Cost of running a home almost half of average income

A study by home insurers MORE TH>N has found that owning a three-bedroom home in the UK comes with average annual running costs of £18,197, or £1,516 per month.

Rented three bedroom homes are slightly less expensive at £17,657 per year (£1,471 per month).
 For a household with two working adults each earning the average UK annual salary, this means that between 40% (rented) and 42% (owned) of post-tax earnings are being spent purely on household bills and the rent or mortgage.

Overall 89% of all homes, regardless of size, generate bills that are in excess of half of the mortgage or rent payment.
 Households are most stretched in Greater London, where 70% of properties cost more than £1,818.7 per month to run – the average UK net take-home after tax.

 So whilst a family with two people earning the national average salary in Omagh, Northern Ireland would be left with £2,796 disposable income each month, this figure contrasts sharply with a family trying to run the same size home but in Oxford (£1,480), Croydon (£1,496) and Cambridge (£1,712.58) respectively.

 The report also shows that for 71% of people in the UK it’s cheaper to run a home if you own the property, rather than rent. The East Midlands is the only region in the UK where it is always cheaper to own than to rent any sized property, whereas in Greater London it’s only cheaper to own for 23% of homeowners.

Graham Nicholls, head of home insurance at MORE TH>N, commented: “The report looks at average homes and average costs. Just as last year, it’s clear that most people are financially stretched putting a roof over their heads and paying their bills – spending most of their income before buying other regular necessities such as food, commuting, petrol or insurance.

 “With so little slack in the budget, it’s easy to imagine how one unplanned expense could prove to be unaffordable and we would encourage homeowners and renters to protect their home and possessions to guard against unexpected bills. Having the right insurance in place, as well as keeping up with the wear and tear on your home, offer peace of mind and prevent bigger bills down the road.”

source http://blog.evolutionproperties.co.uk/2017/08/30/cost-of-running-a-home-almost-half-of-average-income/

Rents and portfolios hit as landlords respond to political uncertainty

Many landlords have reviewed their portfolio sizes and increased rents in response to the ongoing political uncertainty in the UK, according to Foundation Home Loans research.

When asked how they had been influenced by the uncertainty since the EU Referendum and General Election, well over a third (38%) of UK landlords said they had reviewed the size of their portfolios to ensure they could withstand any creeping costs. 7% have sold off properties to either reduce portfolio sizes or diversify, rising to 19% for those holding 20 properties or more as PRA policy change edges closer.  
30% have hiked rental prices, with the greatest proportion doing so in the East Midlands (41%) as landlords recognise the popularity of the region for professionals seeking the balance of space alongside proximity to London.
However, confidence in tenant demand in the East Midlands has not been enough to deflect from the wider pressures bought on by tax and policy changes, as it was also the region with the highest proportion of landlords reviewing the size of their portfolios (50%). Landlords operating in Central and Outer London followed closely behind at (45%) and (40%) respectively.
After the East Midlands, the North West, South East and East of England also saw high percentages of landlords raising their rents (35%, 33% and 33% respectively). Significantly, almost a quarter (24%) of landlords operating in Central and Outer London raised their rent prices, increasing the pressure on those still hoping to afford home ownership.

Almost three quarters (71%) of landlords said they had experienced a drop in confidence; more so for those operating in Central (78%) and Outer London (77%), reflecting the cooling London market and decreasing tenant demand.  
Jeff Knight, Marketing Director, Foundation Home Loans, said: “Landlords have been met with a raft of changes, from stamp duty charges to shifts in tax policy, and the lack of certainty on the political front has clouded the picture somewhat. The response has been to ‘batten down the hatches’, streamlining larger portfolios and protecting income by increasing rents - decisions that can be reviewed once the buy to let market is more accommodating. The fact remains that, whether it’s as a stepping stone to home ownership or a longer term lifestyle decision for tenants, the rental sector is an increasingly important part of the housing mix. This will ultimately be best served by a wide choice of property, and good landlords who can have confidence in decent returns.”

source http://blog.evolutionproperties.co.uk/2017/08/30/rents-and-portfolios-hit-as-landlords-respond-to-political-uncertainty/

Another happy owner!

Rent - and demand - remain high in July

The number of letting agents who saw rents rise for tenants remained at 31 per cent in July, up from 27 per cent in May, according to the latest figures from the Association of Residential Letting Agents.
In its July Private Rented Sector Report, numbers indicated that demand is increasing alongside the rise in rents.
The figures also showed that yhe number of properties managed per member branch increased marginally in July, to 192 – up from 190 in June. This is the highest level since January, when agents managed 193 on average
Year on year, this figure has increased by four per cent; in July last year, letting agents managed 184 properties on average
David Cox, ARLA Propertymark Chief Executive, said: 

“Landlords really are stuck between a rock and a hard place. All the tax increases they’ve incurred over the last 18 months have meant they either need to sell their properties and exit the market, or increase rent payments to plug the deficit. Neither of these outcomes benefit tenants; if they exit the market, supply is even more strained and matched with growing demand, rent prices will increase anyway. 
"Government may claim they are helping tenants but the unintended consequences of their actions on the private rental sector are now really being felt by tenants in terms of lack of homes to choose from and the feeling of being constantly priced out of the market. This needs to change.” 

source http://blog.evolutionproperties.co.uk/2017/08/24/rent-and-demand-remain-high-in-july/

Buy-to-let sales defy July mortgage slump

UK mortgage sales decreased by £1.8 billion in July, down 10.8% on the previous month, according to Equifax Touchstone analysis.

