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Buyers reveal their regrets about panic buying their home

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The property market has been red hot in recent months as buyers rushed to complete their purchases ahead of the stamp duty holiday deadline at the end of last month.

It generated a market where some homes were being snapped up within hours of going on the market by buyers hungry to get the tax saving or simply secure a property.

But new research suggests that this panic-buying has led to some regrets among new homeowners.

Indeed, it claims that half of homebuyers who bought during the coronavirus pandemic regret how much they paid.

New research suggests that panic-buying has led to some regrets among new homeowners

New research suggests that panic-buying has led to some regrets among new homeowners

Among other regrets were repairs costing more than expected, among 14 per cent of buyers, furniture or fittings covering up faultys at 13 per cent, a tatty appearance or need for decoration at 12 per cent and poor insulation at 10 per cent.

The research by insurer Aviva was based on 2,200 homeowners – including 500 people who have agreed a sale since the start of the pandemic. 

The study found that more than two-thirds of homebuyers – at 68 per cent – felt under pressure to buy quickly when purchasing their latest property, rising to 94 per cent who agreed sales during the pandemic.

In most cases, people made their decision to buy after looking at their prospective home for less than an hour.

The research claimed people spent just 40 minutes viewing their property before opting to buy – although this figure was slightly higher for those buying during the pandemic, typically taking around 46 minutes.

Perhaps most alarmingly, 15 per cent of viewers felt confident of their decision to buy the property after less than 20 minutes.

We came close to a big mistake 

Lucy Stewart and husband James Cissel moved out of their London flat in March

Lucy Stewart and husband James Cissel moved out of their London flat in March

Lucy Stewart, 31, and husband James Cissel, 38, moved out of their London flat in March, ready to move into the home they had purchased in South Oxfordshire. 

Unfortunately their seller pulled out at the last minute. 

The couple have been living with Lucy’s parents for the last few months while they renewed they search.

They soon became concerned that they may end up spending more than they intended to – and more than the home may be worth in the future. 

They also discovered there is a lot of pressure from agents to act quickly or risk losing out. 

They have just had an offer accepted on a home, but it hasn’t been an easy route.

Lucy said: ‘It was a terrible market to be buying in and there was loads of pressure from estate agents. We kept seeing houses disappear from online sites in 24 hours, so put a lot of pressure on ourselves to move quickly. 

‘There were definitely occasions we came close to making a big mistake. We put a rush offer into one house in particular due to this. It just wouldn’t have been right for us at all but we did it because we felt that moving super-fast was what we needed to do. Fortunately the offer was rejected.’

Time pressures

The Aviva study also claimed that one in four buyers – at 26 per cent – felt one viewing was sufficient, although on the whole people usually viewed a property twice before making an offer. This was the case for 44 per cent of buyers.

Those who bought quickly did so for a number of reasons. A total of 34 per cent of people buying during lockdown did so due to the stamp duty holiday, although 32 per cent said they didn’t want to miss out because properties were selling so quickly.

At the same time, 30 per cent said they had lost out on other properties because they hadn’t made an offer quickly enough.  

Buyers were most likely to feel the need to make a quick purchase in London, where 85 per cent of buyers said they felt under pressure.

It compares with only 52 per cent of people in the north east who said the same.

Did more than half of buyers really not view homes in person? 

The study also revealed that more than half of pandemic buyers claim not to have seen their new home ‘in real life’ before deciding they should buy it.

When quizzed on this survey claim, Aviva said that it asked: ‘How did you view your property before you purchased it?’ 

With respondents given a number of boxes and asked to ‘tick all that apply’.

Astonishingly, just 42 per cent said they viewed it in person from these options for the period between March 2020 and June 2021.

Of the other options that chose video viewings at 33 per cent, photos at 36 per cent and written information at 36 per cent.

That dramatic shift to choosing to buy without an in-person visit follows the housing market being temporarily closed at the beginning of the lockdown from late March 2020, with virtual viewings being heavily promoted thereafter. Online tours became a way of viewings taking place more safely.

