Tuesday 30 August 2011

BUYING IS CHEAPER THAN RENTING, SAYS HALIFAX


The latest Halifax Buying vs. Renting Review, which tracks changes in the cost of buying and renting a typical two bedroom flat for a first-time buyer across the UK over the last three years, shows that the cost of buying a home for first-time buyers is more than £100 a month lower than renting.
The cost of buying for a first-time buyer has fallen by 2% over the past year and average rental costs have risen by 6%.
In 2008, the average cost of buying was £212 more than the average rent paid. But there has subsequently been a decline in buying costs for a first-time-buyer due partly to the fall in mortgage rates and house prices.
The average mortgage rate for a new borrower is now 3.84%, a fall of 207 points from an average of 5.91% in mid 2008, while the average first-time house price has also fallen by 14% to £124,378 over the same period.
The average monthly costs of buying a two bedroom flat in the UK for a first-time buyer totalled £567 in July 2011, 16% lower than the £677 a month typical rent paid on the same type of property.
Average buying costs include mortgage payments, income lost by funding a deposit rather than saving and spending on household maintenance and repair and insurance costs.
“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,” said Halifax housing economist Suren Thiru.

Tuesday 23 August 2011

SPACIOUS EXTENDED HOME IN SOUGHT-AFTER LOCATION




A deceptively spacious home on Forest Road, Fishponds, has come on to the market with the local office of Besley Hill Estate Agents.
“There is always a demand for properties in this location because they are close to all the shops and other amenities Fishponds has to offer,” says senior branch manager Mark Symonds.
Number 194 Forest Road, a deceptively spacious four-bedroom three-storey mid-terraced family home, has been developed and extended by the current owners to a high standard of specification.
A particular feature is the roof conversion to form a master bedroom with en-suite shower room. There are three further bedrooms at first-floor level together with a large bathroom with independent shower and feature claw-leg bath.
On the ground floor, the property has two separate receptions, a conservatory and stylish fitted kitchen. Further benefits are a garden and double garage/workshop.
Priced at £205,000, this beautifully decorated home will suit a range of buyers, including a growing family and professionals.
For further details and to view this attractive property, contact Mark Symonds at Besley Hill Estate Agents, 764 Fishponds Road, Fishponds, Bristol BS16 3UA, tel 0117 965 3162, email fishponds@besleyhill.co.uk

Monday 22 August 2011

HOUSE PRICES SET TO RISE BY 14%


House prices are expected to rise by 14% over the next four years, according to the influential think-tank, the Centre for Economics and Business Research.
The Centre forecasts that the value of the average British home, currently £176,000, will increase to an all-time high of £200,700 in 2015 with hikes of 2.4% in 2012, 3.4% in 2013, 3.6% in 2014 and 4% in 2015.
It says the ongoing shortage of housing, a gradual increase in the availability of mortgage finance and a prolonged period of loose monetary policy will cause the upsurge in house prices.
House building will remain depressed for the next four years and this, combined with population growth, will result in an increasing shortage of accommodation.
The CEBR says this is likely to elevate house prices, making home ownership less affordable and placing further pressure on the rental market. Furthermore, the base rate is unlikely to rise above 2% before 2015.
Shehan Mohamed, economist at CEBR, said: “We forecast an average of 110,000 new homes to be built every year over the medium term.
“This is significantly lower than the 225,000 homes that need to be created every year to keep pace with current housing needs, population growth and the trend towards reduced household sizes.”
Douglas McWilliams, chief executive of CEBR, said: “We do not expect a house price boom, but the housing shortage is likely to push prices gently upwards.
“By 2015, our updated forecast price for the average house is £200,700. The previous peak level was £191,200 in 2007.”

Tuesday 16 August 2011

LANDLORDS' CONFIDENCE IN BUY-TO-LET MARKET GROWS




Optimism has grown among landlords for their buy-to-let prospects, according to a new report.

Almost a quarter of landlords are feeling more optimistic about the prospects for their property portfolios, rental income and yields, Paragon Mortgage’s Q2 Private Rented Sector Trends Report reveals.

They are encouraged by the availability of buy-to-let finance, with 22% in the second quarter of this year saying that it was reasonably available, compared with 17% in the first quarter.

Some 23% of landlords feel more optimistic than was the case in Q1, particularly if they are professional landlords, 30% stating they were more optimistic, compared with 15% of smaller-scale landlords.

On average, landlords expect to have 13.1 residential properties in their portfolios in a year’s time, compared with 12.6 properties currently - the first time in two years that landlords have predicted an increase in the number of properties in their portfolios.

Nearly three out of ten landlords (29%) have increased rents during the second quarter, the majority of whom reported an increase of between 2% and 4%, states the report.

Landlords are also more optimistic about the net value of their portfolios, with a growing proportion expecting an increase in value (14% in Q2 against 13% in Q1), and fewer are forecasting declining values (12% Q2 vs 19% Q1). The majority of landlords (74%) expect net values to remain the same.

The report also shows a shift in the types of property that landlords are looking to add to their portfolios during the third quarter. Of those looking to purchase during the quarter, terrace houses are the most popular choice, with more than half of landlords saying they expect to buy this type of property.

There have also been increases in the popularity of semi-detached houses (up from 28% to 41%) and detached (up from 9% to 22%).

Commenting on the report, Adam Offer, managing director of Besley Hill, the South West’s biggest network of independent estate agents, says: “The trend shown by this report is consistent with the increasing number of buy-to-let deals being arranged for landlords by the Mortgage Advice Bureau (MAB) representatives at our offices throughout Bristol and Gloucestershire.”

Monday 8 August 2011

HOUSE PRICES ON THE RISE


Further signs of an improvement in the UK house market have emerged after figures from both the Halifax and Nationwide showed prices rose in July.
The average price of house rose to £168,731, up 0.2 per cent from the previous month, according to Nationwide, compared with a drop of 1.1 per cent a month ago.
Data from the Halifax showed prices rose by 0.3 per cent in July, with prices on a quarter-to-quarter basis up for the first time in 14 months, following a 0.5 per cent rise in the three months to July.
With little change in either the level of house sales or the number of properties on the market since late 2010, both the Halifax and Nationwide said the steady market conditions have helped to stabilise house prices.
Nationwide reported that house prices have risen or remained unchanged for six of the seven months so far in 2011, with the highest increase being 0.6 per cent in February.

Thursday 4 August 2011

RETURN OF SELLERS BOOSTS HOUSING MARKET CONFIDENCE


The number of people selling their home rose in June to its highest level in more than two years, according to the National Association of Estate Agents (NAEA).

The average number of properties for sale per branch increased from 68 in May to 74 in June. This is the highest figure since April 2009, which saw an average of 76 homes for sale per branch.

The number of sales agreed also increased, from an average of eight per branch to nine. This suggests that the increase in sellers reflected confidence in the market rather than a glut of unsold properties.

The percentage of sales to First Time Buyers (FTBs) decreased slightly from 24 per cent in May to 20 per cent in June.

President of the NAEA Wendy Evans-Scott said: "The leap in available housing stock suggests increased confidence amongst sellers. They think there is a much better chance that their home will sell. For house-hunters, this is welcome news as it offers a wider choice of properties to pick from.

"However, efforts are still required to assist those looking to get onto the housing ladder if we are to see buyer activity match that on the sale side."