Gazumping causes further increase in private rents

Gazumping is something that has been rife in the property purchase market for many years. However, there has been rising evidence that this process has also been spreading through the private rental sector over recent months, as potential tenants become more and more unscrupulous in a bid to get their hands on the rented property of their choice.

Many landlords will be celebrating the recent news that private rents have increased once again in May but demand for rental properties remains very strong. There are now more and more people after each rented property that comes onto the market, with this unprecedented demand for rental homes resulting in processed such as sealed bids and gazumping coming into force.

Many officials have said that the increase in gazumping within the private rental market has been one of the driving forced behind the rental increases that have been seen in the sector over recent months. Whilst rents have not increased hugely between April and May, with the average increase being £4 per month taking the average monthly rent to £696.

Compared to May of last year monthly rents were around 4.4 percent higher. However, there were significant regional variations according to reports, with areas such as London seeing an increase of around 7.8 percent on rents in the last year but places such as the East of England seeing rents fall by around 1.2 percent in the same time period. The general increase in rents for yet another month will be welcomed by landlords, who will be able to see further increases in their investment returns coupled with continued increasing demand for their properties.

An official from the property group LSL said: “The rocketing cost of living, combined with ongoing difficulty first-time buyers are experiencing in obtaining a mortgage, is increasing the number reliant on rental accommodation. With the fierce competition for homes, rental gazumping is becoming more commonplace and properties are being let beyond asking price, putting further upwards pressure on the market. For tenants, unable to buy, renting is becoming less affordable as demand booms. Rents are increasing at twice the rate of wages.”

Tags: same time period, rental gazumping, first time buyers, Many officials, london, regional variations, recent, rental

Lack of mortgages leads to increased demand for rental property in London

The financial crisis is still having severe repercussions when it comes to the mortgage and property markets, and getting a mortgage these days can be very difficult for first time buyers because of the restrictions that are still in place amongst lenders and the high deposit levels that lenders are demanding from would be buyers in order to stand a chance of getting the mortgage loan that they need.

For those that are looking to live in London things are even more difficult, and the high cost of property in the capital coupled with the problems with getting a mortgage and lack of 100 percent mortgages has made it impossible for many people that need to or wish to live in the city to actually buy a place of their own. This has led to an increase in the number of people looking to rent property in London.

The surge in applications for rental properties in London has led to experts advising those looking to rent in London to look sooner rather than later, as the demand for property in the area is set to increase. In fact, it has now got to a point where demand has reached a level that enables some landlords to accept sealed bids from interested parties.

One official said that there was a revival in the city and a large number of students looking for accommodation, all of which had added to the high demand for rental property in the area. Another official said that landlords in London needed to consider not increasing the rent on their properties, as this would encourage existing tenants to stay on and could cut costs.

Tags: london, personal finance, mortgage, rental properties in london, economics, interested parties, Demand (economics)

Half of young Brits think renting is a waste of money

It has been revealed in a recent survey that around half of young Brits believe that renting a property is a waste of money. However, despite this opinion many are being forced to rent because they are unable to get a mortgage in the current climate to get onto the property ladder and get a place of their own.

Recently released figures have shown how restrictions in the mortgage market are driving up the cost of renting, and whilst many non-homeowners believe that renting is a waste of money more and more are having to do this and pay more for the privilege. With so many would be first time buyers unable to get a mortgages the demand for rental properties is high, and this is driving property rental prices up further.

Recent research has shown that the amount that buyers are now expected to pay out by way of a deposit is unmanageable for many people, and whilst buyers may have no problem affording the repayments on a mortgage, especially with the base rate at an all time low, many simply cannot raise the deposit required by lenders, which is running into tens of thousands of pounds in some cases.

The level of deposit required in London has reached nearly £30,000 for first time buyers, which means that many are relegated to renting or living with friends and family. However, with the cost of rents having also rocketed some people in the London area would be looking at paying close to £1000 a month just for a one bedroom flat, with the average rent across the UK having now increased to nearly £700.