Buy-to-let figures were resistant to the general decline, down by just 0.2% (£3.9 million) to £2.6 billion, while residential sales dropped by 12.8% (£1.8 billion) to £12.2 billion. Overall, mortgage sales for the month totalled £14.8 billion, up 10.8% year-on-year.
All regions across the UK suffered a significant fall in sales. Scotland suffered the biggest slump of 19.8%, followed closely by Northern Ireland (-18.5%), and the South East (-15.4%).
John Driscoll, Director at Equifax Touchstone, said: “These figures show how volatile the mortgage market can be. Sales have tumbled in July, with every region suffering substantial declines as buyers are put off by continuing political and economic uncertainty, coupled with the worrying gap between inflation and wage growth. These circumstances may be further compounded by the potential for an interest rate hike as early as September, driven by continued pressure on the pound.
“On a more optimistic note, mortgage sales are up over 10% year-on-year and a dip in sales for July is not uncommon; however, as the summer period comes to a close, the long-term outlook for the market still remains very unclear.”

source http://blog.evolutionproperties.co.uk/2017/08/24/buy-to-let-sales-defy-july-mortgage-slump/

Property investors 'want stamp duty surcharge scrapped'

A majority of UK property investors want the Government to reverse the changes made to property taxes including scrapping the 3% stamp duty surcharge altogether, according to the latest survey by bridging finance lender, mtf.
Three quarters of property investors said scrapping the additional 3% stamp duty hike on buy-to-let and second homes would improve conditions in UK real estate, mtf’s Q2 Property Investor Survey showed.
The introduction of the 3% surcharge in April 2016 has severely limited investor appetite for buying properties with the intention of renting them out. It comes as the property market has slowed across the board amid other changes to stamp duty, including a hike on higher value assets.  
The government introduced a series of changes to slow down an overheated property market and reduce the amount of buy-to-let investors. 
Meanwhile, 25% of property investors called for a reversal on the changes to tax relief on buy-to-let mortgages. Those changes were introduced in April 2017 and have cut buy-to-let tax relief to 20% from 45%, for top rate taxpayers.
Some 60% of those surveyed revealed they had been negatively affected by the Government’s reduction in mortgage interest tax relief.
However, landlords borrowing through limited companies can avoid the changes, instead paying corporation tax. Some 75% of property investors surveyed revealed they now own properties in a limited company.
In June’s general election, 60% of property investors voted for the Conservative Party, with 35% citing housing as the policy that impacted their vote the most, followed by the economy and taxes at 30% each.
In total, 100% of those questioned said they felt the Government was not doing enough to support them.
Tomer Aboody, director of mtf, comments:
“Property investors have been dealt some setbacks, impacted by changes to stamp duty and more recently changes to tax relief. Despite the changes, many investors remain resilient and mtf is there to support them and fulfil their funding needs.”

source http://blog.evolutionproperties.co.uk/2017/08/24/property-investors-want-stamp-duty-surcharge-scrapped/

Tenancy periods reach 2 years!

Recent data from has revealed that the average tenancy length in the UK is now 20 months, up 18% from 2014.
These findings come as separate research from the Corporate Client Department of its parent company, LSL Property Services plc, reveals that 25% of all UK households are predicted to be occupied by private renters by 2025. 

London, home to nearly a fifth of the UK’s rental properties and the home of Generation Rent, has average tenancy lengths of nearly two years (20 months), and is on a par with the UK average, Your Move data reveals. This is despite the fact that the capital remains comfortably the most expensive part of the country to rent in, with average payments hitting £1,277 a month in June 2017.  
Outside of London, across the South East and commuter belt, rental contracts are decidedly longer. Here, the Kent town of Sevenoaks boasts the longest tenancy lengths in the UK, with the average property being let for 44 months. With the region proving to be a hot spot for London commuters looking for more affordable housing options, rents in this area have been steadily climbing over the last three years, rising from £780 a month in June 2014 to £885 in June this year. 
The shortest tenancies in the UK were found in the South West (15 months), where the average rent has fallen to £664 a month in June 2017 from £684 nine months previously. When examining tenancy lengths in local towns within the South West, Your Move found tenancies were even shorter in both Filton and Taunton, where average rental agreements are as little as six months. 
Over the Severn Bridge in Wales, where the average rent as of June 2017 is £599, the typical renter stays in the same property for two years. Tenants in the small market town of Abergele, however, are staying put for 30 months on average.
In Scotland, tenancy lengths hits 18 months, with renters in the east of the region staying in rental properties for 20 months on average, while those in the Highlands and Islands changed contract every 16 months. 
In the last of the four nations, Northern Ireland is currently experiencing rentals lasting an average of 17 months. 

As renting becomes an increasingly popular option for more people in the UK, Your Move is working to ensure tenancy agreements, including their lengths, offer more benefits to both landlords and tenants. The February 2017 Government Housing White Paper highlighted the benefits of long term tenancies for both tenants and landlords, and the recent results of the Tenant Survey from LSL, found that over a third of its tenants would prefer a tenancy agreement of a minimum of three years. With more and more renters being of the age to start having a family and some living in the properties until their old age it’s clear that many would want the security of at least a three-year tenancy. 
Richard Waind, director at Your Move, says: 
“As the nature of the rental market continues to change, it is positive to see both tenants and landlords benefiting from longer tenancy agreements. Not long ago we saw a rise in short term lets with many landlords viewing them as the most lucrative option and tenants preferring the flexibility they provided. However, we’re now seeing a shift towards longer term rentals and the security that they can provide both landlords and tenants. 

“Our research has shown that tenants want to feel settled and if landlords can provide a suitable living space and service, tenancy lengths may increase across the UK. Through this type of extended agreement, we hope to see more cooperation between landlords and renters who both benefit from the affordability and stability long-term renting can provide.” 

source http://blog.evolutionproperties.co.uk/2017/08/24/tenancy-periods-reach-2-years/

HUGE THANK YOU!!!

And another £100 voucher presented to our good friend Joanne for referring a client to us and after helping that client carry out some refurbishment works, we placed the house on the market and sold it within the first week! Huge thank you Joanne!!!

Do you want £100 in shopping vouchers?

It really is very easy to get them! If you know anyone that is looking to sell or rent their home, just contact us and pass their details to one of our team. We will then contact them, arrange a visit and if the property comes on the market then you get to choose which shop you would like your £100 voucher for! We have given out so many of these this year and recognise that recommendations in business are one of the most common and important ways of securing new clients.

