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Average Rent Up 2.3% Across England and Wales

As the popularity of renting properties continues to boom across the country, average rent prices across England and Wales are up by 2.3% year on year, according to Your Move England. The lettings market continues to remain popular amongst younger generations, with student lettings now exerting a considerable influence upon the market. With this demand for letting properties in the ascendance, there has been a 45% increase in the delivery of Build-to-Rent homes in the past year - with private investors now creating high-quality accommodation with the specific intention of renting.

Regional ups and downs
The strongest rental growth has been registered in the South West of England, where prices have risen by 4.3% to &686 per month. London has seen rents fall, with prices down 1.3% year on year; however, it must be noted that it is still, perhaps unsurprisingly, the most expensive place to rent in the United Kingdom with an average price of &1,277 per month. On a monthly basis, the West Midlands and South West are both up by 0.4% compared to September values - showing that variations are indeed highly regionalised.

Lucrative Rents
The rental yield in Northern regions, as is usually the case, earned higher returns than in the South with the average investor in the North East earning an annual yield of 5% in the year to September. Potentially lucrative yields can be seriously hampered by difficult tenants and with tenant arrears currently standing at 10.1%, a rosy picture is being painted for those in the lettings market - as this figure has been as high as 14.6%. Despite nationally strong levels of rental yield from private lettings, the volume of homes being bought privately by individuals in order to let them has decreased since the buy-to-let tax changes, which has resulted in higher tax bills for many second-home owners.

Growth of Markets
The typical notion of student digs being mildly unappealing and disheveled properties has been turned on its head in recent years, with the student lettings market now exerting a significant influence upon the rental market. Students are now able to access top-quality accommodation in their place of study, and as such, this has become a particularly lucrative market for investors. The return to study for many students in September and October typically sees an upsurge in activity in the private rental sector, and this year has been no different. In addition to a new relationship with the student market, the family lettings market has also grown recently due to greater availability of family properties on the lettings market.

With new properties being built with the express intent to be let out, and the growth of student and family markets, it is evident that the supply and demand for lettings remains strong. This stability is seen through the steadily increasing rental prices nationally, London notwithstanding, as well as the lower levels of tenants behind with their payments. The rental of properties, in lieu of purchasing, is forecast to grow in future years and so the impressive annual yields being reported at the moment should continue to be the case in the coming years.

First-Time Buyers: What Are Your Options?

The housing market can be an inhospitable place for young first-time buyers. It requires a dedication to an end goal that borders on single-mindedness with many sacrifices along the way, but it is not impossible to buy a home.

To get you started on your climb up the property ladder, we’ve decided to take a look at some of your best options as a first-time buyer.

Where should you start?

Save. It’s a simple first step, but it’s the one that the majority of buyers struggle with the most. Putting a little away here and there simply won’t cut it, you need to be consistently squirrelling away money, sacrificing holidays and big money spends, in an attempt to scrape your deposit together.

Fortunately, there is help out there. Do some research and find a savings account with the best interest rate. The most popular savings account for first-time buyers at the moment is the Help to Buy Isa.

This account allows you to make monthly deposits of up to &200 until you either buy your first home or reach the &12,000 limit. Once you actually purchase a home, you can put the savings from your Help to Buy ISA towards the deposit, and after the sale is complete you will receive a 25% bonus from the government. For example, if you had &12,000 saved, you would receive a &3,000 bonus after completion.

What are your options?

If you already have some money saved up, but you're just short of the mark, it may be worth considering the following options.

Rent to Buy: Rent to Buy allows you to choose a home that you will one day buy, but in the meantime, you’ll only have to pay a reduced amount of rent (80%), meaning you can save the other 20% for a deposit. Once you enter this scheme, it lasts for five years. During that time, you can buy the property outright, or you can pay for a 25% or 75% share of the property.

0% mortgage: A 0% mortgage is similar to a 5% mortgage, in that a guarantor must put forward 10% of the deposit, whilst you put down nothing. The guarantor will receive the cash back, provided that you keep up with your mortgage repayments.

