For more information contact your financial advisor at Thameside Associates on 01932 223870
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Thameside Associates
HOME FINANCE NEWS
August 2018
GOVERNMENT TO STREAMLINE HOUSE SALES
DEPOSIT COMES FIFTH ON MILLENNIALS LIST
YOU ARE INSURED, AREN’T YOU? GET COVERED NOW
GOVERNMENT TO STREAMLINE HOUSE SALES
Under government proposals to make property sales and purchases less problematic, the practice of gazumping, where sellers agree a sale but then accept a higher offer from another purchaser, will be discouraged through introducing voluntary reservation agreements.
Estate agents will be required to obtain professional qualifications. Local authority searches will be subject to a time limit, with a buyer’s solicitor able to obtain the information they need within 10 working days. Managing agents and freeholders will need to provide lease information for a set fee within an agreed timescale.
Guides will be published covering the major stages involved in buying and selling property, including the key questions that everyone should ask to help ensure their property transaction goes smoothly.
DESIRE FOR HOMEOWNERSHIP REMAINS STRONG
Despite all the problems associated with it, homeownership remains a major goal across the UK. In a recent poll, 62% of respondents said they wanted to own their own home by 2028. Whether this dream can become a reality depends on several factors. The government has pledged itself to building a million properties by 2020, although it will be a hard task to overcome the deficit that has built up over the years during which successive governments failed to plan adequately for the UK’s growing housing needs.
Many experts believe that providing suitable housing options for those aged over 55 who would like to downsize could help solve the crisis. Family-sized homes would be released for sale, second steppers could move up the housing ladder, in turn freeing more homes for first-time buyers.
DEPOSIT COMES FIFTH ON MILLENNIALS LIST
When it comes to savings goals, millennials it seems are keen to do things like build up an emergency fund, achieve financial freedom and travel the world, meaning that a deposit for a property comes further down their priority list in fifth position. Although 95% would like to buy a house at some point in the future, 31% do not think it will happen and 29% are only hopeful about their chances.
Millennials often favour experiences over the acquisition of tangible assets like a home. By contrast, baby boomers often put buying a property at the top of their savings list. Baby boomers can find themselves financially stretched through giving away cash to help their children and grandchildren buy property; unsurprisingly, the Bank of Mum and Dad is now classed as a top ten UK mortgage lender.
HOMEOWNERS CHOOSE TO IMPROVE RATHER THAN MOVE
With house prices remaining high and a shortage of properties, especially family-sized homes, coming onto the market, more of us are choosing to stay put and extend our existing property. Recent research highlights that at least a million fewer people moved between 2001 and 2011 compared with 1971 to 1981.
Choosing to stay put
Renovating rather than moving is influenced by a range of factors such as predicted interest rate rises and costs like Stamp Duty, as well as tighter mortgage lending criteria and the economic uncertainty that surrounds Brexit. In addition, in some parts of the country property prices have hardly moved, meaning that families can find themselves held back because they have made little or no profit on their existing home.
People are adapting their property to meet their changing family needs, often looking to add an extra bedroom and more living space. Loft extensions head the list of alterations that have increased the most over recent years, up by 114%. As reports in the media have highlighted, digging out basements to create extra accommodation is becoming increasingly popular, especially in fashionable parts of London. In 2017, Kensington and Chelsea saw the biggest number of planning permissions with 6.8 out of every 100 private homes applying.
YOU ARE INSURED, AREN’T YOU? GET COVERED NOW
Everyone should plan for their financial future. One of the most important elements is insurance protection. It can help you and your family survive financially if one of life’s curve balls comes your way.
If another person depends on you financially, and if you have school-age children and a mortgage, then you really should think about the benefits of taking out a policy.
Life policies provide a tax-free cash lump sum for those you leave behind in the event of your death. If you have a mortgage it’s a big financial responsibility and no-one would want to leave their family with money worries at a difficult time.
There are other types of plan that protect growing families, such as critical illness which means that if you are diagnosed with a serious illness as defined in your policy, there’s a cash payout to help alleviate financial worries. Income protection policies provide an income should you suffer an accident or illness, leaving you unable to work. Accident, sickness and unemployment policies provide a monthly payout that would help pay your mortgage and living costs in the event of an accident, sickness or involuntary unemployment. We can help you choose the right type of policy for your specific needs.
As with all insurance policies, conditions and exclusions will apply
Thameside Associates
Contact us
Email: contact@thamesideassociates.co.uk
Website: www.thamesideassociates.co.uk
Office: 01932 223870
Address:
Terminal House Station Approach Shepperton, Middlesex TW17 8AS