According to InsideHousing, house prices are still very expensive for key workers. Huge variations in house price falls and increases mean the most affordable towns are all in the old industrial areas of the North West, North East, South Wales and central Scotland. The Halifax survey reveals the obvious point that house prices in expensive areas tend to rise faster than earnings in general and key worker earnings in particular.
84% of the people say first-time buyers believe banks do not want to lend to them, 92% say it is hard to get a mortgage and 60% say it is very hard or virtually impossible - but 77% still want to own their own home. The biggest barrier to home ownership (cited by 67%) is the size of the deposit required to get a mortgage. Three-quarters of first-time buyers agree that there are as many risks from too much regulation as too little. In case you find it hard to pay mortgage, we guarantee to buy your house only within thirty days.
According to PropertyWire, Halifax Housing Market confidence tracker says that prices are rather expected to rise than fall over the next year. The survey highlights concerns among consumers over the uncertain outlook for the UK economy. Just over a quarter, 26%, expect their personal financial circumstances to worsen over the next few months with a further 54% anticipating no improvement.
According to PropertyWire, June is predicted to be a frenetic month for prime property in London as interest in both the sales and lettings market from buyers in the Middle East, Russia, France and Italy continues. There is an increasing number of foreign nationals coming to purchase or rent properties in London during May because of the continued weakness of Sterling, the expected continuation of capital growth and ever increasing rental yields.
According to InsideHousing, house sales in the last month have risen 10.6 per cent. The report suggests that the improvement in sales volumes is largely the result of lower prices and greater realism by sellers over achievable pricing levels. Average prices have slipped back by 1 per cent over the first half of the year, and average prices today are 3.9 per cent lower than at the same time last year.
The Housing Voice campaign has been set up to highlight the need for more affordable housing. 71 per cent of people do not think the government is giving enough attention to affordable housing. Lord Whitty, Chair of the campaign, said: 'Affordable housing has almost crept up on us as an issue but it is time to give it the attention it deserves - and the public quite rightly expect '.
Investment in affordable housing in London is vital for the economy of both the capital and the UK as a whole, a report has found, says InsideHousing. The study, from the London School of Economics and Political Science, argues that without London contribution, neither the national pledge of 150,000 affordable homes during this parliament nor longer term housing objectives is achievable.
According To InsideHousing, Housing providers must convince government of the economic case for investing in affordable homes rather than focusing on need, Shelter head of policy has said. Toby Lloyd said the sector needs to come up with arguments that this government wants to listen to. He further said that we have to accept fundamentally the government does not care. The report produces by LSE for the G15 group makes the economic case for investing into affordable housing.
Phillip Blond, director of think tank Respublica, has said that housing associations should help their tenants to improve their lives through gaining skills and assets, through the government idea of the Big Society. Our social housing is trapping people rather than facilitating them to break out. Many MPs see housing associations as not giving a damn and that is worrying. He also suggested that larger associations should consider breaking up to deliver a more localised service.
Applications for fixed rate mortgages dominated Countrywide's Top 10 Most Popular Mortgages, with all ten being fixed rate products requiring an average deposit of 12% at an average rate of 5.46%. Overall, remortgage applications fell for the third consecutive month, making up 23% of all mortgage applications in May. Countrywide has also reported that sales activities are muted, the number of sales agreed in May was up 2.3% in May compared with April, a very quiet month, and a decrease of 10% compared with May last year. Grenville Turner, chief executive, stated more reasonable sellers were successful.
According to EstateAgentToday, the house sales decreased by 0.4 % in May as compared to April this year. The average house price in England and Wales now stands at £161,823, according to the latest Land Registry figures. Overall, house prices are down 2.2% over the year, the largest annual decrease since October 2009. But in London they are up by 2.9%. For the three months from December 2010 to March, the monthly transaction figure was 44,314 a drop from the average of 52,060 per month for the same period a month earlier.
