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Knock Knock News: Longer viewing times, Unexpected repairs, Interest-Only mortgages, School premiums, House shortage

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Longer viewings mean lower offer

Research conducted by Which? Mortgage Advisers shows that one in ten buyers did not carry out any checks on the properties they were buying. As many as five percent of buyers didn’t even see the property before buying while older viewers spent the longest looking at properties, taking an average of 74 minutes per property. The results from this discovered that the longer someone spent looking at a property the more it lowered their initial offer. By comparison first time buyers spent on average 53 minutes viewing a property and only 48% of them offered less than asking price. David Blake from Which? Mortgage Advisor said “When looking for a new home, it’s important not to rush and to carefully consider whether the property is right for you.”

Source: WhatMortgage.co.uk

Unexpected repairs cost buyers £3.6 billion

A new survey conducted by e.surv has shown that homebuyers who did not conduct proper surveys before buying their property faced repair costs of £3.6 billion in 2014. The average cost of repairs incurred by buyers who failed to conduct and independent survey totalled in at £5,750. Only one in five buyers opted to pay for an independent survey meaning many were purchasing homes with pre-existing problems. A survey normally costs as little as £250 but many buyers don’t want to believe their dream home could have issues and are trying to save money for the cost of moving. But Richard Sexton, director of e.surv chartered surveyors, said “Most people wouldn’t buy a car without having an up-to-date MOT, yet the number who consider purchasing property without confirming its condition is alarming. These buyers are risking their financial livelihood, and rolling the dice in the hope that their home won’t contain any nasty surprises.” With nearly a million English homes affected by damp and other related issues it pays to fork out a little extra to ensure you’re buying something that is in good condition.

Source: Property Reporter

One in three mortgage payers could lose homes

Nearly one-million interest-only mortgage borrowers face the prospect of having their homes repossessed as their loan deals come to an end and they are unable to afford the debt they owe. Citizens Advice say many home-owners with these mortgages have not saved enough to repay the debt of their home at the end of the term. Interest-Only mortgages were popular in the ‘80s and ‘90s but by the end of 2012 many lenders had stopped these loans or severely restricted them. Citizen Advice chief executive Gillian Guy said interest-only mortgages had forced people into a financial “black-hole” and that “Lenders have to exhaust all other options when borrowers get into arrears.”

Source: Mirror

Massive premium to live near top schools

Lloyds Bank have conducted research that shows, on average, there is a £41,000 premium for houses in postcodes of the country’s top performing state secondary schools. In 2015 houses in the postal districts of the top 30 schools in the country, those achieving the highest GCSE results, were 13% higher than neighbouring locations. Homes in the postal code of Beaconsfield High School in Beaconsfield have the highest premium with homes trading at a massive 186% over the average asking price of other homes in the area. Lloyds Banks mortgages director Andrew Mason said “The presence of a top performing state school appears to help support property values in many of these locations as parents compete with other buyers to land the property that gives their child the best possible chance to attend their chosen school.”

Source: Property Reporter

Housing price boom expected due to sales shortage

Thanks to a strong economy and healthy mortgage rates it seems there is a rise in those looking to buy property. But there is an issue when it comes to houses coming on to the market being far few than those looking to buy. The result will mean property prices are likely to go up as it becomes a sellers market. Hansen Lu, a housing market expert for Capital Economics said, “with no commensurate rise in homes for sale, the shortage of homes on the market has deepened, leading to reduced transactions and higher prices.”

Source: The Daily Mail

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