Topic: Property

In the news

Posted on February 20, 2024 by - Mortgages, Property

Row of colourful houses, home finance news 

 

Gazundering in a buyer’s market 

Research1 has found that, in 2023, there was a 97% increase in people googling the term ‘gazundering’ – when a homebuyer reduces their offer on a property at the last minute, often just before exchange of contracts. About a third of sellers were subjected to gazundering last year2, indicating the property market currently favours the buyer. Gazundering is less common in Scotland because, while it does still occur, Law Society of Scotland governs the activities of solicitors acting on behalf of property buyers. 

Residential Property Review – January 2024 

Posted on January 23, 2024 by - Property

Residential Property Review - January 2024

Falling mortgage rates bolster housing market  

Hope seems to be on the horizon for the housing market as the year gets off to a promising start. 

The decision from many mortgage lenders to reduce rates seems to have had the desired effect, as buyer interest has noticeably increased. Lenders are competing to offer the best deals.  

At the end of the first week of January, according to Zoopla, there were 10% more prospective buyers than in 2023. TwentyCI has reported that agreed property sales reached a nine-month-high in December, with many commentators now hopeful that this signifies a market that is slowly but surely getting back on track.  

Oxford Economics expects the first cut to Bank Rate will come in May, thus relieving some of the pressure that many borrowers are under. This could further increase the demand for housing which, at the end of December, Zoopla has said was 19% higher than the previous year. Higher levels of demand are likely to have a knock-on effect on house prices, which could continue to stop falling if sellers no longer need to discount their property to make a sale.  

Most sought after areas   

Prospective home buyers seem to be committed to returning to the capital, as London is the most-searched-for location for the second year in a row, according to Rightmove.  

During the pandemic in 2021, there were months where Cornwall overtook London as the most searched-for area. However, the southwestern county has been firmly in second place for the last two years, indicating the mass exodus from cities has subsided. In fact, from 2022 to 2023, there was an 18% fall in the number of people looking to buy properties in Cornwall.  

London is also the most popular location for renters according to Rightmove’s report, with Manchester and Bristol below it in the top three.  

Tim Bannister, Rightmove’s Property Expert, observed that, “Many traditionally popular areas maintained their allure amongst buyers, whilst cheaper areas were also high on the list for buyers last year with affordability stretched.” 

UK landlords owed late rent 

The cost-of-living crisis is taking its toll on the private rented sector as tenants struggle to pay their rent on time.  

According to research from mortgage lender Molo, landlords in the UK are owed an average of £725 in overdue rent. Those in Yorkshire and the North East are particularly affected, experiencing the highest number of late payments each year. Meanwhile, landlords in Greater London are owed the most amount of money.  

VP of Strategy at Molo, Mark Michaelides, commented, “Our recent research found that over half (54%) of landlords have implemented payment plans for tenants facing late rent. He added, “As a tenant, it’s important not to ignore the problem. I’d advise tenants to communicate promptly, explaining reasons for delays and requesting additional time. Open dialogue can lead to collaborative solutions.” 

 

All details are correct at the time of writing (17/01/24) 

It is important to take professional advice before making any decision relating to your personal finances. Information within this document is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor. No part of this document may be reproduced in any manner without prior permission. 

Autumn Statement update

Posted on January 9, 2024 by - Mortgages, Property

Fields and housing can be seen in the foreground and the City of London on the horizon, in Autumn light

 

Chancellor of the Exchequer Jeremy Hunt delivered his Autumn Statement on 22 November, with a host of announcements on personal taxation and measures for business. Housing was largely absent from the key fiscal event, but there are a couple of points to be aware of. 

BOMAD to the rescue!

Posted on December 20, 2023 by - Mortgages, Property

A multi-generation family eating pizza in the kitchen, Bank of Mum and Dad

 

The Bank of Mum and Dad (BOMAD) is being called upon to help with more than just a house deposit these days. As more parents and grandparents reach deeper into their pockets to help their offspring, it is vital not to compromise your own financial security.