Despite this shift during the pandemic, the Aviva study suggested that the number of people seeing properties for sale in person was already beginning to fall. 

PERCENTAGE OF PEOPLE WHO VIEWED HOME FOR SALE IN PERSON
Date when sale was agreed Percentage of people who viewed their home in person
2020 March – June 2021 42%
March 2019 – February 2020 42%
March 2018 – February 2019 56%
March 2017 – February 2018 63%
March 2007 – February 2017 83%
March 1997 – February 2007 84%
February 1997 or before 87%
Source: Aviva 

 

Homebuyer regrets

Half of those who agreed a sale between March 2020 and June this year say they regret how much they paid for their properties.

It compares to only 12 per cent of buyers who purchased their property before February 2017.

At the same time, 23 per cent who bought since March last year said that they agreed a figure above the asking price. It compares to only 8 per cent in the 12 months prior to March 2020.

In addition to financial regrets, seven out of 10 buyers found issues with their property that they didn’t notice during their viewing. For those who bought during the pandemic, the figure rises to 92 per cent of buyers.

For example, 10 per cent found evidence of possible subsidence and a further 10 per cent had problems with insects or vermin.

People said they had to typically spend almost £10,000 to put right the problems they discovered after moving in – specifically £9,548 to the nearest pound on average. It increases to more than £20,000 for one buyer in 10.

Owen Morris, of Aviva, said: ‘The housing market is moving at an incredible pace, with multiple buyers for properties in many parts of the country. This is inevitably influencing how much people are paying for their homes and how quickly they are making decisions.

‘But our research reveals many people are finding problems with their properties only when it’s too late. These range from more minor irritations, such as the need to decorate, to more worrying problems such as crumbling brickwork or a risk of flooding.

‘It can be easy to fall in love with a home on first viewing, but we’d urge people to do their homework and proceed with caution when making one of the biggest financial decisions of their lives.’

REVEALED: THE MOST COMMON DISAPPOINTMENTS AMONG BUYERS 
Property problem discovered after purchase Percentage of all home-buyers finding this problem Percentage of home-buyers during pandemic finding this problem
Repairs costing more than expected 11% 14%
Furniture / fittings had covered up faults 11% 13%
Tatty appearance / in need of decoration 10% 12%
Poorly insulated home 10% 10%
Poor plumbing 10% 9%
Poor electrics 9% 8%
Damp / mould 9% 10%
Leaky / draughty windows or doors 9% 8%
Noisy neighbours 8% 11%
Busy traffic 7% 11%
Source: Aviva     

Separate research by property website OnTheMarket has revealed that the end of the stamp duty holiday has done little to dampen the enthusiasm of buyers. 

In particular, it found that found that 75.5 per cent of buyers were confident that they would purchase a property within the next three months.

It also claimed that 84 per cent of sellers were confident that they would sell their property within the next three months.

And a total of 28.5 per cent of properties were Sold Subject to Contract within 30 days of first being advertised for sale, compared with 8 per cent in June 2020. The research was based on questions asked via its website.

Jason Tebb, of property website OnTheMarket, said: ‘We believe that this ongoing momentum is the result of a perfect storm of long-term pent-up demand stemming from the lead up to the 2019 General Election and Brexit in early 2020, which due to the start of the Covid-19 pandemic last spring never had a chance to unwind as it would in a normally functioning market.

‘This dynamic, together with the ‘race for space’ that we’ve observed as a direct result of successive lockdowns together with the market stimulus from the stamp duty holiday and record low mortgage rates, means that while the window for any major savings closed at the end of the month, buyer appetite hasn’t as yet dissipated, with all signs pointing to the fact that the market will continue in the same direction of travel over the summer.’

Estate agents report that many of their properties have gone to 'best and final' bids

Estate agents report that many of their properties have gone to ‘best and final’ bids

Trevor Abrahmsohn, of estate agents Glentree International in London, said: ‘Buyers have been shrugging aside the state of the economy and budget deficit over the last few months and have continued to transact unabated in the Capital, across almost all price ranges. 

