Latest news with #Rics
The Independent
13-05-2025
- Business
- The Independent
Rise in ‘boomerang kids' as nearly a quarter of parents say adult children have come back home
Adult children are increasingly returning to the family nest, with nearly a quarter (23 per cent) of parents reporting their offspring have moved back home after moving out for the first time. These 'boomerang kids' are typically staying for around two years, according to research from NatWest, with the average age of return being 26. However, the study reveals a significant portion (21 per cent) are over 30 when they move back in. Making the phenomenon more complex, some parents reported their returning children brought partners or even their own children with them. This trend coincides with recent data from UK Finance highlighting the crucial role of parental support in helping young adults onto the property ladder. The trade association's research shows that first-time buyers receiving family assistance purchase homes at an average age of just over 30, compared to 32-and-a-half for those buying without help. Rental prices have also surged in recent years, making it harder for some people to save for a deposit to buy a home. Research published by the Royal Institution of Chartered Surveyors (Rics) last week indicated that tenant demand increased in the three months to April. Combined with a decline in new landlord instructions, this suggests that rents will rise over the next few months, Rics said. NatWest's research found that 85 per cent of parents believe that it is more challenging for first-time buyers currently than it was in their era. Parents are also making their own adjustments as their 'empty nests' are refilled, with more than half (55 per cent) of those with a returning adult child having given up a dedicated home office or guest room in their home. NatWest also said just over two-fifths (42 per cent) of mothers surveyed would be happy to welcome their children back as adults, as would just over a third (34 per cent) of fathers. Three-fifths (60 per cent) of parents said they do or would charge rent. Barry Connolly, managing director of home buying and ownership at NatWest, which offers a family-backed mortgage, said: 'Many children across the country are having to return to the homes that they grew up in well into their 20s and 30s to give themselves the financial headroom to save for a deposit.' Yonder Consulting surveyed 2,000 people across the UK in April for NatWest.
The Independent
12-05-2025
- Business
- The Independent
23% of parents with adult children ‘have had them boomerang back home to live'
Nearly a quarter (23%) of parents with adult children have had them move back in after initially leaving home, with the average 'boomerang' period lasting around two years, research indicates. The average age that children are moving back home is 26, although just over a fifth (21%) of those returning to their parents' house are aged over 30, according to the survey commissioned by NatWest. Some parents surveyed said that their adult child had moved back in with a partner or their own children in tow. Research released by UK Finance last week highlighted the role of the 'bank of mum and dad' in helping some young adults onto the property ladder. UK Finance's figures indicate that first-time buyers who receive family assistance are able to buy a home at an average age of just over 30, while those purchasing without support are around 32-and-a-half years old on average. Rental prices have also surged in recent years, making it harder for some people to save for a deposit to buy a home. Research published by the Royal Institution of Chartered Surveyors (Rics) last week indicated that tenant demand increased in the three months to April. Combined with a decline in new landlord instructions, this suggests that rents will rise over the next few months, Rics said. NatWest's research found that 85% of parents believe that it is more challenging for first-time buyers currently than it was in their era. Parents are also making their own adjustments as their 'empty nests' are refilled, with more than half (55%) of those with a returning adult child having given up a dedicated home office or guest room in their home. NatWest also said just over two-fifths (42%) of mothers surveyed would be happy to welcome their children back as adults, as would just over a third (34%) of fathers. Three-fifths (60%) of parents said they do or would charge rent. Barry Connolly, managing director of home buying and ownership at NatWest, which offers a family-backed mortgage, said: 'Many children across the country are having to return to the homes that they grew up in well into their 20s and 30s to give themselves the financial headroom to save for a deposit.' Yonder Consulting surveyed 2,000 people across the UK in April for NatWest.
The Independent
08-05-2025
- Business
- The Independent
‘Home buyer inquiries and sales fall' as buyers adjust to stamp duty changes
Home buyer inquiries and sales fell in April, after a stamp duty holiday expired and as economic uncertainty continued to weigh on confidence, surveyors have reported. Stamp duty discounts became less generous for some home buyers from April 1. Stamp duty applies in England and Northern Ireland. The Royal Institution of Chartered Surveyors (Rics) said that new buyer interest declined for the third month in a row, with a net balance of 33% of property professionals reporting a fall in inquiries rather than an increase. This reflects growing caution from prospective buyers alongside affordability pressures and tight borrowing conditions, Rics said. A net balance of 31% of property professionals saw a fall in sales agreed rather than a rise. This was the weakest figure recorded since August 2023, pointing to a subdued spring market, the report said. More positively, a net balance of 17% of surveyors expect sales to rise over the year ahead. A net balance of 39% of professionals expect house prices to increase over the year ahead. Looking at the lettings market, tenant demand increased in the three months to April according to the report, while a decline in new landlord instructions remained evident, suggesting that rents will rise over the next few months. Rics chief economist Simon Rubinsohn said: 'Although geopolitical developments haven't helped the mood music in the residential market over the past month, the main reason for the dip in the key Rics sales activity metrics lies in the expiry of the stamp duty holiday at the end of March. 'Near-term expectations indicators suggest the subdued trend will persist for the next few months at least, but looking beyond this, the results are more encouraging reflecting in part the prospect of deeper interest rate cuts than previously anticipated. 'More problematic, however, is the negative feedback in the survey around supply in the rental market. With demand continuing to grow, there appears little relief in store for tenants in terms of the upward pressure on rents.' Tom Bill, head of UK residential research at Knight Frank, said: 'Despite a predictable lull in April following the stamp duty cliff edge, demand in the UK housing market is relatively robust. 'The tariff turbulence means the Bank of England is expected to cut rates more quickly, which means more sub-4% mortgages have appeared although demand would falter if things got too bumpy.' Jeremy Leaf, a north London estate agent, said: 'Over the past month or so, we have noticed considerably more tenant interest but a resistance to paying higher rents. 'However, lack of supply, particularly of one and two bedroom flats in more popular areas, often prompted by landlords deciding not to renew, is preventing a more marked downturn in values.'
