The government is considering plans to offer homeowners longer mortgages, including 50-year deals, that can be passed between generations, in a bid to stimulate housing demand and help more people gain a foot on the housing ladder.

The Japanese-style longer lending agreements could see people being able to buy a home with little or no expectation of completing mortgage repayments during their lifetime.

Instead, the property and outstanding debt would be passed on to their children.

Longer loan durations would allow home buyers to pay more for properties because they would have lower monthly payments.

With the housing market slowing, the government is keen to boost demand and is also considering 30-year fixed rate home loans, mortgages worth almost 100% of the property and ways to blend renting and owning a property.

Government attempts to make UK housing more affordable could push up property price.

“We want to find all sorts of creative ways to help people into ownership,” Johnson told the pres. “We need young people to have the confidence, to have the deposits, the mortgage packages to be able to get into ownership.”

The most popular mortgage length among first-time buyers is around 30 to 35 years but a multi-generational approach could extend that by decades.

But some commentators warned it would not address problems of low housing supply.

Scott Taylor-Barr, financial adviser at Carl Summers Financial Services, said: “I feel that Boris Johnson is coming at this from the wrong direction.

“It is not the mortgage market that is preventing people from becoming homeowners; it is the cost of property in relation to people’s earnings.”

Blog post from propertyindustryeye

How Long Does It Take to Move in 2022?

We’re sorry for mentioning Christmas in June. But bear with us.

If you’re thinking of moving, chances are you’ve pictured yourself in your new home in time for the end of the year. What better place to spend the festive season, and kick off 2023, than in your new pad.

And the good news is, based on the average time it takes to buy a home, there’s still time to get over the threshold before Christmas if you start your search now.

Why is moving home taking so long at the moment?

From the time a home is marked sale agreed, it currently takes 150 days on average to reach that all-important completion day. But that’s 50 days longer than during the same period in 2019.

It’s taking longer for home-buyers to get into their new homes because there’s a backlog in the conveyancing process: the thing that happens between having an offer accepted, and getting the keys to your new home. With so many people looking to move home right now, this part of the moving process is taking much longer than usual. And there are currently more than half a million homes sold subject to contract, with buyers eagerly awaiting completion. That’s 44% more than in 2019.

While there’s been a slight easing in buyer demand since last month, this isn’t going to be enough to ease the delays we’re currently seeing. With lots of people still wanting to move, estate agents are still looking for buyers who are likely to result in a sale going through as quickly as possible. Oliver Gill, of Kirkham Property in Oldham, says:

“Short chains with good estate agents progressing them is certainly what we look for when negotiating with multiple buyers these days. My expectation of the near future is that things will continue as they are for the coming months. There are simply too many buyers wanting to purchase.”

How to give yourself the best chance of moving before Christmas

If you have a home to sell and want to move before the end of the year, our property expert Tim Bannister says one thing you should do is get your home on the market before looking for your next place.

Tim says: “Existing homeowners looking to buy again will still need to put themselves in the best possible position to secure their next home in this strong market by making sure they find a buyer for their current property before looking for their next home. This is all the more important for those hoping to complete the process as quickly as possible and enjoy Christmas in a new home this year”.

And whether you’re buying a home, selling a home, or both, there are things you can do to try and prevent any delays.

If you’re a first time buyer, make sure you have a Mortgage in Principle in place before you go on viewings. A seller’s estate agent will want confirmation from a lender that you are able to apply for a mortgage, and that you have the funds to cover a deposit.

Once you’ve instructed a conveyancer, there are also things you can do to keep the process moving.

Let your conveyancer know as early as possible if you need answers to specific questions, and press for regular updates on how the sale is going. You can also tell them when you’d ideally like to exchange and complete, so all parties have a date to work towards.

Read more tips on keeping the conveyancing process running smoothly here.

Blog Post from Rightmove

Reminder to Agents – New Smoke and Carbon Monoxide Rules Coming Up

A prominent agency lettings chief is alerting the industry that new smoke and carbon monoxide alarm rules are changing from October 1.

Since October 2015 there’s been a legal requirement for a smoke alarm to be fitted on every floor of a property where a room is used wholly or partly as living accommodation.

There must also be a carbon monoxide alarm in any room where a solid fuel such as wood, coal or biomass is being burned – and that includes open fires, although not gas, oil or LPG.

Landlords and agents are also expected to ensure that the alarms work at the start of each new tenancy.