‘The end of the stamp duty savings window in June did nothing to dampen their enthusiasm. We received a raft of new applicants throughout the month, particularly in the £800,000 to £4million price bracket.’

And Mark Proctor, of estate agents Knight Frank in Devon, said: ‘We’ve seen a huge amount of activity across the South West region in June, particularly in the price bracket up to £1million, which is understandable as this is where the stamp duty saving has had the most impact. 

‘Despite the fact that buyers registering over the last month have known that they wouldn’t benefit from the main savings available as they wouldn’t complete in time to meet the deadline, we’ve still had a significant volume of new applicants. 

‘This, together with the very limited amount of supply, has meant that many of our properties have gone to ‘best and final’ bids. What’s been particularly interesting is seeing a few properties that were listed last year but didn’t sell at the time that have now been successfully remarketed and sold in excess of asking price.’

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UK property prices are 30% higher than they were in 2007, Zoopla says

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Average property prices across Britain are now 30 per cent higher than they were at the peak of the market in 2007, before the global financial crash.

Buyers are paying an average of £230,700 for a home, which is the highest on record, according to property portal Zoopla’s latest house price index.

House prices grew by 5.4 per cent in the year to June, but experts at Zoopla said they could start falling as the year draws to an end and the stamp duty holiday and furlough scheme are scrapped.

Price shifts: Average property prices across Britain are now 30% higher than they were at the peak of the market in 2007, according to data from Zoopla

Price shifts: Average property prices across Britain are now 30% higher than they were at the peak of the market in 2007, according to data from Zoopla

While the stamp duty holiday and cheap mortgage deals have given the property market a boost, a severe shortage in stock has also been pushing up prices. 

The number of properties up for sale was around a quarter lower in the first six months of this year than it was at the same point a year ago, Zoopla said.

The stock shortage problem has been exacerbated by a rise in the number of first-time buyers coming to the market, who, of course, have no property to sell.  

Getting more space remains a big draw for many prospective buyers, with demand for houses twice as high as the 2017-19 average, while the popularity of flats has waned. 

Northern Ireland and Wales saw the biggest spike in property prices in the past year, with rises of 8.6 per cent and 8.4 per cent respectively. 

For Wales, this represents the highest rate of annual growth for 16 years, with many areas becoming increasingly popular with relocators and second home owners.

Demand for houses has pushed their price tags up, especially in Wales which proved popular with relocators and second home owners

Demand for houses has pushed their price tags up, especially in Wales which proved popular with relocators and second home owners 

Stock matters: The number of homes being put up for sale has failed to keep up with demand

Stock matters: The number of homes being put up for sale has failed to keep up with demand

This was despite the fact that the Welsh land transaction tax holiday, its equivalent of the stamp duty break, did not apply to second home or buy-to-let purchases.

In Wales and England, buyers could save up to £15,000 in tax on house purchases until 30 June. In England, they can still save up to £2,500 until 30 September. 

At a regional level, house price growth was at its highest in the North West (+7.3 per cent) and Yorkshire & the Humber (+6.8 per cent), while London trailed behind with annual house price growth of +2.3 per cent.  

Demand in London is polarised between inner and outer, with demand in outer London running 86 per cent ahead of the 2017-19 average. 

‘This is explained in part by the available housing stock – with larger volumes of houses and properties with outside space’, Zoopla said.

In contrast, demand in inner London is running just 2 per cent above the ‘normal’ market average. 

This is also reflected in the pricing of properties, with London flats, predominantly clustered towards the centre, dipping by 0.5 per cent in the year to June. In contrast, houses have registered growth of 5.6 per cent in the past year. 

Looking at other major cities, Liverpool has performed well as house prices grew by 8.9 per cent in the past year. 

Rochdale, Bolton and Hastings all saw property prices increase over 9 per cent during the period, while Belfast, Manchester and Sheffield saw prices rise more than 7 per cent. 

Sales levels up and down the country are running about 22 per cent higher than they were last year, but buyer demand slipped 9 per cent in the first half of July after the initial phase of the stamp duty holiday ended. 

