Buying a House is Cheaper than Renting for First-Time Buyers

Posted on September 2, 2011 by admin
New research shows that the average monthly cost associated with buying a two-bedroom flat for a first-time buyer is around £567. This is £110 lower than the typical rent paid on an equivalent property, according to Halifax, which conducted the research.

The cost of getting onto the property ladder has fallen by 40 per cent since 2008 due to low mortgage rates and a depressed housing market. By contrast, the price of renting has fallen by a fraction of that amount and has even started rising again over the last year.

Suren Thiru, housing economist at Halifax, said that the current economic climate is favourable for prospective first-time buyers.

“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 last year,” said Ms Thiru.

Mortgage rates have reduced dramatically over the last few years due to record low interest rates of 0.5 per cent. The average mortgage rate for a new borrower is 3.8 per cent, down from 5.9 per cent in mid-2008, according to Halifax. At the same time the average price of a typical first property has fallen by 14 per cent to £124,378.

 

John’s View: – There has been a lot in the press about home ownership reducing to 63% over next 10 years, these figures show what a great time to buy it is becoming.
When its cheaper to buy than rent its time to try and buy!

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House Prices near football grounds see a big increase

Posted on August 29, 2011 by admin

House prices near football grounds see a big increase

Homes near a Premier League football ground have shot up in value over the past decade, research suggests.

Homeowners with the same post code area as a top-flight team saw prices rise by an average of 168% to £353,408.

House values across England and Wales increased by 113% over the past decade, according to Land Registry information accessed by mortgage lender Halifax.

The biggest increase was near Manchester City’s Etihad Stadium which saw an average 350% rise to £91,703.

The study found that five of the six biggest increases were where a new stadium had been built in the past 15 years, including Manchester City who moved from their old home at Maine Road in 2003.

Suren Thiru, housing economist at Halifax, said these rises were associated with improvements to the surrounding area that often accompanied stadium development.

“In general, house prices in the areas that are home to many of our major football venues have strengthened significantly over the past decade, reflecting in part the amenities commonly found in such locations, including good transport links,” he said.

The lowest average rise was around Newcastle United’s city centre St James’ Park at 31% to £144,774 over 10 years.

The most expensive average house price was £767,000 near Chelsea and Fulham in London SW6, while the lowest was £70,461 for Liverpool and Everton in the L4 area of Merseyside.

House price league table:

1. Manchester City 350% (£91,703)

2. Aston Villa 215% (£111,374)

3. Sunderland 159% (£97,820)

4. Swansea City 140% (£115,481)

5. Bolton Wanderers 134% (£177,399)

6. Stoke City 134% (£111,657)

=7. Everton 133% (£70,461)

=7. Liverpool 133% (£70,461)

=9. Chelsea 116% (£767,553)

=9. Fulham 116% (£767,553)

11. Wolverhampton Wanderers 115% (£93,754)

12. Wigan Athletic 115% (£122,989)

13. Tottenham Hotspur 111% (£251,323)

14. Blackburn Rovers 109% (£118,508)

15. Norwich City 106% (£159,582)

16. West Bromwich Albion 105% (£128,547)

17. Manchester United 102% (£143,144)

18. Arsenal 102% (£539,653)

19. Queen’s Park Rangers 98% (£468,710)

20. Newcastle United 31% (£144,774)

Premier League 168% (£353,408)

England and Wales 113% (£236,724)

Average house price rises in post code areas containing a Premier League football club over 10 years to June 2011 (Current average price in brackets). Source: Halifax/Land Registry

 

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Halifax say House Prices Rise

Posted on August 5, 2011 by admin

House prices rose for the third month in a row in July with the property market slowly steadying, Halifax has reported

Ambling along: The property market has steadied – for now – but with sales at a very low level.

A 0.3% rise in the average price of a property last month saw house prices up by 0.5% quarterly – the first three-month increase for more than a year.

But while prices are avoiding a downward spiral, transactions remained rooted at a very low level.

Halifax said that the average house price stands at £163,981 – down £200 on January’s figure and £3,500 on a year ago.

Halifax recorded prices down 2.6% annually.

