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Posts Tagged ‘Property market’

Data Reveals Small Decline in Property Prices

Wednesday, February 1st, 2012

An analysis of indices has shown that UK property prices were almost unchanged throughout 2011. It has been revealed that December saw the biggest monthly fall in prices last year as they dropped by 1%.

House Price Watch

Furthermore, the House Price Watch analysis of data from CLG, LSL Acadametrics, Halifax, Nationwide and Rightmove has portrayed that property prices, over the entire year, were almost unaltered with annual growth for 2011 being recorded at -0.1%. So, whilst less people may have been acquiring a new property insurance quote due to fewer people buying a home, actual property prices did not vary much at all it seems.

It has now been reported that the average price of a home in the UK is currently £195,166. This is around 9.6% lower than at the peak of the property market in October 2007 when the average price was as high as £215,089. That was however a time when the majority of people had more disposal income.

Rate of Growth

Meanwhile, this latest report has revealed the annualised rate of growth for each month’s data. Data is also regulated over three and six month periods, which provides a less volatile representation of market trends than individual monthly cut-outs. The annualised rates at three and six months show growth to be at -4.9% and -3.7% respectively.

Stuart Law, Chief Executive of Assetz, has been commenting on the House Price Watch data: “Property prices were relatively flat in 2011, recording a nominal annual price fall of 0.1% in December which translates as £268 in monetary terms. This lack of growth can be attributed to poorer job prospects, with unemployment now at its highest level since 1996 according to the ONS, and the ongoing Eurozone crisis which is impacting confidence and making lenders more cautious.”

Investors Returning

Mr Law went on to add that he expects a “Spring bounce” to occur and that London along with other major towns and cities have remained strong and on an upward curve despite the overall stagnation.

He also stated that the competitive nature of the mortgage market has resulted in more mortgage products becoming available on better terms.

It is expected that more investors will be, and already are, returning to the property market in a bid to take advantage of reduced prices. However, it is true that some landlords have seen minimal capital growth on their investment in the last few years.

Tags: House Price Watch, House Prices, Property insurance, Property Investors, Property market
Posted in Property Insurance, Property Market | No Comments »

Dreaming up a Perfect Property

Friday, January 6th, 2012

Today at PropertyQuoteDirect we are talking dream property! The news has recently been filled with property prices going up, down and sideways, but mostly down, and so today, in order to help stem the January blues, and to try to find some respite from the poor state of the economy, we have been thinking about some of the best property locations, and what would make the perfect dream property.

Location Matters!

Now in terms of location here in the UK, we decided the number one spot is somewhere in the countryside, away from the hustle and bustle of London, but not too far from it! Our perfect pad would be somewhere rural but with great transport links as well. After all you wouldn’t want to be unable to get into the centre of town, or be unable to quickly pop down the shops would you?

It would also be important for the property to be located near schools and in areas of low to nonexistent crime. This is something that will inevitably help when acquiring property insurance! In short, the outskirts of a beautiful little village with a friendly atmosphere, that wasn’t too far from the UK capital, would be a perfect location.

Now the Property

So what about the property itself? Well, this is a tricky one. Of course a lot of people would go straight for the large mansion, whereas others would prefer a smaller, prettier cottage for example. My own personal preference would be somewhere in the middle. Not too big, but big enough to house an average family.

The property would also be surrounded by beautiful scenery and greenery. Ivy would cover part of the front of the house and the driveway would be scattered with gravel. The property would also have its own private gates, and a private garage.

Upon entering the property you would be greeted with real wooden finishes and some grand art work on the walls. The main reception area would also be one of the top attractions within the house – a place to mingle perhaps?

The garden would be large enough for a decent number of people to get involved with a game of football and there would also be a couple of swings hanging in the corner.

At this point it is inevitable that people will be disagreeing with me, so we ask the question: what would your perfect property look like?

Why don’t you too start dreaming up your ideal home? It’s a lot of fun, and a good distraction from the harsh reality of our current economy. Feel free to let us know what you come up with!

