Rental Renaissance

Four years ago, 71% of all households owned their house in the UK. 2 million of those may end up selling their house to rent, creating a whole new market of “sell to renters”.

But why?

A survey by unbiased.co.uk reveals that freedom to travel around the country was cited as one of the most popular attractions to renting and one in eight people no longer aspire to owning their own home. This is a vast shift, but for many owning a house is a dream only few can now achieve. Debt-laden graduate’s still job hunting will struggle to ever provide a 25% deposit without the support from parents. Many blame buy to let speculators for pushing up prices in the first place but wherever the blame is placed the reality for many people is a future of long term renting. For those that are already on the property ladder, many have struggled with the worry and stress of the property market volatility that much that they are considering the option of Sell House for Cash and renting.

Renting is a popular option for countries like Germany, where nearly two thirds of private residences are rented. In Britain, 14% were rented in 2008, a stark difference to the 55% that were back in 1939. Short term tenancy agreements give little security for renters at the moment and critics say that legal changes are also needed to help improve tenant’s rights, if these changes occur then just maybe more people will buy property and rent back or be more content to rent in the first place and feel less pressure to achieve home ownership.

Britain Divided

A mere fifty years ago the average price of a house in Britain cost just £2,507 and one in seven of those homes had an outside toilet. Today, the average house price cost £162,085 but understandably just two in every 1, 000 homes has an outside toilet. The rate of rampant property prices have rose by 273% in real terms between 1959 and 2009, with the growth of earnings only rising 169% over the same period.

The recent decade to decade data published paints a picture of Britain being more divided today than ever before with regional house price differences. Britain has fallen further and further behind London as the rise in real time earnings have increased in Greater London at a rate matched by no other city or region, but interesting Yorkshire and Humberside hold the lowest house prices just as they did fifty years ago.

Another stark difference is the substantial changes in both the number of households and their composition. As recently as 1971, fewer than one in five households were occupied by a single person against this rising to one in three by last year. This may explain why purpose built flats now make up 19% of new builds. Whilst semi detached houses were the hallmark of the 1930 and made up 41% of all properties between 1945-1964 they fell to 15% by 1980, bungalows have also declined, whereas detached houses now make up 36% of new builds since 1980 compared to 10% between 1945 and 1964. The other obvious differences of course are that our houses are warmer, the water is hotter and the toilet is at least indoors.

Property Doom?

Britain looks set to finally exit the recession after a long old slog and the boom in commercial and residential property prices coming to an abrupt halt with house prices down 20% year on year by January last year. 2009 was a funny year for homeowners, house prices defied expectations after falling in the first few months and then rising by the summer whilst some still continue in places. Despite this it is widely predicted by housing market analysts that the housing market recovery is not as robust as the media may suggest.

Even the most optimistic forecasts seem to suggest that prices will remain static this year as the wider economy suffers growing unemployment and public sector cuts, along with possible tax rises and economic volatility after the 2010 general election.

Still, it is not all doom and gloom. There is hope in central London where buying trends are skewed by high proportions of super wealthy purchasers not needing mortgages and the growing number of foreign buyers taking advantage of the weak pound, may contribute to seeing price rises. Similarly those areas with infrastructure improvements, like Kent, which will have fast commuter train services may start to see rises rather than falls. Only time will tell what 2010 will bring, but the only thing that is certain at the moment is that there is no certainty.

House problems?

After the media exposure of the government’s expenses claims there was an out cry of public opinion showing disgust for these politicians cheek in fiddling their claims.

Some politicians had chosen to claim the home in which they lived was in fact their second home and an additional home else where was actually their primary place of residence. At a time of recession there is little sympathy for these people who can’t fill a form out correctly and are unsure of where they live.

The state of the economy has seen people have their houses repossessed as they where unable to meet payments, yet politicians have managed to claim money that they are not entitled to.

Many of these politicians seem to forget that they are working for us and are on a substantially higher wage than the majority of the country yet still continue to receive substantial benefits.

