As the urban areas are becoming more and more crowded, many people are deciding that the best option for them is to move to the countryside. There, they will no longer have to worry about pollution or traffic, so they will be able to have a more peaceful life-style. However, the fact that the countryside properties have developed very much throughout the last few years has led to the creation of the such called ‘ghost villages’. This is also a result of the fact that young people are being forced away from some areas, as buying second homes has become very difficult for them in the big cities.
The rural population has increased significantly, so the property prices in the countryside areas have rose as well. Tourists are also fond of the countryside areas that the United Kingdom has to offer, so in many areas, such as the West Country or the ones surrounding national parks, property prices have even topped the ones in the urban areas. This pushed people away, as second homes were becoming too expensive, which is another reason of the ‘ghost villages’ forming. The development of countryside properties is thus a very interesting issue. Due to its popularity, many experts claim that building new homes on certain areas of greenbelt land is the business of the future, as the countryside is in the constant need of new houses. With the big cities being so crowded, it is quite hard to find an oasis where you could build your dream house, but the countryside is the best setting to do that.
There are however people who plan to do exactly the contrary. They would like to move out of the countryside and into the big cities. For them, there is another great option, which will also help at the further development of the countryside properties. They could easily bring small improvements to their homes, but which can result in a higher property value. These minor improvements could involve switching to alternative energy sources, that are very popular today and which many people who want to move to the countryside are seeking. It is obvious thus that the development of countryside properties will keep on going and that it offers many advantages, for all kinds of people.
Even though they could buy anything they want, there are rich people who are never satisfied with what they got and they are always looking to save as much money as possible. Two people that fall into this category are Shiraj Haque and Ayesha Chowdhury. They both live with the poor, in council houses, even though they own millions of pounds worth of properties. Social housing is intended for poor people, and it is given based on income, family size and other circumstances, like the lack of a property. It seems thus at least odd that British wealthy people like Shiraj Haque and Ayesha Chowdhury were given a social home.
Shiraj Haque is a prosper businessman, who owns eight properties, one of them valued at over 2 million pounds. He also owns a supermarket and a restaurant-chain, so it is obvious that his income is substantial. However, the British millionaire lives in a home intended for poor people, where he pays no more than 135 pounds a week. This is at least surprising, considering that social homes are given to people according to a waiting list, and many spend a lot of time waiting for one. Shiraj Haque was living in one even since 2000, when he was already a wealthy businessman, but he stated that he was given the house after his previous home was demolished. Shiraj Haque also said that he considers himself a social democrat and that he wants to connect with people. The case of Ayesha Chowdhury is very similar. She is a Labour Councillor, who lives in a social home despite the fact that she and her husband own no less than 17 properties. After the revelation of these facts, British millionaire Ayesha Chowdhury said that she will leave the social property, but she refused to make any further comments.
British citizens think that it is outrageous for millionaires to live in social homes, because they take a place where a poor family could live, all because they are greedy and because they want to save as much money as possible. The London authorities are currently making investigations, to find other wealthy people who are abusively living in social homes. Luckily, the ministers have decided to do something about it, so now people who earn more than 100.000 pounds are not allowed to live in social or council houses.
Real estate agents usually do everything in their power to make sure that a transaction is made and that a property is sold, and they use any means to do that. While this can be understandable, as selling as many properties as possible wins them more money, they should be careful though, because new regulations have been enforced and they have to respect them. Searching for a home can be quite difficult, especially when there are some real estate agents who are looking forward to scam you, but in order to make sure that you have made the best choice, it is necessary to do some research.