Martin Ellis, Halifax’s housing economist said: ‘House prices in the three months to July were 0.5% higher than in the previous three months. This was the first increase in this key measure of underlying price movements for 14 months.

‘Overall, there has been little change in either the level of house sales or the number of properties on the market for sale since late 2010. These steady market conditions have helped to stabilise house prices in 2011 following last year’s modest decline.

‘This pattern is expected to continue over the rest of the year with little genuine direction in either house prices or sales. Sustained low interest rates and a slowly improving economy should help to support demand in the face of pressures from weak earnings growth, relatively high inflation and higher taxes.’

John’s Opinion

These are national figures,  Central london is very strong, other areas are very weak with prices falling.
The bottom end of market is now being underwritten by rental yields and the availability of buy to let mortgages.
Don’t believe the market in your area has gone up.  Ask some local agents to get the real picture!

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Moving House ? So what`s best – The D I Y option or use a removal company?

Posted on July 17, 2011 by admin

When moving house you will need to consider whether to  use a removal company or hire a van and recruit friends and family to help.  As with most decisions, the answer will not be the same for everyone. There are numerous factors to consider, such as time, money, and the complexity of the move.

A self-move may make a lot of sense if you’re moving a short distance  – across town, but . If you’re moving to the other end of the country or abroad, it’s a different story.

To ensure that you’re making the best decision, you need to consider  all the options.

You need to decide what is most important

is it time or money?

Or perhaps a bit of both?

 

Knowing what is the most important factor will help you arrive at a reasonable answer.

Other factors to then consider are:

1. How much  do you have to move?

For a general idea of how much room your belongings would take up when being transported, this rough guide shows you the size of transport you will need.:

  • 26-foot trailer for 4+ bedrooms
  • 24-foot trailer for 3 or 4 bedrooms
  • 17-foot trailer for 2 or 3 bedrooms
  • 14-foot trailer for 1 or 2 bedrooms
  • 10-foot trailer for 1 bedroom

2. How far are you moving?

Estimate the mileage involved, and source the costs of renting a van or truck. If travelling long distance, you may wish to hire a larger vehicle to do the entire move in one trip. If you are moving a shorter distance, you could use a smaller vehicle and make multiple trips, Calculate the approximate fuel costs, not forgetting fuel for the return of the vehicle.

One you have indicative costs for van hire and fuel for doing the move yourself, compare these with quotes from removals companies.

You should eventually end up with a cost comparison between hiring a moving company and moving yourself. If cost is your only consideration, you will probably have enough information at this point to make your decision. But if other factors, such as time, come into play for you, you can always weigh the various options in between – from hiring a company to pack, load and ship, unload and unpack your things, to employing a company just to load, ship and unload, or to do it all yourself.

Here are some final questions to ask yourself:

  • How much time will it take to pack, load and drive to your new home?
  • Do you have additional help and support – family, friends and neighbours who could lend a hand?
  • Do you have fragile or special items that will require specialist handling? Or particularly heavy or awkward items? Can you move these yourself? If not, what will it cost to move them?
  • Will you need to rent packing crates or buy packaging supplies?
  • Are you confident that you could move your household goods safely?
  • Are you aware of any potential hidden costs that could creep into your move, such as insurance?

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Things to factor into your plan if you are buying a home for the first time

Posted on June 28, 2011 by admin

High property prices have made it difficult for most people to afford to buy a home. This may be a particular challenge if you are a first time buyer, as you will have many one-off initial costs including:

  • a deposit
  • Stamp Duty Land Tax
  • surveyors’ fees
  • lenders fees and charges
  • Land Registry fees
  • removals/or moving in charges

If you are thinking of buying a house for the first time, make sure that you have planned for all the costs that you will face. ‘Planning on buying a home’ will explain the main costs that you are likely to have to pay.

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So where are the best places to buy property in 2011

Posted on June 28, 2011 by admin

Despite the many troubles of the housing market over the last few years, as a nation we still have the desire to buy and own our own homes. A  survey from the Building Societies Association found that 59% of us would buy immediately or within the next 12 months if the deposit was already sorted out.

