2012 Olympics might see many tenants in London evicted
For many landlords over summer 2012 the Olympics means big money as four bedroom houses are looking for £8,000 a week and two bedroom maisonettes will be asking for £20,000 a month.
As the people in London are aware that big money is going to be the case they are planning to move out of their current homes from July to end of August and renting it to tourists or big companies needing somewhere close by.
HSBC help first time buyers
HSBC joins banks and build societies that are providing first time buyers with a higher mortgage so little deposits are required.
First time buyers are being targeted by banks and building societies as mortgage percentages available are increasing allowing first time buyers the chance to get onto the property ladder with a smaller deposit.
Some banks have launched a fee-free mortgage with the maximum loan to value on offer for 90% including a lifetime tracker. Banks have put aside £250m for the lending to first time buyers up until the end of the year.
First Time Buyers offered better rates
HSBC joins banks and build societies that are providing first time buyers with a higher mortgage so little deposits are required.
First time buyers are being targeted by banks and building societies as mortgage percentages available are increasing allowing first time buyers the chance to get onto the property ladder with a smaller deposit.
Some banks have launched a fee-free mortgage with the maximum loan to value on offer for 90% including a lifetime tracker. Banks have put aside £250m for the lending to first time buyers up until the end of the year.
According to lenders the mortgage market is showing signs of improving
52,000 home loans were advanced for house purchases this is 7% higher than in July says Council of Mortgage Lenders. Although this still doesn’t suggest a massive housing boom this year.
Remortgaging has also shown a rise. CML however have produced a survey from surveyors and they have revealed that the UK and European economies are knocking the confidence of the housing market. Fewer homeowners are putting their property on the market at the moment due to being so fragile.
Compared to August last year the market is still 1.3% lower according to the house surveys taken in August.
Rent becoming too high for families to afford
Working families over England were the people that were finding the rental market harder to afford due to the increase. Rents being charged by private landlords in this sector were more than a third of most people’s wages, sending the affordability to the maximum.
A survey showed that 38% of families in rental accommodation have cut down on their food shopping in order to pay the rent. Renting has always been considered as the cheaper option to home ownership, but not now the credit crunch and high house prices have caused potential home buyers to stay as tenant and also increased their rent.
Terrace houses see a rise
The House market has saw a rise in the high demand for terrace houses as they have raised by 68% taking their rental income to £118 per week on average.
According to Halifax bank the price of terraced houses have increased more than any other type of property, this is increase is the highest seen in ten years. Bungalows were the next property type to see a rise by 67% slowly followed by semi-detached properties reaching a 62% increase.
Flats and maisonettes have seen the lowest rise this quarter only rising by 49%.
Slow rise in Housing Market
House prices are still only seeing a slow rise in the market throughout the current months as in September the increase has been 0.1% this still leaves the average home price down by 0.3% compared to this time last year.
During the past three months up to September the prices have been unchanged in the housing market, due to the economy debt crisis that has hit homebuyers.
Rental market soaring
Demands in the rental market soar as would – be buyers struggle to raise mortgage money. It’s not just people that are struggling to find the deposit for a mortgage it is now tenants struggling to find the deposit or the property they want as the rents are soaring to new level and there are many more people after rented accommodation.
The huge demand is taking rents up which is also causing deposits to rise.
Rents rose to an average of £713 a month for the seventh month in August and to a whopping £1,025 pcm in London, the deposits in London are well over a £1,000.
Rent rise
The average tenant pays £713 a month due to the huge rise in the rental market. This is a rise of 1.2% compared to last month August’s rents have shot up. The places that saw the greatest rise were Wales and the South East of England.
Arrears therefore seen and increase for the first time since April, because of the high demand in the rental market there has been no alternative but to up the cost of the monthly rents as landlords are finding that they are benefiting.
Sales Grow in August
Sales volumes are down buy 0.2% in August, a retail survey shows. This means that the volume of sales for the month was nowhere near the same amount than compared to a year ago. The sale growth has been slowing down since June, as the decrease was 0.8% in June and a further 0.4% in July.
Riots in August resulted in some shops shutting earlier than usual therefore reducing there hours and losing them custom. However when asking retailers what they thought some said they were at a lost because of the riots but some believed that there sale prices had increased due to shoppers changing their behaviour.