Bank of mum and dad: When all else fails, what better place to go than the good old reliable bank of mum and dad. Many of the options above require your parents to act as a guarantor anyway, so why not just go straight to the primary source?

Whilst it might seem daunting to begin saving for a property, there are many options that can help you take your first tentative steps onto the property ladder. Do some research and find out which options suit you best.

Guide: Designing A Children's Room

Designing a child’s room can be tricky; there are a number of factors to consider so it is hard to know where to begin. Design trends are forever changing and your child is constantly growing, so it is important that you consider a few things before starting.

Striking the balance between fun and practical is a challenge and designing something that your child does not grow out of too quickly is not easy, but by taking the time to think it over, you can save yourself a lot of hassle and create a space that is fun for them and easy for you to manage.

Draw Up A Floor Plan

Before you start buying all sorts of cute and colourful furniture, it’s important to remember that depending on your child’s age, this room could have a variety of functions.

Have a think about what the room will be used for and draw out a plan. If the room just needs to be a comfortable place to sleep then you should have plenty of freedom, however, if it also needs to be an area to play and study, you’ll require a good amount of floor space and maybe a dedicated little corner for a desk.

Everyone’s home and preferences are different but you want to get as much out of the space as possible, so take a moment to consider the role that the room will play and how it may change over the next few years.

Choose The Right Colour

It may be tempting to simply ask your child what their favourite colour is and then start buying paint or wallpaper.

While it is a good idea to include your child in the design of their room, if their favourite colour resembles a highlighter pen, then your best option is to go with the more neutral shade of that colour.

Your best strategy is to aim for a colour palette that nicely blends with a variety of furniture and will not look so childish once your child turns into a teen. Save yourself a redecoration job in 18 months by picking a colour that will age well with the rest of the ever-changing décor.

Decide On The Flooring

When it comes to flooring you have a few options, all with their pros and cons, so you just have to decide which will be best for you.

Carpet helps keep the room a little warmer but is vulnerable to stains. Hardwood is much more durable and easy to clean but does not provide much cushion for a child that is a little more clumsy than most. You could also opt for rubber flooring that does offer the benefits of both carpet and hardwood; however, it is the most expensive option of the three.

The flooring that is best for you is dependent on the age of your child, but research your options while keeping your budget in mind and make sure your choice of flooring compliments the room and doesn’t break the bank.

Getting The Furniture Right

There are two key things to keep in mind when choosing your furniture, functionality and lifespan.

We’ve already established that space is a valuable commodity so finding multi functional furniture can be a real lifesaver.

Beds that have storage built in underneath are quite easy to find and the extra storage they provide can go a long way, as well as free up more of the room for other essential items. This also gives you an opportunity to get a little creative and look for ways to combine 2 items into one such as adding some padding to a desk or dresser so that it also can be used as a changing table.

The other consideration for furniture is its lifespan. There is a lot of cute miniature beds, tables and chairs that might look great, but you must remember that they will grow out of it quicker than you think. A good strategy would be to buy some furniture that they can grow into. Their small clothes may not justify full sized dresser just yet, but it will not be long before you are looking for extra storage space and their feet are hanging out of the end of the bed.

Add Character Through Accessories

Now that your room has been planned out, you have chosen your colour palette, had the flooring fitted, assembled and placed the furniture, it’s time to add character.

The great part about this phase of designing the room is that because the rest of the room's features were kept neutral and timeless, you can now give your child a good amount of freedom to add their own personality to the room from accessories.

Whether it’s action figures, bed covers or posters, you can basically style the room however you want and the best part is, these accessories can be easily replaced and changed over the years at the same rate as your child’s taste in décor shifts from one thing to the next.

House Prices Up £177 On Average

The average price for a home in the UK rose by &177 on average last month, however this headline figure masks distinct regional disparities in terms of price growth. Traditionally, London has seen seemingly endless property price increases, however the dichotomy between the North and South has been somewhat turned on its head - with areas in the North of England now outperforming the South of the country.

