Latest news with #PaulaHiggins
Telegraph
21-07-2025
- Business
- Telegraph
Why Britain's home extension dream is dead
For decades, a bi-fold door and side return extension have been hallmarks of Middle England aspiration. But new data suggests Britain's appetite for home extensions has died amid soaring building costs and stretched household budgets. Planning approvals for home improvements and extensions have sunk to their lowest level in 10 years, according to analysis by estate agency Savills. There were 151,177 planning consents for housebuilder developments in England in the year to March, 8pc fewer than the year before and 27pc lower than the average for the preceding decade. Experts attributed the drop in planning permissions to rising material costs, cost of living pressures and high interest rates, which make borrowing for home improvements more expensive and cause mortgage payments to eat into disposable income. Paula Higgins, chief executive of Homeowners Alliance, said: 'It's not surprising that renovation plans are being put on hold – people are financially stretched just to get on the housing ladder, let alone invest in improvements. 'Many buyers underestimate the true costs of homeownership, with almost one in three younger homeowners regretting not budgeting for the full cost of buying and renovating their home. 'Add to that the ongoing cost of living pressures, and it's clear that homeowners have less money in their pockets to spend on upgrades. More people may now need to wait longer after buying to save up before they can afford renovation work.' Regional differences The fall in planning permissions contrasts with a surge in housing transactions, which were 24pc higher in the first quarter of 2025 compared to the same period in 2024. Lucian Cook, head of residential research at Savills, said: 'Typically, there is a strong correlation between property transactions and home improvements, as homeowners often undertake renovations shortly after moving in. However, this relationship became notably disjointed in 2023, with the gap between transactions and improvements reaching its widest point over the past 12 months.' Some areas have seen shorter drops in planning permission numbers than others; in London they fell just 3pc in the year to March, compared to 9.3pc in the South East and 10.7pc in the North East. 'The higher the house prices in an area, the more extending makes financial sense, meaning that more value can also be unlocked in London and the South compared with the Midlands and the North as build costs are less likely to outstrip the value added,' said Cook. The supply of properties on the market reached a 10-year high earlier this year, meaning buyers enjoy much greater choice, which means they are less likely to settle for a property that needs improvements, Cook added. 'With more properties available on the market and slightly weaker demand, our agents are reporting that buyers, who have greater choice, are increasingly favouring turn-key or ready-to-move homes.'
Daily Mail
06-07-2025
- Business
- Daily Mail
A third of Britons REGRET buying their home - here's how to make sure you don't
More than a third of Britons say they have regrets about buying their home, according to new analysis by the Homeowners Alliance. The property advice website surveyed 2,000 adults and found that 37 per cent had some form of buyer's remorse and would make different decisions if they had their time again. It means that roughly 6.5 million homeowners may have regrets about the property they live in. The figure rises sharply among younger homeowners aged 18 to 34, of which nearly two-thirds expressed regrets about their property purchase. The main reasons they gave were that they picked the wrong location, or under-estimated the costs. One in ten younger homeowners regretted buying a new build, while 17 per cent said they wished they hadn't compromised on space. 'Buying a home is one of the most significant and emotional decisions people make - and our research shows many are left feeling they got it wrong,' says Paula Higgins, chief executive of HomeOwners Alliance. 'Younger buyers, in particular, are being hit hardest by the realities of the market: high prices, hidden costs, and the pressure to compromise. Londoners most unhappy with their homes Homeowners in London are more likely to have regrets about their property purchase than in other areas of the UK. More than half of London homeowners say they would now make different choices, according to the study. One in 10 London homeowners regrets buying a leasehold property, which is more than double the UK average amounting to 4 per cent of homeowners overall. However, London has more leasehold homes than other areas because of the proliferation of flats. London homeowners may also have been disappointed by the lacklustre house price growth in the capital of late. Since 2016, London house prices have risen at a rate of just 1.3 per cent a year on average compared to an inflation rate of 3.5 per cent. Higgins added: 'In London, these challenges are even more acute. 'Sky-high property prices mean buyers are often stretching their budgets to the limit and compromising to get on the ladder. 'Add to that the pressure of fast-moving deals and a competitive market, and it's no wonder that Londoners are more likely to feel they made the wrong decision.' Why don't they just move? The transaction costs involved with moving home are so high that many people are hesitant to up sticks and go, even if they are unhappy. Take the example of a family trading up from a £300,000 home to a £500,000 one. First, on the sale they will face legal fees of around £2,500. They will also need to pay the estate agent who sells their home fees of an average of 1.5 per cent, plus VAT. On a £300,000 sale that would work out at £5,400. Then there are the purchase costs, including stamp duty, a survey and finally the removal firm. Stamp duty on a £500,000 property would be £15,000, with the other costs coming to around £5,000 on average. That means £27,900 being spent on transaction costs before repairs, renovation or new furniture is factored in. 