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Sales of holiday homes on the coast surge

Sales of holiday homes near the coast have surged over the past six months, with holiday let mortgages for properties in Wales almost doubling since September 2020.

Figures from Hodge Bank has revealed the most popular destination for holiday let buyers is the South West at 39%, followed by Wales at 19% and the North West at 12%.

Welsh purchases have almost doubled since September 2020, increasing from 10% to 19%, with coastlines around the North, including Pwllheli, Holyhead and Llandudno proving hugely popular for holiday homes.

The data also shows that the average age of a holiday let mortgage customer is 51.

Hodge customers are willing to spend on average £403,143 on a holiday home – nearly two thirds higher than the average house price in the UK of £252,000.

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Of those purchasing a holiday home, 35% remortgage their existing home to finance their holiday home while 65% take out a new holiday let specific mortgage.

With travel hugely restricted and people re-evaluating their holiday plans during the COVID-19 pandemic, the data shows that customers clearly want to head to the coast, with beach resorts in the South West proving hugely popular.

Newquay, St Ives and Penzance in Cornwall are real hotspots as are Wadebridge, Padstow and Port Isaac.

Over the past six months, Wales has also soared in popularity, especially around the North West in Pwllheli, Holyhead and Rhosneigr.

Devon also holds a lot of appeal, with the likes of Bideford, Ilfracombe and Barnstaple proving popular.

The least popular regions with only 1% of purchases are Greater London and the East Midlands, with West Midlands and the South East at 2% for those buying holiday lets.

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Emma Graham, business development director at Hodge, said: “Many people have not been able to holiday abroad for more than a year now and staycations have therefore become hugely popular.

“We think this has almost certainly led to people re-evaluating their finances, as well as holiday plans and the holiday let market is looking very healthy.

“Given the appetite for a holiday by the sea, it’s no surprise that homes near the beach or coast are the most popular for holiday homes.

“In 2019, Hodge launched a mortgage designed for those wanting to own a holiday let property in the UK after seeing an increase in enquiries.

“We saw a gap in the holiday let mortgage market for a customer-friendly product that allows owners to stay at the property for a longer period, as well as the ability to use letting sites.

“Customers can borrow up to £1m and there is a maximum lending age of 95.

“In addition, we have the unique Hodge Early Repayment Promise, which means if the customer sells their home and moves out, and pays off their mortgage completely, we’ll waive the Early Repayment Charges – giving them one less thing to worry about.

“Following Brexit and the COVID-19 pandemic, we think staycationing is here to stay and we want to help would-be holiday homeowners make that all-important purchase.

“We are able to offer customers up to three holiday let mortgages too, so if they want to purchase a property in more than one location, we can help.”

By Jessica Nangle

Source: Mortgage Introducer

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London saw greatest number of homes bought in 2020

London was noted as recording the greatest number of property purchases across the UK in 2020, according to reallymoving.

The data shows that the capital saw 13.7% of all completions, followed by Leeds at 1.7% and Birmingham at 1.6%.

Between July and December 2020, the proportion of first-time buyers in the market fell by 12% compared to the same period last year.

Over 2020, FTBs made up 51% of all buyers in the market, compared to 56% in 2019.

While 16% of FTBs opted for a new build home over an older property, almost half of those (46%) used a Help to Buy equity loan enabling them to buy with a deposit of just 5%.

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The average house price in England and Wales increased by from £293,819 in January 2020 to £352,239 in December 2020.

However, reallymoving predict that prices will fall by 1.2% in January and 2.5% in February 2021.

Home movers sold their homes for an average price of £313,149 and bought for an average price of £379,191.

Meanwhile, FTBs paid an average price of £262,180 for their first home.

Furthermore, the proportion of FTBs in England liable to pay stamp duty fell from 25% to just 5%, following the announcement of a stamp duty holiday.

Nine out of ten (91%) transactions by all homebuyers, including FTBs, have avoided the tax since July, prompting a surge in market activity and prices.

The data also shows that the cost of moving home dropped by 39% in 2020 from an average of £10,911 before the stamp duty holiday came into effect to £6,669 after.

According to reallymoving, costs such as legal fees rose however, as a consequence of being directly tied to rising house prices.