There are many familiar practices that real estate agents recur to in order to make the most out of their deals. However, they should be more careful now, as the Office of Fair Trading has some new ground rules that they have to follow. First, a real estate agent should never give misleading information to a customer. They should give a realistic description of the properties they are selling, without using old photographs or videos, which will not make a true presentation of the property. Then, insufficient information is not permitted either, because customers must find out all there is to know about the property they are planning to purchase. For example, they should know if a property comes with a shared ownership of parking area or if it is need of substantial repairs. Many real estate agents are familiar with aggressive techniques, which they use in order to persuade the customer into buying the property as soon as possible. People usually feel intimidated, so they tend to accept the deal, even though they are not fully satisfied with their decision. Persistent visits or phone calls are thus prohibited, as well as pressuring the customers.
There are thus many things that real estate agents must avoid in order to meet the requirements set by the Office of Fair Trading. Otherwise, they may even get sued and they will end up in a lot of trouble. To sum up, real estate agents should never create false impressions and they should allow the customers to reach a decision at their own pace. Developing a healthy relationship with their real estate agent is very important for most people, so this is why both sides should be honest and they should ‘play fair’ as well.
Nowadays, everybody is looking for the best way to save money, but to live happily in the comfort of their own home as well. This is why, when it comes to buying or selling a property, people always have second thoughts, so many property sales fall through. Experts have reached the conclusion that almost a third of all the property purchases do not make it, precisely because people are constantly changing their mind.
No matter if it is the seller or the prospective buyer, one of them will pull out at one point or the other, resulting in the falling of the sale. Many people change their mind pretty quick when it comes to selling the house they grew up in or a property that is very close to their heart. However, they are most likely forced to sell, because they are in desperate need of money and after the transaction goes through they will be able to make a deposit for a cheaper home. When faced with the prospective buyer though, nostalgia strikes and they become aware of the fact that they will no longer be the owners, so they change their mind at the last minute. If you are facing a situation like thus, and you really want to buy the property, you could wait a little longer, because the owner will probably come to his/her senses sooner than you expect. Then, real estate experts state that one in tell sales fall through because many people do not afford to secure a mortgage. This is because many people are looking to save some money and to get their financial status straight before starting to search for a property or to make an offer.
These are the most common causes of property sales falling trough. To sum up, we could say that most people are worried about their financial status and stability, so they do not want to risk. The fact that the number of fall-troughs is increasing can be quite worrying for the real estate market. 29% of the property transactions have fallen through, and that was just in the first half of the year. In order to prevent this number from increasing, the smartest thing to do would be to reduce the time period between offering and exchanging contracts. This is the only way in which property sales will no longer fall through, or at least the percentage will be significantly lower.
The London real estate market began to recover after the hard times caused by the economical crisis. No one saw this coming, and although it may be hard to believe, there is however a reason behind this comeback. The reason is that more and more rich investors are drawn to London and they are seeking properties. In June, the luxury housing market has reached amazing records. The value of central London properties increased by 0.9% from May, which contributed to the annual growth with 8.3%. Specialists state that the average price of luxury properties reached 3.7 million pounds, which shows a growth of 2% from March 2008.
Belgravia and Holland Park do not make any exception, as they are two of the most expensive residential districts, not only in London, but in the whole world. The luxury properties value rose here by 34% from 2009, which can be considered an amazing comeback, after the crash caused by the mortgage loans crisis the year before. There are two main reasons why rich investors are seeking London properties, and especially luxury ones. First, London is renown as a financial refuge, since the upper classes from economically destabilized countries are looking to make investments here in order to protect their fortunes. Then, there is the fact that the British currency is constantly devaluing, so businessmen consider that now it is the best time to make an investment. They are not hesitating when it comes to purchasing London luxury properties, because they think that an offer like this is unparalleled. One of the most notorious real estate experts agrees completely with this fact, especially after he sold three luxury properties located in famous neighborhoods like Chelsea, Mayfair and Kensington, for more than 20 million pounds.
