Evolution Properties: January 2017

Tuesday 31 January 2017

FTBs to face an impossible task in the next ten years

The latest research from eMoov.co.uk has analysed data from the Land Registry over the last two decades to calculate the percentage increases in property values across England and Wales and highlights the potential task faced by the next generation of aspirational buyers, if the government fails to provide more affordable housing.

If the same percentage increases are then applied to today’s average property values across each region and increase at the same rate, the next 10 Years could see average house prices of up to £301,864.

London could jump to a staggering £866,719 if property values continue to increase at the same pace as they have in the last 10 years (80%), making it all but impossible for aspirational buyers to get on the capital’s property ladder.

The South East’s average property cost today is £313,334 but would rise to £445,159 in 10 years as a result of a further 42% increase, while the East of England follows with prices up 43% in the last 10 years, which would see the average property value climb to £397,335 in the next decade.

There are certain regions in England and Wales that would maintain affordable price tags in 2027. Both Wales and the North West could increase at a gradual pace and based on the current market trends, the average property in 10 years could cost £154,072 and £158,131, respectively. Both the East and West Midlands would also remain within reach with the average price sat around the £200,000 mark (E: £205,870 & W: £183,883).

The property market in the North East has seen values drop over the last 10 years, therefore, if this pattern was to continue, the North East could actually decrease in value over the next decade to £121,699 from £126,989.

The Next 20 Years

In the last 20 years, the average house price in England has increased by 320%. Although it is unlikely that property prices will continue at this rate, a further 320% increase in the value of property across England would push the average property value to the exuberant height of £983,826.

The potential percentage increases over the next two decades are even more alarming in certain regions and would put property completely out of reach for those looking to buy.

In London, if the market continues to inflate at such a dangerous rate, the average property cost would climb by a further 480%, putting the average house price at an eye-watering £2,792,783.

The South East could climb to £1,422,708 over two decades if prices increased by another 354%, trailed by the East of England where the average house price would hit £1,311,380 after climbing 371%.

As before, the markets in Wales and the North West would still grow gradually remaining just about affordable for those looking to get on the ladder in 20 years, with the average property price in Wales hitting £494,731, while the North West could jump to £533,010
The West Midlands would also remain under the £600,000 mark (£560,037), but the East Midlands would see prices tip beyond this boundary to a demonic £666,178.

Despite seeing prices fall in the last decade, the North East market has climbed in the last 20 years. If it were again to stabilise over the coming 20 years, homeowner would see prices once again on the up, although at just £380,753, it is by far the most affordable area of England and Wales for future homeowners.

Russell Quirk, founder and CEO of eMoov.co.uk, had this to say: “Despite the usual industry speculation it's not likely that we'll see a bursting of the house price bubble any time soon, but perhaps a slight deflation temporarily. Should this be the case, this research highlights the near impossible task faced by the next generation of aspirational buyers and acts as a warning to the government should they fail to address the current lack of property available, which is seeing prices once again reach dangerously inflated levels.

The property boom in several regions of England has made it increasingly more expensive to get on the ladder, and the figures anticipating the next two decades only further attest to the importance of investing in a home as soon as possible if the trend in increasing property values is to persist.

It is stomach churning to think that should prices continue the way they are, there will be just one real area of property affordability left across England and Wales in 20 years’ time, with the average house price in England approaching the £1m mark and three regions tipping beyond this.”

source http://blog.evolutionproperties.co.uk/2017/01/31/ftbs-to-face-an-impossible-task-in-the-next-ten-years/

Landlords Beware: February revealed as peak month for boiler repairs

New analysis by landlord insurer Direct Line for Business reveals February is the peak month for boiler repair claims, up 163% compared to the monthly average.

Last winter the insurer saw a 27 per cent increase in claims on broken down boilers compared to the previous year, and with the Met Office recently issuing a severe weather warning for the UK2, this winter could see even more claims being made.

With the average malfunctioning boiler costing almost £1,200 to fix, Direct Line for Business is advising landlords that prevention is better than cure and that they shouldn’t be complacent despite surviving sub-zero winter temperatures.

Christina Dimitrov, Business Manager at Direct Line for Business said: “Being caught out without heating in the winter can be particularly unpleasant, so landlords should make sure their properties have fully serviced boilers to help ensure their tenants don’t have heating issues. Landlords are legally responsible for securing a safety certificate for gas appliances each year and they also need to ensure the heating and hot water systems are maintained and functioning properly.”

Direct Line for Business offers boiler cover as standard with buildings insurance, and as long as the damage is not due to wear and tear, we’ll pay the cost of repairing or replacing a broken down boiler. Plus, we’ll provide tenants with portable heaters to help them try and stay warm while the issue is being fixed.”

Direct Line for Business has put together the following top tips for boiler maintenance this winter:

• Keep your heating on low: Sudden cold temperatures can freeze your boilers external condensate pipe which could cause your boiler to stop working. Insulating the pipes can help or try keeping the heating on low when it’s very cold.