Those buying and selling a home typically paid £1,682 in legal fees, while FTBs paid £1,100, up 15% and 11%, respectively.

This data is based on 910,000 quotes generated on the reallymoving site throughout the year.

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Rob Houghton, chief executive of reallymoving, said: “The property market took us on a rollercoaster in 2020, from shock and despair when thousands of home movers were forced to press pause back in March, to the extraordinary resurgence in demand that began in the early summer and continued right through to the end of the year.

“Most concerning however, has been the decline in the proportion of FTBs in the market. They largely didn’t benefit from the stamp duty holiday and faced huge challenges securing finance as higher loan-to-value mortgages disappeared overnight and several high street lenders banned gifted deposits.

“Yet there are reasons to be optimistic that 2021 could see a reversal in fortunes for FTBs as lenders return to the market, competition for homes is reduced and price inflation readjusts downwards.

“Reallymoving is on a mission over the coming year to help homebuyers upskill with a series of live webinars and content designed to help inform and educate about the process, ensuring buyers have everything they need to navigate a successful home purchase.”

By Jake Carter

Source: Mortgage Introducer

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Sales agreed on £62bn more homes in 2020 than 2019

More activity at higher price points means the value of homes selling is 26% higher than in 2019, with the value of sales agreed in 2020 up £62bn on the previous year, the latest Zoopla House Price Index shows.

Zoopla found that the pandemic has driven a seismic search for space and quality of location, with 40% more buyers across the whole of 2020 compared to 2019 – despite 2+ month closure of UK housing market.

The highest rates of price inflation are in regional housing markets, but greatest increase in market activity has been concentrated in London, the South East and Eastern England.

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Richard Donnell, director of research & insight, Zoopla, said: “The housing market is ending 2020 strongly with more buyers looking for a home than this time last year. More sales at higher prices have boosted the value of homes selling in 2020, led by a strong rebound in southern England.

“The ‘once in a lifetime re-assessment of housing’ kick-started by the pandemic has further to run in our view and this will support demand into 2021. With a long Christmas weekend, and many households isolating in smaller groups, we expect interest in housing to be stronger than usual ahead of the traditional Boxing Day bounce when interest in housing jumps and the next tranche of would-be buyers.

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“While market activity is being boosted by latent demand unlocked by the pandemic, the housing market is not immune to economic forces and rising unemployment. Economic pressures are already impacting in parts of the market, reducing the volume and share of sales in less wealthy areas, for example.

“Looking ahead to 2021 we expect house price growth to reach 5% by mid Q1 and then slow to +1% by the end of the year as demand starts to weaken over 2021 H2. The number of completed housing transactions will be buoyed by a strong Q1 with sales agreed over 2020 Q4 completing early next year.

“Overall, we expect the number of completed housing transactions to match 2020 levels at 1.1m.”

By Ryan Fowler

Source: Mortgage Introducer

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Edinburgh named fastest city in UK for selling your home

Homes put on the market in Edinburgh sell faster on average than in any other city in the UK, according to a new study.

Figures show properties in the Capital spend an average of just 45 days on the housing market before being snapped up.

Edinburgh came just ahead of Glasgow, where the average home is bought 47 days after it is put up for sale.

The figures, released by Online Mortgage Advisor, also revealed the average price of a property in Edinburgh is £263,900.

That is more than £100,000 higher than the average price in Glasgow – at £135,000.

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Dundee, where the average home costs £128,600, was ranked third by the company. Sellers there can expect to wait 72 days on average.

Oxford meanwhile, where the average house will set you back £399,900, was ranked as the slowest city in the UK to sell your home.

Houses there were sold on average after 152 days – almost five months.

Online Mortgage Advisor said it calculated the average time taken for a property to sell in the UK by analysing The City Rate of Sale Report run by Post Office Money.

It used property listing dates on the website Rightmove to work out the length of time that houses in each location stayed on the housing market.

It comes after Nationwide bank has said that house prices have seen the highest monthly rise in more than 16 years as a result of the coronavirus crisis.

After suffering losses during May and June, house prices have recovered much quicker than expected, meaning they’ve now reached an all-time high.

By Conor Marlborough

Source: Edinburgh News