Now the regime is getting tougher with further changes:

– carbon monoxide alarms will be mandatory in rooms with a fixed combustion appliance (excluding gas cookers) in both private and social rented homes;

– carbon monoxide alarms will also be mandatory upon installation of any heating appliance (excluding gas cookers) in all tenures through building regulations;

– private and social landlords will be expected to repair or replace alarms once informed that they are faulty.

These changes extend the existing provisions from devices like wood-burning stoves and open fires to include gas heaters, gas fires and gas boilers, but excludes gas ovens and hobs.

Propertymark has already advised letting agents that they should be aware that the changes will introduce an obligation on private landlords to repair or replace any alarm which is found to be faulty during the period of a tenancy.

The current regulations only oblige landlords to check that alarms are in working order on the first day of a new tenancy. Ahead of implementation, agents and their landlords should start now to plan for the changes and the impact on management practices going forward.

The group lettings technical director at Connells – Andrew Culverwell – issues the reminder to the industry in this exclusive interview with Angels Media’s Lee Dahill, which you can see in full below.

Blog Post from Letting Agent Today

The Party’s Over for Airbnb

Airbnb says that its so-called ‘party ban’ – introduced in 2020 at the height of the pandemic – is being made permanent.

The platform claims that there’s been a 63 per cent drop in reports of parties in Airbnb host homes the UK since the temporary ban.

Airbnb says it believes the ban has worked to reduce violence, rules violations and health concerns, with worldwide reports of parties at listed properties having dropped 44 per cent and over 6,600 guests suspended last year for staging parties in contravention of rules.

“The ban has been well received by our host community and we’ve received positive feedback from community leaders and elected officials. As we build on this momentum, we believe the time is right to codify this policy” says a statement from Airbnb.

However, at the same time as making the ban permanent Airbnb has scrapped its maximum number of occupants, which was previously 16.

This is apparently “based on feedback from a number of hosts who have listings that can house above 16 people comfortably.”

“Today’s announcement makes clear that there is no place for disruptive parties on Airbnb” says Amanda Cupples, general manager for northern Europe at Airbnb

She continues: “Since being introduced, the ban has led to a reduction in reported incidents and helped minimise the impact of noise and nuisance issues on communities. In the rare event of an issue, our Neighbourhood Support Line allows anyone with concerns in the community to contact someone at Airbnb directly so we can fully investigate.”

Meanwhile the Westminster government is launching a review into short lets in England.

Tourism minister Nigel Huddleston says: “We’ve seen huge growth in the range of holiday accommodation available over the last few years. We want to reap the benefits of the boom in short-term holiday lets while protecting community interests and making sure England has high-quality tourist accommodation.”

And housing minister Stuart Andrew adds: “Holiday let sites like Airbnb have helped boost tourism across the country, but we need to make sure this doesn’t drive residents out of their communities.

“We are already taking action to tackle the issue of second and empty homes in some areas by empowering councils to charge up to double the rate of council tax.

“This review will give us a better understanding of how short term lets are affecting housing supply locally to make sure the tourism sector works for both residents and visitors alike.”

The government says Airbnb listing data shows a 33 per cent increase in UK listings between 2017 and 2018 and the rise in the use of online platforms for short-term letting has brought many benefits – from an increase in the variety and availability of options to allowing people to make money from renting out spare rooms and properties.

But the government says it understands there can be an impact on housing supply and price in these areas and there are fears caused by evidence of a rise in anti-social behaviour including noise, waste and drunken behaviour in local communities. Lower protections for guests caused by negligence of health and safety regulations are also amidst concerns.

The review will also consider the operation of the provisions in London under the Deregulation Act 2015 to allow for measures to be taken against anti-social behaviour, whilst allowing Londoners to let out their homes.

The Westminster government’s review brings England in line with the devolved administrations.

The Scottish government set out legislation requiring all local authorities in the country to establish a licensing scheme by October 2022. In Northern Ireland tourist accommodation cannot be provided without a valid certificate issued by the national tourist board. And Wales has stated its ambition to establish a statutory registration or licensing scheme.

Merilee Karr – who chairs the Short Term Accommodation Association – says: “Short term and holiday rentals play an increasingly important role in the English tourism economy by contributing significant numbers of jobs in local communities and generating valuable sources of income for local homeowners and businesses.

“Any new regulatory solution should recognise this contribution and seek to support the industry as an important part of the wider UK tourism sector.”

Blog Post from Letting Agent Today

Ban On Charging Ground Rent On Leases Comes Into Force

The government’s ban on charging ground rent on new leases in England and Wales comes into force today.