All these purchases are possible due to the fact that the pound has dropped with 16% in the last three years, which has made the most exclusive properties in London accessible for foreign buyers. Investors all over the world are interested in London luxury houses. Greeks, Russians, Middle-Easters, Chinese, Japanese, there are no cultural boundaries when it comes to seeking London properties. The record was set though by the richest man in Ukraine, Rinat Akhmetov, who purchased a One Hyde Park penthouse for no less than 150 million euros. With so many investors seeking London properties, experts estimate that foreign citizens will be spending over 4 billion euros in 2011 on luxury properties in London, the beautiful capital of Great Britain, which will have a positive impact on the economy.
First-time buyers should really take the time to do some research, because there are many useful things that they could find out. For example, not many people believe that it is better to buy a property than to rent one, but this is actually possible. Property prices have dropped dramatically due to the financial crisis that we are facing, and the interest rates have lowered as well. These economical changes make it possible for average buyers to enjoy a great property and to be able to call it their own.
In the past, the costs of renting did not even compare to the costs of buying, as they were significantly lower, so most people were not even considering purchasing a home. The UK real estate market has changed though, and now, due to the fact that mortgage payments are now cheaper, more people can afford to buy. It is true that there are many first-time buyers who do not have the financial means to get a mortgage, so they are forced to rent, because banks and mortgage lenders usually ask for a 15% deposit. This makes it hard for people who do not have any money saved, because even though the mortgage payments will be lower, the fact that they do not have the money for the deposit prevents them from buying a property. However, renting is no better, either, because in a few years, you will have spent more money on rent that you could have saved for the deposit of a property. The real estate market is beginning to understand these problems, so in order not to get stuck, the property prices are slowly, but constantly dropping.
Many successful economists are stating that buying a property for the first time is the best thing you could do, because the economic climate is in your favor. Since 2008, house prices have declined substantially and the mortgage rates have lowered. Landlords however have taken advantage of the fact that many people were stuck, so they raised the renting costs. They knew that people who did not have the money to buy a property were forced to rent, so they used that in their favor. With the housing market being what it is, it is better thus to buy than to rent, because in this way you will be able to save money and to enjoy living in your own home. And who does not want that?
It is known that even if we are facing hard times, there will always be rich people, who will be searching for the most expensive and opulent houses in London. The luxurious properties that they live in have exorbitant prices, and many people do not make this kind of money in a lifetime. However, for many billionaires having a luxurious mansion has become something natural. They do not care about spending a fortune on purchasing or renting a luxury property, as long as they will feel comfortable living in it.
In London, the request for expensive homes is surprisingly growing, because people are not only interested in buying, but also in renting this kind of properties, even if the rent for a penthouse can easily go beyond 40.000 pounds a month. Luxury properties which are situated in the heart of London are the most desirable and coveted in all United Kingdom. It comes as no surprise, thus, that professional construction companies have adapted and so they are constantly building or reconditioning luxury properties. The real estate agents are amazed by the fact that the price is not something that drives customers away, on the contrary, it draws them closer. There are penthouses that were sold for astonishing prices that can reach dozens of millions of pounds. Rents do not come any lower. The record was set in London, by a 6-bedroom property. Who ever wants to live here, they must pay 40.000 pounds per month. This amazing house is also equipped with a gigantic living room, a gym and a terrace, surrounded by a large garden.
However, according to the real estate experts, it is not the British who are interested in luxury properties. The most common clients are the Asians. Experts also state that the request for luxury homes will rise up to 30% in the next two years. Real estate agencies are very pleased with these facts, because London luxury properties are supporting the real estate market and they prevent it from crushing. Constructors are also happy, because due to these luxury homes, they will be able to keep their jobs. The incredible amounts of money that people pay for London luxury properties are thus helping the Britain economy and as their popularity is growing, real estate agents can be relieved.
In 2011, July was the month in which the highest total of houses where sold in the UK. August, on the other hand, registered an opposite evolution, as during this month there were about 6,000 fewer sales in the country, compared to the previous trend. The drop in the sales of new properties in August is, however, considered to be a normal evolution, as this is a holiday month and usually real estate transactions are fewer. Anyway, the comparison which shows that in 2011 there are less buyers who are interested in purchasing new houses, is the one made with the figures for August 2010. This way, figures indicate that there were 3,000 fewer sales during this year, compared to 2010.