Tags: tens of thousands, property, research, climate, Renting

Bank of England base rate needs to be increased

A member of the powerful Monetary Policy Committee has recently stated that it is essential that the base interest rate is increased in order to keep a lid on spiralling inflation, which could otherwise damage the economy. Andrew Sentance has voted to increase the rate for the past several months, but with the majority of members voting to keep the rate on hold the base rate has remained at its rock bottom level of 0.5 percent for the past nineteen months.

Sentance has said that the base rate should be increased gradually in order to try and curb inflation levels, which are currently way over the 2 percent target set by the government. Sentance was making a speech in London when he expressed his views, and minutes of Bank of England meetings show that he has voted for increases in the base rate for the past few months.

Between June and September Sentance was the only member of the Monetary Policy Committee that voted for an increase, but with all others voting to keep rates on hold the base rate remained static. Its current level is the lowest in the history of the Bank of England, which spans over three hundred years, and it was reduced to this level under the former Labour government amidst hopes that it would help to aid the failing economy during the global financial crisis and the recession.

In his speech Sentance stated: “I have voted for a rise in interest rates at recent MPC meetings — as a start to a gradual movement away from the exceptional level of monetary stimulus put in place to combat very difficult economic conditions last year. And I continue to believe that this is the right policy for the situation the UK economy currently faces.”

Tags: year, Monetary Policy Committee, hundred years, london, interest rates, Monetary policy, bottom level, Andrew Sentance

Buyers striving to complete property purchase before end of stamp duty holiday

Many buyers are now said to be rushing to try and complete the purchase of a property before the stamp duty holiday in the UK comes to an end. The stamp duty holiday was brought in last year in a bid to try and kick start the property sector. Read more

Tags: Taxation, first time buyer, stamp duty, Alistair Darling, Stamp duty in the United Kingdom, london, Richard Morea

More millionaires created from house price boom than from lottery

It has been revealed that a greater number of millionaires have been created in Britain as a result of the house price boom than as a result of the National Lottery. In fact, according to reports over the past decade and a half twenty times more millionaires have been spawned from the boom in property prices than through the luck of the draw in the National Lottery. The study was carried out by High Street bank HSBC as the nationwide prize draw celebrated its fifteenth year. Read more

Tags: Millionaire, property consultant, property prices, housing market, money

More people putting money towards funerals instead of savings

According to a recent report an increasing number of consumers are now putting money towards their funeral costs rather than putting it into savings. It appears that the recession has caused a new trend to emerge, and rather than leaving their loved ones to foot the bill should the worst happen many people are already putting money aside for their funeral rather than putting their spare money into a savings account. Read more

Tags: increase, service, savings, london, year, space, money, report

Stop Overpaying Your Mortgage

In the past year, homeowners have been advised to overpay their mortgage whenever possible. However, this advice has changed in light of the news that banks and buildings societies have increased the interest rates they are paying on savings accounts. Read more

Tags: lower mortgage payment, london, savings accounts, mortgage repayments, brokerage firm, advice, overpay mortgage, all-time low

Fall in property rents noted by RICS

According to recently released reports the Royal Institute of Chartered Surveyors has noted a fall in rents in the UK in the three months leading up to April. Read more

Tags: property prices, mortgage, rental market, house prices, Rent control, scotland

Cut Down On Car Insurance by Stopping to Eat

Did you know that eating while driving can cause you to pay higher premiums for your car insurance? Drivers who are caught munching while driving can face increases of as much as £200 when their car insurance policy comes up for renewal. Read more

Tags: Neil Walker, Ian Crowther, london, car insurance, individual policy basis, driving risks, eating while driving, transgressions

More breathing space over stamp duty

Following his recent budget, Alistair Darling, the Chancellor of the Exchequer, revealed that the break on stamp duty on properties up to a certain value was to be extended until the end of this year. Read more

Tags: new-build housing market, step, house buying, council of mortgage lenders, term impact

On yer bike for cheap insurance, says AA

AA Insurance has said that people can save money on their insurance premiums by switching from cars to motorbikes.