Landlords, don’t forget, if you're not happy with the current level of service that you are receiving and the fees that you are being charged, our fully managed service starts at just 2%+vat and we arrange the transfer of the tenancy to Evolution absolutely free of charge, AND, we will also give you the £100 voucher for each home!

Don't delay, get referring and contact us today!

 

 

Properties must be within easy reach of our office and instructed on a sole agency basis - contact us today to check eligibility.

source http://blog.evolutionproperties.co.uk/2017/08/16/huge-thank-you/

Confidence among landlords see rents rise in July

The latest report from Homelet has revealed that rental price inflation has returned in the UK, rising by 1.1%.

According to the data, rents in the UK rose by an average of 1.1% during July, a return to positive inflation following two successive months in which rents fell. The average rent agreed on a new tenancy signed during July was £925 according to the July HomeLet Rental Index, compared to £915 in the same month of 2016.

July’s 1.1% annual increase compares to declines of 0.3% and 0.2% in May and June respectively, the first time rents had fallen in the UK since 2009. Nevertheless, inflation in the private rental sector continues to lag the general rate of inflation, which was 2.7% in June, the latest month for which official data is available.

The Greater London rental property market continues to act as a brake on the UK as a whole, with rental inflation in the capital now running at -0.6% a year according to the July HomeLet Rental Index. July was the fourth successive month in which London saw rents fall, and while the pace of decline is now slowing – July’s figure compares to a 2.9% drop in June – the capital’s rental market still looks transformed compared to this time last year, when rents were rising at a rate of 6.6%.

Outside of London, rental price inflation is significantly stronger, with nine out of 11 regions beyond the capital seeing higher rents last month. Rents rose fastest in Northern Ireland (up 5.7% compared to July 2016) and Scotland (3.6%), with only the South East (-0.9%) and the North East (-1.7%) recording declines. As a result, rental price inflation across the UK but excluding London is now running at a much faster rate of 1.6%.

HomeLet’s data suggests landlords now feel more confident than in the Spring about seeking higher rents on their properties – but also that they remain very aware of tenants’ ability to pay. The July data may also reflect a decrease in the number of homes coming onto the rental market, with research from organisations such as the Association of Residential Letting Agents suggesting fewer landlords have acquired new rental properties in recent months. A similar effect has been seen in the housing market, where weaker prices stabilised in July as fewer properties were put up for sale.

Martin Totty, HomeLet’s Chief Executive Officer, said: “It’s often been the case in recent times that rents have strengthened over the summer period. It’s a time when renters contemplate moving, demand increases, tenancy terms are set, and when the anniversary of the tenancy often occurs. This year, that ‘seasonal’ factor brings some relief for landlords, who’ve endured a gradual erosion in rent prices over many months.

At the same stage last year, the South East was the main driver of UK average rents. This time around it’s regions throughout the country leading the strengthening in rents. If we exclude the London region, the average UK rent for a private rental property has hit a new high of £769 a month, up 1.6% on this time last year.”

Martin added: “Whether the market has now found some equilibrium remains to be seen, but landlords at least will be grateful for even some short respite. Predicting where the market heads from here is very difficult given the number of competing forces impacting the sector, either already being felt or still being contemplated.

We know housing stock for sale is in short supply and the Bank of England has expressed concerns about the ‘credit overhang’ and lenders’ resilience should economic activity start to slow. At the very least, these factors should not be unhelpful to the rental sector in the immediate future, encouraging landlords to stick with property owning as an asset class, with potential still to provide relatively attractive returns compared with alternative investment choices.”

source http://blog.evolutionproperties.co.uk/2017/08/13/confidence-among-landlords-see-rents-rise-in-july/

Majority of landlords losing confidence in rental profits

According to recent figures from the National Landlords Association, the proportion of landlords who are optimistic about their ability to rely on a steady rental yield has fallen 15% in the past two years – down from 64% in Q2 2015 to just 49% in Q2 2017.

The drop-off in confidence coincides with the period since the announcement from the then Chancellor George Osborne in July 2015 that mortgage interest relief would be removed for landlords.

However, the sentiment contrasts with actual rental yields achieved across the UK, which have remained fairly stable. Over the past few years, the average yield has fluctuated around the 6 per cent mark.

Regionally, landlords in the East Midlands currently generate the highest rental yields at 6.9 per cent. By contrast, landlords in outer London generate the lowest yields at 5 per cent. A full regional breakdown can be found below.

The news comes during a time when property prices in many areas of the United Kingdom are stalling. The average price of a home rose in July by 0.3 per cent following recent declines in May, April, and March.

 

Richard Lambert, Chief Executive Officer at the NLA, said: “Average rental yields have remained fairly stable over the past few years, yet there is a steady increase in landlords losing confidence in their ability to make a profit from letting property.

This perception probably exists because many will now be feeling the impact on their businesses of greater taxation and the costs of complying with regulation, which are eating away at their profits and making it harder to provide homes. Like any business, the increasing value of the capital assets on your balance sheet will be of little help if you are treading the fine line between profit and loss, especially if you can’t keep up your mortgage payments in the short term”.

source http://blog.evolutionproperties.co.uk/2017/08/12/majority-of-landlords-losing-confidence-in-rental-profits/

Where would you live if you couldn’t get on the property ladder?

A new survey of 1,000 people across the UK, aged between 18 and 34, has revealed that almost a third would choose to buy and live in a caravan if they couldn’t afford to get onto the property ladder.

The survey, conducted by My Home Move, looked to discover what alternatives people would turn to if they couldn’t afford a traditional bricks and mortar home using a mortgage.

Doug Crawford, CEO of My Home Move, had this to say: “Being able to own your own home is still an aspiration for most young people; however despite the Help to Buy schemes, a rise in gifted deposits and shared ownership programmes, the reality is that for many, getting on the property ladder is still too expensive.

What our research clearly shows however is that the desire for a home is still very real, as less than 2% said they would continue renting long term, and that most would think creatively to secure themselves a future property. These findings suggest that as an industry we could do more to support aspiring home owners by developing and providing inventive housing solutions.

