Latest news with #TobyLeek
The Independent
4 days ago
- Business
- The Independent
Three London boroughs where house prices are falling
While UK property prices are generally rising, some London boroughs are experiencing annual decreases, with central areas like Islington down more than 8 per cent, Kensington and Chelsea down 15 per cent, and Westminster a full 20.1 per cent. NAEA Propertymark president Toby Leek notes that despite London 's attractiveness, high house prices relative to wages, increased stamp duty, limited housing supply, and higher interest rates are making it difficult for aspiring homeowners to enter the market. Data indicates a shift with more people leaving cities for smaller towns or rural areas, influenced by factors like the pandemic altering work-life balance perceptions and the desire for larger, more affordable properties. Personal finance analyst Alice Haine highlights that Londoners face challenges due to high mortgage payments, rising living costs, and frozen tax thresholds, making relocation to cheaper areas appealing. Bank of England data reveals a continued decline in mortgage approvals for home purchases, and with interest rates expected to remain high, buyers and those remortgaging may need to adjust their plans.
The Independent
4 days ago
- Business
- The Independent
House prices are dropping across London – but people are still having to leave the capital to buy
Property prices in the UK are on the rise once more – but that's not the case in all areas of London, with some boroughs showing an annual decrease. Despite this, many Londoners are still struggling to get on the property ladder in the capital, forcing them to leave the city to buy elsewhere, or remain part of the forever renters community. Nationwide data on people who had moved house in the last five years also showed a marginally higher rate of people leaving cities for small towns or rural areas, compared to those coming into cities. Toby Leek, NAEA Propertymark president, told The Independent: 'London remains a highly attractive and aspirational place for many people to move to, and though house price growth is slowing, many aspiring homeowners are struggling to step onto the region's housing market due to a myriad of factors. 'These include the growing disparity in house prices and wage growth, with the average home across the Greater London area costing around £680,000 and the average wage sitting at around £48,000, meaning buying a home costs over 14 times the average income. 'Also contributing to this struggle that many buyers are facing is the increased Stamp Duty thresholds from April this year, a shortage of supply triggered by slow rates of development and higher interest rates than those traditionally used to, making mortgaging a property more difficult.' Price divide Land registry data showing London borough house prices over the last 12 months reveals that while the city-wide trend might remain on the up, there's a clear divide between central areas and boroughs on the outskirts. While house prices in areas like Lewisham, Redbridge and Havering are up between 8 and 9 per cent over the past year, more central boroughs such as Greenwich, Camden and Wandsworth are down between 2.4 and 4.5 per cent. For Islington it's more than 8 per cent lower, Kensington and Chelsea is 15 per cent down and Westminster is a full 20.1 per cent below last year. Sellers are having to accept average discounts of nearly ten per cent to the asking price, while Coutts Bank said 82 per cent of properties in prime London sold for below the asking price between January and March this year, per the Telegraph. And that isn't always limited to those traditionally higher-end locations. Leaving London 'It's not just wealthy buyers that are reconsidering their options. Mortgage rates may be easing but with stamp duty costs now higher, wage growth starting to slow and living costs still on the climb, affordability remains a challenge for Londoners whose finances are already constrained by sky-high rents,' Alice Haine, personal finance analyst at Bestinvest told The Independent. ' Homeowners in the capital typically see a larger proportion of their income swallowed up by mortgage payments than their counterparts elsewhere in the country. Plus, with most personal tax thresholds on hold, which results in people paying higher rates of tax as their income increases, it can make sense for people to relocate to cheaper parts of the UK to make life more affordable. 'The pandemic has radically shifted workers' perception of what a healthy work-life balance is. Rather than commuting across a city every day, people can now head into the office once a week or even once a month. It therefore makes more sense for some to live in a larger property in a quieter, cheaper part of the country than trying to squeeze a family into a one- or-two-bedroom flat. 'It seems having a higher disposable income to cover everyday bills with enough spare money to go on holiday once a year and save for the future may now be more important than proximity to the office.' Regardless of location, Bank of England data showed that the number of mortgages approved by UK lenders for home purchases dropped again in April - a third consecutive drop of net residential mortgage approvals. With interest rates now not expected to drop below 4 per cent until the end of this year, if at all, buyers and those looking to remortgage alike may be considering taking the plunge, having been holding off until now due to declining rates in 2025.
Yahoo
12-05-2025
- Business
- Yahoo
Inconvenience: Home movers ‘taking toilet seats and light bulbs to new property'
Toilet seats, light bulbs and door handles are among the cherished items that house sellers have taken with them when moving, a survey has found. One in five movers (20%) said light bulbs had been removed by previous owners when they moved into a new property, estate agent Purplebricks said. Some movers were left spending a penny or two on new toilet seats, with 9% saying these had been taken. One in 25 (4%) arrived in their new home to find the previous occupants had removed door handles and more than one in 10 (11%) said the doorbell had gone. Kitchen appliances, curtains and blinds and carpets were among other items to have gone with the previous occupants, the survey of 2,000 homeowners across the UK found. Some had also found unwelcome surprises left behind by the previous owners – such as bags of rubbish and rotten food – as well as nice ones such as welcome notes and gifts. About one in six (15%) people surveyed by market research agency Walr in April said they would definitely take fitted fixtures with them that they particularly liked. Tom Evans, sales director at Purplebricks, said: 'Home really is where the heart is – and it seems some Brits don't want to leave a piece of their heart behind.' Toby Leek, NAEA (National Association of Estate Agents) Propertymark president, said: 'Moving house can be one of the most intensive processes many people undertake, and it's key that communication is front and centre of that process to help avoid issues or potentially nasty shocks. 'Just like any sales process, when a property is marketed it must contain accurate details of what is being sold and included. 'While some sellers may wish to take items, this should be documented clearly in the paperwork as part of the sales transaction. 'Strong communication between buyers, sellers, surveyors, estate agents and conveyancers is essential so that they all interact with one another to ensure that the moving process is as smooth as possible for all parties involved. 'Both buyers and sellers must show co-operation and be aware of what items are being left behind for those moving into a new property.'