The insurer went on to say that using a motorbike “makes sense” for other reasons, such as being able to get around inner city areas more easily.

Bikers can also benefit from not having to pay the congestion charge in London and bikes are easier to park as well as being “somewhat cheaper to insure” than cars, according to AA Insurance public relations manager Ian Crowder.

The idea has already crossed some people’s minds, as 14 per cent of women have said they would consider swapping their car for a motorbike to save money, according to statistics released by the Post Office this month.

Almost a third of people (29 per cent) who ride motorcycles said they did so because it was cheaper than keeping a car.

However, Mr Crowder said he did not think there would be a vast increase in the number of bikes on the roads

“People aren’t abandoning cars in favour of bikes, what they are doing is perhaps getting a bike so they can commute because riding a motorbike is a solitary occupation.”

Tags: number, city, Insurance, cars, office

ID fraud insurance should offer a copy of credit files, says expert

People looking for ID fraud insurance should make sure the policy offers them a copy of their credit file, Equifax has said.

Neil Munroe, external affairs director of the company, said that if someone steals a person’s ID, they are likely to try to apply for credit in that name so a policy that provides a copy of the credit file is important.

According to CIFAS, the UK’s fraud prevention service, there were 77,500 cases of ID fraud last year.

Earlier this year, research carried out by CPP revealed that London is the worst location for credit and debt card fraud and theft.

Commenting on what people should look for when buying an ID fraud insurance policy, Mr Monroe said: “Some policies may well do more to help take over your case and sort it out for you, and these would be more valuable than ones that just offer you basic advice.”

Tags: CPP, Credit rating agencies, said.neil munroe, Financial economics, london, equifax, director of the company, credit files

More savers in the north and spenders in the south

More consumers in the south were in the mood to spend than those in the north, reveals the findings from a new financial study.

Research from Legal & General showed that 31 per cent of Londoners quizzed were up for spending their money compared with only 21 per cent of those in the north.

However, 70 per cent of northerners were concerned about putting money away to save with while this appealed to just 57 of London-based respondents.

Julia Clayworth, Legal & General’s Wealth Management head of marketing, said: “Whilst the overall spending and savings patterns havent changed dramatically this month, what we have noticed is a growing regional difference in spending and savings habits.”

Meanwhile, when questioned about their ability to meet monthly bills, nearly one in five people from the north claimed to be spending more on paying bills and debts than they earned.

Recent research from Legal & General showed that in January, there was a split in spending habits between those in their 20s and those over-45.

The older generation were in less of a mood to spend than their younger counterparts.

Tags: london, quizzed, respondents, Julia Clayworth, research, law

More consumers concerned about safety of personal details

More consumers are concerned about the safety and security of their personal details than ever before, an information body has claimed.

The Information Commissioner’s Office (ICO) said this fear of identity theft is driven by various factors including the recent data losses, particularly by the government, as well as the rise in the number of incidences of identity theft being recorded.

David Smith, deputy commissioner at the ICO, said: “As we all give more and more information out to all sorts of organisations, they build up bigger and bigger databases with pictures of our lives and the risks get greater all the time.”

He added that consumers should not panic, but should question organisations as to why they may need personal information.

Research carried out by consumer advisers CPP found that London is the top worst location for credit and debt card fraud theft, with 20 per cent of Londoners say that they have had their cards stolen before.

Tags: information, deputy commissioner, london, number, debt card, location, body, identity theft

Londoners spend the most on loved ones

London males spend an estimated £2,458 on their loved ones per year, double the national average, according to the latest figures.

Findings from moneysupermarket.com show that women spend £659 on their partner each year while men fork out £1,326 on items such as anniversary gifts, dining out, flowers and special holidays.