'In the past, a lot of buyers purchased a property to live in for two to three years before upsizing to a larger home,' says Nigel Bishop of buying agency Recoco Property Search. 'This strategy has become less feasible for many due to financial and wider economic challenges that are impacting on the cost of living.' If you're buying a home with the intention of staying for a long time, Bishop says it is crucial to choose somewhere that can adapt to your future needs. 'It's important than ever to choose a home that not only matches your current living arrangements but leaves room for future changes such as an addition to the family or a home office,' he says. 'Many house hunters consider carrying out extension works or changing the room layout,which makes it crucial to understand your chosen property's limitations. 'On the first viewing it is important to cover questions that determine if a planning permission would be granted, and which walls within the property are load-bearing and which ones could be taken down.' However, Bishop also points out that costs for conversions and extensions have almost doubled in recent years. 'Builders are facing higher labour and building material costs which are naturally passed on to the buyer,' he added. 'We therefore advise house hunters to gather quotes from suitable builders as early as possible and leave adequate room in their budget.' How to avoid buyer's remorse People who make a decision too quickly without fully understanding what type of property they want or the area they wish to live in could set themselves up for regret. 'We advise buyers to take into account the property's location and access to amenities,' says buying agent Bishop. 'A remote location might sound romantic at first and remains a perfect option for some buyers, but it could present logistic challenges for others further down the line, especially if quick access to shops or services such as a hospital will be required.' Unfortunately, there isn't a manual to help buyers make that all-important final decision. Some buy with their head and others buy with their heart and some struggle to make the decision at all. Perhaps as bad as buyer's remorse is decision paralysis - when someone lacks the ability to decide on something out of fear of making the wrong choice. For those who fear buyer's remorse, preparation is key. They should explore some areas where they might want to live, contact estate agents, build relationships with them and get out on viewings. They could write down the five or ten essential things they are looking for and try and tick them off with each house they view. The list might include: a quiet neighbourhood, close to a train station, a good garden, a great room for entertaining, potential to extend, close to shops and restaurants, a private parking space, and a nice view. For those that do buy a home that they later regret, there are still positives according to Higgins. 'It's worth remembering that even with these regrets, owning a home brings long-term stability and financial security,' added Higgins. 'You're building equity, not paying someone else's mortgage, and you have a roof over your head that you can call your own. 'Most homeowners adapt and grow into their homes - they decorate, renovate, build equity, and make the space work for them. With time, a house becomes more than a transaction; it becomes a home.' How to find a new mortgage Borrowers who need a mortgage because their current fixed rate deal is ending, or they are buying a home, should explore their options as soon as possible. Buy-to-let landlords should also act as soon as they can. Quick mortgage finder links with This is Money's partner L&C > Mortgage rates calculator > Find the right mortgage for you What if I need to remortgage? Borrowers should compare rates, speak to a mortgage broker and be prepared to act. Homeowners can lock in to a new deal six to nine months in advance, often with no obligation to take it. Most mortgage deals allow fees to be added to the loan and only be charged when it is taken out. This means borrowers can secure a rate without paying expensive arrangement fees. Keep in mind that by doing this and not clearing the fee on completion, interest will be paid on the fee amount over the entire term of the loan, so this may not be the best option for everyone. What if I am buying a home? Those with home purchases agreed should also aim to secure rates as soon as possible, so they know exactly what their monthly payments will be. Buyers should avoid overstretching and be aware that house prices may fall, as higher mortgage rates limit people's borrowing ability and buying power. What about buy-to-let landlords Buy-to-let landlords with interest-only mortgages will see a greater jump in monthly costs than homeowners on residential mortgages. This makes remortgaging in plenty of time essential and our partner L&C can help with buy-to-let mortgages too. How to compare mortgage costs The best way to compare mortgage costs and find the right deal for you is to speak to a broker. This is Money has a long-standing partnership with fee-free broker L&C, to provide you with fee-free expert mortgage advice. Interested in seeing today's best mortgage rates? Use This is Money and L&Cs best mortgage rates calculator to show deals matching your home value, mortgage size, term and fixed rate needs. If you're ready to find your next mortgage, why not use L&C's online Mortgage Finder. It will search 1,000's of deals from more than 90 different lenders to discover the best deal for you. > Find your best mortgage deal with This is Money and L&C Be aware that rates can change quickly, however, and so if you need a mortgage or want to compare rates, speak to L&C as soon as possible, so they can help you find the right mortgage for you.