However, transaction volumes are still around 80 per cent higher than they would normally be at this time of year. 

Your area: A map showing how house prices have been changing up and down Britain

Your area: A map showing how house prices have been changing up and down Britain

Grainne Gilmore, head of research at Zoopla, said: ‘Demand is moderating from record high levels earlier this year, but remains significantly up from typical levels, signalling that above average activity levels will continue in the coming months.

‘Demand for houses is still outstripping demand for flats. To a certain extent this trend will have been augmented by the stamp duty holiday, with bigger savings on offer for larger properties – typically houses. 

‘But underneath this, there is a continued drumbeat of demand for more space among buyers, both inside and outside, funnelling demand towards houses, resulting in stronger price growth for these properties.’

She added: ‘Overall buyer demand coupled with constrained supply signal that price growth will continue to rise in the coming months, peaking at around 6 per cent, before falling back to between 4 per cent to 5 per cent by the end of 2021.’ 

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EU pauses legal action against UK over Northern Ireland protocol

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The European Commission has paused legal proceedings against the United Kingdom over the implementation of the Northern Ireland protocol in the hope that solutions can be found.

It comes after the UK government called for a “standstill period” in which the EU would not further legal action and the UK would also refrain from unilateral moves.

A European Commission spokesman said in a statement that “in order to provide the necessary space to reflect on these issues and find durable solutions to the implementation of the protocol, we have decided, at this stage, not to move to the next stage of the infringement procedure, started in March”.

Last week the UK’s Brexit minister, David Frost, told the House of Commons there should be a “significant change” in the protocol and that “we cannot go on as we are”.

The commission said the pause in the legal action would be used to consider the UK’s proposals.

“We confirm our readiness to continue to engage with the United Kingdom, also on the suggestions made in the Command Paper, and to consider any proposals that respect the principles of the protocol,” the statement from the commission added.

The Irish Government has also said it will carefully consider the British proposals, which include suggestions that were raised and discussed during the negotiation process.

“We have received a constructive reply from the Commission in response to our request for a standstill on existing arrangements,” a British government spokeswoman said. “We look forward to engaging in talks with the EU in the weeks ahead to progress the proposals in our command paper.

“As we set out in the Command Paper last week, significant changes are needed to ensure the Pprotocol is sustainable for future”

Last week, Mr Frost suggested a tiered system in which goods produced for consumption in Northern Ireland only would not need to be inspected at Irish Sea crossing points, and that goods that were made to standards that equalled those of the EU should be able to circulate freely.

‘Impossible’ steps

Other proposals included abolishing export certification, state aid rules and the oversight of the European Court of Justice, encompassing several steps that are seen as impossible for EU capitals to agree to.

Both Brussels and Dublin are seen to be keen to cool the heat on the issue of Northern Ireland and encourage negotiations to find solutions for any problems through the pathways laid out by the withdrawal agreement and trade deal wherever possible.

The commission warned that it would not renegotiate the protocol, which was negotiated and agreed by both sides as a way to allow Britain to leave the single market and customs union while avoiding the need for checks across the island of Ireland.

UK prime minister Boris Johnson originally praised the deal as a “reasonable, fair outcome” and a “very good deal” for both sides, but his government has since said it has been implemented in a stricter manner than foreseen.

“The EU has sought flexible, practical solutions to overcome the difficulties citizens in Northern Ireland are experiencing regarding the implementation of the protocol – as demonstrated in the package of measures announced by the commission on June 30th,” a commission spokeswoman said.

“While the EU will not renegotiate the protocol, we stand ready to address all the issues arising in the practical implementation of the protocol in a spirit of good faith and co-operation.”

It added that if was essential that “constructive discussions” continue in the coming weeks.

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Cladding repair bill is same as £230k price of this Hertfordshire flat

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When homeowner Sophie Bichener, 29, bought her flat in Stevenage, Hertfordshire, in 2017 for £230,000, she had no idea about the potentially crippling costs that lay ahead.