Tags: Dream property, Prime Property, Property insurance, Property market
Posted in Property Insurance | 1 Comment »

Property Markets Depend on Location

Wednesday, January 4th, 2012

The news surrounding the property and housing market throughout 2011, and particularly in recent months and weeks, has been somewhat varied. From year high property sales to a gloomy housing market, property prices fluctuating, and increasing numbers of property millionaires being created, it really does seem that, depending on wherever you are located within the UK, you could be experiencing a frugal property market, or alternatively a very depressed property market. And the latest research that has been carried out by Zoopla serves to confirm that thought.

Average Prices

On average, property prices in the UK throughout 2011 remained fairly flat. The average price of a UK home now stands at £221,331. This represents a 0.23% decline since the previous year. So yes, such a figure indeed proves that 2011 was a rather flat year for property prices.

However, figures have revealed that the divide between the North of England and the South of England has widened further, with unsurprisingly London, and the South East, seeing prices rise, whilst the North has seen prices decline.

The average price to pay for a pad in London is now £416,890. That is a whopping £195,559 more than the national average for a home. So, to live in the UK capital, the average person is expected to pay nearly a fifth of a million pounds more than the average person would pay to live elsewhere in the UK. That is a huge amount more money, but it is little surprise that prices in London are so much higher than the rest of the UK.

Olympic Impact

With the Olympics on the way it is more than likely that London property prices will rise further too. Rental demand in the capital is also likely to soar further as anyone who is anyone may want to be in town during the Olympic Games. For those few weeks landlords will undoubtedly be able to charge higher prices for rent in and around London.

It will also not be a surprise to find an increasing amount of people registering spare rooms for rent, and those concerned may indeed opt to protect themselves with a landlord insurance quote in the event that any damage is incurred to the room or the property.

Prices in the North

Furthermore, if we return to the issue of property prices, Zoopla have also revealed that the average property price in the North East declined by 6%, which translates in monetary terms to a decline of £9,596 in 2011. The average house price in the North East now stands at £156,659. So that’s £64,672 less than the national average, and a massive £260,231 less than what it would cost the average buyer in London.

That’s over a quarter of a million pounds difference from one region to the next, which again confirms that the outlook of the property market really does depend on where you are situated within the country. Property is booming in London and the South East, whereas in the North of England it is quite the opposite. Savvy property investors may well benefit from property fluctuations. A bigger property for less money in the North could translate into higher rental yields than a smaller property for more in the South.

Tags: Landlord Insurance, Landlord Insurance Quote, London Property, Property market
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Property Sales Hit Year High

Friday, December 23rd, 2011

Figures that have been released by HM Revenue & Customs have revealed that home sales have hit their highest monthly level of the year so far in November. During last month there were 85,000 property sales, up from 79,000 in October.

Sales Have Decreased in 2011

However, before we get too carried away in thinking the housing market is about to lift off the ground, we must consider the fact that the number of sales between January and October this year were lower than the same period last year. Last year there were 810,000 sales between January and October, whereas this year, there were only 787,000 sales. It seems more people have stayed put this year and with it property insurance quotes will have remained unchanged.

Therefore this gives us evidence that the property market has been rather subdued for quite some time.

It seems that we are in the midst of a constant struggle between house prices that are too high for buyers to afford, and high mortgage requirements. Since 2007 sales have declined due to the rationing of mortgages and the reluctance of many sellers to reduce their asking prices.

Buyers have also been less willing to make large purchases due to the unstable nature of the economy and uncertainty surrounding their jobs. This has therefore resulted in hesitation and reluctance when it comes to buying property.

Turning Point?

These latest figures from HM Revenue & Customs have actually revealed however that there were 9,000 more property sales in November when compared to the same month in 2010. The monthly total of property sales in November was the highest it has been since July 2010. So when put like this, perhaps things are finally, after an awfully long time, looking up for the property market.

This is something that will be realised in coming months. If sales continue to stay as high, or even better, rise, then we can begin to feel positive about the property market moving out of the doldrums. This will hopefully give prospective buyers and sellers more confidence.