According to the figures, female and male Londoners spend an average of £1,776 on each other compared with those in the north where £873 is spent.

Richard Mason, director at price comparison site moneysupermarket.com, said: “People might laugh at the north where the starry-eyed spend is less than half of that in London, but £873 a year is still a pretty respectable figure.”

“And it’s the Midlands that has the dubious honour of having three per cent of people spending nothing on their partner,” he added.

The research also found that British males spend seven times more on gifts for their partners than on extras for their cars, which came in at £191.

Further findings from the firm show many Brits miss out on the significant tax-free savings available in Individual savings accounts.

Tags: spending, individual savings accounts, nothing, Richard Mason, Credit card, Human Interest, Driving

Secured loans market rocketing

The personal secured loan market in the UK is predicted to grow to in excess of £10 billion by 2011, it has emerged.

Information collected by Datamonitor revealed that the growth in this type of loan from £7.5 billion in 2006 is prompted largely by increased demand to consolidate debt.

This growth is remarkable particularly because some lenders have pulled out of the market following the sub-prime crisis that hit the US this year, making lending increasingly tight.

Maya Imberg, analyst with Datamonitor’s Financial Services practice, commented: “The US sub-prime mortgage crisis and global credit crunch will affect the market in the short term.

“However the UK secured personal loans market continues to portray an encouraging future in the long term.”

Among providers pulling out of the secured loan market are Kensington Personal Loans, the London Mortgage Company, Southern Pacific Personal and GMAC-RFC.

Meanwhile, those looking to take out a secured loan will find prices going up with tighter borrowing criteria, making it increasingly difficult to do so.

Tags: mortgage, sub prime mortgage crisis, secured loan market, Datamonitor's Financial Services, london, debt, US, market

London property purchasers being hit hard by stamp duty

A recent report has highlighted just how hard property purchasers in the London area are being hit when it comes to stamp duty.

The extortionate cost of buying a property in London means that buyers have to also pay more for their stamp duty, as well as for their deposit, and it is estimated that the average upfront fee required by first time buyers in the city comes to over £20,000. This covers just the deposit and the stamp duty, and does not include additional fees such as legal costs and removal fees.

Figures indicate that London stamp duty costs have rise by over 800% in the space of just ten years, which equates to an 80% rise per year in the cost of stamp duty. With the average apartment price in London standing at around £263,000 the 3% stamp duty comes in at a shocking £8000. Coupled with the 5% deposit of just over £13,000, this brings the cost of just the deposit and stamp duty on an apartment with an average value to around £21,000.

The survey was carried out by Zoomf.com and shows the difference between the average apartment price and stamp duty costs in 1997 compared to today. In 1997, a decade ago, the average value of a flat in London was around £87,000, which meant that the stamp duty cost would have been under £900. In just ten years potential property purchasers for the London area – as well as other areas – have had to deal with rising property prices, rising stamp duty costs, increased interest rates, and increased additional costs such as legal fees.

Zoomf.com reported that it has tens of thousands of properties listed for the central London area, but only several of them fell under the £125,000 value, which is the threshold for stamp duty.

Tom Smith
20th October 2007

Tags: duty, fees, cost, london, stamp, property

London Leads The Way On House Prices Again

The Land Registry’s latest House Price Index suggests that the average price of a property in England and Wales was £181,039 in June 2007. That is a 0.4% increase for the month (slightly less than the May), and the annual house price inflation rate is now at 9.1%.

It is prices in London that once again have driven the price growth. For the third consecutive month London’s rate of increase was more than 6% a year higher than the rate for England and Wales overall, and the difference is at its greatest since early 2005, but at that time it was London that was behind the rest of the country by 6%. The average house price in London in June 2007 was £338,950.

