to achieve the dream of home ownership. In the 80s, Right to Buy helped millions of people living in council housing achieve their aspiration of owning their own home.
"But over time the discounts were cut, they didn't keep pace with rises in property prices, and this vital rung on the property ladder was all but removed. This government is now putting it back by dramatically increasing the discount rates so that we support the dreams of those council tenants who to want to own the roof over their head."
Under the old scheme, a tenant in London looking to buy a council flat valued at £160,000 would have received a discount of £16,000, but if they have lived there for five years or more they will now be eligible for a discount of up to £75,000.
Social Housing News
UK Property Portal News: Downsizing is not a decision which should be taken lightly
Tue, 03 Apr 2012 11:43:28 +0100
Choosing to downsize after the children have flown the nest or because the property is getting to difficult to manage in older age isn't something which should be taken lightly.
Amanda Fyfe, director of SeniorMoves.co.uk, believes that older people should not be rushed into a decision on whether to move or not, but she does admit to being concerned about the large number of people who leave it too late.
She feels that doing it correctly involves talking extensively with family members and seeking out reputable estate agents who will be able to advise on the right kind of property for their needs.
"If they choose to move to be nearer to family or if they are starting to worry about their health, the biggest thing I would say to anyone is to make that decision early enough to be able to build a life for yourself where you're moving to," Ms Fyfe added.
The Association of Residential Letting Agents (ARLA) said recently that the people looking to downsize should consider the option of renting out their home rather than selling it because good rental yields at present could also provide them with an income.
UK Property Portal News
London Property News: London property is recession-proof
Tue, 27 Mar 2012 16:49:13 +0100
Property in prime London locations has largely been unaffected by the economic downturn of the past few years.
Hugh Best, head of investment management at London Central Portfolio, believes that while home values in many parts of the country have fallen or stagnated recently, London house prices have bucked the trend by seeing healthy increases.
"There are a lot of institutional investors, pension funds, offices as alternative assets,” he said.
“As a result of that and as a result of the fact that it is seen as the safe haven, it is more robust than gold at the moment and we very much expect to see prices continue to go up."
His comments echo those made recently by Yolande Barnes, head of residential research at Savills. She described London as a “safe haven” for property investors as rises in values show no sign of abating.
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