Every Monday the team at SellMyHome and RentMyHome bring you the latest, big-hitting and occasionally irreverent news from the world of property, keeping you abreast of the goings-on in the non-stop industry in which we live.
Housing Shortage: Property experts are warning that England is heading for a 1 million housing shortfall over the next decade. According to an agent at Savills there has been an insufficient level of development over the last 30 years resulting in a 136,000 property shortfall. The main cause of this is said to be the planning system with not enough new developments being green-lit to keep up with the amount of applications made.
Source: The Telegraph
Boost On Second Step Property Ladder: Home owners trying to take their second step on the property ladder are showing signs of improving according to a report from Lloyds Bank. Seven in ten property owners looking to sell their first home in order to buy their second have found that their equity, or the value of their property once a mortgage is taken into account, has improved over the last year. Many of these owners bought in 2009 when the market was in a slump but since then there has been a 31% boost in first time buyers looking to buy-up those properties. One in three second-step sellers think it will be easier to sell their home this year which is almost treble the same number asked in 2012.
Source: Business Reporter
First Time Buyer At Risk: 26% of property sales in April were attributed to first time buyers but estate agents are warning that with property prices rising it could become harder for first time buyers to get on the ladder. Managing director of the National Association of Estate Agents Mark Hayward said; "The market is notoriously tough for first time buyers. House prices continue to increase and lenders have tight and restrictive lending criteria". The Conservative majority win in the general election is said to be great news for the housing market, but maybe not for first time buyers.
Source: Property Wire
Trendy Home Improvements Or Disaster In Waiting?: Thanks to countless property shows, many people are now looking at increasing the value of their current property rather than moving. Loft conversions and bathroom refits are apparently the improvements most likely to go wrong according to tradesmen surveyed by Direct Line Home Insurance, but these extensions can pay dividends. The average cost of an extension is around £35,000 but if done on a property in London the average difference between a two and three bedroom property is roughly £157,202. Many of the builders suggest that part of the reason some of these home improvements can go wrong is owners wanting to have a big say in how they are done, without understanding the process.
Source: Mail Online
BBC Sell-Off £87 Million Property: With their potential funding looking likely to be trimmed the BBC are looking to raise a little extra capital in order to keep us all entertained and informed. One such step has been to sell off its former Television Headquarters for £87 million.It comes as the BBC tries to demonstrate a financial leanness ahead of funding negotiations with the government and selling off the properties will allow them to lower running costs. The broadcaster will sell four acres of land at London's White City and the leases to six buildings on the same land. This will reduce the BBC's running cost by £33 million, roughly half the budget of its most popular radio station Radio 2.
Source: Financial Times
Marijuana Gives Property High: In 2012 Colorado legalised the use of marijuana and as an alleged result the state capital, Denver, has seen a boost in the property market. The city has seen a 15% house price increase as thousands of pot smokers have moved to the city since the legislation was introduced. The downside is first time buyers are now struggling to get on the ladder as most properties coming onto the market are sparking bidding wars. There is a small comedown though, as some reports suggest potential buyers are being put-off by the fact that their neighbours are growing such copious amounts of weed.
Source: Daily Mail
Mortgage Approvals On The Rise: April saw the biggest jump of mortgages being approved in the last six years. Value of secured lending on homes rose from £10.3bn to £11.1bn in April demonstrating that the paranoia surrounding the general election is showing signs of abating. Credit availability is a key sign of house price growth forcing economists to re-evaluate the outlook for the housing market. On top of this The Chelsea Building Society have recently launched a tracker mortgage with an interest rate below 1%. That eclipses the next best given by The Post Office of 1.08% which all goes to highlighting the competition between mortgage lenders heating up.
Source: The Telegraph