New Build Homes sale on the increase with help from the Help to Buy Scheme

There was more positive news about the housing market this month, this time with particular reference to the new homes sector. Britain’s largest house builder reported an increase in reservations by 10% so far this year. It is thought that the government’s Help to Buy scheme has contributed considerably to this increased level of activity.

The National House builders were the first to have the Help to Buy scheme available for their new build properties, however the scheme is now being offered to regional developers, which will allow more buyers to access the scheme.

The Help to Buy scheme is a Government scheme launched to help people purchase a new property with just a 5% deposit by way of an equity loan of up to 20%. Help to Buy is available to all new home buyers, not just first time buyers as previous schemes have been and buyers only need a 5% deposit to qualify.

Help to Buy is a Government backed scheme launched in the March budget and will run until 31 March 2016. The scheme is designed to help buyers purchase a new property with just a 5% deposit by way of an equity loan of up to 20%. Help to Buy is available to all new home buyers, not just first time buyers as previous schemes have been, and buyers only need a 5% deposit to qualify. The scheme will run until 31 March 2016.  

Ryder & Dutton New Homes are working closely with their developer clients to assist them in registering their new houses onto the scheme and hope to have a wide range of property types available soon for all buyers. The scheme is available on any new build properties up to a maximum purchase price of £600,000.

For example you can purchase a home for £200,000 (100%) putting down a deposit of £10,000 (5%) combined with a government loan of £40,000 (20%) whilst taking out a mortgage for £150,000 (75%).

The loan can be repaid at any time or upon the sale of your home and there is no interest to pay within the first five years.

Click Here for all the Ryder and Dutton New Homes For Sale.

You can contact us for further advice regarding the Help to Buy scheme or register your interest in the scheme with our New Homes Department on 0161 925 3235.

Auction House Redraws the Map of Auction Sales in the North

 The success of the UK’s leading residential property auctioneer Auction House is revolutionising the pattern of property sales in the north of England.

The latest EIG figures (Jan-Apr 2013) show that Auction House has overtaken the traditional sales rooms in the region to become a clear market leader, having sold 434 lots from 541 offered (a success rate of 80%), compared to its nearest rival with only 289 lots sold.

Ian Hill, Director of Auction House Manchester said: “Auction House is redrawing the map of auction sales in the north of England. The result clearly demonstrates the attraction of our 13 northern auction rooms, with the vast majority of vendors now choosing to sell in-region rather than from an auction room far away. The benefits of better marketing, hosted open house viewings and busy auction rooms with more local buyers are the clear reasons for better prices being delivered.”

Nationally, the Auction House network offered 279 lots across its 30 auction rooms last month, with 218 sold at a healthy success rate of 78%, raising £23m. Commenting on the figures, Ian Hill added: “Our early spring sales were a great success; viewing levels are up and auction room attendances are too. We are currently entering far larger numbers of commercial lots alongside more must sell residential properties. Investors have become more active, tenanted stock is particularly popular and builders are back acquiring land and development sites.

“There is now a big window of opportunity for struggling Private Treaty stock to be quickly sold by auction – and it is pleasing to see that sellers and local agents are realising the better chances that we offer”.

Other trends being reported by Auction House include an increasing number of ASTs being sold at auction to landlords who like to buy with instant income; the better prices now being achieved for commercial lots sold in region; a noticeable rise in rural entries and an increased demand for secondary retail.

Ian Hill concluded: “Auction House is now the logical first choice for sellers of residential, commercial and investment lots. The service we offer is second to none and our results are way ahead of the rest”.

Older Generation Turn to Buy To Let Sector As Rental Demand Increases

 

According to research, a new generation of Landlords is emerging as people are investing their money in rental properties in order to help their retirement funds. The research claims that this trend of people looking towards retirement investing in buy to lets has been growing over the last four years, and the number of landlords in their 60′s keeps on rising.

Some of these people are accidental landlords who had perhaps planned on selling their home to retire to a new house or a new area but found that the value was less than they were hoping for. In these cases some home owners have turned to renting their house out, in turn giving them an opportunity to still move on to another property. Others have decided to enter the buy-to-let market to seize the opportunity to take advantage of market conditions, and purchase a property at a reduced asking price, providing themselves with a rental income to further boost their existing pension provision.

This research coincides with another study which has shown that housing benefit tenants looking for a rental property has increased recently as demand is outweighing supply. With a shortage of Local Authority Housing, investors, whatever their age, are well placed in meeting the demands from housing benefit tenants whilst also adding to their income or retirement funds.