• Bleed your radiators: If your property isn’t getting as warm as you think it should be, there may be air trapped inside the heating system. Releasing air from the system is simple but you will need a key which can slot into the radiators bleed valve. If you still have a problem after doing this, you may need to call in the professionals.

• Keep your boiler maintained: Make sure you service your boiler and keep it maintained in accordance with the manufacturer’s recommendations. Check regularly for any warning signs such as leeks, cracks or noises as the sooner you can identify a problem, the easier it will be to fix.

source http://blog.evolutionproperties.co.uk/2017/01/31/landlords-beware-february-revealed-as-peak-month-for-boiler-repairs/

Remortgage approvals hit 8 year high

Remortgage approvals continued to rise in December, hitting a new eight-year high of 47,721.

The latest stats from the Bank of England have shown that approvals for remortgages continued to grow in December and reached a new 'post-crisis- high of 47,721 - beating November's 45,683 approvals, which was the highest total since October 2008.

According to the report, approvals remained in line with recent months for house purchase - 67,898. Total lending secured on dwellings rose by £3.8bn in December, the highest flow since March 2016.

Jeremy Duncombe, Director, Legal & General Mortgage Club, commented: “The Bank of England’s figures clearly show a strong end to the year for the mortgage market. It is particularly encouraging to see so many savvy borrowers taking the initiative and saving themselves a potentially significant sum of money by swapping their existing mortgage deal."

Mark Harris, chief executive of mortgage broker SPF Private Clients, commented: "The level of mortgage lending for December was encouraging and helped make 2016 a surprisingly good year for the market, particularly when one considers the significant headwinds created by the increase in stamp duty for landlords and second homeowners in April and the uncertainty surrounding the referendum.

Record low mortgage rates are responsible for the resilience we have seen, with many borrowers remortgaging to take advantage of the lowest rates ever. Meanwhile, first-time buyers have been able to take advantage of an increase in the number of high loan-to-value deals and despite fears that the end of the Help to Buy mortgage guarantee scheme would give them a massive setback, this doesn’t seem to be the case.

Moving into this year, Swap rates have settled down since the beginning of January and several lenders have announced competitive deals on the back of these. HSBC, Barclays and Aldermore have all launched cheaper rates in the past few days and an appetite to do business among lenders shows no signs of abating. This is particularly good news for those borrowers who require a straightforward ‘vanilla' mortgage but we would like to see more tweaking of criteria and innovation to make it easier for other groups such as older borrowers and the self-employed to access mortgage finance rather than just cheaper rates."

Jonathan Sealey, CEO at Hope Capital, said: “Remortgaging continues to carry the rest of the market. There is no doubt that consumers are making the most of the continued low interest environment before Article 50 is triggered and we move into another uncertain economic world. However, home movers numbers remain low, which is a cause for concern for the future health of the market. Until this changes we will have a lack of properties coming to market and we will be ever reliant on new property being built.”

John Phillips, group operations director at Just Mortgages and Spicerhaart, said: “Approvals of loans secured on dwellings for remortgaging was higher than the previous six month average, suggesting that the low rates are responsible for the resilience we’ve seen in recent months. This growth in the remortgage sector has enabled homeowners to make substantial savings to their monthly outgoings and it is good to see that more borrowers are taking the initiative and saving themselves money by swapping their current mortgage deal.

As we look ahead into 2017, it is likely that remortgaging will remain high as more borrowers will look to remortgage to secure favourable rates. Although the full impact of Brexit is still waiting to be felt in the mortgage market, rising inflation will inevitably apply additional pressure to household budgets. Therefore, any way to help reduce outgoings, such as remortgaging, will be welcome relief to many borrowers.

Swap rates have also settled down since the beginning of the year and, with gross mortgage lending at an eight year high, let’s hope borrowers continue to take advantage of the low rate environment, as it is possible that confidence will fluctuate in March if Article 50 is declared, as expected.”

source http://blog.evolutionproperties.co.uk/2017/01/31/remortgage-approvals-hit-8-year-high/

Chinese buyers to mark the New Year with a property purchase

Almost a third of UK estate agents are expecting enquiries from Chinese buyers as the country marks its new year.

The Chinese New Year celebrations started last weekend, kicking off the year of the rooster, and many people use the time to travel.

A poll by property portal Juwai, which lets Chinese buyers search for property outside China, found 31% of agents expect to be approached about making a purchase.

How many estate agents say they expect Chinese buyers to approach them about property during the Chinese New Year holiday?

Almost half (43%) of Chinese people travelling for the holidays said they intend to meet with agents they have already spoken to about purchasing property in the countries they’re travelling to in 2017, while 32% said they will meet with estate agents they haven’t spoken to yet.

Of 184 UK-based agents polled, 12% said they have been contacted by Chinese buyers while 54% were expecting a busy period during the celebrations.

Charles Pittar, chief executive of Juwai.com, said: “During Chinese New Year, some estate agents see no Chinese buyers and others see an abundance of them. It depends on the type of product they’re selling and the location.

“Generally, we find that the wealthier buyers are more likely to combine property hunting with tourism during Chinese New Year.