Perhaps we aren’t being sympathetic enough to their problems? It must be hard choosing in which house to live, as most of us only have one to choose from, so we do have it pretty easy. Yet they can be grateful that under the unfortunate circumstance they claim too much money, or ‘accidentally’ receive too much cash a simple ‘I will return the money and apologise’ is all they have to do and then come the pat on the back. All is forgiven. Unfortunately it’s not as simple as other working folk. What would be viewed by many companies as theft would result in being sacked and then being pursued by legal charges.

An excuse of ‘oh I forgot to pay for that’ will work wonders if you are a politician but try that when you’re halfway out the door of WH Smiths with the latest copy of  Private Eye and security will be on you quicker than you can say ‘evening officer’.

To make matters worse, this all comes at a time when house prices are plummeting and the property in which they reside is less than what they paid for it. Many people are moving towards Cash for Property services to enable to keep their heads above water.

Woman forced from home

A Scottish grandmother, at the age of 66, is being kicked out of her own home…by her son.

Flora Dempster claims she has lost almost £200,000 after a bitter row with Stuart Dodds turned into a nine-year legal fight over the ownership of her Moray bungalow.

Mrs Dodds had used her son as a guarantor for the property. She then went on to say that after he moved to America he became hungry for money and decided to put the house on the market. Her son Mr Dodds, claimed half the value of his mothers home in West Park in 2004.

The dispute began in 1999 after he claimed he was entitled to 50% of the property as he had acted as the guarantor to allow his mother to buy out her former husband’s share of the property. The home was then put on to the property market yet Mrs Dodds claims that her son had not invested a penny in the property and had no rights to it.

Mrs Dodds had to concede defeat after spending £80,000 on legal bills alone.

If you are being told to move from your home and want the option to Sell your Property and Rent Back, allowing you to remain in your home or try a Cash for Property service.

Things to Consider When Looking for a House Part 2

Last time we talked about considering the things that are important to finding an ideal home and that these things might have not have been considered. We looked at the importance finding the right location and how this is one thing that cannot be changed. This article will look at other key elements of finding and looking at any new potential home that you find to avoid any nasty surprises.

One big question on many people’s lips is ‘what potential does the house have?’ Many people are looking to develop their own house with an extension perhaps for a conservatory, porch or maybe even an additional bedroom. Look at other house in the street and see what they have done as this will give you an idea of the likelihood of getting planning permission for that extension.

You need to remember that the internal decoration of the property can be changed at any stage. Very few people move into to a new house they have just bought and keep it exactly that way that they bought it in, as people like to personalize it by putting their own stamp on it.

There are some people who really enjoy the sun, so for these people the way the house faces play a large part in what will be considered a good property or not. This is one thing that doesn’t change so it is important that this is something that is addresses right from the beginning. A rear garden that faces the right direction is for many people a deal breaker when it comes to choosing a house.

Another major consideration to a lot of people is the outside look of the property. It’s important that you like the look of the property. This is a very individual thing and what some people consider to be nice others would look to change. Many people do not really change the brick work of the building out the outside appearance except from the front garden.

If you don’t want a lot of work to do on the property a new build is probably what you want to be looking for. Yet for those of you who are looking for a bit more of a challenge and wanting to put your own stamp on it repossession is worth considering. Sometimes repossessed houses are a little worse for wear but that can be had at a bargain price.

To help eliminate additional stress of moving and starting a life else where many people have opted for a Quick Property Sale for Cash which enables them to get cracking on to the next big adventure. A Quick Property Sale can be just what you need to get you moving quickly in the right direction.

Rent Property in Chelsea

With house and flat prices looking unstable for the future even in such areas as Kensington and Chelsea what options are available for people who are looking to live in these highly sought after areas? One option and the most suited to the majority of people looking to live in these areas would be to rent property in Chelsea. It seems that many people want to enjoy the lifestyle that living in these areas offer yet choose to rent as a way to avoid the possible loss that buying a property in these unstable times can have.