Affordable housing doesn’t just need to be a brick built starter home; instead the concept of modular housing or inexpensive designs which replicate elements of a lodge or caravan could be employed to help young people realise their dream. Maybe what we need to consider is instead of there being a first rung to the housing ladder, we need a base plate which can be accessed by all aspiring first-time buyers.”

 

Nearly half (40%) of young people in the North East would choose a caravan over other housing options, close to 10% over the national average; while the thought of a treehouse appealed to no-one. In comparison, young people across East Anglia actively preferred the thought of a lodge (34%) almost twice as much as a caravan (17%).

Young people across Wales, the South East and London were the most taken with the idea of a Tiny House construction – an idea championed by George Clarke and his Amazing Spaces; while the idea of a tent was only really popular in the West Midlands.

The choice of an earth/straw-bale self-built home was the least popular across nearly all the regions, suggesting the time for a Hobbit inspired home has now passed.

source http://blog.evolutionproperties.co.uk/2017/08/12/where-would-you-live-if-you-couldnt-get-on-the-property-ladder/

Supply crisis leaving sellers in limbo

The latest data and analysis from online estate agents, HouseSimple.com, has found that new property listings across the UK have fallen for the second consecutive month since the General Election, down 1.6% in July after a drop of 1.9% in June.

Home sellers held off marketing their properties pre-General Election, but it was predicted there would be a rush of new properties being advertised after the result on 8th June. But there was no rush as a narrow Tory victory combined with Brexit fears and cooling prices has left sellers in limbo.

Of the 100 towns and cities in the UK that HouseSimple.com analysed for the Property Supply Index, more areas actually saw an increase in property supply in July compared to June. But across the UK as a whole, supply was down, with Newquay (30%) and King’s Lynn (25.6%) experiencing the largest decrease in new listings in July.

Dundee saw new property listings almost double in July, up 96.9%, while new properties advertised in Truro (up 55.2%), which is less than 30 minutes away from Newquay, were up by more than half.

The following table shows the ten UK towns and cities that experienced the biggest decreases in new property listings in July versus June:

Town/City	Region	% fall in new listings in July vs. June
Newquay	South	-30.0%
King’s Lynn	East	-25.6%
Perth	Scotland	-23.2%
Southport	North West	-21.6%
Shrewsbury	West Midlands	-21.4%
Warwick	West Midlands	-20.2%
Edinburgh	Scotland	-20.0%
Exmouth	South	-18.3%
Hartlepool	North East	-18.2%
Solihull	West Midlands	-18.1%

Alex Gosling, CEO of online estate agents HouseSimple.com, comments: “Right now it feels like sellers aren’t really sure what to do. There is so much negative press around Brexit and very little confidence in the Government after such a calamitous election campaign; and fear and uncertainty is weighing heavily on house price growth.

We were expecting to see a late-Spring boost in new properties being listed in June and a stronger than usual early-Summer, but neither has materialised. Sellers are in limbo. Do they sell while prices are dropping, or do they stay put and see what happens over the coming months, when the Government should hopefully have a clearer Brexit plan?

It does already feel like a semblance of normality is starting to return to the market, and by the end of the Summer the election will be a distant memory so we could well see a strong September in terms of activity.

At the end of the day, life goes on, and  the message to anyone thinking of selling is don’t delay a move simply because you’re worried what the market is going to do next. If your property has dropped 5-10% in value, it’s likely prices will have dropped in the area you’re buying.  If you see a place you want, then try and negotiate with the seller to factor in that drop.

Also, remember it’s a buyer’s market out there, and if you’re selling then you’re most likely buying too. In a hot market, properties are snapped up almost as soon as they are advertised and sellers hold all the cards. That’s not the case in this market, so you are in a much stronger negotiating position.”

source http://blog.evolutionproperties.co.uk/2017/08/12/supply-crisis-leaving-sellers-in-limbo/

Summer maintenance for rental properties

According to the experts at Belvoir, giving your rental property a summer maintenance MOT to get it ready for the year ahead can have big benefits for both you and your tenant.

Nathan Crombie, co-owner of Belvoir Brighton and Hove, says: “Keeping up to date with any maintenance work and ensuring any issues are dealt with at the earliest opportunity will help prevent small problems accelerating into larger more costly repairs.

It will also help protect your property in the long-term and help reduce the need for additional investment input in order to obtain a sale should you decide to release your asset.

On-going maintenance evaluation and execution is beneficial from a tenant's perspective too. If a property is well maintained, it will encourage tenants to look after the property and ensure it is kept in good order. They will also be more likely to report issues at speed, again protecting your investment before issues escalate.

Well-maintained properties are much more appealing to tenants, can help you achieve a higher rental return, reduce void periods for larger works to take place and create a lovely homely feel for all prospective applicants.”

Bright ideas

Carrying out maintenance while the weather's light and bright throughout the summer months is advisable…

Nathan explains: “With the warmer weather and longer daylight hours, summer is the ideal time to undertake large-scale work, especially if this involves the external part of the property,”

Also, if you can time it so that work is undertaken while the tenant is on holiday, it will help minimise the disruption caused to them and make the whole process for tenants and contractors simpler.”

So, what kind of maintenance is easier to execute in summer rather than delaying until the cold snap of winter?

On a practical level many maintenance issues are easier to deal with while the days are long and light,” says Nathan. “If your property is in need of exterior decorating, replacement windows or doors or you're thinking about carrying out work on an extension then these will all be more conveniently undertaken in the summer months.”

Outdoor pursuits

As summer blossoms it's also important to think about the garden. This is the time when a tenant will benefit most from a neat well thought-through scheme and, if you're currently looking for new tenants, offering contemporary outdoor living solutions can really help 'sell' a rental property.

The garden can prove a fantastic selling point when it comes to marketing your property,” says Nathan. “A great 'tenant-friendly' garden can help attract a wider audience and help increase the potential rental return you could achieve. It can also make the property much more appealing, add value and differentiate your property from similar properties which are also on the market.