If in 2010 we are taking about the lowest interest coming from buyers when it comes to purchasing some houses, the year in which the highest figures were registered is 2007. In July 2007, about 151,000 houses were sold. On the other hand, house prices are continuing to stagnate. Linked to the level of the house prices in England and Wales, there are just small fluctuations, while prices have hardly changed since 2010. While all over the UK prices are lower now compared to the past years, London is the only region in which house prices have grown. This reality is explained through the fact that there is still a strong demand on the real estate market when it comes to the capital of the country.
Even if the decrease of house prices is mostly seen as a positive thing by people who plan on purchasing a home, the whole situation is not that good for everyone. Wealthy foreign buyers will be attracted into buying cheap houses in the UK. And there is still a strong demand on market when it comes to luxurious mansions, especially in London. The fact that rich people all over the world are investing in buying expensive and luxurious houses in London is seen as a positive thing for the economy of the country and the recovery of the UK real estate market.
Specialists claim that this is the best period of time to buy a home in the United Kingdom. The main reason why purchasing a property now would be a great choice is given by the fact that house prices are at their lowest level. Although in September a small raise of the prices level for houses has been registered, the costs generally are very affordable. And since there are not that many buyers who rush into purchasing their first houses, sellers need to drop even more the sums of the prices they are asking for their properties. Specialists also claim that the trend is going to be maintained in the next year, while the price evolution will pretty much follow the same pattern.
Some areas of the United Kingdom have been affected more than others by the real estate market crisis, so in some locations prices for houses are lower than in others. The real estate market in London is the one that has been less affected by the recession. Still, if buying a house can be the best choice for people who have the needed sum of money to make such an investment or are able to obtain it on a loan, there also are many people who cannot be eligible for a loan and are not in the possession of the needed sum. Well, this is how it can be explained the fact that although many houses are in sell at the best prices, there are no buyers for them. And sellers need to drop even more their money expectations if they want to be able to sell the property quicker.
Both houses and flats in the UK are now valued less than in 2007. This is why nowadays many house owners realize that selling the house is not a good deal and they wait for the prices for houses to grow higher until placing a property in sale. If for someone who wants to purchase a home this is the best moment to make such an investment, for individuals who have a house they want to sell, closing a deal now will be less profitable.
Although purchasing a home in London is more expensive than in other part of the UK, more people seem to be willing to own properties in the capital of England. London surely is an amazing city and having a home here cannot be a bad idea. Well, reports claim that, now, buying a house is much cheaper than renting one, for first time buyers. Being able to find some low interest rates and a property that has an affordable price, is quite a reality in the UK. A new study showed that the average price for buying a house will be at about £567 a month, while rent costs are at about £700. This means that buying a house is more affordable than renting one.
Statistics indicate that the average age of a first time buyer in London is higher than the one of the same type of buyer in other locations in the United Kingdom. Generally, in the UK, the average age of the first time buyer is 29, while in London statistics indicate that people buy their first homes at the age of 32. Depending on the exact area we are referring to, the average age of a first time home buyer within Britain is going to vary. For example, in Yorkshire, the average age is of only 25. Still, this is not a very new trend, as it has been shown that the average age of a first time buyer has only grown in the recent years. Starting with 1983, people have been buying properties at more advanced ages. And that is not very shocking, as buying a house means making an important investment. People have to wait for years until being able to get the money to purchase a home.
Anyway, now that buying a house has become cheaper than renting one, more people are going to have the possibility to own a home. London is, however, considered to be the UK city in which prices of houses are going to grow in the near future. Nowadays, the highest prices for houses in the UK are the ones of the properties that can be purchased in London, this being the only city within the UK in which houses prices have not grown lower in the past months.