Starting June 30, anyone buying a home on a new long lease will now be freed from these annual costs.

Landlords are banned from charging ground rent to leaseholders, under a new law that the government hopes will lead to fairer, more transparent homeownership for thousands of homebuyers, helping to level up opportunities for more people.

In preparation, many landlords had already reduced ground rent to zero for homebuyers starting a new lease with them.

Leasehold minister Lord Stephen Greenhalgh said: “This is an important milestone in our work to fix the leasehold system and to level up home ownership.

“Abolishing these unreasonable costs will make the dream of home ownership a more affordable reality for the next generation of home buyers.”

Future measures, announced last year, include a new right for leaseholders to extend their leases to 990 years at zero ground rent and an online calculator to help leaseholders find out how much it would cost to buy their freehold or extend their lease.

Commenting on the changes, CILEX (Chartered Institute of Legal Executives) head of policy, Jonathan Walker, said: “The ban on ground rents is positive news for anyone considering buying a leasehold property and important progress towards ensuring safety and security for all householders.

“Problems still remain however, and it is disappointing that there is no retrospective inclusion of current leasehold tenants within the Act. They will still be obliged to pay their existing rents, even in cases where they are seeing those rents escalate – some doubling every ten years. Those attempting to sell on properties will find ground rents prove unattractive to buyers who now have the option of purchasing a rent-free leasehold property, and many will experience difficulties when looking to remortgage, or extend or vary their existing leasehold.

“Such fundamental changes to the leasehold market must be implemented alongside awareness raising and education amongst both consumers and professionals so that both understand the implications for property transactions.

“It is vital that we see a continued programme of reform that benefits those who are new to the leasehold market whilst not disadvantaging or restricting those currently within the system. We hope to see further measures to address residential leasehold houses and cap ground rent for all existing leasehold properties.”

Blog Post from Property Industry Eye

Cost-Of-Living Crisis Still Taking Centre Stage as UK Borrowing Drops

Investors are getting set for another twist on the rollercoaster with Monday’s gains set to be largely erased after Snap interrupted the brief rally with a very downbeat snapshot.

The FTSE 100 and FTSE 250 have opened 0.9% lower while in Japan the Nikkei slid by 1% and the Hang Seng in Hong Kong dropped by 2%.

The owner of Snapchat notched up fresh worries after the bell on Wall Street by lowering its revenue and profits forecasts for June and blaming the rapidly weakening economic environment.

That sent the stock into a tailspin, falling more than 30% in after-hours trading, pulling down other battered tech stocks with it, with Meta falling 7% and Pinterest by 11%.

Worries are mounting that advertising will be a big casualty as companies try and deal with squeezed budgets as input costs rise dramatically and the concern is that campaigns and budgets will be scaled back.

With the era of cheap money hurtling to an end the focus will be on a speech from Jerome Powell, the chair of the Federal Reserve later, with investors keen to glean any new titbit of information about just how far and fast the US central bank will go in raising rates and offloading its mass bond holdings.

In the UK, the cost-of-living crisis is still taking centre stage with clamour ratcheting up for support for the poorest households, as the Bank of England prepares borrowers to expect more interest rate rises as it attempts to keep a lid on rampant inflation.

Chancellor Rishi Sunak, the finance minister, has been given more wriggle room to take action with public borrowing coming in lower than expected at £18.6 billion in April.

Tax receipts piled up higher than forecast partly due to the increase in National Insurance contributions during the month, which added to the household budget squeeze.

However, the Treasury will be concerned that this may be a short term gain and there could be long term pain coming as the economy contracts, so ministers are unlikely to start splashing the cash, instead the purse strings are likely to loosen for small targeted support schemes.

The pound has pushed up higher against the dollar, up to $1.259, with sterling continuing to recover from the multi-year low it hit a fortnight ago as expectation mounts about a steeper path of interest rates.

As concerns mount over the fragility of the economies around the world, the oil price has slipped back, pulled down by ongoing worries about how detrimental China’s zero-covid policy will continue to be in terms of demand.

But supplies are tight and that’s still keeping the price of a barrel of Brent crude elevated at around $112.

A Russian oil embargo is still being pushed forward by EU nations and the head of Saudi Aramco has cautioned that a major supply crunch could be looming.

The wariness among energy firms about investing in fossil fuels as pressure mounts for the transition to greener energy appears to be acting as a cap on money flowing into production, and will be a lingering inflationary pressure which consumers, companies and policymakers will keep having to grapple with.

Blog Post from Property Notify