To make the most of your garden remove weeds and trim back any hedges, trees and shrubbery,” he continues. “If possible, remove fast-spreading ivy too.

Additionally, ensure fences and garden walls are safe and secure, repairing any damage that may have occurred.

First impressions last so make sure you maintain the front garden also. This will help elevate your property's kerb appeal for potential new tenants and, again, ensure that it stands out from the competition.”

Seasonal safeguards

As part of your maintenance assessment it's also important to review what needs to be carried out before winter arrives in order to safeguard your property throughout the long winter months.

“Summer is the perfect time to resolve any maintenance issues that occurred over the previous winter and address any issues that could occur over the next one,” says Nathan.

Some simple tasks, such as clearing debris from gutters and drains for example, could prevent larger issues occurring in the winter months. It's also useful to check the roof for loose or missing tiles, plus ensure all the windows and doors shut correctly and there aren't any drafts. Perhaps look at providing additional insulation too.

Now is also a good time to have the boiler checked and serviced in order to ensure that it is fully functional for the tenants when the cold weather arrives. On-going boiler maintenance may also help prevent more expensive and extensive work taking place should the boiler breakdown or not be as efficient as it should be.”

So, start planning ahead for your maintenance needs now… proactive preparation, planning and preservation could help protect your property, profit potential and your overall investment.

source http://blog.evolutionproperties.co.uk/2017/08/06/summer-maintenance-for-rental-properties/

We love First Time Buyers

Well actually, we love any buyers, sellers, landlords and tenants!

We were really pleased though to help this lovely couple get on the property ladder with the purchase of their amazing new home! Such an exciting time and we wish you both well and hope the champagne helps the celebrations!

 

Do you want £100 in shopping vouchers?

It really is very easy to get them! If you know anyone that is looking to sell or rent their home, just contact us and pass their details to one of our team. We will then contact them, arrange a visit and if the property comes on the market then you get to choose which shop you would like your £100 voucher for! We have given out so many of these this year and recognise that recommendations in business are one of the most common and important ways of securing new clients.

Landlords, don’t forget, if you're not happy with the current level of service that you are receiving and the fees that you are being charged, our fully managed service starts at just 2%+vat and we arrange the transfer of the tenancy to Evolution absolutely free of charge, AND, we will also give you the £100 voucher for each home!

Don't delay, get referring and contact us today!

 

 

Properties must be within easy reach of our office and instructed on a sole agency basis - contact us today to check eligibility.

source http://blog.evolutionproperties.co.uk/2017/08/06/we-love-first-time-buyers/

Are you being stung by a mortgage laziness penalty? Borrowers who fail to remortgage pay £400 a year too much

Mortgage borrowers who are loyal to their lender are paying hundreds of pounds more than they would if they remortgage at the end of their deal.

Consumer watchdog Citizens Advice has slammed banks and building societies for not being upfront with homeowners about how much money they could save if they switched to a new deal instead of rolling onto their lender's standard variable rate.

According to the body customers are paying around £400 extra a year if they fail to remortgage - though the actual amount varies depending on the deal you were on and the SVR charged by your lender.

Customers are paying around £400 extra a year if they fail to remortgage

The research found that people who remain on the standard rate after a two-year fixed term mortgage deal face an average loyalty penalty of £439 a year.

The charity calculated that 1.2million people would be better off if they switched to a new deal - with one in 10 paying over £1,000 a year extra by staying on the standard variable rate.

First-time buyers, who typically have more debt and more time left on their mortgage, face paying an extra £1,359 a year once their two-year fixed deal expires.

The national charity also said older and poorer mortgage holders are more likely to be hit by a loyalty penalty.

Citizens Advice chief executive, Gillian Guy, said: 'Buying a home is a major life decision and borrowers taking out their first mortgage often spend a great deal of time working out the best option for them.

'Our research shows that many who choose fixed rate mortgage deals face steep price hikes once they expire. But two thirds of borrowers say their lender has never told them they could save money by switching.'

HOW MUCH ARE YOU OVERPAYING? 

Name of provider	Standard variable interest rate	Interest rate on a 2-year fixed deal for typical SVR payer	Loyalty penalty for typical SVR payer
Nationwide Building Society	3.74%	1.59%	£702
Santander	4.49%	1.64%	£666
Barclays	3.74%	2.35%	£459
HSBC	3.69%	1.54%	£441
RBS	3.75%	2.59%	£260
Lloyds	3.74%	2.39%	£186
Source: Citizens Advice

Guy said lenders 'must be more upfront' and called on them to provide their customers with clear information about what could happen to the cost of their loan once the fixed term period ends.

It's not the first time this practice has been challenged - earlier this year mortgage broker Trussle claimed loyal borrowers could save thousands a year by remortgaging.

Ishaan Malhi, Trussle's chief executive, said: 'While most mortgage borrowers understand that they need to consider switching when their initial fixed period comes to an end, so many are failing to do so.

'From our own research, we’ve found that there are a number of causes of this inertia, which the industry could address collectively. This is why we're also calling for industry action in the shape of a mortgage switch guarantee, mirroring the consumer benefits recently implemented in the energy and current account markets.'

For some people - who have less left to pay on their mortgage - it might be cheaper to remain on the standard variable rate, rather than pay fees to take out a new mortgage.

But Citizens Advice calculates that 83 per cent of people currently on a standard variable rate would be better off if they switched to a new deal.

The charity’s report also said there is low awareness of the problem - with 51 per cent of people on expired fixed term mortgages wrongly thinking they pay the same or less than newer customers.

ANALYSIS: WHAT'S GOING ON?

Sarah Davidson of This is Money writes: Customers being penalised for loyalty is high on the political agenda at the moment.

From April this year, insurers have had to start telling existing customers that they could save money if they shop around when their policy is up for renewal.

They've also had to start telling customers what they paid last year and what they'll be paying this year and for customers who have been with the same insurer for four years or more they must include this sentence in a letter: 'You have been with us for a number of years. You may be able to get insurance cover you want at a better price.'