The Independent
02-07-2025
- Business
- The Independent
More than a third of homeowners ‘have regrets about their property'
More than a third (37%) of homeowners regret aspects of the home they bought, or would make different decisions if buying again, a survey indicates. Among younger adults, nearly two-thirds (63%) of homeowners aged 34 and under expressed regrets about their property purchase. This compared with just under half (48%) of those aged 35 to 54 and just over a fifth (22%) of homeowners aged 55-plus. Regrets included underestimating the full costs of buying or renovating, dissatisfaction with the location, and having to make compromises on indoor or outdoor space. London homeowners were particularly likely to have regrets about their property purchase, with just over half (51%) saying they would now make different choices. Paula Higgins, chief executive of HomeOwners Alliance, which commissioned the research, said: 'Buying a home is one of the most significant and emotional decisions people make, and our research shows many are left feeling they got it wrong. 'Younger buyers, in particular, are being hit hardest by the realities of the market: high prices, hidden costs, and the pressure to compromise. 'In London, these challenges are even more acute. Sky-high property prices mean buyers are often stretching their budgets to the limit and compromising to get on the ladder.' Ms Higgins added: 'It's worth remembering that even with these regrets, owning a home brings long-term stability and financial security. 'You're building equity, not paying someone else's mortgage, and you have a roof over your head that you can call your own. 'Most homeowners adapt and grow into their homes – they decorate, renovate, build equity, and make the space work for them. 'With time, a house becomes more than a transaction; it becomes a home.' The research was carried out for HomeOwners Alliance in April by Opinium, surveying more than 1,200 homeowners across the UK.
Yahoo
18-06-2025
- Business
- Yahoo
House prices, stamp duty and stress: costs blamed for 3 million cancelled home moves across UK
In advance of the Government's Spending Review on Wednesday 11 June, and the publication of its much-anticipated housing strategy, the HomeOwners Alliance has revealed that 3.3 million homeowners have cancelled plans to move in the past two years. More than 800,000 potential moves were delayed or ditched due to stamp duty costs alone, according to a survey by the property advice website. The most common reasons for changing plans were costs — with high house prices the most signifcant barrier cited by 35 per cent of homeowners. The average London home now costs £552,000, according to the Office of National Statistics, which is almost 14 times the average London salary. Stamp duty tax was also flagged by almost a quarter (24 per cent) of surveyed homeowners as their main reason for putting off moves. While often referred to as a tax on buyers in London and the South East, where property prices are higher, stamp duty tax, which is paid to the government on completion, still seems to be an issue that concerns people across the UK. For a family wanting to upsize to a home worth £400,000, stamp duty adds £10,000 to upfront costs and, in London, where the average property price is over £100,000 more, this figure is significantly higher. Stamp duty on the average London home (£552,000), for instance, equates to a bill of £17,600. 'Stamp duty is acting as a handbrake on the housing market,' says Paula Higgins, CEO of HomeOwners Alliance. 'When a family faces a £10,000 stamp duty bill just to move to a £400,000 home — before they've even paid for surveys, legal fees, and removal costs — it's no wonder a quarter of potential movers are staying put.' The HomeOwners Alliance believes scrapping stamp duty tax for everyone buying a home to live in would do a lot to spur people into purchasing their next property and resurrect the housing market, freeing up much-needed stock for families and downsizers. Also highlighted as a factor was the stress of moving in itself, with 35 per cent of respondents saying this was deterring them from moving forward with their plans. Last year, according to Quick Move Now, 31.3 per cent of property sales fell through prior to completion. Stricter mortgage criteria, problems thrown up during conveyancing and surveys, plus issues and delays in getting essential paperwork from freeholders, make the moving process fraught and a stress that many people choose to avoid — even if their current housing situation isn't ideal. What's more, 28 per cent of respondents said that moving costs were too high; when you're paying out large sums for solicitors, surveys and removal companies, this only adds to the pressure of the process. 'Making the home buying and selling process less of a Russian roulette game and more certain and streamlined would give people the confidence to move,' explains Higgins. Other issues flagged in the survey include a lack of motivation, with 27 per cent highlighting the shortage of suitable homes as a reason for them ditching future plans. This shortage was seen across the board, from families looking for larger houses with more bedrooms, to step-free homes for older people wanting to downsize, as well as affordable properties for first-time buyers getting a foot on the ladder. 'Our research reveals a housing market in crisis — not because people don't want to move, but because they simply can't afford to. With over 800,000 homeowners shelving their moving plans [due to stamp duty alone], we're seeing families trapped in unsuitable homes, unable to upsize for growing children or downsize as they age,' adds Higgins. 'While house prices are difficult to control, the government does have levers it can pull, and we hope to see this reflected in the Spending Review and the long-awaited housing strategy.' The HomeOwners Alliance research surveyed a nationally-representative sample of 2,000 UK adults.