The Guardian
13-03-2025
- Business
- The Guardian
Stamp duty deadline and economic gloom dampen UK housing market
Momentum in the UK housing market slowed in February as confidence was dampened by a looming stamp duty deadline and concerns over stubbornly high interest rates and the world economic picture. Buyer demand fell to its weakest level since November 2023, with approximately 14% of property professionals reporting a fall in demand, according to the Royal Institution of Chartered Surveyors (Rics). A Rics survey of professionals indicated that higher stamp duty costs for some homebuyers from 1 April are expected to weaken market activity. Stamp duty applies in England and Northern Ireland. Concerns over interest rates, inflation and global events such as tariff trade wars also appeared to be dampening buyer confidence, the report said. According to the Halifax, the typical property price dipped by 0.1% in February to £298,602, having hit a record high in January when the average price rose by 0.7% to £299,138. However, an early measure from Nationwide found the average UK house price rose by 0.4% during February despite signs of a sluggish economy, up from 0.1% the month before. The average price of a house bought through Britain's biggest building society grew to £270,493. The Rics survey also pointed to the volume of newly agreed sales falling in February, with London-based professionals reporting a particularly noticeable dip in sales agreed during the month. While the market is expected to continue to soften in the short term, over the next 12 months house prices are expected to rise broadly in line with price expectations recorded over the past six months, the report said, with approximately 47% of property professionals expecting to see an increase. In the rental sector, there was a small decline in demand from tenants for the fourth month in a row, marking the longest period without an increase since Rics began monthly lettings records in 2012. Sarah Coles, the head of personal finance at Hargreaves Lansdown, said: 'The window of opportunity has [been] effectively slammed shut on buyers, because even in February they knew there was next to no chance of getting a sale sorted before the end of the stamp duty holiday. 'Unsurprisingly, it has sucked some of the life out of the market. New buyers and sales have both dropped – with new buyers at their lowest ebb since the end of 2023. House prices have continued to rise, but not as quickly, and agents are fairly convinced we'll be in this lull for a while yet.' Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion Coles added that a 'savings and resilience barometer' from Hargreaves Lansdown had found that 'younger renters in particular are struggling and, on average, generation Z and millennial renters have just £73 left at the end of the month'. Tom Bill, the head of UK residential research at Knight Frank, said: 'Markets still expect two Bank of England rate cuts in 2025 and we still believe there will be single-digit house price growth, but some caution is understandable.'
The Independent
13-03-2025
- Business
- The Independent
UK housing market momentum slowed in February
Momentum in the UK housing market slowed in February amid signs of weakening buyer confidence, according to surveyors. Buyer demand slipped to its weakest levels since November 2023, with a net balance of 14% of property professionals reporting a fall in demand rather than a rise, according to the Royal Institution of Chartered Surveyors (Rics). Its survey of professionals indicated that higher stamp duty costs for some home-buyers from April 1 are expected to weaken market activity. Stamp duty applies in England and Northern Ireland. Concerns over interest rates, inflation, and global events also appear to be dampening buyer confidence, the report said. The survey also pointed to the volume of newly-agreed sales falling in February, with London-based professionals reporting a particularly noticeable dip in sales agreed during the month. House prices continued to increase generally in February, but at a more subdued rate, with a smaller net balance of professionals reporting price increases during that month compared with December and January. Looking further ahead, while the market is expected to continue to soften in the short term, the majority of professionals believe house prices will rise over the next 12 months, Rics said, with a net balance of 47% expecting to see an increase. This is broadly in line with price expectations recorded over the past six months, the report said. In the rental sector, there was a small decline in demand from tenants for the fourth month in a row. This marks the longest period without an increase in tenant demand since Rics' monthly lettings records started in 2012. But, alongside this, new instructions from landlords have also been shrinking, the report said. While demand for rental properties has fallen, supply appears to be reducing at a faster rate, pointing towards further rental price rises, according to Rics. A net balance of 34% of survey participants are expecting to see rental prices rising over the next three months. Rics chief economist Simon Rubinson said: 'The UK housing market appears to be losing some momentum as the expiry of the temporary increase in stamp duty thresholds approaches. 'Some concerns are also being expressed by respondents about the re-emergence of inflationary pressures and the more uncertain geopolitical environment. That said, looking beyond the next few months, sales activity is seen as likely to resume an upward trend with prices also moving higher.' He added: 'Meanwhile, despite a flatter trend in demand for private rental properties, the key Rics metric capturing rental expectations is still pointing to further increases, demonstrating that the challenge around supply spans all tenures.' Sarah Coles, head of personal finance at Hargreaves Lansdown, said: 'The window of opportunity has effectively slammed shut on buyers, because even in February they knew there was next-to-no chance of getting a sale sorted before the end of the stamp duty holiday. 'Unsurprisingly, it has sucked some of the life out of the market. New buyers and sales have both dropped – with new buyers at their lowest ebb since the end of 2023. House prices have continued to rise, but not as quickly, and agents are fairly convinced we'll be in this lull for a while yet.' Ms Coles added that a 'savings and resilience barometer' from Hargreaves Lansdown had found that 'younger renters in particular are struggling, and on average Generation Z and Millennial renters have just £73 left at the end of the month'. Tom Bill, head of UK residential research at Knight Frank, said: 'Markets still expect two Bank of England rate cuts in 2025 and we still believe there will be single-digit house price growth, but some caution is understandable.'