 If you've checked the box that says you don't want your lender to market to you, they're legally not allowed to promote their new deals to you after your mortgage deal ends

The annuity market is about to see similar changes. From March next year, when pension providers write to you at retirement they will have to explain in much more detail how different annuities work and warn you clearly that if you don't get an enhanced annuity, you could get a worse deal.

They'll also have to start telling you not just what annuity rate they'll give you, but also exactly how to shop around to get a better deal.

It's not clear whether the financial watchdog plans to adopt a similar approach for mortgage lenders but they are in the middle of a consultation with the industry and it's likely to be discussed.

The fact that Citizen's Advice has got involved in this debate is important because they have super complainant status with the regulator. This means that if they think customers are being poorly treated, they can force the Financial Conduct Authority to investigate immediately.

This is exactly what happened with payment protection insurance which has resulted in more than £40billion being paid out to customers in compensation following Citizens Advice submitting a super complaint.

The situation is different for mortgages though. Because a mortgage contract is long-term, you actually sign up to terms that say you acknowledge that the cheap introductory rate is only for a fixed period of time and that it's up to you to find another good deal when it ends or simply accept the SVR rate.

Your lender won't necessarily remind you when it's time to switch. Now, sometimes this is because they simply don't have to and they'll receive more interest from you if you aren't proactive in remortgaging.

But - sometimes they're not ALLOWED to. If you've checked the box that says you don't want them to market to you, they're legally not allowed to promote their new deals to you after your mortgage deal ends.

The regulation states that they're allowed to tell you that your deal is coming to an end and at that point they should be outlining your options including remortgaging to a new deal with them, going back to your broker to see if you should go somewhere else or reverting onto their SVR.

If you ignore this, you'll automatically go onto SVR and you'll typically only hear from them once a year when they send you an annual mortgage balance statement.

 

source http://blog.evolutionproperties.co.uk/2017/08/06/are-you-being-stung-by-a-mortgage-laziness-penalty-borrowers-who-fail-to-remortgage-pay-400-a-year-too-much/

Here you are, going about your business, believing stereotypes, and then it turns out everything you believed is a lie.

Warning! Bright Side gathered some facts that will probably turn your world upside down.

14. There is gravity in outer space.

There’s gravity on the ISS, although it’s weaker than on the planet’s surface. The astronauts are basically falling very slowly along with the station, which results in weightlessness.

13. Napoleon was quite tall.

The average height in France at that time was about 5′ 3“’ - 5′ 4“’, which means the Emperor wasn’t short at all. Napoleon disliked tall hats, preferring small ones, which diminished his stature a bit. And the wrong assumption of a psychologist along with a translator’s error gave birth to the ”Napoleon complex" term that actually has nothing to do with Bonaparte.

12. Coke in glass bottles is different from Coke in cans.

Taste is affected by a whole number of factors, including touch and smell. The same drink in different vessels will taste different too. Sara Risch, a food chemist, thinks that polymers covering the insides of an aluminum can may absorb part of the taste and smell, while glass is chemically inert (it has no taste nor smell). This is probably why Coke in glass bottles is considered the most delicious. Which kind is your favorite?

11. This is how towels are stacked in stores.

Some stores use all kinds of tricks for marketing or just plain convenience. This is an example of an anti-theft solution: you have to call a shop assistant to bring you the item you’d like to buy.

10. The Earth isn’t round.

It has the shape of a geoid, but this information is reserved for people who aren’t adepts of the Flat Earth hypotheses.

9. Hello Kitty isn’t a cat.

Anthropologist Christine R. Yano has researched Hello Kitty as a mass culture phenomenon for the last few years, and she’s positive it’s not a cat but a girl, a self-contained character. The proof is that you’ll never see Hello Kitty on all fours, and she also has a pet cat.

8. Diamonds are cheap carbon in excess.

De Beers has a monopoly on the diamond market: the company founders first bought diamond mines in South Africa in 1888 and then proceeded to buy in other places where these, as it turns out, not-so-precious stones were mined. The sky-high prices of diamonds are the result of a marketing ploy of the company and its owners’ stinginess.

7. Not all potato chips are 100% potatoes.

The secret of smooth and even chips is that they’re only 40% potato flakes, while the rest is starch, flour, and water. All the ingredients are mixed together and pressed in special molds. Traditional chips are thin potato slices fried in oil, and you can recognize them by their uneven edges and texture.

6. Not all paving blocks are actual blocks.

Now you know how these blocks are made. Of course, it’s not done like this everywhere, but it’s cheaper and faster than actually laying out the blocks.

5. Flying moths don’t eat clothes.

Grown moths don’t make holes in clothes: their offspring do. A moth is only born and lives to lay down its eggs into fur, which then hatch, and ravenous little maggots start eating the clothes.

4. Owls have long legs.

Everyone knows owls can turn their heads at a 270° angle, but their long legs were discovered by accident: someone just decided to lift the bird a little.

3. Goldfish have a memory span of more than 3 seconds.

A 15-year-old Australian student busted the myth that goldfish have bad memories and remember only the last 3 seconds. The school experiment showed that the fish retain associative memory for at least 6 days, and they’re even capable of solving simple problems (such as the need to swim to another beacon if they haven’t been fed at the first one).

2. Chupa Chups isn’t a US brand.

The world renowned lollipop was conceived by Enric Bernat from Barcelona, Spain, and the logo was created by Salvador Dali himself. In Spanish, the name is pronounced with an “oo“ sound, like in ”food."

1. You can’t stick your thumb into your nose.

And this one was a check. You can, and that’s exactly what you’ve just done.

source http://blog.evolutionproperties.co.uk/2017/08/06/842/

Would you stay in a relationship to get on the property ladder?

New analysis from L&C Mortgages has revealed that 1.8 million UK adults have stayed in a relationship in order to get on the housing ladder.