Average property prices across England and Wales for detached house were £271,530 in June 2007, up 7.5% from their level of £252,573 a year before. Flats and maisonettes showed the greatest increase on the previous June at 9.7%, increasing from £154,838 to £169,874 on average. For semi-detached properties the rise was 8.7% from £157,244 to £170,952, and for terraced houses the rise was 9.3% from £129,246 to £141,278.

All regions saw increases in their average prices over the last 12 months. The highest annual increase was in London at 15.8% – 1.5% on the month. The next highest annual increase was in the South East 1t 9.1%, although the region experienced a 0.3% decrease in prices during the month. The highest monthly change behind London was in the West Midlands at 1.2%, and an annual increase of 7.1%. The biggest loss in the month was in Wales at 1.1%, although its annual change was still an increase of 6.6%. The smallest annual rise was in the East Midlands at 5.5%, with a monthly fall of 0.6%. All in all half (five of ten) regions showed a decrease in average prices during the month.

In terms of county and unitary authorities Brighton and Hove saw the greatest annual price change with a rise of 16.3%. There were 25 areas in total that experiences an annual price increase in double digits. There were no county or unitary authorities that saw an annual price fall to June 2007. Strongest monthly growth was seen by Rutland at 2.5%, whereas Powys saw the highest fall of 2.4%. Behind London, Windsor and Maidenhead has the highest average prices at £327,345. Lowest prices were to be found in Merthyr Tydfil at £81,697.

The metropolitan district with the biggest annual increase in average prices was Manchester at 11.7%. Bury saw the highest monthly increase of 1.7%. The lowest annual rate of house price growth was in Salford, with growth of 2.8%. The district with the largest fall in house prices for the month was Barnsley with a fall of 0.6%. In Metropolitan districts Solihull had the highest average prices at £210,139, and the lowest average prices were in Oldham, at £106,971.

In London, the borough with the fastest rate of growth was Kensington and Chelsea, up by 25.7% for the year. The same borough had the highest monthly growth at 2.2%. Newham saw the lowest annual growth of only 6.3%, and Barking and Dagenham saw a monthly fall of 0.1%.

In the first four months of 2007, the number of house sales averaged 87,734 per month, representing an increase from the same period last year when sales volumes averaged 87,559.

Tom Smith

Tags: london, house, cost, home, increase

London’s ’stingy’ parents best at saving for kids’ futures

New research of parents’ spending habits by Engage Mutual suggests there is a direct trade-off between giving children generous pocket money allowances and saving for their future.

The study reveals that London is the bottom of England’s pocket money league – with just a third of the capital’s parents giving their children an allowance – but conversely it is the region where parents are most likely to save for their children’s future, with four out of ten doing so.

By comparison, in the East Midlands fewer than a fifth of parents make such provisions and yet they are the most generous on the pocket money front, with 55 per cent dishing out regular allowances.

Scottish parents, meanwhile, scored consistently low on both fronts, with only 37 per cent handing out pocket money and 40 per cent setting aside savings.

On a national level the proportion of parents saving for their child’s future stands at 32 per cent, its highest level for over a year.

Karl Elliott, 3GB spokesperson for Engage Mutual, commented: “In a credit card society that is driven by a have-it-now culture, it is pleasing that so many parents are saving for their kid’s future”.

He added: “Those children in areas where parents are the tightest on pocket money will thank them in years to come when they enjoy the benefits of a healthy, matured savings fund.”

Tags: generous pocket money, london, percentage, highest level, money, Allowance (money), child, league

Contactless credit cards set for launch

A contact and cash free payment method is set to sweep the UK as a new kind of credit card is launched by some of the nation’s largest providers.

MasterCard has already launched it PayPass system in London and intends to introduce it to the rest of the country in due course.

The system allows consumers to pay for items costing £10 or under by simply swiping their card over a reader.

It is hoped that removing the need to enter a pin number or have cash available will be more convenient for shoppers and also reduce queues.

After a certain amount of transactions the cardholder will be asked to enter their pin number, as part of a measure intended to limit the amount spent on stolen cards.