A possible rise in interest rates could affect the number of property repossessions occurring in the UK, according to one analyst says Zoopla. Ray Boulger, senior technical manager at John Charcol, said it is clear that the rate of repossessions occurring in the UK is dependent on changes to the interest rate, with the Bank of England effectively holding the cards. He added that he does not believe a slight increase in repossessions would be "particularly surprising" but the link to interest rates would certainly be evident if it did.
According to EstateAgentToday, the number of estate agents should be culled hard and they should stop charging percentage-based commissions. Apparently, in parts of London, they only need to sell one house a year to keep themselves in Armani suits and Gucci loafers, says The Guardian. "Property price rises of 300% or more in the last 20 years mean they earn exceptional profits" he added. Financial advisers now have to move over to a fee-based model, rather than charge a sales commission on products such as mortgages. Financial regulator should ban commission in estate agencies, he further said.
The economic downturn affected people's enthusiasm for home improvement and their ability to fork out for it, and the effects are continuing to be felt, one expert has stated, according to Zoopla. Andrew Leech, director of the National Home Improvement Council, said that people have "drawn in their wings" as far as making large-scale property improvements are concerned. He added that those who wish to alter their homes should also bear in mind the effect that any changes may have on their home insurance policy. A survey by Gocompare already shows that 32% have restrained themselves from house alterations.
UK property investors can no longer afford to buy a home and sit back while it gains value, according to Peter Mindenhall, researcher at IPINGlobal.com. He said that the current state of the market means investors have to be more active than ever if they are to make good profits. He elaborated: "The days of 'just buying a property and watching it rise in value' are over for the time being". Also, he said that property has never been sustainable as low amount of sales can occur within localised markets.
Concerns among the UK public that home ownership will remain out of reach for the foreseeable future are unsurprising, one specialist has commented, according to Zoopla. Paul Holmes, chief executive of Firstrung, said he is not surprised by moneysupermarket figures showing that 38 is now the average age at which Brits expect to be able to buy their first property. He said that people's pessimism mainly lied in high house prices. He noted that, if the average price of a property was somewhere in the region of 100,000 then pessimism would "disappear in a heartbeat".
Not every UK property owner should be able to access a mortgage, according to Catherine Hearnden, director at MyMortgageDirect. She believes that owning a home will always be an increasing demand and satisfying everyone's demands is not applicable. She said that she does not believe owning a house is a right. In many countries in Europe and around the world, no one sees it as a right; they see it as an 'aspiration' she pointed out. She said everyone's demand cannot be satisfied as everyone does not afford it.
Dianne Paterson, property partner at Russel + Aitken, made the prediction after a new report by the Bank of Scotland showed the cost of owning and running a home in Scotland has risen to its highest level since 2008. She commented that it may initially seem "surprising" that there has been a significant drop in mortgage payments in the last three years, but this has been "largely offset" by increases in other household bills. The figures showed that, in the past 12 months, the average annual cost associated with owning and running a house rose by 1.4 per cent.
According to Zoopla, Ed Stansfield, property economist at Capital Economics, said that some householders need to prepare for mortgage repayments to rise in the months ahead. He noted that he does not envisage interest rates rising in the very near future, but urged homeowners to be ready for it when they do. He said the present mortgage affordability will not continue forever and interest rate might increase. He commented on a report that asked the Bank of England to keep base rate at 0.5% until the third quarter of this year to make the economy stable.
House prices fell at their fastest annual rate for 18 months during April as weak consumer confidence caused potential buyers to stay away from the property market. . The average cost of a home dropped 1.4pc during the month to stand at £160,395. Halifax blamed the slide on weak consumer confidence in the face of economic uncertainty, which it said was constraining demand, putting downward pressure on prices. Howard Archer, chief UK and European economist at IHS Global Insight, was less optimistic and stated that house prices will further fall by 5 to 7 pc in the near future.