Regional disparities
The average annual rate of growth in the UK remains at 2%, unchanged from previous months, and this increase remains steadfast despite broader market considerations, such as Brexit and the annual budget. Within this average 2% price rise, however, are some regional booms taking place with the likes of properties in Yorkshire and the Humberside jumping by 5.8% in the last year. As well as the flourishing Yorkshire property market, prices are also at least 4% higher than they had been a year earlier in the East Midlands, Northern Ireland, West Midlands and the North West. In surprising contrast to these high levels of regional growth, prices in London fell for the fifth quarter in a row - however it should be noted that despite these falling property prices in the capital, London prices are still 50% above their 2007 peak.

Room for growth
The clear distinction between North and South in terms of the rate at which property prices are increasing - for the sixth successive quarter price growth in Northern England has exceeded growth in Southern England - can be linked to levels of affordability in these regions. Regions with the highest property values such as London and surrounding areas have either seen falling property values or subdued rises, whereas areas with lower property values such as Yorkshire have seen much stronger growth.

First-time buyers
Within this new “upside down” property market in terms of price growth in the North and South, there has been a significant recovery in first-time buyer transactions. Levels of first-time buyer transactions are now broadly in line with levels before 2008, largely thanks to the improvement in credit availability as well as government schemes such as “Help-to-Buy” which is encouraging first-time buyers to enter the property market. Historically low interest rates, despite the recent rate rise, has been a key factor in the recovery of first-time buyer transactions as mortgage payments are more affordable, and offer levels of stability which initial buyers are seeking.

In the midst of Brexit and economic uncertainty, house prices have still continued to rise nationally, albeit at a steadier rate than seen pre-Brexit. According to figures from Nationwide, house prices were growing by about 5% per year around the time of the EU referendum, however these levels of growth have not continued since the vote took place. As well as Brexit, broader market conditions are dictating price growth throughout the property market and with a “feelgood” budget recently delivered by the Chancellor it is quite possible that we will see the property market continuing to tick over at reasonable levels to the end of the year.

Improving Your Home's Security

As the nights are drawing in and we occupy ourselves with the wintery joys of hot chocolate and cosy evenings, it is easy to forget that it is during these wintery months when burglaries are most rife. Lloyds Bank noted that there are 35% more claims for forced burglary during the darker months of the year, with criminals emboldened by the shorter days. Follow our helpful hints and tips to ensure that you can enjoy the winter months without any other worries apart from who has turned up that thermostat!

Doors
Did you know that over a third of burglars use the front door? It seems like such a simple fix, but this winter remember to secure your doors to ensure that you don’t have any unwelcome guests. Inspect all your exterior doors to ensure that the frames are strong and in good condition and don’t forget to check the hinges as well. If your door has a mailbox, then ensure that nobody can reach through by installing a mailbox protector.

Windows
As well as doors being popular entry points for burglars, windows are also amongst the most common entry points for break-ins. It’s unlikely that you will be leaving your windows open with the temperatures currently plummeting, however the latches on your windows can prove to be ineffective if put under stress. To stay safe this winter and beyond, you can improve the security credentials of your windows by adding locks or key operated levers which will prove to be much sturdier than the original fixings.

Lights
There is a clear relationship between the darker nights and higher incidence of burglaries – and that is due to the cover which the dark of the winter months provides to would-be criminals. Illuminate your home using outdoor lights in order to make your home a less appealing option to potential security risks; lights on pathways and in gardens will eliminate those darker areas. The use of motion lights is becoming more and more popular, with the element of surprise of a light turning on proving to be an effective deterrent.

Wi-Fi
When considering your home’s security, you would be forgiven for only protecting the bricks and mortar, however a key consideration in these modern times should be your wi-fi network. Your home wi-fi is a potential pathway for intruders in to your personal and financial information, and with the ever-increasing popularity of home automation apps can also make your home vulnerable to break-ins. To protect your wireless network, ensure that you are using a secure router and that you have enabled WPA (Wi-Fi protected access) or WPA2 encryption – as well as the usual staples such as a strong password and firewall protections.