According to the report, when looking at those planning to buy in the next five years, the number of those having stayed in a relationship purely to be able to afford a home is expected to rise to 7%. On top of this, over one in ten (11%) non-homeowners said they would be prepared to stay in an unhappy relationship if it allowed them to get a foothold on the property market.

On average, nearly half (44%) of people who stayed with their partner to be able to afford the mortgage or deposit did so for more than a year longer than they would have, if buying a property wasn’t in the equation. Two in five (40%) are currently still together after deciding to stay with their other half in order to buy a home, and one in seven (15%) stayed for up to two years longer than they wanted to.

David Hollingworth from L&C Mortgages said:“The fact that so many people view staying in a relationship they perhaps don’t want to be in as one of their only options for getting onto the housing ladder is indicative of the struggle people face when buying their first home.

With such large sums needed for deposits and combined salaries often the only option to achieve the required mortgage, the temptation to stay with a partner is understandable. In the UK, we place a great deal of importance on owning our own home, and of course buying property is one of the biggest financial moves you can make – but it isn’t right that people are sacrificing their emotional wellbeing in order to focus on financial stability. Taking professional mortgage advice will help ensure you are doing the right thing financially but you shouldn’t ignore your emotional wellbeing when making such a big commitment.”

When looking at non-homeowners between the ages of 18-34 years old, the number of people who would consider staying in a relationship to get onto the housing ladder goes up from one in ten (11%), to one in seven (15%), which is considerably higher than the 4% of their older counterparts aged 55 and over.

L&C’s research also reveals that two thirds (63%) of those planning to buy feel under pressure to get on the housing ladder, and that over a third of these (36%) feel under pressure to buy due to their partner. On top of this, almost one in five (17%) said that they feel pressure to buy with their partner but would rather not purchase a property at all.

David continued: “Our research highlights the pressure we put on ourselves to make the huge financial decision of buying a home, and more worryingly the pressure we can feel from our partners. It’s so important to think clearly when it comes to such a large financial leap, especially if you’re planning on staying in a relationship just to be able to afford a mortgage or deposit. Initially putting your feelings aside solves the problem of being able to get onto the housing ladder, but once the deposit has been paid and the mortgage agreed you may face issues down the line.”

source http://blog.evolutionproperties.co.uk/2017/08/06/would-you-stay-in-a-relationship-to-get-on-the-property-ladder/

Compromise is key when you're a FTB

A new report looks at how first-time buyers are increasingly on the move as they seek to get a foothold on the property ladder.

Post Office Money surveyed more than 1000 people who made their property ownership goals a reality in the last 24 months and found that compromise was the key to realising their dreams.

According to the findings, 70 per cent chose to buy a home an average of 26 minutes from their original ‘preferred’ location.

While 16 per cent didn’t have to adjust their expectations at all, other successful FTBs ended up being flexible towards having a suitable garden (5 per cent) or availability of car parking spaces (3 per cent). Surprisingly few had to take on a property that needed some structural work (4 per cent).

Owen Woodley, Managing Director, Post Office Money comments: “With average house price growth having increased by 48 per cent since 2005, compared with an increase to the average FTB income of only 37 per cent over the same period, there is no question that the UK housing market remains a challenging environment for many. In spite of this we’re seeing that first time buyers approach the market with enthusiasm and flexibility.

Our data also shows that almost two-thirds (62 per cent) of home sales are still in areas across the country that remain within reach for those looking to take their first steps on the property ladder and FTBs can really benefit from thinking outside the box to realise their property aspirations. We’ve worked with the team at Proportunity to develop our ‘Hidden Gems Guide’ with this in mind.”

First-time buyer motivations

The drive to buy is alive and well with the biggest emotional drivers cited for deciding to buy a house being:

• having met a partner and wanting to make a home together (24 per cent)
• wanting the security of a long-term place to live (21 per cent)
• wanting to move out of a parent’s/family’s property (16 per cent)
• feeling it was expected that they should own a home (15 per cent)

Financial considerations also ranked highly with 25 per cent of respondents deciding to buy as they felt they were spending too much on rent and it wasn’t a good investment and 23 per cent feeling ready as they had enough savings to put against a deposit. 18 per cent saw investing in property as the best investment of their money long term.

The first-time buyer experience

44 per cent said the experience of being a FTB was exciting or joyful, many also found it to be stressful (24 per cent), frustrating (12 per cent), daunting (9 per cent) and exhausting (4 per cent).

Encouragingly, 83 per cent of respondents said they were approved for their mortgage first time around, although many cannot do it alone. Half (51 per cent) received financial support from friends or family, with 44 per cent asking for this help.

The top 3 pain points of the FTB experience were shown to be:

• The uncertainty, anxiety / stress once in the process of securing an actual property (28 per cent)
• The extra costs that were incurred but not anticipated e.g. solicitor’s fees (24 per cent)
• Having to borrow money from loved ones (15 per cent)

When it comes to passing on their tips to other prospective buyers, the advice recent FTBs most want to share is:

1. See lots of properties in your price range (32 per cent)
2. Think long-term (31 per cent)
3. Be flexible on the type of property you will purchase (29 per cent)
4. Be flexible on the location you will buy in (27 per cent)
5. Use your imagination to see the full potential of a place (25 per cent)
6. Start with areas which are affordable to you (25 per cent)

Affordability overview

Affordability peaks in Southampton, where the average property price is £199,074 and 98 per cent of properties are in areas deemed affordable to the group. Norwich and Nottingham were also among the UK’s ‘affordable hotspots’, with 93 per cent and 89 per cent of properties in areas affordable to first-time buyers, respectively.

In the last year, Bristol has seen the biggest shift in affordability for FTBs, with the number of properties affordable for this group shrinking by 20 per cent, leaving 29 per cent of homes in the city fitting within the average FTB’s budget. For those lucky enough to make a savvy investment a year ago, average property prices in the area have also increased by 14 per cent to £268,070.