According to Telegraph.co.uk, house prices fell at their fastest annual rate for 19 months during May as buyers continued to stay away from the market. Martin Ellis, Halifax housing economist, said: "Confidence is weak as a result of uncertainty about the economic and employment outlook. These factors are probably constraining housing demand and applying some downward pressure on prices." The Bank of England reported a 4 per cent drop in the number of mortgages approved. Howard Archer, chief UK and European economist at IHS Global Insight, said: "prices will fall by around 5 per cent to 8 per cent from current levels depending on which measure you take."
According to telegraph.co.uk, during 2010, 36,000 home owners were repossessed, the lowest number recorded since 2008. However, experts gave warning that the repossessions were likely to climb this year. The Bank of England left interest rates at their record level of 0.5 per cent for the 23rd consecutive month. Howard Archer, chief UK economist at IHS Global Insight said any rise in interest rates would be liable to send a significant number of financially stretched people over the edge. The CML predicts that 40,000 homes will be repossessed during this year.
More than half of Britons who own a second home abroad are considering selling up during 2011 due to falling rental income and weakness of sterling, a survey has revealed according to Telegraph. More than a third of people who let out their second property said they had suffered from a fall in occupancy rates and rental income during 2010. At the same time, many people with properties in countries such as Spain, Ireland or Greece have also seen the value of their home fall.
Experts predict that property values will plunge by 5 to 10 per cent in 2011 following a period of declining prices since the summer. Ian McCafferty, chief economist of the CBI employers body, said sales would remain depressed by tight mortgage conditions, high prices relative to earnings and fragile consumer confidence. The group expects house prices to fall by 2 per cent during 2011, due to weak demand and the ongoing problems in the mortgage market. Mike Dicks, of Barclays Wealth, said: "Debt deflation can kill off a recovery, or keep it from gathering strength in the normal fashion."
According to the telegraph, more than seven million home owners are at risk of rising interest rates, the Bank of England warns today. In its Financial Stability Report, the Bank says that two thirds of borrowers are now on floating interest rate deals and the proportion is rising. More could find themselves unable to afford their repayments, the Bank report warns. The Bank of England is under pressure to increase the Bank Rate from its historically low level of just 0.5 per cent amid a jump in inflation.
According to telegraph, experts have forecasted that sellers will continue to drop their asking prices next year with the national average falling up to 5 percent. It is found that sellers in December cut asking prices by 3 per cent (£6,969). Falling house prices have been blamed on a "mortgage drought" as potential buyers find it difficult to secure an affordable mortgage from banks. Rightmove said ''bullish pricing'' was a characteristic of the market, but many sellers would be disappointed so prices need to realistic.
House prices resumed their downward trend during April as the property market remained volatile, figures showed in telegraph.co.uk. The sharp fall came as the Bank of England reported weaker-than-expected figures for mortgage and consumer lending. Robert Gardner, Nationwide's chief economist, said that there was little evidence to suggest that house price falls would accelerate in the coming months, despite the fragile state of the economy. The latest monthly drop left house prices 1.3pc lower than they were in April 2010, the biggest year-on-year decline since January.
House prices in the UK fell last quarter, according to the new Halifax House Price Index, with the average cost of buying a home 0.5 per cent lower than in the first three months of the year, says Zoopla. This represents the smallest quarterly fall since the second quarter of last year, with overall prices in June 3.5 per cent lower than at the same point in 2010. According to the report, lower interest rates have also contributed towards an improvement in affordability, with greater interest in mortgages and the take-up of such products seen in the last three months.
House prices in Scotland are unlikely to rise in the short term, though they may do so in the long run, according to one industry expert says Zoopla. Dianne Paterson commented that it may initially seem "surprising" that there been a significant drop in mortgage payments in the last three years, but this has been "largely offset" by increases in other household bills. Commenting on the overall market, Ms Paterson said it is "unlikely" that average house prices will rise in the short term. The average annual cost associated with owning and running a house rose by 1.4 %.
House prices in East London have not received a golden glow from the Olympics effect. They have gone up by an average of nearly £60,000 since London was awarded the Olympic Games in July 2005. The average house price in the East End has gone from £208,148 in July 2005 to £266,730 in May 2011 the equivalent of a weekly increase of £192. But London prices rose from £266,730 to £418,487. In three of the 14 postal districts, house prices have risen by over £100,000. But in Stratford home of the Olympic Stadium prices have gone up by only 13%.