The system is currently being used in 19 countries, with terminals installed in more than 50,000 retail outlets.

“Led by Londoners using MasterCard PayPass or Maestro PayPass cards from this month, we believe UK consumers will also welcome the arrival of a new way to pay,” said John Bushby, MasterCard Northern Europe’s general manager.

Tags: United States, Maestro, cash, Northern Europe, nation, london, queues, nation's largest providers.MasterCard

Super-Prime London Prices Shoot Upwards

The price of houses at the very top of the London property market achieved record growth in June. Research by estate agent Knight Frank shows record growth of 3.1%, which is the fastest growth in a month since the agency began its records in 1976. It also found that the annual rate for the same market was 34.5% in June, which is the largest figure for a years seen since 1979.

Those properties seeing the largest rises were between £1m and £2m, and those valued at over £4 million. House prices in the latter bracket have gone up by an amazing 43% in the last twelve months. The areas where house prices have gone up the most are SW3 and SW10, with a 40% rise on houses valued at over a million in the last year. Properties over a million pounds represent 7% of the London property market.

It looks as though prime London is having an almost unstoppable surge in house price inflation, but deeper research actually shows that the highest growth is at the very top end of the market – super-prime London. For example, the growth of properties valued at just below a million in the same areas had slowed down, no doubt under influence from recent interest rate rises and other economic factors putting the squeeze on homebuyers. A slowdown for super-prime London house prices would probably mean that there was a huge economic problem on a global scale as many buyers are foreigners.

Further out of central London, areas like Hampstead, Wapping and Wimbledon have seen growth of 11.4% in the first six months of 2007, giving annual growth of 21.8%. These don’t match up to super-prime increases, but still show superior growth to the broader London house market.

Knight Frank’s assessment is that the normal house market slowdown in the summer will be cooled even further by other economic factors, but super-prime central London will still have annual growth of around 25% come December.

Meanwhile it has been calculated that the cost of an extra bedroom in a large property in London is £161,221. That figure is £20,000 higher than the cost of an average home in Scotland. The figure is worked out from the average price of a three-bedroom property in the capital as £396,387, and the average price of a four-bedroom home is £557,608.

It is such a difference that forecasts are that London homeowners will look for more ways to improve or increase the size of their existing property such as an extension or loft conversion, rather than seek to move.

The difference between and one-bedroom property and a two-bedroom property is much less, at an average of £89,751. In London there are currently around 13,600 two-bedroom properties up for sale, but less than 6,000 one-bedroom properties. Such as shortgage of smaller properties is a concern for first-time buyers as that key difference in price for an extra bedroom would evidently be a showstopper for many new buyers. It is unlikely that this situation will ease with London market continuing to push upwards.

Tom Smith
26th July 2007

Tags: Mortgages, house, property, london, interest

Holidaymakers pay extra in credit card fees

British holidaymakers will pay up to £258 million in fees over the summer as their credit card companies charge them for making transactions abroad, a new study has found.

According to the report from the Post Office, Britons will collectively spend around £9.4 billion, though many are unaware that they will incur extra costs for borrowing while overseas.

Of those people questioned, nearly half said that they had no idea that such extra charges would apply, while 37 per cent believed that their lender did not levy an additional fee, despite research showing that the vast majority of firms charge on average 2.75 per cent per transaction made.

In addition, 26 per cent of people admitted to failing to budget for their holidays before they went away, meaning that they left themselves vulnerable to having to borrow and get into debt.
“We are now four times more likely to spend on plastic abroad than 10 years ago,” said the PO’s Gary Fitton.
“It’s shocking not only to see how much people are being penalised to use their cards on holiday, but how few are aware of this.”
The findings come soon after the UK payments association Apacs revealed that fraud committed abroad on UK-issued cards totaled £118.2 million last year, an increase of £36 million.

Tags: United Kingdom, finance, plastic, apacs, fee, london

100% plus LTV mortgages set to grow in popularity

The 100 per cent mortgage market is set to grow, according to industry experts.