Tags: HMRC, Property insurance, Property market, Property Sales
Posted in Property Insurance | 1 Comment »

Gloomy UK Housing Market

Wednesday, December 21st, 2011

The wealth of the UK property market has plummeted during the recession, which has given rise to further claims and evidence of the scale of the housing market slump. Figures have been published by the Office for National Statistics (ONS) that show net household property wealth for all the private households in the UK has decreased by over £131 billion between 2006/08 and 2008/10.

Monetary Terms

Percentage wise that represents a 3.7% drop, however it is in monetary terms that we can really understand this decline.

The total value of property in the UK fell from £3.506 billion to £3.375 billion. Furthermore, the average net property wealth for individual households fell from £204,000 to £195,000 during this same period. Meanwhile, the gross value of a main property declined from £231,000 to £224,000 and an average mortgage on a primary property rose from £88,000 to £92,000. That means we now need more money to be able to afford a property that is worth less than it used to be. Rather ironic, and worrying.

ONS Report

The figures were revealed in the ONS’s Wealth in Great Britain report. This report compared two two-year studies and also put into monetary terms the dull state of the UK property market.

The report has also found that net property wealth has fallen in all regions except Scotland and the South West of England. In these areas there was little change between the two two-year studies.

The report interestingly found that household physical wealth has risen between both two-year periods. Household physical wealth includes household contents, collectables and vehicles, and this rose from £51 billion to £1,012 billion, which is surprising considering the financial crisis the country has been embroiled in.

The average physical wealth per household has also risen from £39,100 to £40,900. This is again a rather interesting statistic when we are still amidst a financial crisis.

Landlords Benefitting

With property prices having dropped, it also shows that recent years will have represented valuable gains for landlords who may have expanded their property portfolios. Such landlords will of course have had expenses elsewhere though, such as additional landlord insurance, increased tax payments, and further maintenance costs.

Landlords may also now be looking to expand property portfolios whilst prices remain lower. How long will it be until they begin rising steadily again? 2012 seems like it will be another flat year for the housing market, however, we will just have to wait and see!

Tags: housing market, Landlord Insurance, Property market, UK housing market
Posted in Landlord Insurance | No Comments »

2011 Creates Property Millionaires

Monday, December 19th, 2011

2011 has been a mixed year for many home owners it seems, especially now with the news that this year has created 26,744 new property millionaires, despite the average property price in the UK falling by 3% to £221,128.

Millionaires Created Every Day

A high demand for prime properties from equity-rich buyers coupled with relatively low supply of large homes has helped to create 73 new property millionaires every single day in 2011. This information has been revealed by Zoopla.co.uk. Another rather astonishing figure is that one in every 108 homes in the UK is now valued at £1 million or more whereas during the peak of the property market in 2007 that figure stood at one in 97.

Research has found that there are now 253,118 homes in the UK that are worth more than £1 million. Unsurprisingly, the largest rise in the number of property millionaires was in London where the amount has increased by 18% over the year. London also now accounts for over half the national total of properties worth at least £1 million at 55%.

Steep Prices in London

Our capital city has consistently been one of the only places in the UK that has seen rising property prices during the economic downturn. Demand in London is still so strong despite the recession. It is, after all, the financial hub of the UK and one of the busiest, most popular and most loved cities in, not just Europe, but the world. So with that all in mind, it is really not a surprise in the slightest that property markets in London have remained so strong.

With the Olympics on the way next year, it is also likely that property prices will rise further, and it is expected that rental prices will also see an upward trend over the coming months.

Furthermore, London was home to nine of the top 10 areas in Britain with the highest property prices. The highest proportion of £1 million or more homes was Kensington W8 where 56% of all homes were worth more than £1 million.

Overseas Investors have Contributed

We must remember also that London has seen strong demand from overseas investors, especially Greeks and Italians this year due to the financial difficulties that their respective countries have faced. It is therefore little surprise that the number of property insurance quotes being taken out by overseas investors has increased.