As property prices continue to remain unstable and the insecurity of jobs is still abundant, renting is looking to be a great option for many people. Not only does it provide you with the freedom to change location, if a job should take you to another part of the country or even further afield. Also not owning your own property provides you with the freedom of knowing that you do not have mortgage payments to meet each month which will also mean that you won’t have to keep an eye on the interest rates rising. Renting can also provide a great safe haven for people that do not want the hassle of maintaining a property and the stress and worry that comes along with responsibility of owning your own home. Renting a flat or a house usually means that you have all of the benefits of a property owner with out the financial commitment that can be a problem for many.

Property owners are always keen on renting out their property as it means that they will have an income to pay their mortgage payments, and keep the banks from the door. However there is a lot of demand for people looking to rent property due to the lack of mortgage offers on the table. It will be well worth your time looking to register with a letting agency in Chelsea so you have a better selection of properties at your disposal.

New Build HomeBuy – A Helping Hand for First-Time Buyers

First-time buyers are having a difficult time at the moment, and, as with most things involving money, the less well-off you are the harder hit you’ll get.

So how can this be helped? Today, we want to bring your attention to one possible option: the New Build HomeBuy government scheme.

By initially purchasing a share (normally 25 - 75%) in a property, rather than the entire thing, you massively reduce the initial amount that has to be paid. The enormous investment when first buying a home is the biggest stumbling block for a lot of people.

The remaining share of the property you then pay rent on, which itself is at a reduced rate.

This isn’t where it ends though. After your initial purchase, you can buy a greater and greater share in your home, a method known as ‘staircasing’. This allows you to work all the way up to having a 100% share in the property, at which point, rather obviously, you completely own it.

If, at any point, you think, “Wow! I really want to sell my house!” then that avenue is still open. At any time up until you own 100% of the house, you can sell your share of the property to somebody of your landlord’s choosing.

It’s easier to sell once you’ve achieved complete ownership though, as you no longer have to consult a landlord. From here, you could sell with the intention of moving, stay in the property without having to pay rent, or sell to a company that buy property and rent back to you, allowing you to cash in on your newly bought house without having to move out.

Of course, when considering your options for buying you need to find the one that’s right for you. If monthly payments of rent are going to be a problem, then this scheme won’t work, just as it won’t work if you can’t get the initial down payment together. In these circumstances, there are still options for you, but it’s going to be hard, especially with the current state of the housing market.

Sellers drop asking price

A smaller amount of buyers in the housing market has forced sellers to drop the prices of their homes in order to become more competitive. It seems that they days when people would battle it out to buy a house are behind us, as figures suggest a drop in prices to try and lure buyers to their property.

First signs show a drop of over 2% and almost 4% in London. Although these percentages seem small on a property of £200,000 you are looking at a large loss.

As there are even fewer buyers out in the market then it seems that they have a little more control over the property market. More choice means sellers will have to make their process competitive and appealing if they want to sell. Holding on to an unrealistic price will not only put buyers but could also mean that a property will make a much larger loss in the future of may even become repossessed.

Yet it is not only the house prices that are making buyers be more careful but also mortgages. It seems that buyers are being a lot more selective about what they opt for and are considering a much great choice of deals. With a vast amount of banks offering mortgages these too are having to become more competitive with their lending and ‘deals’ that they offer.

Even the slightest rise in interest rates could force people to sell up which would mean that the market could be saturated with houses that people just can’t afford to keep, which means even better deals for the buyers and a greater loss for people who are desperate to sell. This just re-enforces that importance of selling before the debt gets too much.

It is believed that a few of the potential house sellers are waiting for the interest rates to be announced in September, but for some this could be too late and would mean the loss of their property and any investment that they have in their property.

It still looks like sellers can be burned especially if they leave it too late or bury their heads in the sand. If you are finding yourself in a similar situation and want to get out before the going get too tough then why not look at a Quick Property Sale or the option to Sell your Property and Rent Back which would mean you wouldn’t have to leave your home.