“Overall, a majority of estate agents expect this year to be a busier holiday season than in 2016.

“Looking beyond just the holiday to all of 2017, almost half of Chinese consumers say they will engage in property hunting during their trips abroad.

“It’s not always the case, but often we see a strong correlation between the countries they visit as tourists and the countries where they purchase property. 57% plan to purchase property in the country to which they are travelling. An additional 26% say they would consider doing so.

“When it comes to immigration, 58% are considering immigrating to the country they are visiting.”

Meanwhile, research by Knight Frank has examined which part of the 12-year Chinese zodiac cycle has been best for house prices.

The data shows average house price growth was highest during the Year of the Dog, which ran between January 29, 2006 and February 17, 2007, at 9.26%.

The Year of the Rat – which fell just after the financial crisis from 2008, was the worst performing zodiac sign, with prices across the UK falling by 16.55% in the period.

Position	Start	End	Year	Annual Price Growth (%)
1	2006 January 29	2007 February 17	Dog	9.26
2	2009 January 26	2010 February 13	Ox	8.72
3	2013 February 10	2014 January 30	Snake	8.66
4	2014 January 31	2015 February 18	Horse	6.66
5	2016 February 8	2017 January 27	Monkey	4.4
6	2015 February 19	2016 February 7	Goat	4.37
7	2005 February 9	2006 January 28	Rooster	4.36
8	2007 February 18	2008 February 6	Boar	4.21
9	2011 February 3	2012 January 22	Rabbit	0.59
10	2012 January 23	2013 February 9	Dragon	-0.08
11	2010 February 14	2011 February 2	Tiger	-1.37
12	2008 February 7	2009 January 25	Rat	-16.55

source http://blog.evolutionproperties.co.uk/2017/01/31/chinese-buyers-to-mark-the-new-year-with-a-property-purchase/

Monday 30 January 2017

Find A Voice

Really pleased to have been able to help and support this amazing cause!

source http://blog.evolutionproperties.co.uk/2017/01/30/find-a-voice/

Sunday 29 January 2017

Where are the top 5 priciest world leader homes?

New research from Urban.co.uk has looked at five of the world’s most influential leaders, and their presidential properties, and discovered that despite his own booming property empire, President Trump is far from the top of the list – in fact, he’s coming in at number four.

The UK’s very own Prime Minister Theresa May is topping the list, with Number 10 Downing Street proving to be the priciest political property per square foot:

1. London: Prime Minister Theresa May’s Downing Street home - £2,105 per sq/ft
2. Moscow: President Vladimir Putin’s Kremlin palace – £930 per sq/ft
3. Paris: President François Hollande’s Élysée Palace residence - £819 per sq/ft
4. Washington: President Donald Trump’s White House abode - £457 per sq/ft
5. Berlin: Chancellor Angela Merkel’s Bundeskanzleramt flat - £314 per sq/ft

Brexit worries don’t seem to be shaking the foundations at Number 10, with the prices in SW1 reaching eye-watering heights: the 3,800 square-foot property (even without it’s obvious political prestige) would come in at a whopping £7,999,000!

With the Prime Minister’s famed love of a great pair of shoes, each shoe box has a floor space cost of around £1,052.50 – although how much wardrobe space there is behind the famous glossy black door has yet to be revealed.

Although Number 10 has pipped the top spot in the Leaderboard, in Mrs May’s first six months as Prime Minister, the average price of a terraced property in SW1 fell by 15% - however much of this panic could be attributed to the Brexit announcement that heralded her entry into the powerful position.

Before taking on his senior role in Washington, President Trump was based in New York. If the White House was in Midtown Manhattan - near the location of the iconic Trump Tower - President Trump would be storming up the Leadership Leaderboard, with an average price per square foot of £1,118.74.

Adam Male, co-founder of Urban.co.uk said: "With such iconic properties as the cornerstones of the world’s political stage, it’s impossible to put a ‘real’ price on the homes. It’s true that property prices in major cities always carry a premium, as well as being the political heart people are always keen to live in these busy, bustling areas.’

Who knows, with President Trump’s ‘golden touch’, we may even see a hike in prices in the Washington area over the next four years of his presidency – although whether it’ll be enough to topple London off the top spot is yet to be seen!"

source http://blog.evolutionproperties.co.uk/2017/01/29/where-are-the-top-5-priciest-world-leader-homes/

All The Great Things Are Simple

source http://blog.evolutionproperties.co.uk/2017/01/29/all-the-great-things-are-simple/

Amazing House Shaped Like A Cowboy Boot

20 wonderfully serene and secluded places from around the world that you have to visit

There are some wonderful places in the world that will make you forget about everything. When you’re there, you feel so secure and so peaceful. It seems like time just doesn’t exist or it suddenly stopped right there, and you feel so much closer to mother nature.

Sometimes you want to quit being crazy about material things and just get away to places where you will be able to relax and take a rest from all the fuss of everyday life. We’ve found such places just for you. Have a look at these photos and you will almost breath in the magical atmosphere.