Nick Leeming of Zoopla.co.uk has stated the following: “While most of the market is suffering from the impact of inflation, stagnant wage growth, the inability to secure mortgage finance and nervousness about the future of the economy, at the upper end of the market, cash and equity rich buyers are enjoying some of the lowest mortgage rates in recent history.”

It seems for some property owners, most of which are indeed in London, it should be a very fruitful Christmas period.

Tags: London Property Market, Property insurance, Property Insurance Quotes, Property market
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New Beginnings

Monday, December 12th, 2011

An estate agency, specifically Connells in Leamington, has urged those homeowners looking to sell their property at the turn of the New Year to ensure their property is ready for, what is, a traditional New Year rush.

Prime Time

Connells have stated that January is a prime time for people to move home, and buyers are likely to begin looking around the property market for a new home at the beginning of the New Year. New year, new start and all that…

For those selling up, in order to take full advantage of interest from buyers, it will be vital to get your property on the market as soon as possible in January, and of course to make sure your property is presentable, and very sellable!

Growing Confidence

The branch Manager of Connells, Carly Baskott, has been commenting: “At Connells, we’ve seen growing momentum and interest from buyers in the second half of the year. The January market is traditionally busy and, based on the increasing activity we have had over the last six months, we expect this New Year to be the same if not better.”

It seems apparent that over the past six months buyers have come back to the housing market with greater confidence. This has been helped by better mortgage packages being offered.

Ms Baskott continued saying: “Christmas and New Year is a time for resolutions and new beginnings, and buying a home is often on people’s wish list. Sellers who want to take advantage of this annual flurry of activity should get in touch now.”

Landlord Portfolios

Furthermore, landlords may look to bolster their portfolios at the start of the year, and so, if they are buying new properties, it would be wise for them to ensure they are insured with a landlord insurance quote before they begin looking for new tenants.

With the Christmas and New Year period already in full swing, property experts will be keeping a very keen eye on the number of transactions going through during the next couple of months.

Tags: Landlord Insurance Quote, Property market, Property Owners, Property Sales, Selling Up
Posted in Landlord Insurance Quote | 1 Comment »

London Property Prices Rise

Friday, December 9th, 2011

A report has revealed that foreign investors seeking a safe haven for their money have helped boost property prices in London. The average value of a Greater London home has increased by 3.1% in November when compared with the same month last year.

Static Prices

Prices across England and Wales, on average, remained relatively static in November, and LSL Property Services Commercial Director, David Brown, has been commenting: “The resilience of property prices indicates that mortgage lenders and property buyers have not so far been spooked by the gloomy news emerging from the Eurozone.”

He added: “Although prices have declined by 0.7 per cent since November 2010, the rate of annual price decreases slowed everywhere except the North West and the East Midlands, with London buoyed by foreign investors seeking a safe haven in the capital’s bricks and mortar, showing an acceleration in price rises to 3.1% last month.”

Rise and Fall

The report also revealed that the three London boroughs with the largest growth are also among the top five in terms of price. The City of Westminster saw prices rise the most by 12.6%, whilst Kensington and Chelsea saw an 8.5% increase and Richmond upon Thames saw a 6.2% increase. It seems that there will be wealthy owners looking for property insurance quotes this winter!

The report also found that the five boroughs with the lowest price growth were in outer London. For example, Barnet experienced the largest decrease over the last 12 months as prices fell by 7.1%.

The number of properties sold in London between August and October this year has increased by 4.5% compared to the same period last year. This is good for the property market, however, this could actually be bad news for those hoping to get on the property ladder due to the fact that prices are now on the up again. This could potentially scupper plans of those who were saving for a deposit and a mortgage.

With the housing market a pretty tough environment currently, it seems that renting is still the most attractive option for many young professionals. How long will this continue though?