She moved into the flat just before the fire at Grenfell Tower, in West London, which caused 72 deaths.

Like so many other purchasers, Sophie bought moved into her flat believing that it was safe because it complied with building regulations. 

However, her flat has since deemed to be unsafe in the wake of the Grenfell fire.

Since the Grenfell Tower fire in 2017, concerns about cladding have become a national issue

Since the Grenfell Tower fire in 2017, concerns about cladding have become a national issue

Like so many other flat owners affected by fire safety issues, she has been left unable to sell her property, as mortgage lenders will no longer offer loans without fresh proof of safety. 

Her block of flats has been deemed unsafe and fire safety repairs need to be carried out. 

But the bill for the repairs are eye-watering, almost matching what she originally paid for the flat. 

This summer she was quoted £202,077 to fix just her flat, which is not far from the £230,000 that she originally paid for her home.

She understands that some of the £14million-plus costs to fix her block will be met from the Building Safety Fund, but it is not yet known how much financial assistance – if any – she will get.

This leaves her facing the unknown, a situation many flat owners find themselves in through no fault of their own.  

She says it is likely that she will have to relocate during the works for at least a month.

Sophie Bichener, 29, bought her flat in Stevenage, Hertfordshire in 2017 for £230,000, but has since been quoted £202,077 to fix her flat, which has deemed to be unsafe

Sophie Bichener, 29, bought her flat in Stevenage, Hertfordshire in 2017 for £230,000, but has since been quoted £202,077 to fix her flat, which has deemed to be unsafe

Her block is home to 73 flats spread across 14 storeys. It is above 18 metres and had problems with combustible cladding and missing fire breaks.

It is unknown when the fire safety work is expected to begin as the Government has yet to confirm whether it will provide funding for her block.

But once the work does start, it is suggested that it could take 52 weeks, meaning Sophie would be effectively living on what would look like a building site for a year.

The block has already paid for six months of a waking watch at a cost of £600 a month per flat. Those payments stopped following the installation of new fire alarms.

Sophie told MailOnline Property: ‘We have a supportive network of leaseholders and so you can take time out from dealing with it. However, being in lockdown and in the flat twenty-four seven means I’ve spent a lot of time trying to figure this out.

‘Knowing that when you go to work that money has already been spent has been disheartening.

‘We just have to do what we can. It is easier for me to talk about it now, but there are people I know who are suicidal. While the Government is playing ‘who is to pay’, leaseholders are struggling to survive.’

‘We have had to put our life on hold. I can’t spend any money as I know I shall have a bill at the end of all of this, although I don’t know how much that will be.

‘I’d like to get married and have children, but simply cannot afford to contemplate that at the moment.’

Campaigners have called ministers of ignoring cladding victims’ screams for help.

Stephen McPartland, MP for Stevenage, said: ‘Ministers have betrayed leaseholders like Sophie. Ignoring their screams for help, dismissing their dreams and refusing to listen.

‘Leaseholders need practical support, not more weasel words and I will continue to fight for people like Sophie.

‘Leaseholders are not to blame, but they are facing devastating mental health and financial costs as they are left to pay more in remediating their flats, than they are now worth. It is a tragic market failure and we must step in as a government to support them.’

It follows an announcement by Robert Jenrick that neither leaseholders nor taxpayers should pay for dangerous cladding to be removed. 

He said that the law will be changed retrospectively to give homeowners 15 years to take action against their developers for shoddy workmanship.  

A MHCLG spokesman responded, saying: “Building owners should make buildings safe without passing on costs to leaseholders – and we will introduce a new legal requirement for owners of high-rise buildings to prove they have tried all routes to cover the cost of fixing their buildings.

“We are processing applications to the Building Safety Fund as quickly as possible – and we have been clear that we will fund the removal of dangerous cladding from high rise building where remediation is necessary.

“Our approach strikes the right balance in our continuing commitment to protecting leaseholders and being fair to taxpayers – while reassuring lenders that where cladding remediation is needed, costs will not be a barrier or mean that mortgage payments become unmanageable.”

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