Latest Property News | Warwick Estate Agents

Details: Published: 27 June 2024; Hits: 725

Affordability concerns are prompting many first-time buyers to consider moving more than 30 miles on average from their preferred location to get their foot on the property ladder, research suggests.

A study of 1,000 aspiring homeowners from saving and investing app Moneybox found 39% are actively looking at properties in neighbouring areas beyond where they currently live to improve their chances of securing a property which meets all their needs.

Those surveyed were most willing to compromise on location in order to afford a garden (66%), a spare bedroom (53%), an en suite bathroom (48%), a driveway (47%) or a garage (44%).

The study also revealed financial reasons were not the only things motivating potential homebuyers to look further away, with some looking for more peaceful or serene surroundings (38%), or safer neighbourhoods with lower crime rates (32%).

Aspiring first-time buyers in Wales are looking furthest afield, considering properties an average of 38 miles away. While hopeful buyers in London and the South East are prepared to move up to 33 and 37 miles respectively.

Despite affordability challenges, homeownership remains an important goal for the majority of first-time buyers in the UK (79%), with 62% viewing it as a key to unlocking financial security, up 6% from last year.

Brian Byrnes, head of personal finance at saving and investing app Moneybox, said: “Market volatility over the past few years has really highlighted how compromise is often the key to getting on the property ladder as a first-time buyer. It's great to see how first-time buyers have been adapting to make their dream of owning a home a reality and we see this resilience and commitment every day among our customers.

“However, we also believe that more could be done to help first-time buyers navigate current market conditions with greater confidence. Interest rates and house price growth now mean that more people will struggle with affordability and so it’s never been more important to save a suitable deposit.

The study also found 35% of those surveyed feel optimistic about becoming homeowners and 22% have even managed to save more than expected towards their deposit in the last six months.

Yet, the cost of living continues to impact disposable income for the majority (57%) making it harder for many to save for a deposit alongside rising house prices (51%).

According to the research, first-time buyers are now saving 18% less towards their first home deposit than a year ago, down from £344 to £286 a month.

17% are also eagerly awaiting the General Election to see what support may be provided to aspiring first-time buyers by a new government.

Byrnes added: “As we enter the final weeks before the General Election, it is clear that more needs to be done to address housing supply and sustainably boost homeownership - without further inflating house prices. However, many of the solutions needed are complex and will take some time to bear fruit.

“That is why we’ve been campaigning to future-proof the Lifetime ISA, a hidden gem of a savings product that has supported a whole generation of first-time buyers, buying their first home far sooner than would have otherwise been possible due to the fantastic 25% government bonus on deposit savings.

“We believe first-time buyers deserve all the help they can get and so we are calling on the next government to futureproof the Lifetime ISA and help more people save more money towards their first home deposit.”

Details: Published: 27 June 2024; Hits: 544

Major lenders have started cutting their mortgage pricing in anticipation of an interest rate cut in the coming months.

The Bank of England may have held the base rate last week but with inflation now at 2% and the General Election just a week away, there are hopes that an interest rate cut could come in August or September.

Lenders are already looking to drum up business, with Barclays, HSBC and Coventry Building Society cutting rates earlier this week.

Barclays currently offers the lowest rate on the market for buyers at 4.23% for a five-year fix on a 60% loan-to-value.

Average rates are still at 5.96% for a two-year fix and 5.53% for five years, according to Moneyfacts.

Nicholas Mendes, mortgage technical manager for broker John Charcol, suggested more cuts are coming.

He said: “We can anticipate that lenders will escalate their strategies significantly over the next few weeks.

“Following last week's Monetary Policy Committee (MPC) decision and with important wage data and general election results on the horizon, markets are likely to anticipate further reductions in bank rates. On Friday, the 5-year money rate was at 3.82%, indicating that lenders certainly have room to lower 5-year fixed rates even further from their current levels.