Tags: London Property, Property insurance, Property market, Property Owners
Posted in Property Insurance | 2 Comments »

UK Property Prices Decline

Wednesday, December 7th, 2011

A house pricing report released by Halifax recently has shown that house prices, on average, fell by 0.9% in November and the average house price now stands at around £161,700. This is positive news for prospective homeowners, and for landlords looking to expand their property portfolios!

Housing Market

The housing market has been looking increasingly difficult to get on to in recent months as the economic crisis deepens as many of us Brits struggle to raise enough funds to afford a decent mortgage, or any mortgage whatsoever.

Housing Economist, Martin Ellis, has been commenting: “House prices have remained remarkably stable in 2011 despite the difficult and deteriorating economic climate and the substantial pressure on households’ finances. We expect the market to remain broadly unchanged in the coming months.”

It is also now expected that the Bank of England, which is meeting tomorrow, will leave the base rate unchanged at 0.5% due to their own continually decreasing confidence in the UK housing market. Meanwhile, Nationwide published a report that suggests that the prices of UK property will decline during 2012.

If house prices do further decline, it could actually lead to more and more people being able to afford new properties, which could in turn spark the housing market back into life. This could, in the long run, only be a good thing. I would personally love to be able to get on to the property market, but like thousands of other people in the UK, renting is the only affordable option at the moment.

Fancy becoming a landlord?

The idea of becoming a property developer and a landlord is definitely an appealing one however. Of course, it cannot all be easy money though. An incredible amount of risk, hard work, and dedication has to go into each and every property in order to turn it into a success. Becoming a landlord is also a rather long term investment – it would be wrong to expect to see short term gains.

Landlords have to be very careful also about the tenants they take on; there have been cases of abusive and anti-social tenants destroying properties. It would be wise for landlords to request a landlord insurance quote in the event of any unfortunate damages befalling a property, particularly if anti-social tenants are occupying the property!

Furthermore, landlords are often expected to be able to respond to any maintenance issues as quickly as possible. This can be stressful as nobody wants their spare time eaten into by a cracked pipe at a property 20 miles away, for example. However, that’s kind of the point of a landlord; it is a full time undertaking, and not something anyone can do half-heartedly.

Tags: housing market, Landlord Insurance, Landlord Insurance Quote, Property market
Posted in Housing Market, Landlord Insurance Quote, Property Market | 1 Comment »

Is Now the Time for Landlords to Expand?

Wednesday, November 30th, 2011

According to recent researched commissioned by Paragon Mortgages, a fifth of all landlords in England are looking to expand on their property portfolios in the next 12 months, but is it the right time for them to be investing in more property?

With the reported risk of another fall into recession, the value of property could start to fall dramatically once again and so a newly bought property could lose a lot of its value. The other worry for landlords during recession is tenants not being able to pay their rent, and if they can’t, a mortgage on a new property may be an annoying cost!

However, 57% of the landlords surveyed by Paragon believe that the immediate future looks bright for the private rental sector, and there are a lot of good reasons for this:

Struggling First Time Buyers

With first time buyers finding it incredibly difficult to secure mortgages, given the high level of deposits they need, the rental market is booming. This means that landlords are finding it easier to fill their properties with tenants, and given the rise in competition for rental accommodation, can even charge slightly more for the properties.

Low Interest Rates

Although first time buyers are finding it difficult to secure mortgages, if you have capital behind you and the funds available for a deposit you will find some excellent bargains on the property market. The economic turmoil and lack of new buyers has seen property prices fall over the last year and so if you can afford the deposit on a new house, you may find a bargain on the property market and end up with a very low mortgage.

Government Schemes

We are all aware of recent cuts in Government funding, but there are still many new housing schemes coming into affect that can secure additional income for landlords. New green housing and social housing schemes can bring in additional income for landlords, making the property a more profitable investment.

With the current economic problems, there is a risk that tenants may default on rent payment, but with a comprehensive Landlord Insurance policy this risk is covered and you can enjoy the perks of a booming rental market, low house prices and Government funded schemes.

Tags: Landlords Insurance, Paragon, Property market, Renting Market
Posted in Property Market | No Comments »