And while many may assume that London would be least affordable to first-time buyers, in fact Brighton takes this dubious title, with average property prices being £352,303 and only two per cent of properties are in areas considered affordable to first time buyers in the region (compared to just 5 years ago when 25 per cent were affordable).

Help to spot the potential ‘hidden gems’ of tomorrow

Post Office Money partnered with Proportunity, an innovative technology start-up that builds real estate forecasts through the use of artificial intelligence, to create a simple step by step guide that FTBs can use to help identify the potential property hot-spots of tomorrow.

Vadim Toader, CEO of Proportunity commented: “If you’re a first time buyer, you’ll likely have to buy at the cheaper end of the property market. However by understanding how to identify the potential property hotspots of tomorrow, your first property could get you on track to buying the home of your dreams before too long.”

If you’re looking for a fast growing area and hoping to make a good financial investment, it may be helpful to consider the following factors to help maximise your chances of choosing the right property:

Step 1:  Identify the more affordable areas of the city/ region you want to move to, by looking where property prices are much lower than the city/region’s average

Step 2:  Avoid areas that have experienced particularly high growth in recent years, as that suggests potential for future growth has been already exhausted and prices will not grow much going forward

Step 3:  Identify if there are any urban transformation projects / infrastructural developments planned that could impact the area. These are usually announced at least 2 years before they get underway and signal an upcoming regeneration of the area and, therefore, a potential increase in prices

Step 4:  Investigate the crime rates in the area to understand the severity of the crime and whether the picture is improving or worsening. There is usually a delay between when an area becomes safe and when the general public becomes aware and trusting of this. If you can spot this ahead of the market and buy when it is affordable, you may find a future gem

Step 5:  Explore if there are any developments planned for schools in the local areas. Improvement in education offering in affordable areas tends to push prices up.

source http://blog.evolutionproperties.co.uk/2017/08/06/compromise-is-key-when-youre-a-ftb/

Some say "It could be their demise"

Purplebricks’ share price this afternoon dropped to a recent low of 406.50p before recovering to close around 433.50p - a loss of some eight per cent on the day.
Much of the stock market rollercoaster followed a slating given to the company on BBC Radio 4 - a taster of what promises to be a substantial discussion about the firm’s performance on BBC One this evening.
On July 24 Purplebricks’ share price was riding at a high of 513p and opened this morning at 478.50. Near close of play this afternoon, the price bounced back to approaching 440p but still some way off over the day.
The turbulence came on the back of a lunchtime item on BBC Radio 4’s You and Yours.
This was sharply critical of Purplebricks and included comments from Steph McGovern, the personal finance journalist who is also presenting this evening’s Watchdog programme at 8pm on BBC One.
The introduction to the Radio 4 piece claims: “The online estate agent Purplebricks is making exaggerated claims that it has already been banned from making by the advertising regulator.”
A little later McGovern says: “We have seen emails that Purplebricks has sent to existing and prospective customers repeating those claims.”
It specifically says one disputed claim - that sellers will ‘save’ £4,158 on average - has been repeated by Purplebricks’ Local Property Experts in communications with current or potential clients.
The You and Yours programme played an audio recording - to be repeated with video in this evening’s Watchdog - from a customer, John Bristow, who instructed Purplebricks and chose to defer his £1,199 fee.
“I received an email after I deferred it to say I’d entered into a credit agreement” says Bristow, who suggests he had not been informed of having entered into such a deal, which was with a separate firm called Close Brothers.
BBC Watchdog also went undercover, inviting Purplebricks LPEs to five different properties around the UK; in the radio programme this afternoon it said that in three of those cases the expert failed to mention that the sellers would be entering into a credit agreement with a separate company.
Although the LPEs were praised on You and Yours for having good knowledge of their local areas, McGovern told listeners that at least one appeared to have exaggerated the number of homes they had sold. 
Purplebricks co-founder Michael Bruce, interviewed on the telephone by You and Yours presenter Winifred Robinson, insisted that the disputed £4,158 claim had been removed from “over a thousand different places” after the Advertising Standards Authority ruling.
He claimed he had within the previous 24 hours been sent a copy of an email showing the claim still being made, and said that this claim was also removed immediately afterwards. 
He said that the LPE who claimed to be listing up to 25 properties a month could have been referring simply to the number of listings made by himself and colleagues.
In terms of agreements entered into with Close Brothers, Bruce said all vendors were made well aware of this by LPEs and on-screen at the time of signing up to the deals. 
Asked whether this was really a loan by another name, Bruce called it “an unregulated facility agreement” and insisted that The Property Ombudsman was aware of the arrangement, and how it was made clear to vendors on the Purplebricks website.

Watchdog is on BBC One this evening at 8pm

source http://blog.evolutionproperties.co.uk/2017/08/02/some-say-it-could-be-their-demise/

COMPLETION!!!

And another lucky new homeowner! We hope you enjoy the Champagne and your new home!!!

It really is very easy to get them! If you know anyone that is looking to sell or rent their home, just contact us and pass their details to one of our team. We will then contact them, arrange a visit and if the property comes on the market then you get to choose which shop you would like your £100 voucher for! We have given out so many of these this year and recognise that recommendations in business are one of the most common and important ways of securing new clients. We will start posting on here, clients that have received these awards so get referring!

Landlords, dont forget, if you're not happy with the current level of service that you are receiving and the fees that you are being charged, our fully managed service starts at just 2%+vat and we arrange the transfer of the tenancy to Evolution absolutely free of charge, AND, we will also give you the £100 voucher for each home!

Don't delay, get referring and contact us today!

 

 

Properties must be within easy reach of our office and instructed on a sole agency basis - contact us today to check eligibility.

source http://blog.evolutionproperties.co.uk/2017/08/02/completion/

Feedback

So, got this superb email today and it really does make it all worthwhile!!!

"Good Morning 

Hope you are well.
Thank you very much for your kind assistance with regards to my purchase of ## Bluebell Road.
Your professionalism and consideration is much appreciated.
Kind regards
G"
Well done team Evo!!!!

source http://blog.evolutionproperties.co.uk/2017/08/01/feedback/