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UK homeowners are expecting house prices to rise by 4.5% over the next six months, a sign of significant confidence returning to the housing market, according to the latest research from property website Zoopla.co.uk.
This is the biggest predicted hou…

The number of new applicants seeking to rent in March is up 21% from February – a sign of strong spring bounce in demand according to Sequence Lettings.

Demand has outstriped supply as the number of available homes to rent rose only 5% with average monthly rents for March, at £704 unchanged on February.

The number of agreed new tenancies rose 13% in March and are up 19% on a year ago as ‘Generation Rent’ takes hold – London tenancies are up 12% on the month and 20% over the last year.

London rents remained flat at £1,375 but still almost twice the national average. Londoners seeking to rent undertake an average of 11.3 viewings per let property, 33% more than the country as a whole (8.5)

Stephen Nation, Head of Lettings at Sequence, owners of Barnard Marcus, William H Brown and Fox & Sons and other leading brands, comments:

“We have seen a strong seasonal uplift in demand for rented accommodation with over 12% growth in the number of new tenant applicants, viewings and agreed tenancies. However, we would expect a rise at this time of year so it is too soon to judge whether this strong demand will result in any significant rent rises in the coming months. So far this year we have seen rents remaining remarkably stable.”

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Home owners in prime Central London are currently benefitting from price growth of £383 per day, the equivalent of a return air fare to New York City or Dubai, reports property consultant Cluttons in its Residential Investment Monitor Q1 2013, pu…

Over the last 15 years the total owner occupied housing stock has increased from 16.6 million to 17.7 million, but there has been relatively little change in the composition according to new data from Nationwide.
8.2% of owner occupied properties in E…

Here are five potential problems and their simple solutions for anyone thinking of becoming a landlord, from the experts at Belvoir…
Potential problem 1:
What if I fail to find a tenant?

Simple solution 1:
Empty properties and extensive periods…

The OFT has launched a study into the “quick house sale” market and is calling for people who have used, or considered using, these businesses to contact the OFT about their experiences.

Quick house sale providers offer to buy a house or find a third party buyer very quickly, usually at a discount from the full market value.

While providers may offer a valuable service, the OFT is concerned that some practices might lead to homeowners receiving much less for their property than it is worth. Any losses could be very high.

The OFT is particularly concerned about the risks to people in financial difficulty – including those who have worked up large amounts of debt or are facing repossession. Consumers at risk may also include those who need to sell their property quickly following a relationship breakdown or the elderly, who might need money to pay for their care.

Practices that would give rise to concern include:

* Unclear fee structures, for example imposing an unexpected fee following an encouraging initial valuation, as a condition for progressing the service;
* Reducing the price offered at the last minute after someone is financially committed to the transaction;
* Making misleading claims about the value of the property or the level of discount to be applied to the sale;
* Falsely claiming to be a cash buyer;
* Inducing consumers to enter into agreements that prevent them from selling to other buyers, with severe penalties for breach of contract.

The OFT has asked over 50 quick house sale firms to provide information on their business models and practices and would welcome evidence from people with experience of this sector, including valuation experts, estate agents, debt advisors and home owners.

Cavendish Elithorn, OFT Senior Director for Goods and Consumer, said: “Businesses offering quick house sales may provide a useful service for homeowners who need to unlock cash in a hurry. However, they are often used by consumers in vulnerable situations and therefore we are concerned about the risk of consumers being misled and losing out on large sums of money.

“We want to hear from anyone who has used a quick house sale provider, whether they have had a good or bad experience with the business. We will protect the confidence of anyone who contacts us and their information will be invaluable in helping us to build up a picture of the market and establish whether we need to take action.”

Christopher Woolard, Director of Policy, Risk and Research at the Financial Conduct Authority, said: “We welcome the OFT’s market study. Consumers facing repossession of their home are in a very vulnerable position and it is important that they are not pressured into making poor decisions.

“This market study is an important piece of work that will explore current practices in the market and, where necessary, make recommendations to improve outcomes for these vulnerable consumers. We will continue to work with the OFT and others to address any concerns in this market.”

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Rental yields of 7.82% and private rental accommodation making up almost a quarter of its housing stock make Southampton the best place in England and Wales for buy to let (BTL) investors according to research from HSBC.
Of the 50 towns and cities wit…

Rising house prices over the last 15 years mean that many retirees are living in an increasingly valuable asset that has grown almost twice as fast as the average pensioner income, the Equity Release Council has found.

Analysis of the latest data from the Land Registry and Office for National Statistics (ONS) shows that house prices have grown by 91% or £109,399 in real terms since 1997, from £120,211 to £229,610.