The Nationwide monthly house price index published today (Friday July 29) increased by 0.2% in July meaning that the price of a typical home is £168,731, some 0.4% lower than a year ago. Robert Gardner, Nationwide's chief economist said that sluggish demand for homes, combined with only a gradual rise in the supply of available properties, has helped to keep property prices relatively stable in the last 12 months. Only 204,000 housing transactions were recorded in the second quarter of 2011. Figures available show that during April 2011, the number of completed house sales in England decreased by 7%.
The cost of buying a UK property has a direct effect on the living standards on the country's population, it has been claimed. According to Martin Bamford, chartered financial planner and managing director of Informed Choice, the cost of housing has a "big impact" on living standards in different parts of the country. Where housing is cheaper, associated mortgage costs will also be lower. He also noted that people can reduce their living costs at the moment. A mistake many people make is to allow their living costs to increase each year in line with pay rises he said.
The cost of buying London property is dependent on the prices in the international market. According to Hugh Best, head of investment management at London Central Portfolio, there is unlikely to be a major increase in the level of supply coming to the prime London property market in the coming months. He noted that stock is still very tight and many people are as such "sitting on their hands". The report by Hometrack showed that property asking prices in England and Wales fell by 0.1 per cent in July.
People browsing property for sale at the moment may not necessarily need to use an estate agent when purchasing a home, one expert on the subject has commented. According to Vanish Patel, an experienced property investor from London, property investors need to realise that it is not essential to utilise the services of an estate agent, even though they can often offer valuable assistance. He said that the main thing when buying a new home is connecting with the seller to increase the chances of the sale going through and any kind of reduction the individual may be seeking.
According to PropertyWire, UK's Land Registry is warning people not to buy through land banking schemes as it is revealed that victims' losses have reached £200 million. By publishing this updated version, we aim to improve public awareness of the risks of investing in land banking scheme said Jane Allen from Land Registry's Corporate Legal Services. It adds that those operating land banking schemes often fake that they have lending institutions as their partners. People are made to believe that planning permission has already been granted. Land Registry estate plan approvals are produced that play no part in land development.
Joan Collins, the British actress, has been forced to sell one of her four homes due to the credit crunch according to the Telegraph. The former Dynasty star, who also has homes in Los Angeles, London and the south of France, admitted the recession had taken its toll on her personal fortune. On the other hand, the figures given by the same magazine state that inflation is seen to be running the highest in the last 30 months and is now expected to touch 5% in near future.
The size of the deposits required to purchase a UK property at the moment is still too high, according to one expert highlights Zoopla. Paul Hearnden, a director at MyMortgageDirect, said the deposit that first-time buyers need to put down is "too big", mainly due to banks protecting their balance sheets. He said a big factor responsible for the lack of borrowing is insolvency issues and the rules that have come in. He said owing to the big size mortgages vast majority of first time buyers are being helped by their parents to own a house.
Property owners north of other border are currently very keen to continue moving up the property ladder, but a lack of mortgage finance is affecting their plans, it has been claimed say Zoopla. The average price of residential property in Scotland increased by 0.4 per cent from April to June 2011, compared with the same period previous year, but the total volume of sales across Scotland registered during the quarter was 16,947 - a decrease of 10.8 per cent on the same quarter in 2010. The sellers and buyers continue to depend on each other in the tough market state.
Discipline needs to be exhibited by people saving for a new home, as those who are frivolous with their spending will struggle to achieve their goal, one specialist has commented, says Zoopla. According to Matt Griffith, spokesman for PricedOut, it is particularly important to be dedicated when saving, as the days of 100 per cent mortgages are long gone, so the bigger a deposit is, the better. Mr Griffith noted that savers need to set aside regular contributions of "significant amounts", making discipline all the more important.