Brokers were polled by Alliance & Leicester, which reveals today, with 78 per cent predicting that increasing amounts will be taken out in future.

Almost three quarters said that they had already advised clients on the product, which is at present only offered by five lenders.

Mortgages of 100 per cent or more LTV (loan to value), the purchase of which means that no lump sum or deposit need initially be paid, might prove especially popular with first-time buyers.

Jeremy Claridge, head of specialist mortgages at Alliance & Leicester, said: “We are pleased to see that most brokers predict this market will grow within the next two years as these products offer a great opportunity for borrowers who need some additional funding.

“The mortgage market is continually changing and there is an ever-growing need to find more flexible products to allow people to get on the housing ladder or to manage their existing borrowings in a better and more efficient way.”

The rise in popularity could be seen as a consumer response to runaway increases in house prices. The latest government figures, released earlier this week, show that the average house in London was almost 15 per cent more expensive than this time last year.

The data also revealed that the overall year-on-year inflation rate for house prices stood at 10.9 per cent.

Tags: london, LTV, week, Mortgage loan, funding, housing ladder, opportunity

The dangers of cycling

The Tour de France is set to kick-off in London on July 7th and that means cyclists will be out in force across the UK.

A major event such as this is likely to attract thousands of bikers to the roads but Cornhill Direct warns that many may not have adequate insurance.

The firm says that a number of people are putting themselves and others in danger by failing to ride their bikes properly and within the confines of the law.

Almost half of cyclists admit that they regularly ride on the pavement, despite the fact that it is illegal, while 14 per cent do not indicate when turning and 20 per cent regularly jump red lights.

All of this makes for a dangerous ride and 69 per cent of riders have fallen off their bike at some point, with 14 per cent being knocked off by another vehicle.

“Cycling is hugely popular in the UK and riders would be wise to make sure they have the right insurance cover,” said Mark Bishop from Cornhill Direct.

“If a cyclist were to injure someone they could face a bill of tens of thousands of pounds and if they were injured and unable to work it could cause them and their family real financial problems.

“While cycling can be great fun and good for you, it also carries risks and there is no excuse for riding recklessly and many cyclists admit to doing just that,” he added.

Tags: cent, Recreation, fact, adequate insurance, london, someone, Cornhill, bikes

House prices grow again

House prices have continued to grow in the UK, according to new figures from Communities and Local Government (CLG).

The CLG’s house price index highlighted a 1.2 per cent increase in property prices between March and April of this year.

It means that the average buyer can expect to have to take out a mortgage of £209,454, signalling an 11.3 per cent increase within a year.

There were, of course, variations within the countries of the UK, with the average house price in England hitting £216,707.

Property in Northern Ireland is the most expensive, with the average price being £228,208, while Scotland is the cheapest at £115,516.

“The rise in UK prices between March and April can be attributed to increases in average prices for bungalows (1.9 per cent), terraced houses (1.7 per cent), semi-detached dwellings (1.4 per cent), detached properties (0.8 per cent) and flats (0.7 per cent),” a CLG statement said.

Northern Ireland saw the biggest year-on-year house price growth, with properties increasing in value by 54.1 per cent in the last 12 months.

The most expensive place to buy a house remains London, where the average price is £320,191.

Tags: house price, March, Communities, london, expensive place, price index

Brighton sees highest house price growth

People looking to get a mortgage on a house in Brighton had better act fast as the city has seen the largest house price growth in the UK.

Figures released by Halifax show that over the last ten years Brighton has experienced the highest growth in prices per square metre.

It now costs an average £2,559 to own a square metre in the area, an increase of 280 per cent compared to 1996.

Cornwall also saw huge growth, with prices growing by 270 per cent in ten years, while London is ranked as the region with the third fastest growing prices with an increase of 254 per cent.

All of this is bad news for first-time buyers who are struggling to get onto the property ladder but experts are warning that people should not be put off by price increases and should concentrate on actual prices.

