49% of Property Purchasers are First Time Buyers, Tips For Extending Your Home, Plus More

49% of Property Purchasers are First Time Buyers

 

 

It appears that the continuing rise in house prices and numerous reports on affordability have not deterred first-time buyers from entering the market.

According to new research from Connells, 49% of all property purchase valuations carried out in July were made on behalf of first-time buyers, a figure which has risen 6% on the five-year average.

The latest Survey and Valuation report from Connells detailed a considerable rise in transactions from first-time buyers as it showed 36,000 loans taken out in the month of June, this is the highest number seen from the demographic in 11 years with a huge 22% month-on-month rise and 6% year-on-year.

Corporate Services Director, John Bagshaw, commented on the findings of the report, stating that “Demand from first-time buyers is supporting the housing market at the moment. People are eager to get on the property ladder, with record high employment and competitive mortgage rates. But this doesn’t mean it’s an easy task to get a foothold in the market. Economic conditions are still tough.”

Bagshaw suggests that while many first time buyers are eager to get on the housing ladder, the market can still be tough and feels they should receive further assistance; “With the value of a typical property rising &10,000 in a year, first-time buyers still need help. Perhaps they could be given an exemption from stamp duty”

This recent report also shows that there has been a small drop in new landlords entering the market, and suggests that “Government policies, including the stamp-duty surcharge and reduction in buy-to-let mortgage relief” have most likely made potential new property investors slightly hesitant to get involved in the buy to let market.

“People are still investing in the buy to let sector, but they’re typically existing landlords looking to expand their portfolio and increase profits to offset increasing tax bills. But the stamp duty surcharge, combined with the reduction in buy to let mortgage tax relief is potentially dissuading new small scale, amateur landlords from entering the market,” Bagshaw added.

The property market has also seen a rise in remortgaging to 36%, 10% higher than the five-year average as consumers are securing more long-term fixed rate deals as they take advantage of the competition amongst lenders when refinancing their home.

New Builds Being Started at Highest Rate Since 2008

 

 

The demand for housing continues to grow, as many have reported a shortage of supply for affordable housing in the UK. However, recent data from the Department for Communities and Local Government (DCLG) has shown new builds are being started at the highest rate in 9 years.

According to the DCLG, a total of 164,960 new homes were started in the first 6 months of 2017, a 13% increase on the number just a year ago and the largest rolling annual since 2008. 41,180 of these new builds began in the 2nd quarter of 2017 which is a 10% increase on the same period last year.

In addition to this, just over 153,000 new homes have been completed between January and June of this year, an 11% increase when compared to figures from last year. While the number of new homes being built still hasn’t reached the level seen since before the financial crisis, they are still at their highest ever seen since the recession hit.

When looking at the regional data, it appears that Gloucestershire, South Derbyshire, and South Norfolk have shown the highest number of new home starts in 2017 and the areas of Croydon, Kent and Gloucestershire show the highest number of completions in the same period.

These figures should come as no surprise as in last year’s autumn statement, the government announced a &1.4 billion increase in the budget for the affordable housing programme, taking the total to budget to &7.1 billion.

Housing and Planning Minister, Alok Sharma, spoke on the statistics released from the DCLG, he said “Building more homes is an absolute priority for this Government. The figures are proof that we are getting Britain building again, with new housing starts reaching record levels since 2009.

“It’s vital we maintain this momentum to deliver more quality homes in the places that people want to live. Our housing white paper set out an ambitious package of long term reforms to do just that.”

How Much are Parents Willing to Pay to Live Near a Good School?

 

 

British parents are prepared to do whatever it takes to get their children into a new school, including moving into a new home, according to a recent study by Santander.

One in four parents with school age children said they had either bought a new home or rented one in order to be in their desired school’s catchment area, with an additional 20% saying they were forced to change jobs. 44% of those asked said they would leave the area once their child had finished school.

Anyone who has tried to register their child for a new school will know how competitive it can be if the school has a good OFSTED rating and is well-regarded in your local area. Parents are willing to do whatever it takes to secure their child a spot.

Whilst this might seem like a big step to take – especially in terms of cost – the only other option is educating your child privately, which carries a considerably higher price tag.

The demand for property within the catchment areas of sought-after schools means existing homeowners and those who are only choosing to move to the area temporarily can charge a significant premium should they decide to sell.

Half of those who made the move said they sold their home and purchased a new one, 30% said they bought a second home and 19% chose to rent.

The average premium added to the price of a London property in a good catchment area was a shocking &81,800, followed by those in the south east and east which both commanded just under &29,000.

Northern Ireland is the cheapest location for making a catchment move, with those properties worth &6,400, while parents in Wales paid an extra &12,100 and those in Yorkshire paid &15,800.

Everything You Need to Know About Extending Your Home

 

 

If you're a homeowner then there is a good chance at some point you've considered extending your home. The fact is, moving home can be quite costly, especially when you throw stamp duty into the mix and sometimes it can be more cost effective to extend than it is to move.

There are many things to consider when extending a home and it can be quite a long process, but it doesn’t have to be stressful, you just need to ask yourself the right questions before you begin. With this is in mind, we’ve put together a quick guide on what you need to keep in mind before the construction starts.

Confirm your budget
One of the most important aspects to consider before you start this process is the budget. You need to decide as soon as possible, how much you are willing to spend and find out what type of extension that budget will get you. Be sure to remember that just like most house projects there will always be additional costs and hidden extras, so note down everything from the cost of materials to the planning permission and builder’s fees.

It is also worth thinking about how much value an extension will add to the current value of the home. If you have no plans to move out of your current home, then this may be less of a concern, but you should keep in mind how you will affect the home’s value if you were to sell in the future.

Decide on your design
Once you’ve finalised your budget, you will now need to make a decision on the type of extension you’d prefer. The two most popular choices for the majority of homeowners are the conservatory and the loft conversion, as extra bedrooms and living space can really add to a home’s value.

After figuring out the type of extension you’re looking to build, you should then think about the design of your new space. If you have plans for a new bedroom, now is your chance to plan the best possible layout to accommodate the type of bedroom you’re looking for. Maybe you’re looking to build a child’s room with plenty of floor space, maybe you’re considering something suited more for adults with built in wardrobes, but whatever you’re looking for, now is time to work out the most suitable layout for your needs.

Find out about the limitations of your area
Depending on the location, there could be some limitations to the type of work you can carry out on your home. It’s worth checking if you live in a conservation area, these are typically located in more historic areas, meaning if the work on your home is not deemed to enhance or improve what is currently there, your design may be under scrutiny or you may not receive permission to begin your work at all.

Regardless of whether you live in a historic area or not, most areas will require planning permission before you can move ahead with the work on your home and it can take up to 8 weeks for your application to be approved, so it’s best to get organised as early as possible.

Research the regulations
In addition to needing permission to begin work on your home, you will also need to ensure that the work carried out meets any current building regulations. Take some time to properly research all the necessary regulations that apply to your extension, these include doors, windows, electrics, drainage, etc. so you can be positive that everything meets the legal standards.

Hire a professional
Once you have your budget confirmed, you’ve finalised your design and you received permission to get things started, you now need to hire a professional.

It can be tempting to try and save some money by taking the DIY approach and some of you may have experience with similar types of work, but unless you are a licensed professional, you shouldn’t try to tackle tasks such as electrics and plumbing by yourself. This is especially important when it comes to structural work, not only will this ensure it meets the necessary standards, but it will also provide you with peace of mind knowing that your extension won’t unexpectedly fall apart a few years down the line.