The National Association of Estate Agents has also  reported a surge in new enquiries, with almost two-thirds (59%) of member agencies reporting that the number of interested house-hunters registering with them at the start of January was higher than usual for this time of year.

So if you are one of the many who want to buy in 2011, what should you consider when it comes to finding the right place to buy?

Back to the future

One indicator when it comes to working out where to buy is to look at history, and a recent piece of research by Halifax may prove useful in that respect.

The Halifax  looked at the counties of the UK to track which areas performed best in 2010. Here are the top ten:

County Region Average house price 2009 Average house price 2010 Change
Conwy Wales £144,185 £162,691 13%
East Dunbartonshire Scotland £177,048 £197,700 12%
Dumfries & Galloway Scotland £126,061 £139,578 11%
Worcester West Midlands £171,754 £187,214 9%
Hampshire South East £198,224 £214,786 8%
Derbyshire East Midlands £138,819 £149,333 8%
East Sussex South East £212,408 £227,580 7%
Surrey South East £276,932 £296,344 7%
Buckinghamshire South East £247,247 £264,401 7%
Somerset South West £187,663 £199,732 6%

What is quite encouraging about this result is that it’s not London and the South East topping the table, but regions that tend to be overlooked like Conwy and Dumfries that are performing really well. Indeed, over the past five years, Halifax reckons buying in Scotland has delivered a great return, with seven of the top ten performing counties found north of the border.

Halifax questions whether that will continue though, suggesting that the South East will be the most consistent performer in terms of house prices in 2011, due to the relative non-reliance on public sector jobs.

If they’re right, the towns that have the most exposure to public sector employment may see sharp price falls this year. It will likely come down to your own attitude as to whether that makes them a place where you should avoid buying, or a potential bargain location!

So what other factors will go into finding the best place for you to buy this year?

Keeping it affordable

Of course, while buying in places like Conwy might look cheap based on your current wages, would it really work out as such a great deal if you were working in the area?

Some recent research by Nationwide on how the various regions of the UK performed in terms of house prices last year included highlighting the most affordable sub-regions within each region in England, calculated using local salaries and house prices. These are the towns and cities where your money will go furthest when buying.

Region Sub-region
North Cumbria
Yorkshire & Humberside North Lincolnshire
East Midlands Nottingham
North West Warrington & Halton
West Midlands Staffordshire
East Anglia Peterborough
South West Swindon
Outer South East Bedford
Outer Metropolitan Medway
London Bexley

The type of property to buy

A further consideration will be the type of property you buy. Of course, to a certain extent circumstances will dictate this — if you are married with three kids, it’s fair to say studio flats are not going to make it onto your shortlist.

However, the changing composition of households in the UK means that demand for smaller properties is on the rise. A study by property portal Globrix last year found that studio and one-bedroom flats had performed the best with asking prices rising by 1.5% over the year. In contrast, bigger properties, such as homes with five bedrooms plus or flats with three bedrooms, had a torrid time, with asking prices falling 2.8% and 4.7% respectively.

Now, asking prices are not a perfect way to measure trends, but they give a reasonable indication. Indeed, according to research by the Department of Communities and Local Government, the number of one person households is predicted to rise from 6,822 in 2006 to 10,899 in 2031, to the point that they will account for almost 40% of the households in the UK.

There is significant demand for properties to cater for a single person, driven by all sorts of reasons from rising divorce levels to immigration, so it’s worth bearing in mind that if you’re going for a smaller property you may face more competition, which could drive the price up.

However, in theory that should also make it easier to sell when you decide to move on.

Bargains at auctions

One place to look for bargains in 2011 will be the auction houses for recently repossessed properties. The word repossessions automatically conjures up images of trashed, dingy one-bedroom flats to many of us, but that’s not accurate — you can find plenty of great repossessed properties available at your local auction house.

What’s more, you’re likely to have an even wider selection this year — the Council of Mortgage Lenders reckons that repossessions will rise from 36,000 last year to around 40,000 in 2011.