“Interestingly, last week saw SONIA swaps holding steady at 5.2% since May 7th—the longest stable period since the benchmark's inception in 1997. This stability has enabled lenders to avoid continuous repricing and focus on enhancing their service levels in preparation for the next repricing battle, reminiscent of earlier this year.

“The timings of competitor repricing will likely be from next week, considering the forthcoming general election announcement.”

Details: Published: 20 June 2024; Hits: 572

Average UK house prices rose for a second month in a row during April, Land Registry data shows.

The latest Land Registry House Price Index puts the provisional estimate for annual growth at 1.1% in April, up from 0.9% in March.

It is the second consecutive month of growth.

Average prices were also up on a monthly basis by 0.3%. This puts the average UK house price at £281,373.

Of English regions, annual house price inflation was highest in the North West, where prices increased by 3.8% in the 12 months to April 2024.

London was the English region with the lowest annual inflation, where prices decreased by 3.9% in the 12 months to April 2024.

Commenting on the report, Tom Bill, head of UK residential research at Knight Frank, said: “House price growth this Spring has effectively been squashed by rising mortgages rates and the fact supply is growing faster than demand. Higher-than-expected services inflation today will only increase downwards pressure on prices, with the first rate cut not expected for another four months. That said, demand per listing has rarely been lower in recent years, which means buyers who do their homework may find themselves in an advantageous position.”

The time lag with Land Registry records means many of these deals will have been completed earlier this year or at the end of 2023 and don’t necessarily reflect current market sentiment.

Nick Leeming, chairman of Jackson-Stops, said: “Despite gloomy weather so far this year, vendors are still driven to get their homes on the market. At Jackson-Stops, we've witnessed this momentum firsthand with an 18% uptick in new property listings hitting the market, as vendors look to take advantage of robust buyer demand. The expanding inventory provides much-needed supply for buyers who have been hampered by limited choices over the past few years and signals a step-change in the market – vendors now need to be competitive with their listing price to standout.”

He said regional hotspots for Jackson-Stops such as Chipping Campden, Midhurst and Sevenoaks saw a significant uptick in new buyer enquiries, demonstrating the demand for homes in popular commuter towns and rural hubs across England.

Leeming added: “It's worth noting that the General Election had not yet been announced during this period, so next month's figures will reflect the impact of political change. However, early indicators from the Jackson-Stops network suggest that the election has had little impact on buyer and vendor sentiment. Life's pivotal moments continue to drive housing transactions regardless of the political climate. The ‘must-move’ market persists, while activity at the higher end has gained momentum.”

Details: Published: 10 June 2024; Hits: 607

The Conservatives appear to have abandoned plans to reverse Stamp Duty thresholds for first-time buyers if the party returns to power after the General Election.

The first-time buyer Stamp Duty exemption was increased from £300,000 to £425,000 at the 2022 mini Budget but was set to be reversed at the end of March 2025.

But Prime Minister Rishi Sunak has now said the threshold will remain, according to reports.

This has put the Tories at odds with Labour after Shawdow Chancellor Rachel Reeves refused to match the policy.

Commenting on the reports, Richard Donnell, executive director at Zoopla, said: "Our analysis of what first-time buyers are looking to buy on Zoopla shows eight in 10 would pay no Stamp Duty if the current measures were made permanent.

“The greatest beneficiaries are those looking to buy across southern England where up to half of first-time buyers are looking to buy homes priced between £250,000 and £425,000.”

Zoopla’s research found that 7% of first-time buyers would still pay full Stamp Duty, most of whom are looking in London and 15% would pay partial Stamp Duty.

A return to the old rules and price thresholds would have seen 30% paying the tax.

Donnell added: “The primary challenge for first-time buyers remains the need to afford higher mortgage rates and pass mortgage affordability tests.

“For many, this means injecting more equity into home purchases to reduce the level of income needed to buy. This impacts buyers across southern England where house prices are highest and average deposits are over £60,000.”