Neighbours
Life these days is extremely fast-paced and British sensibilities often drive us to simply say a polite “good morning” and “good evening” to our neighbours, with little more conversation shared. These seemingly inconsequential conversations could also be used to improve your home security, however, as well as fostering better relationships with those living next to us. Use those early-morning interactions with your neighbours to discuss holidays and upcoming plans, so that they will be aware if there is something untoward happening at your home. Neighbours can also move parcels or letters left on your doorstep so that potential burglars won’t be made aware of your absence.

What Effect Can A Road Name Have On A Property?

When considering the purchase of a property there are a number of variables to consider; how many bedrooms you need, if there are good schools in the catchment area and what the local amenities are to name but a few. However, it seems that there is one aspect which should also now be taken in to account - street name. Recent studies have shown that the name of the road which you live on can have an impact upon the value of your property - so the old adage of “location, location, location” may be even more accurate than ever previously considered when buying a home. 

The regal touch

Streets with regal names such as Royal, Palace, Lord and Bishop can boost the value of your home - showing that royal prestige extends well beyond Buckingham Palace. Nearly 10% of house-hunters surveyed are willing to pay more for a property with a regal suffix, with 8% prepared to pay up to an enormous &30,000 more. This perception of prestige clearly has an impact on the price of a home and the overall appeal to buyers - so think carefully when browsing through all those homes for sale and don’t just consider their curb -appeal, but also their catalogue blurb-appeal.

The house on the hill

Aside from the prestige of the monarchy, it seems that certain road names also exert a hypnotic appeal upon buyers with properties on “Hills” and “Lanes” worth 50% more than the national average. Naturally, when you consider a hill or a lane there is the image of peace and tranquility, which could be a contributing factor in their popularity amongst buyers. On the other hand, properties with “Street” or “Terrace” in their address are amongst the least expensive in the UK, perhaps because of the frequency of these names and as such, a perceived lack of exclusivity.

Bishop’s Hill or High Street?

Property buyers are a discerning bunch, with never-ending lists of requirements, and it would seem that a new addition to this list is an “exclusive” sounding address with many prepared to pay a premium for a premium-sounding address. This preparedness to pay for the privilege of living on “Royal Way” or “Hill Lane” however is split regionally - with those in London 24% more likely to pay extra for an address when compared to those in the North East. Perhaps, then, it is the high prices of the capital city and the greater level of investment it takes to buy in London which can woo buyers in to spending just that little bit more - a premium-sounding address to reflect the premium cash outlay required to buy their property.

Major Changes In The Property Market 

The ‘Housing Futures’ survey has been conducted annually by Strutt & Parker since 2013 to examine how the property market has evolved and then utilising this data to identify future trends which will shape the market. The latest version, ‘Housing Futures: New Horizons’, has shown that ‘connectivity seems to be the key for British home movers in 2018. We want to be connected in all areas of our lives...there is a growing requirement for connection, community and convenience,’ according to Vanessa Hale, director of research at Strutt & Parker.

Increased demand for lettings
An increase in the demand for lettings has had a significant impact upon the property market, with research showing that rental increased as a future tenure from 10% to 13% - reflecting its growing popularity. Growth in the private rented sector has seen a near 30% annual increase and encompassed within this sector is the “Build-to-Rent” market. Over the course of the past year there has been a 45% increase in the delivery of completed “Build-to-Rent” homes with the focus on type of property now shifting from blocks of flats to family housing, thereby supporting the lettings market in the long-term.

Pace of life dictating property requirements
As the pace of life quickens and we become more accustomed to instantaneous connections, our property requirements are reflecting this desire for connectivity - both virtually to networks and physically to one another. “Good broadband” is now regarded as a necessity for the majority of buyers - up to 57% - and twinned with this desire for “good broadband” is the desire to be closer to family and friends - up to 48%. There should be no surprise, therefore, that city living has increased in popularity as cities offer the greater levels of connectivity and accessibility which is now sought-after by buyers.