For further advice on renting out a property, please contact our Property Management team on 0161 626 6800.

 

UK house prices ‘see annual rise’

UK house prices were 0.8% higher in March from a year earlier, the Nationwide says, the first annual rise for more than a year.

 

UK house prices in March were up 0.8% from a year earlier, according to the latest figures from the Nationwide.

The building society said it was the first annual increase since February 2012. Prices were unchanged in March compared with the previous month.

The average UK home is now worth £164,630, the survey found.

Separately, the Land Registry said prices in England and Wales rose by 1% over the last year.

London saw the sharpest increase, with prices going up by 6.3%.

Yorkshire and Humberside saw the biggest annual fall, with prices tumbling by 0.9%

The Nationwide said demand from buyers had been helped by lower mortgage costs and a better job market, but added that the outlook was “unusually uncertain”.

Using the three-month-on-three-month comparison, a measure preferred by many economists, prices rose 0.2% over the last year.

“In recent months, buyer demand has been supported by healthy rates of employment growth, as well as the Funding for Lending Scheme, which has helped to reduce mortgage costs and increase credit availability,” said Robert Gardner, Nationwide’s chief economist.

The Halifax has said that prices are rising faster than the figures from Nationwide suggest.

Earlier this month, it said house prices rose by 1.9% over the last year.

Some economists have predicted that prices will rise further in the months ahead, as a direct result of government measures announced in the chancellor’s Budget.

The Help to Buy scheme, which comes into operation on 1 April, will enable homebuyers to put down a 5% deposit. Borrowers can take out an equity loan of up to 20%, which will give the government a stake in the value of their home.

A separate mortgage guarantee scheme will begin in January next year. Under that scheme, the government will be liable for 15% of outstanding debts, should a homeowner default on a mortgage.

“The outlook for the housing market is unusually uncertain at present, in part because the prospects for the wider economy are unclear, but also as the impact of a number of policy initiatives is hard to gauge,” said Mr Gardner.

 

Original content from ‘BBC News’

 

Rightmove Hits Record Highs

We recently reported that Rightmove has ranked as the sixth most popular website in the UK and the site has continued to soar into 2013.

April saw record highs as Rightmove had their busiest month ever with an incredible 1.25 billion pages viewed as people trawled the pages of sale and rental properties that are currently available.

The number of visitors to Rightmove has also risen by 20% since January coinciding with the increased activity levels being reported. 

The latest iPhone and iPad app also proved to be fiercely popular having been downloaded nearly three million times this year, alongside the ever-increasing mobile traffic.

Advertise your property on the 6th most popular website with Ryder and Dutton.

Bank Holiday Monday Opening Hours

Monday 6th May is Bank Holiday Monday however you can still contact Ryder and Dutton for all your property needs!

Our telephone lines are open between 10am and 4pm, so if you are house hunting this Bank Holiday weekend then you can still contact us.

Property Transactions and First Time Buyers on the Increase

First Time Buyers reach a four year high, whilst the RICS report an increase in property transactions.

The Royal Institute of Chartered Surveyors (Rics) have published their monthly market survey that reveals property transactions have reached their highest levels in over two-and-a-half years with nearly 17 homes were sold per surveyor in the three months to February.

The monthly market survey hints at improved conditions for the housing market and this has also been backed up with an encouraging increase in the number of first time buyers looking to make their first steps on the property ladder. First time buyer levels have also hit a four-year high and the trend looks set to continue.

Previously, it was felt that buyers have been holding off moving until they sensed a more stable property market, yet we are now seeing more activity from house hunters and new buyers looking to enter the property market.

Nationally buyers are often still concerned about the affordable of stepping onto the property ladder as according to Government figures, the average first-time buyer property costs £173,000 and a 10 per cent deposit would cost £17,300.  Yet regionally purchasers are able to purchase a property at a more affordable asking price than the national figures quoted by the government, which take into account the London housing market with its traditionally higher property prices.

The RICS survey says that surveyors are “cautiously optimistic” that the uplift in sales will continue.

Peter Bolton King, RICS global residential director, said: “It’s encouraging to see that the housing market now appears to be picking up across most parts of the UK despite ongoing concerns about the health of the economy.”

Whilst the RICS makes it clear that there is no expectations of a house price boom, it is certainly a positive signal regarding the present market conditions.