Yahoo
27-02-2025
- Business
- Yahoo
Later life mortgage lending jumped in the fourth quarter of 2024
Some 35,840 new home loans were handed out to older borrowers in the fourth quarter of last year, marking a 28.2% annual increase, according to UK Finance. Its later life mortgage lending report, which covers borrowers aged over 55, showed that lending totalled £5.6 billion in the fourth quarter, which was 38.6% higher compared with the same quarter a year earlier. Within the total, there were 5,700 new lifetime mortgages advanced during the fourth quarter, up by 6.7% annually. The value of this lending was £510 million, which was a 24.4% increase compared with the same quarter a year previously. Some 343 retirement interest only mortgages were advanced in the fourth quarter, up 35.6% annually. The value of this lending was £35 million, which was up by 34.6% compared with the same quarter a year previously. A retirement interest only mortgage allows borrowers to pay just the monthly amounts of interest throughout the term of the mortgage until either the death of the last remaining borrower or when the last remaining borrower moves into long-term care. With lifetime mortgages, monthly payments are not required. The mortgage is repayable upon death of the last remaining borrower or when the last remaining borrower moves into long term care. The interest accrues over the lifetime of the mortgage. However, many lenders will allow borrowers to make full or partial interest payments on a monthly or occasional basis. Some previous concerns have been raised about how borrowing into later life could affect people's retirement plans. Older borrowers may also need to consider how the loan might affect the amount of wealth they may have to pass on to younger generations. UK Finance's total lending figures also include general homeowner and buy-to-let home purchase loans and remortgaging. Toby Leek, NAEA (National Association of Estate Agents) Propertymark president, said: 'Even with interest rates at relatively high levels, this report demonstrates that older people still feel confident enough to borrow money to finance their future home purchases. 'This trend is being reflected across all buyers, with the Bank of England's Money and Credit Report for December 2024 finding that net mortgage approvals increased to 66,500 in December. 'However, with the economic landscape remaining reasonably unsettled, many people's finances may be stretched meaning they need to borrow for longer, not out of choice but out of need. 'Much of the country will now be eagerly awaiting interest rates to track downward so that mortgages can continue to become more affordable, allowing others the chance to make their next home moves a reality.'
The Independent
27-02-2025
- Business
- The Independent
Later life mortgage lending jumped in the fourth quarter of 2024
Some 35,840 new home loans were handed out to older borrowers in the fourth quarter of last year, marking a 28.2% annual increase, according to UK Finance. Its later life mortgage lending report, which covers borrowers aged over 55, showed that lending totalled £5.6 billion in the fourth quarter, which was 38.6% higher compared with the same quarter a year earlier. Within the total, there were 5,700 new lifetime mortgages advanced during the fourth quarter, up by 6.7% annually. The value of this lending was £510 million, which was a 24.4% increase compared with the same quarter a year previously. Some 343 retirement interest only mortgages were advanced in the fourth quarter, up 35.6% annually. The value of this lending was £35 million, which was up by 34.6% compared with the same quarter a year previously. A retirement interest only mortgage allows borrowers to pay just the monthly amounts of interest throughout the term of the mortgage until either the death of the last remaining borrower or when the last remaining borrower moves into long-term care. With lifetime mortgages, monthly payments are not required. The mortgage is repayable upon death of the last remaining borrower or when the last remaining borrower moves into long term care. The interest accrues over the lifetime of the mortgage. However, many lenders will allow borrowers to make full or partial interest payments on a monthly or occasional basis. Some previous concerns have been raised about how borrowing into later life could affect people's retirement plans. Older borrowers may also need to consider how the loan might affect the amount of wealth they may have to pass on to younger generations. UK Finance's total lending figures also include general homeowner and buy-to-let home purchase loans and remortgaging. Toby Leek, NAEA (National Association of Estate Agents) Propertymark president, said: 'Even with interest rates at relatively high levels, this report demonstrates that older people still feel confident enough to borrow money to finance their future home purchases. 'This trend is being reflected across all buyers, with the Bank of England's Money and Credit Report for December 2024 finding that net mortgage approvals increased to 66,500 in December. 'However, with the economic landscape remaining reasonably unsettled, many people's finances may be stretched meaning they need to borrow for longer, not out of choice but out of need. 'Much of the country will now be eagerly awaiting interest rates to track downward so that mortgages can continue to become more affordable, allowing others the chance to make their next home moves a reality.'