Once you have agreed a price of your new home

House hunting is a slow and stressful process. Many people are after a Quick Property Sale from a seller who is desperate to sell. Many of us won’t be first time buyers so we will be looking for someone who is offering to Buy your Home for Cash and give you a good deal.  Yet finding the right house in the right location is only a matter of time and when it comes around you need to establish the next step. Assuming that you have put in an offer and had it agreed, this article will look at the next step in getting closer to moving in.

The first thing to do is get the estate agent to remove the house from their website or place a ‘sold’ sign across the property and ensure that they do not allow any other prospective buyers to look at the house. Once this step is in place you will need to instruct your solicitors to contact the solicitors of the people who own the house that you are buying. If you do not have someone available to do that legal work you can ask the estate agent to suggest someone who can help.

The mortgage is the next step. Most people have already seen a mortgage lender before hand to see what they can afford and have an idea of what rates they will be expected to pay back. This is the time to agree to a mortgage deal and the lender will send you a letter if your application for the mortgage is successful in the form of a formal offer.  The lender will then want a valuation done which you will pay for of the property to ensure their money is being used for a property that is worth its price tag.

It is advisable to have an independent survey carried out in addition to the valuation as this will check the structure of the property. This is available in two forms:

1. A full Structural Survey - in which the stability of the property is examined by a professional. This is usually required for building over the age of 80 years old or if there is some doubt about it’s structure.
2. An Intermediate Survey - this gives a simple over view of how the property is and may recommend that you need to see a specialist. This sort of survey is ideal of properties less than 80 years old.

If the survey comes back with problems this is the point where you need to decide if you are going to pull out or renegotiate. You will be advised about the problems and the possible cost of them should you want to get them fixed.
The legal process of transferring the ownership is known as conveyancing. This can be done by a licensed conveyancer, a solicitor or by yourself but this can be a very complicated process.  Before making a choice of which you are going to use it would be worth while getting an idea of costs for the conveyancing. There is not set cost for this service so you might want to remember to ask the following:

1. If the fee is fixed or depends on how much work is involved
2. Check that the figure includes stamp duty, land registration fees and VAT - it will be worth getting a break down of these costs.
3. Find out what charges if any will be made if the sale falls through before the contracts are exchanged.

The length of the legal steps really can vary depending on your position and efficiency of everyone else involved. People will advise that it will take between 6 - 8 weeks for the process to be fully completed and for you to get the keys to the house.

Once you have instructed a solicitor to act on your behalf then they will contact the seller’s solicitor who will draw up a contract that will eventually be signed by you and the seller.  There will be a few things that need to be ironed out which might include questions about ownership of the property, rights of way, access, future developments that might effect the property - this process is called ‘making enquiries and searches’.

Paying the deposit is the next step in the process. The deposit is usually 10% of the price yet this can vary. If raising the deposit is difficult you can always call on your family for a little help, but most people will have this in place before looking at properties.

It is also very important that the property is insured from the date in which you move in. As soon as the contracts are changed then you become responsible.

The exchange of the contracts means that the house purchasing process is drawing to an end. At this step the following should be in place:

1.       The solicitor (or licensed conveyancer) and you are satisfied with the outcome of all if the enquiries

2.       Any surveyors report has been received and any necessary action taken

3.       The formal mortgage offer has been received

4.       Arrangements about the payment of the 10% deposit have been made

5.       The date of completion has been agreed

This is the point when each party will have a final copy of the contracts of which you are expected to sign. These signed contracts are the exchanged once signed. At this point you become legally bound via legal contract.

It is also worth remembering to read the gas, electricity and telephone and ensure that the seller is making arrangements for the final meter readings. Completion usually takes place four weeks after the exchange of the contracts although it can be earlier. The next steps should follow this process:

1.       The mortgage lender releases the money

2.       The deeds of the property are passed over to your solicitor

3.       The seller hands over the keys and evacuates the property by an agreed time

That’s the final step in the house buying guide. You are now able to start decorating, knocking down walls and celebrating.