Fiscal concerns shaping the property market
As the Housing Futures report states, “over the past five years the UK has seen turmoil in the political arena as well as in the regulation and taxation of residential property”. This “turmoil” can be seen in the changing shape of the property market; for example, demand for detached houses has significantly dropped over the last 5 years from 83% to 49%, whilst semi-detached homes have become the most popular. This shift away from larger homes indicates a hesitancy amongst buyers to stretch themselves when it comes to their finances, perhaps also explaining the growth in the lettings market as potential buyers become more financially prudent.

Family ties
Strutt & Parker identified in their housing report ‘26 different property tribes’ - groups of people who are the most prevalent in the property market. One of the ‘tribes’ which will exert the most influence on the property market over the coming years, according to Strutt & Parker, is aptly named ‘The Waltons’ and consists of multi-generational households, much like those seen in years gone by. This multi-generational family home will become more prevalent due to the increasing price of property and the resulting necessity for multiple family members to combine their wealth in order to purchase better homes than if they were to purchase individually, or simply because family members cannot afford to live by themselves. Further to this family aspect in the future purchase of properties, providing financial support for relatives has become one of the key reasons to move home - now up to 22% of those surveyed cite this as a motivator to move home.

As political and policy changes take place throughout the United Kingdom, the property market is flexing to respond to these types of change - this is reflected in the rise of the popularity of the semi-detached home and the continuing growth of the lettings market. Buyers are more aware of their fiscal concerns, and more demanding in terms of their requirement to be well-connected to friends, family and wireless networks. With an ageing population continuing to live longer, the power of the “grey pound” will exert itself upon the property market and, combined with younger generations who have a voracious appetite for property both in terms of letting and purchasing, one thing is for certain - the property market remains extremely financially solvent.

Over Half Of Brits Admit to 'Garden Envy'

It’s not uncommon to cast an envious glance at a neighbour’s fancy new car or improved garden space, but a new study has revealed just how jealous British residents are getting when it comes to keeping tabs on what those living next to them are doing with their gardens.

A survey of 1492 adults conducted by Alfresia.co.uk discovered that 53% of Brits will take a seemingly innocuous look over their garden wall to compare their neighbour’s outdoor space with their own. Surprisingly, many are taking it a step further, with 71% of those surveyed more likely to carry out improvements on their garden in an effort to keep pace with any changes that their neighbours have made.

Dining sets led the way as the most sought-after garden upgrade, with 69% noting it as a key feature of other nearby gardens. Plants and flowers came second, with 55% of those surveyed suggesting that they were green with envy over their neighbour’s foliage.

The top five is rounded out by landscape design at 48%, garden heaters and lighting at 42% and storage solutions, sitting at a relatively reasonable 36%.

If you’re feeling a pang of embarrassment knowing that you would be forced to include yourself as partaking in such activities, the study also revealed a few far more damning statistics! Apparently, 21% of those questioned admitting to becoming embroiled in an argument with their neighbour over some aspect of their garden, and remarkably, in an act that takes the concept of Keeping up with the Joneses to the next level, one in ten admitted to making up a reason to visit their neighbour in order to sneak a better glance of their garden.

Those living in Oxford were deemed most likely to succumb to some kind of garden envy, with Newcastle following closely behind in second.

"As a nation we are very house-proud and so it seems this is the reason for Brits getting so envious when it comes to their outdoor spaces. For many people, their neighbours’ gardens and terraces can be seen from windows, meaning Britons can have a good nosy without being spotted,” offered Alfresia.co.uk’s marketing manager Craig Corbett.

"However, like all design choices and tastes, these do vary from individual to individual and are very personal choices. Whilst it’s great to take inspiration from other places, Brits should work to create a space that they’re proud of rather than one which they have designed to compete with another."

Preparing Your Home For Winter

As the temperatures begin to sink and the days begin to shrink one thing is for certain - winter is upon us. Along with the shorter days and colder temperatures come the wintery pleasures of warming up alongside a roaring fire, long walks in the country and crisp, frosty mornings. However, it’s also important to remember that the winter months can have a harsh effect upon our homes, causing problems for heating systems and external fixings alike. Follow this list of tips to prepare your home for the chillier months, and to ensure that your main concern this winter is the choice between a cup of tea or a warming hot chocolate.