“London is the most expensive city in the UK, with an average price of £3,883 per square metre, although ten years ago the capital was ranked second behind St Albans,” commented Martin Ellis, chief economist at Halifax.

“Armagh in Northern Ireland is among the cities with the lowest price per square metre, but it has experienced the sixth-largest increase over the past ten years.”

A recent report suggested that it is nearly twice as hard for first-time buyers to get onto the property ladder as it was ten years ago.

Tags: highest house price, Cornwall, GBP, highest growth, largest house price, years."A recent report, Local government in England, london

Buy-to-let market set for growth

More and more people are choosing not to get a mortgage and are instead renting property.

According to Alliance & Leicester, the buy-to-let market is growing rapidly and the firm expects that it will have ballooned by 40 per cent within ten years.

The company has released its Changing UK Household Market report in which it states how the market will grow and what will be the factors affecting it.

Three main drivers for the market were identified, the first of which is a rise in the renting market, with more students and single people looking for places to live.

A change in attitude among the younger generations was also named as a key factor, with it now being more socially acceptable not to own a home.

Finally, Alliance & Leicester said that larger numbers of people are now using rented property to ensure they have flexibility.

“Demand for rented property has been growing steadily in recent years and returns on buy-to-let have increased,” said Stephen Leonard, director of mortgages at the firm.

“This growth is expected to continue – as the number of renters rises further and buy-to-let becomes even more attractive to both existing and potential landlords.”

Tags: Stephen Leonard, change, market, home, flexibility, uk, landlords, london

London card holders redeeming £349

More and more people are using credit card reward schemes to make some money, with Londoners the best at taking advantage.

According to research by Goldfish credit card around 83 per cent of card holders in the capital have a loyalty scheme attached.

The study found that between November and January alone, 39 per cent of Londoners redeemed an average of £349 on their cards.

Most people saw this money in the form of vouchers, cash back or travel rewards, meaning card holders were given the extra bonus of having to spend it on a personal treat rather than clearing debts.

Although Londoners have been enjoying their rewards with vigour, it is a different story in the north of England, with fewer people claiming their rewards.

“Credit card reward schemes are a great way for cardholders to be rewarded for everyday spending, but there is no point in having one if customers do not redeem their points,” said Patrick Muir from Goldfish credit card.

“Savvy spenders should consider cards that offer them a tangible benefit or reward for their spending.”

The research also showed that women are more likely to hold a rewards-based credit card but men are more likely to claim the rewards.

Tags: way, london, benefit, bonus, point, scheme, Savvy, rewards."Credit card reward

January worst month for burglary

A robbery takes place in Britain every 35 seconds during January, with figures showing it to be easily the worst month for crime.

According to Halifax Home Insurance, we are 26 per cent more likely to have our homes broken into during the first month of the year when compared with the annual average.

It is estimated that around 76,000 homes will be broken into during January, costing a collective £170 million.

Halifax is trying to get the message across that it is vital to take out insurance, while the firm is also attempting to help homeowners prevent crime in the first place.

“We tend to see a rise in burglaries during January as burglars know that it is the time when our homes are packed with lots of new and expensive items, ranging from electrical goods to jewellery,” said Vicky Emmott from Halifax Home Insurance.

“We must remember that thieves are opportunists, and will strike during the day or night if they feel a property has inadequate security and the timing is right.”

Official crime statistics show that a huge 40 per cent of burglaries take place during daylight hours (06:00 – 18:00), highlighting the fact that thieves are willing to strike at any time of day.

Homeowners are being urged to remain vigilant throughout the day and night in order to avoid becoming a victim of burglary.

“The fact so many burglaries take place during daylight hours shows the importance of always remaining vigilant,” added Ms Emmott.

According to Halifax, Nottingham, London and Leeds are the worst areas for theft, while Colchester, Bath and Shrewsbury are the safest.

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