In contrast, the average retirees’ income has risen by just 46%, equivalent to an extra £6343 in their annual budgets.

This has taken their average gross income from £13,786 to £20,129.

With the Government capping individual contributions towards the cost of long-term care at £72,000, it would take 11.4 years of putting this extra income to one side before reaching the amount retirees need to spend before they can access state support.

The instability of the property market in recent times has at least allowed retirees’ incomes to regain some ground on house prices in terms of their rate of increase. Property values have fallen by 8% in real terms over the last five years, compared with a 4% growth in retirees’ income.

However this has not been enough to rival the overall growth rate of property values over the last fifteen years.  Before the financial crisis of 2007/8, the contrast was even greater: typical house prices rose by 31% in the previous five years (vs. 18% – pensioner income) and by 107% in the previous ten years (vs. 40% – pensioner income).

Falling income from investments has meant that pensions have become increasingly important as a source of income for UK retirees.  While investment returns typically made up 16% of their income 15 years ago, this has fallen away to just 6% in 2012.  

At the same time, retirees have been more reliant on private pensions and annuities, which now account for 40% of their income, compared with 37% five years ago and just 32% fifteen years ago. Since the financial crisis, state pensions have also grown in importance and now make up 38% of retirees’ income (compared to 36% five years ago).

Nigel Waterson, Chairman of The Equity Release Council, said: “What we are seeing is a new reality emerging in terms of retirement income as people increasingly look to pensions and annuities, rather than investments, to finance their later years. However, the uncertainty surrounding many funds means that people’s property is very often their biggest and most secure financial asset, with a far greater return on their original investment.

“Particularly if they bought their homes some time ago, many will have a large amount of equity tied up in their property that can relieve the pressure on their retirement income and help with additional expenses.  In many cases, equity release can offer retirees an alternative to selling their property – one that preserves their domestic comfort as well as their attachment to the place they call home. 

“Whether choosing a lump sum or regular monthly payments, equity release customers can enjoy the relief of an extra source of retirement income, safe in the knowledge they are free to remain in their homes for the rest of their lives, if they choose to, and will never owe more than the property is worth.”

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The Council of Mortgage Lenders estimates that total gross mortgage lending increased to £11.6billion in March.

This is 9% higher than February’s gross lending figure of £10.6 billion but 8% lower than £12.6 billion in March 2012. However, this was just before the first-time buyer stamp duty holiday expired, distorting meaningful comparison.

Gross lending for the first quarter of 2013 was therefore an estimated £33.8 billion. This represents a 9% drop from the last three months of 2012 but matches the gross mortgage lending total for the first quarter of 2012.

CML chief economist Bob Pannell said: “Conditions in the housing and mortgage markets continue to show signs of improving. The improvement in funding markets over the past year, reinforced by the incremental benefits of the Funding for Lending Scheme, has been the key catalyst behind stronger housing activity.

“The Help to Buy mortgage guarantee scheme – while still embryonic as yet – holds significant firepower, and has the potential to increase activity from 2014.”

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UK households could save an average £220 every year on their energy bills, a total nationwide annual saving of £5.9billion, by improving their insulation.

Ian Rock, author of the just-published Home Insulation Manual, bases this calculation on official Department of Energy and Climate Change and Energy Saving Trust figures.

The book is subtitled How To Cut Energy Bills and Make Your Home Warm and Comfortable – a subject that the recent cold weather brings into focus.

Rock, who is accredited by the Royal Institute of Chartered Surveyors, says insulating all currently un-insulated walls and lofts in Britain’s existing housing stock would yield substantial savings.

He said: “Energy prices have rocketed by up to 50% since September 2010, and look set to continue rising for the foreseeable future. But rather than passively relying on ‘top down’ schemes, such as the Green Deal, enormous numbers of UK households have DIY capabilities – and with the right guidance should be able to carry out a wide range of thermal improvement works.

“But there’s a right way and a wrong way to insulate. What’s right for one type of property can be positively damaging for another. And until now much of the available information has been either highly sales-driven, bafflingly complex, or just plain wrong.

“Mobilising Britain’s DIY armies is the key to making millions of homes energy efficient and cheaper to run. And by cutting the cost of labour and contractors’ profit margins, payback periods can be dramatically shortened.”

The Home Insulation Manual is the first book to contain comprehensive step-by-step guidance for treating all types of walls, roofs, floors, windows and doors – and each project comes with a Haynes “hammer rating” showing the required skill levels.

As OFGEM prepare to levy substantial fines on several of the Big Six energy companies, for missing CESP insulation targets, Rock said: “There is a strong case that resources might be better spent arming millions of homeowners and tenants with practical advice on how to cut their fuel bills.”

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