News
We monitor the latest news and updates within the property market and bring it directly to your desktop via our news section. We are always on the lookout for any developments or breaking stories so keep your eyes peeled to check out our updates on this page.
Houses prices see annual growth for the first time in six months
1 November 2011
Nationwide have published figures which claim that UK property prices have returned to positive annual growth this October.
Private holiday rental homes in the UK see rise in activity
27 October 2011
Latest research suggests that prudent tourists are helping the growth of the UK private holiday rental market. Tourists from countries such as the United States and other parts of Europe are opting to book private holiday homes rather than hotels, in a bid to save more money on their holidays.
Million pound property sales reach 4 year high
24 October 2011
A new study by Lloyds TSB claims that the number of properties sold over a million pounds has reached its highest numbers since the housing market peak of 2007.
Mortgage deals becoming increasingly cheaper
12 September 2011
Since the reduction of the base rate by the Bank of England in 2009, new research has found that mortgage rates have continued to fall.
This research, carried out by the independent financial company Defaqto, claims that the average mortgage rates have gone down since the base rate was cut to a record low of 0.5 in March 2009. A two year fixed rate mortgage package at 85% loan to value now carries a rate of 4.41%, in comparison to the 5.95% early 2009.
David Black, insight analyst at Defaqto, stated: “The current economic climate has made it extremely difficult for people to borrow, particularly for first-time buyers”. Potential buyers are still finding it difficult to obtain a loan, with many struggling to raise enough funds for a suitable deposit.
Black added: “The good news for those that manage to secure a mortgage is that mortgage rates are significantly more favourable now".
Defaqto are an independent research company that specialize in rating, analyzing and comparing financial products. These range from pensions, insurance, investments and retail banking firms.
Green homes are becoming cheaper to construct
5 September 2011
The Department for Communities and Local Government (DCLG) has reported that the costs linked with building a new energy efficient property are falling significantly.
These are the greener homes with low-carbon standards and conform to the international sustainability regulations, which are getting cheaper to construct every year.
Gordon Miller, Co-founder of Sustain Worldwide, commented: "Competition amongst manufacturers and suppliers of low carbon technologies and materials is driving down prices – this is already being seen in the solar PV market - and economies of scale, as volume procurement enables companies to purchase at cheaper rates".
The growing knowledge being learnt by home developers means that expensive research and development overheads are being needed less and less each year.
For a property to be built to Code level 3 standards, the average extra costs involved have dropped from £4,458 in 2008 to £1,128 in 2010. This is a reduction of almost three quarters in three years.
Buying is cheaper than renting for first-time buyers
31 August 2011
Halifax claims that first-time buyers would find it £100 cheaper a month to buy rather than rent at present.
These stats were found with the recent Buying vs. Renting Review, which looked at the changes in the cost of buying and renting a typical two bedroom flat since 2008. The study by Halifax has found that the average monthly cost for a first-time buyer to buy a 2 bedroom flat in the UK stands at around £567, 16% less than what it costs to rent a similar abode.
These buying costs include mortgage payments, income lost by funding a deposit, insurance, maintenance and the sum of which comes to £110 lower than the common rent paid for the same property; which stands at £677.
Suren Thiru, Halifax Housing Economist, stated: “The recent decline in the cost of buying a property for first-time buyers compared to renting has been substantial and reflects the drop in both mortgage rates and house prices since 2008 as well as a marked increase in the average rent paid over the past year.
“However, while these affordability gains are welcome, conditions in the housing market for those looking to get onto the property ladder remain challenging. Difficulties in raising a deposit and the current economic uncertainty are likely to mean that number of prospective first-time buyers entering the market will remain relatively subdued in the near term.”
Alternatively in 2008, the average cost of purchasing a property was £212 more expensive a month than the typical rent paid.
The private rented sector now claims 1 in 6 homes
24 August 2011
Statistics from the Department of Communities & Local Government indicate that 17.4% of homes are now within the private rented sector (PRS).
This is a 16.4% increase, around 229,000 properties, from figures in 2009. It is also reported that since the start of the millennium the amount of properties in the sector has risen by 1.8 million and now stands at 3.9 million.
Nigel Terrington, Chief Executive of Paragon Group, welcomes these figures and stated: “The increase in PRS homes is fuelled by a combination of landlords buying property with cash and buy-to-let mortgages, people letting out homes they have inherited and homeowners deciding to let their property.” Paragon Group also predicts that the continuous increase in rental demand will make investment property more and more desirable.
Mr Terrington goes on to say: “We are seeing a very different mix of tenants in the sector now. No longer is it dominated by students and young professionals, it is a much wider group including more families and mature tenants and therefore we need to have a PRS adaptable to suit all.”
House prices increase slightly in June
16 August 2011
House prices edged up slightly in June, as the UK housing market continued to show resilience. A report, compiled by the Department for Communities and Local Government (DCLG), indicated that, on average, prices rose by 0.6% during June.
The average house price in the UK has now risen to £204,981. Seven out of the nine English regions showed month-on-month increases in property values, and London led the way with a 1.6% rise in June. It was the capital that also showed the greatest year-on-year growth, climbing 1.5% when compared with June 2010.
The DCLG figures are supported by the latest Halifax price index, which also reported month-on-month price rises recently.
The Royal Institution of Chartered Surveyors (RICs) has predicted that the UK property market is likely to experience flat house prices for the rest of the year.
Landlords claim good relationships with their tenants
3 August 2011
A latest study reveals that the majority of landlords claim that they have positive relations with their tenants.
The National Landlords’ Association (NLA) conducted a recent survey which reports that 61% of landlords believe that have a “very good” dealings with the people that rent their properties. 34% describe their relationship as “good”, with 3% choosing “adequate” and only 1% claiming that they have a poor relationship with their tenants.
David Salusbury, Chairman of the NLA, stated: ‘The NLA believes that the private rented sector will play an important part in helping to meet the demand for quality housing in the coming years. So it is pleasing to see that almost all landlords have a good relationship with their tenants and that both parties are content’. One of the most effective ways to promote positive relations between landlords and tenants is to make sure that the tenant is matched with the most suitable property for them in the first place.
Mr Salusbury goes on to say: ‘The NLA advises that all landlords should meet with the prospective tenant, view the property together, discuss the tenancy agreement in detail and explain how and when the rent should be paid.’ Healthy communication between a landlord and tenant can help ensure that both parties are kept happy.
First half of 2011 sees increase in house prices
1 August 2011
Assetz, a property investment advice firm, have released figures that have shown a consistent increase in house prices over the first half of 2011.
The average UK house price in June wa apparently £198,908, this is a £3,483 rise from the £195,425 recorded at the start of the year in January.
Stuart Law, Chief Executive of Assetz, commented: "Looking at all the house price data together, it is clear that the overall trend is one of positive growth in the last six months, with pent up demand from people who need to move and the rapidly growing appetite of buy-to-let investors supporting price growth." He also claimed that property is still considered one of the safest investments for producing strong income.
Mr Law went on to say: "The availability and interest rates of mortgages are also improving each month, steadily reversing the finance famine which has restrained the market from an earlier recovery." Although he has warned that the good progress of the market could be endangered if the Bank of England doesn’t raise interest rates slowly and cautiously.