Telegraph
29-03-2025
- Business
- Telegraph
The small print that turned one million flat owners into mortgage prisoners
Sky-high ground rent charges are turning flat owners into 'mortgage prisoners', experts have warned. Nearly one million leases have escalating ground rents, according to the Competition and Markets Authority (CMA), meaning the annual charge increases over time. Mortgage lenders often require certain conditions to be met before lending against these properties – for example, the annual ground rent cannot exceed 0.1pc of the property's value. However, experts said 'toxic' increases led by high inflation in recent years had left some flat owners trapped in 'unsellable properties'. Ground rent is an annual fee paid by leaseholders to the freeholder for the right to occupy the land their property is built on. Earlier this month, the Government introduced a white paper replacing leasehold systems, where third-party landlords owning the building belonging to several flats will be replaced with 'commonhold' schemes, which will give all owners more control over the buildings they live in. In addition, new buildings will no longer pay 'ground rent'. While the Leasehold and Freehold Reform Act 2024, passed under the previous government but not yet fully in force, includes some ground rent measures, neither a £0 or £250 cap have been legislated for. Britain's consumer watchdog, the CMA, has separately banned freeholders and developers from ground rent clauses that double the payment every review period; however, they can still increase them by the retail price index (RPI). Over the past few years, the RPI rose rapidly and spiked at 14pc in November 2022. Paula Higgins, of the Homeowners Alliance said: 'The CMA rightly stamped out doubling ground rents, but now some lenders are refusing mortgages on properties with RPI-linked increases or rent reviews every 10 years or less. What once seemed reasonable has become toxic under high inflation, trapping hard-working homeowners in unsellable properties.' For example, if your ground rent was charged at £290 a year in January 2020, it would rise with the RPI to £391 this year, an increase of 35pc, and would require the property to be worth over £391,000 in value to be compliant with lenders' terms. Nicholas Mendes, of brokerage John Charol, said ground rents were becoming 'more topical' with lenders. Mr Mendes said: 'Lenders are more aware of it from their level, looking at it and giving brokers the right guidance.' He added that many borrowers have opted to use product transfers in recent years that do not require their property to be revalued. However, he said that when the market settles in 'a year or two, more issues will come to light'. Leaseholders in a 122-flat development in Illford, east London, are subject to ground rent charges that increase every five years by the retail price index (RPI). The charge, which is in breach of most banks' lending terms, means the homeowners can no longer sell or remortgage. The freeholder, The Freehold Corporation, has Labour peer, Lord Carter of Coles, as a director. The company collects the payment through its operating company Emerald Ground Rent. David Hollingworth, of brokerage L&C, said: 'Lenders will have general guidelines around what clauses are likely to be acceptable. That's put an end to the doubling of ground rent every five years that was so problematic for some. 'Being linked to RPI can be acceptable but anything that could be seen as enough to affect the 'marketability' of the property. The valuation could pick up on an onerous ground rent which would affect the lender's security and so could result in a decline by the mortgage lender.' Harry Scoffin, the founder of the campaign group Free Leaseholders, added: 'Onerous ground rent is destroying people's homes, money and lives. It is also jamming up the flats market as a number of lenders refuse to mortgage them. Ground rent victims are the new mortgage prisoners. 'According to the latest Competition and Markets Authority data, around 940,000 leases have escalating ground rents. In its investigations, the CMA has also raised eyebrows at some RPI clauses. 'We know of increasingly desperate leaseholders trying to extend their leases or buy the freehold to remove onerous ground rents, but it's punitively expensive. Leaseholders who come to us just don't have a spare £20,000 lying around at the back of their sofa.' An MHCLG spokesman said: 'Far too many leaseholders across the country struggle with punitive and escalating ground rents. 'We remain firmly committed to tackling unregulated and unaffordable ground rents, and we will deliver this in legislation, with further details set out in due course.'