Pipe dreams
As the temperatures drop, the water in your pipes can freeze causing them to burst and for major damage to be caused to your home. In order to avoid this, keep an eye out for any gaps in external walls as the cold air could reach the pipes and encourage them to freeze over. Sealing over any gaps in external walls, as well as adding insulation around vulnerable pipes in areas such as the loft and garage could mitigate this problem. Further to staying vigilant to external wall gaps, keeping your heating on a low-level (around 4 degrees) - even when you’re away from your home - will maintain a consistent temperature around pipes, thereby avoiding the problem of pipes freezing over.

Boiler spoiler
When was the last time that you had your boiler checked? A poorly maintained boiler wastes energy and costs more to run, as well as running the risk of leaking carbon monoxide in to your home. Having your boiler serviced will reap rewards in the long run, as well as giving you peace of mind in terms of safety and efficiency. Naturally, one of the key components of your boiler system are your radiators - a handy hint to maximise their efficiency is to put kitchen foil behind them for the heat to be reflected back into the room they are in.

Fill the gaps
Around a quarter of the heat lost from your home escapes through the loft, and therefore having good loft insulation is key to staying warm this winter. As well as the loft space, cavity wall insulation can make a real difference to keeping your home warm and energy bills low - with a typical saving of &145 per year saved on energy bills simply through having insulation installed. In terms of cost, there are a number of government grants and subsidy schemes available to help you with the initial outlay of insulating your home and staying warm this winter – so do your research and stay warm for less.

The big switch
If you feel that your winter energy bills are high despite your best efforts to prepare your home for the cold months then give your energy supplier a call and have a chat about being allocated a more cost-effective tariff. Remember that you will never experience a disruption in service if you decide to change suppliers, so feel free to shop around and find the best deal that works for you. You can use online comparison tools as well as literature direct from suppliers to find the most competitive energy rates and offers, so turn up that thermostat and get extra cosy!

Down the drain
As the leaves fall from the trees, drains and gutters can easily become blocked with debris, causing build-ups of water which could make its way into your home in the form of damp. As the temperature drops, these leaves are prone to freezing which can weigh down your guttering and damage external structures. Ensure that your drains and gutters are debris free by checking lower-level guttering on your property and clearing these out by hand as safely as possible - if the lower-levels are blocked then higher levels may also require a closer inspection.

Property Demand Across The UK Increases To 39%

Demand for property across the United Kingdom has been the subject of another increase in the third quarter of this year according to the latest data, with a 3% increase from the second quarter leaving the current value at 39%.

According to Emoov’s data, this marks a year-on-year increase of 6%, with England leading the way with a 9% increase in what comes as the country’s first positive growth in 2018 with Wales trailing closely behind with a 7% quarterly and 10% annual increase. Scotland bucks this trend somewhat with a slight 2% dip in its quarterly demand, yet continues to see an uptick based on last year’s figures thanks to a 5% increase.

Despite England’s strong quarter, it’s the Scottish capital that tops the list of most in-demand town or city, with Edinburgh taking the crown thanks to a 5% increase that sees it sit at 59%. Durham has enjoyed the largest annual increase at 60%, whilst Brentwood took the prize for England’s impressive quarterly change with an impressive 33% increase in demand. Elsewhere, Newport in South Wales has rarely been in ruder health thanks to an annual jump of 44% and a quarterly increase of 16%, ending with an impressive 55%.

London cannot say the same and offers something of a mixed bag with its data, however; demand across the capital has dropped 1% this quarter and 4% annually, with the more affordable boroughs such as Bexley (52%) atop the pile. Still, the Prime Central London area has shown signs of a revival with Fulham and Hammersmith enjoying a 24% increase this quarter, which feeds into a whopping 104% annual increase.

“The numbers this month make welcome reading for home sellers in England, as demand is finally on the up again along with the UK’s as a whole,” offered Russell Quirk, Emoov’s chief executive.

“It’s the first time this year that we’ve seen UK demand driven by the English market while London and, perhaps more surprisingly, the commuter belt both take a back seat.

