Mortgage rates have reached a record low; research carried out by the Halifax shows that the mortgage rate for new borrowers has dropped to an average of 3.63% by the end of 2011 from 5.75% in 2008 and the average house price dropped 11% in the same period. This should be good news for first-time buyers, but Rightmove’s First-time Buyer Report, published at the beginning of this month, suggests that this isn’t the case. Many first-time buyers find themselves excluded from the property market by extremely high deposits, high rental rates and soaring travel costs.
First Time Buyers play an essential role in the UK property market, by starting off the chains that allow home-owners to move up the property ladder. Research carried out by National Homebuyers suggests that increasingly, the lack of first time buyers in the market has a direct impact on those who are further up the chain. First Time Sellers are unable to trade up and this prevents movement for those further up the chain as well. Research has found that the number of first-time buyers in the UK remains historically low and way below the 40% level necessary for a healthier and active property market.
However, it isn’t all doom and gloom for the UK’s homeowners. National Homebuyers are being inundated by sellers who can’t sell and are assisting and helping people by purchasing property quickly they are bringing back movement to the property market. A recent survey carried out by National Homebuyers suggests that a large proportion of people who approach National Homebuyers, do so not for financial reasons, but because they want to move and simply cannot find a buyer for their property. Until the banks start to lend more freely to first time buyers, companies like National Homebuyers will continue to prop up the UK’s property market and keep Britain’s homeowners moving onwards and upwards, by guaranteeing to purchase any property in the UK.
Author: Helen Roberts | Date: 17/2/12
Sales in London have been up. This means that there is a degree of optimism in the London area, but this does not translate throughout the UK. Rather, sales of houses and flats in Ealing are actually down from the last couple of months, according to Land Registry information. The Land Registry information for Ealing is also showing that the prices achieved have gone down. Home buyers can take this as good news. Whenever property prices go down, it makes a home more affordable to them; however, the seller is going to suffer.
The downside in Ealing is that five years ago there were plenty of properties for sale. Now that it is 2012 it seems that most homeowners are unwilling to sell in the hopes that the market will get better and they can get a better price. They also know that selling now may not be a good idea if the mortgage is in a negative equity situation. Any negative equity situation will mean that the value is too far below the mortgage for the seller to get what they need to pay the mortgage off. Those who are not desperate to sell will wait until it is possible to sell the home for a better market value.
Author: Chris Scannell | Date: 18/05/2012
]]>Many businesses are unwilling to develop new areas or refurbish property, even if that would mean increasing the potential of office lettings. Rather, everyone is on hold to see what will happen in the rest of Europe as to whether buying new office space will be worthwhile or create more issues. There are also concerns with the changes coming in 2013. Many companies that currently have leases will see their contracts end in 2013. It will mean the time has come for companies to decide if they will stay in the same building, move on, or streamline their companies into smaller locations. Some businesses may close down other offices and move personnel into one place in order to save on the costs of running businesses. Most of the companies are waiting to see what happens in the coming year and whether the whole of Europe can turn around. Even with the Olympic Games coming to London, there is concern.
]]>East England in general seems to have an issue with dipping housing prices. The only area that seems to be surviving is Cambridge. According to John Pocock, the Cambridge area is actually surviving the recent market changes towards lower prices. This does not mean that housing prices are not falling or that things are not quite as serious in the Cambridge area, but in comparison to other markets throughout England and Eastern England things are looking a little better. The trends, however, are likely to continue with a downturn on housing values yet again, as many home owners are still struggling to survive with their need to sell their home to pay off the mortgage before default issues arise.
]]>Some banks believe that the worst is behind them and that they can begin to offer a better financial future. While this may be true, there are still issues ahead for the property market. Many current homeowners are struggling with their homes. They are unable to sell their house to get rid of a problematic mortgage. They are also unable to find a bank willing to offer refinancing to remedy any high interest loan they may be in. Whenever housing values are in a negative equity situation, the individuals that suffer the most are the homeowners. A homeowner is unable to refinance unless the loan is below or at the 100% value mark, meaning a home that has a loan of £145,000 pounds with a value of £99,000 is going to find it difficult to sell or arrange refinancing in the current market.
]]>Home buyers have the advantage in this market. Estate agents have raised a few concerns about the market with regards to first time home buyers, in that they may hold off making a purchase since there is no concession on the table anymore. In the last month, as the survey was being conducted, housing prices did rise a little in certain populated areas; however, some housing sales decreased. Estate agents are right to be a little worried, since they make commissions on the sales. When the sales dip it makes it tougher for them to earn a living. For the moment quick sales at lower prices are going to be the best choices for property buyers.
]]>The UK has suffered one of the larger downslides in terms of luxury homes, with the new stamp duty being levied on homes that cost over £2 million. It has created a situation where property buyers from other countries are looking at the properties available in the UK with a different eye. They want to make certain that the property is worth paying the new stamp duty for, and if it is not then they have avoided the purchase.
Investors are also wary of the economy, despite recent improvements seen. There is still the thought that a second recession can hit, and hit worse than the first, even with some of the economic helping hands. The Olympics in London will certainly help to stimulate the UK economy, but it could create a balloon effect. This means that 2012 could see much improvement, but that next year it could decline again. The point is that home values are falling because the demand is falling. The investors are scared and are waiting to see what the economy does before they willingly take on the new stamp duty concept that rolled out a month ago. Property buyers are also reluctant in non-luxury home fields.
]]>The information said that Rotherham had the largest number of discounted properties, but that other areas are also looking up. It is hard to know what the truth is until you realise that most of the findings are specific to an area. In London, for example, housing prices have stopped decreasing. Furthermore, investors have been buying properties in London. Places such as Edinburgh, though, are seeing a steady hold on current values, with the potential for the prices to drop if a quick sale is needed.
In Rotherham, 34% of the homes and properties on sale are reduced. This is a smaller number than the 37% found in February. The amount being taken off the housing value is usually around £19,000, though the amount of the reduction is also beginning to decrease. Homes with reduced prices dropped by about 7.5%, which is £500 less than in the past. Demand is remaining strong in the UK, although certain areas are seeing less demand than others. When looking at the whole picture, it does seem that the market is getting better; however, this does not mean that all areas are seeing the same results.
]]>If you planned to sign your home off to a loved one upon your death, this person will lose his or her right to take over the home. In some instances, the relative may receive some money from the property once it is sold. Most times this occurs when the home is sold for more than what the borrower took out on the loan. The reversion companies that offer equity release provide you with some choices. The home income plans, interest-only options are something you will need to consider if you are thinking about using these services.
Research the companies first before you make any arrangements. The home income plans is the best options for seniors who want to invest their money into annuities. Annuities become pensions or income that is distributed to the senior for the remaining of his or her life. In this instance, you risk your home, but you pay nothing on the loan until you die. Upon your death, the reversion company sells your home at market value and they recover the loan amount. If any positive equity is remaining your family, members reap the benefits. On the other hand, if there is no equity money then your family gets nothing. In other words, the reversion companies get their money back by selling your home upon your death. The older you are the more money you can get from the company and if you choose to invest in annuities, you receive cash in lump sums, or monthly.
The disadvantage is you may lose or suffer reduction of your state income, such as SSI or Social Security income. For the most part the reversion companies will only offer you 30 to 50 percent of the current market value of your home. If your home is worth $300,000 you only get 30 to 50 percent of its worth through the reversion company. You get quick cash though, so if you do not intend to give your home as an inherit to your grandchildren, or children the equity release may provide you with quick cash. If you are older though, you may lose on equity release.
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