The money problem

However, for most buyers the biggest barrier to buying a property anywhere in the UK in 2011 will be the mortgage market. The Council of Mortgage Lenders believes that gross mortgage lending this year will total just £135bn, the same as 2010 but hugely down on 2008′s figure of £253bn. As a result, it believes the level of property transactions will total just 860,000, about two-thirds of what it would consider a normal, functioning housing market.

The fact is that lenders aren’t that keen on lending at the moment, and regulatory changes both domestically and across Europe are only going to further dampen their desire to lend.

Add to that the possibility of mortgages becoming more expensive as interest rates begin to creep upwards, and it looks like finding the perfect property will be only half the battle in 2011

 

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The gap is widening in the North-South housing market

Posted on June 13, 2011 by admin

The North-South divide in house prices is widening, according to new figures.
Britain’s Property Rich List 2011, released by property website Zoopla.co.uk, shows that, although house prices in some of the country’s most expensive areas have fallen a little over the past year, they have held up better than those in less expensive areas.

Kensington in London emerges as the most expensive place to live, which is not really surprising, most of us can only dream of ever living there.

With average house prices close to £1.75 million, the average UK homeowner would only be able to afford 173 sq ft in the exclusive area.

According to the figures, the highest value areas to live are mainly in London and Surrey, with average prices ranging from £680,611 to £1,737,862.

In contrast, the lowest value areas are in the North – the lowest in Middlesbrough, with others in the top 20 including Grimsby, Sheffield, Liverpool, Hull, Doncaster and Bradford, with prices ranging from £41,601 to £78,579.

“This year’s Property Rich List shows an ever-widening North-South divide and, whilst house prices in some of the most expensive areas of the country have fallen a little over the past 12 months, they have held up far better than in many of the less expensive areas.”

According to the list, Britain is now home to 220,131 property millionaires, down from 223,119 this time last year.And there are now 5,922 streets where average house prices are more than £1 million.

London tops the list with the most “million pound streets” with 2,290, followed by Surrey commuter hotspot Guildford with 89 and Cobham, also in Surrey, third with 78.

The study found the most expensive place to live is Kensington, London, where an average home now costs £1,737,862.While this is £400,000 more than nearest rival Chelsea, where the average pad will set you back £1.32 million, all top five neighbourhoods on the list boast average property prices of more than £1 million.They also include Knightsbridge at £1.31 million, Notting Hill at £1.17 million and West Brompton at £1.05 million.

But with the average cost per square foot in Kensington at £1,193 and the average UK house price at £205,985, the average UK homeowner could only expect to get 173 sq ft.

The top 10 most expensive neighbourhoods in the country are almost entirely in the capital, with the only exception being seventh-placed Virginia Water in Surrey, where average prices are £936,653.

Topping the list of the most expensive streets in Britain is Kensington Palace Gardens, also known as Billionaires Row, where the average price is £19.2 million.The exclusive, gated street is home to Saudi and Brunei royalty, Russian oligarchs and Britain’s richest man, Lakshmi Mittal, who owns three properties on the street, according to Zoopla.

The study found the most expensive area to live in Britain is Windsor & Maidenhead, where average house prices stand at £389,120, just ahead of the London average of £387,119.

Also in the top five most expensive areas are Surrey (£371,984), Hertfordshire (£300,914) and Oxfordshire (£284,402).

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To Share or not to share… That is the question

Posted on June 9, 2011 by admin

Last month it emerged that increasing rents are leading to demise of the love nest, as couples can no longer afford to live alone. According to flatsharing website easyroommate.co.uk, one in nine people are looking to rent will be moving in with a partner in order to halve rent responsibilities.

Couples can save more than £3,100 a year by opting to share with others and as rental prices climb, twice as many couples are opting to save.  Couples are also realising that this is a good way to save for a deposit.

In the past 12 months, the number of couples looking to rent with other flatmates has increased 91pc – and landlords are catering for this growing demand. There are four times as many double rooms on the market now than in May 2010.

Is this the way forward to get yourself on the property ladder?

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Why over-valuing your house could cost you thousands!

Posted on June 5, 2011 by admin

It would seem that despite the state of the current UK Property Market us Brits are still obsessed with the value of our houses and are pricing them way too high when it comes to selling them.