The commuter belt has been very hot for quite some time now and this consistently high demand has inevitably pushed prices up. However, this static level of demand is nothing more than a natural market adjustment, perhaps exacerbated by current market conditions, but certainly nothing to worry about in the long term.”

Supply of Home Rises By 15%

The supply of properties for sale in Britain increased by 15% in September, according to the National Association of Estate Agents (NAEA) with demand amongst buyers also growing to levels unseen since March 2016. These increasing levels of available properties for sale are benefitting markets that have historically struggled, such as first-time buyers due to the reduced levels of competition per property.

The number of properties available per member branch of the NAEA increased from 40 to 46 in September, with numbers of registered house-hunters also increasing from 320 to 338. This is good news for many as the increased supply of housing should lead to better accessibility to the housing market as voracious levels of competition reduce. There should be no surprise, therefore, that twinned with the housing supply increase there has been an increase in the volume of first-time buyer transactions. With recent government schemes to aid those looking to get a first step upon the property ladder, such as the Help-to-Buy scheme where buyers can purchase as little as 25% of a home and pay rent for the remainder, and increasing housing supplies it would seem that the possibility of life-long renting is reducing for many.

The Chief Executive of NAEA Propertymark, Mark Hayward, has noted that this year’s unprecedented heatwave over the summer led to an extremely busy August period, which was good news for sellers:

“This summer’s heatwave led to an unusually busy August, as house buyers and sellers opted to stay at home rather than heading abroad for their summer holidays…This boosted competition and meant sales to first-time buyers were down.”

Due to the warm summer, sales were clustered in August resulting in difficult conditions for first-time buyers and this small-scale summer phenomenon can be seen as a microcosm of the difficult conditions which first-time buyers endure when trying to purchase a property, with competition for affordable housing extremely prevalent.

With the supply of homes on the property market increasing, as well as increased support given to first-time buyers, we should continue to see first-time buyer transactions increasing due to this level of reduced competition and helping hand from the government. It is clear that there is a legitimate necessity for the housing stock in the UK to increase as the current demand outstrips supply, and with Theresa May just announcing that government caps on the amount councils can borrow to build new housing would be lifted, we should see more housing options entering the market in the upcoming months and years.

What Makes Up The Price Of A Property?

If you had to rebuild your home from scratch, how much do you think it would cost, and are there any special features which would cost a premium to emulate should the worst happen? According to a new study conducted by Direct Line Premier Insurance, the average person overestimates the rebuild costs for their home by 38%, showing that the general public have little idea when it comes to the bricks-and-mortar cost of rebuilding their properties. Then again, the true value of a property is clearly made up of more than simply the basic construction costs, with other considerations such as local amenities also playing a part in the overall value of a home.

On average, the base construction costs of our homes make up around 59% of the property’s actual value, according to Direct Line. Other considerations which influence the market value of a home include access to local amenities, schools and public transport; these account for over two fifths of a property’s value. Naturally, there are regional variations in terms of the premium which is paid for these location-based factors and, perhaps somewhat unsurprisingly, it is in London that the highest location premium is levied.

In the capital, a three-bedroom property costs on average &647,000 which is an astonishing &442,571 above the rebuild cost of &205,000 – quite the location premium indeed. In fact, the location premium in London is so high that it is higher than the average market value of homes across the rest of the UK. After London, other locations with higher premiums include Brighton, Bristol and Edinburgh – all with location premiums of 60% or higher when compared to the actual rebuild costs of homes in these areas.

“Although people may be surprised by the amount of value placed on a property’s qualities beyond bricks and mortar, this analysis shows just how much intangible benefits such as; local amenities, location and transport links add to the price of a property,” said Nick Brabham, head of Select Premier Insurance.

The adage of ‘location, location, location’ has long been engrained in the property buyer’s psyche and this new research demonstrates just how tangible that cliché can be, in real monetary terms. An important reflection considering these figures is that of property insurance, and the devastating impact which an inaccurate home valuation could have upon an insurance claim, with the effect of over-paying for some and under-paying for others.