In actual fact, pricing your house too high when it first goes on the market could end up losing you thousands.  The advice would be to put it on the market at a price you think it will go for and it will probably be snapped up quickly.  Otherwise, if it goes on too high, then spends months of the market, chances are you will end up achieving less than you would  have if you had put it on a reasonable price.

My advice would be to always listen to your agent because they know the market and will know what the right price for your house will be.

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Simple tips on selling your home quickly

Posted on May 23, 2011 by admin

With a flood of properties on the market, you need to ensure that your house is at its best for prospective viewers. Here are a few helpful tips. Also don’t forget that you can talk to us about selling your house for cash.

Pricing too high can be as bad as pricing too low.

  • If you list too high you may miss buyers in the price range where your home should be.
  • You may not even get offers because you will have scared off interested buyers and they won’t bother to look.
  • When you do get the price right you will have lost a lot of possible customers and wasted time.
  • Your estate agent will suggest a price that compares with other similar properties for sale.
  • When you get a property valuation the estate agent will assess your home’s true market value and put your house up for sale at a realistic price.

Minor repairs make your house easier to sell, allowing you to maximize your return or minimize loss on the sale.

  • Most buyers are looking for a house in good condition that they can move into straight away.
  • Buyers who are willing to do the repairs after moving in automatically take the cost of this work off the price they offer.
  • You save nothing by not doing necessary repairs, and you may slow down the sale of your home.

Buyers probably won’t even come inside your home if they do not like the look of it from outside.

  • Many buyers drive past a house before deciding whether or not to look inside.
  • The outside of your house will have less than a minute to make a good first impression.
  • Mow the lawn, trim shrubs and trees, and weed the garden. Clear paths and drives of leaves and other rubbish.
  • Repair gutters and eaves, touch up the exterior paint and repair or resurface cracked drives and paths.
  • Place flowers in pots and/or hanging baskets at the front of the house near the door.

Buyers will not hesitate to walk out of the front door within 60 seconds if the house doesn’t look and feel as if they could make it their home.

  • Most buyers are looking for an inviting home they can move into straight away.
  • Spending some money for necessary work on your home before you sell it usually makes sure you get a better price and sell more quickly.
  • Your estate agent will advise you which repairs and replacements are most important to get a sale at the right price.

Do not get carried away with repairs and replacements to your home, as you may end up over-improving the house.

  • Be careful that the cost of your improvements does not exceed the amount of additional money they will bring in when you sell. Make sure your improvements to not raise the value of your home too far above that of other similar houses in your area, as you may not get your money back when you sell.
  • You cannot expect improvements to increase your sale price in excess of 20% than that for a comparable home in your neighbourhood whatever you do or spend.
  • Your estate agent can advise you as to improvements that will raise the value of your home when you sell.

Offering flexibility in financing options may encourage more prospective buyers.

  • Consider offering to pay some of the sellers completion costs or include a one-year home warranty, or other buyer incentives.
  • Your estate agent can advise about incentives for buyers

Results are poorer for sellers who attempt to sell their homes on their own and find they cannot complete the sale without the help of an estate agent.

  • Sellers who sell their home without a real estate agent often do not get the best price for their property.
  • As your home is probably your biggest asset it makes sense to take the professional advice of a qualified estate agent when you want to sell it..

Prospective buyers will feel more like the house could be theirs if the current owners are not there.

  • If you are in the house during a viewing it can make buyers feel like they are intruding.
  • They need to be able to visualize your house as their home. This can be difficult when you being around reminds them it is still your home.
  • Your estate agent will be pleased to show people around your home and will know when to leave them alone to look and talk by themselves.

If you approach the sale of your home as the buyer’s adversary, you risk losing a perfectly solid buyer for no good reason.

Both you and the buyer have the same goal: for you to sell your home and for the buyer to buy it. Work with your real estate agent to approach negotiations positively and with a win-win frame of mind.

You should reply immediately to an offer!

When a buyer makes an offer, that buyer is, at that moment in time, ready to buy your home. Moods can change, and you don’t want to lose the sale because you stalled in replying.

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