House Prices in 2022 Since the pandemic started in March 2020, we have seen some unprecedented developments within the housing market. When the market re-opened in June of the same year, the property market over the last 18 months has been described as ‘frenzied’ by Rig read more
Category: Pennywell Living
New Year New Home
Is 2022 the year that you want to realise your dream of purchasing your own home? If so, you may have been looking at both new and existing properties to compare the spec and price. But what are the reasons why buying new is the best choice over buying an existing property?
Why buy new?
A newly built property is your chance for a fresh start – a home that is clean, bright, fresh and untouched by any other owners. There’s no dodgy DIY to fix, no one’s taste to put up with and a blank canvas for you to put your own stamp.
Being new, your home will be highly energy efficient and cheaper to run than an existing property – this is especially important with the recent rise in energy prices. Your new home will have been built to the latest environmental standards and so your carbon footprint will be lower compared to an older property. You’ll have a brand new, efficient heating system, insulation, double glazing and often the sale includes integrated highly efficient appliances.
Price is a very attractive factor – you won’t be in an ‘offers over’ situation and paying possibly more than it is worth – the price is fixed and fair, and often new build homes are competitively priced in order for them to sell swiftly. In 2021 the property market was unprecedented with demand outweighing supply, and the result was properties going for up to 20% over the asking price. Buying new prevents you from paying over the odds and struggling to get finance on a home you’ve set your heart on.
Another reason to buy new is the range of generous incentives available – from additional fixtures and fittings to low reservation fees, you can also have your say on the fixtures and finishes if you reserve early enough.
When buying a newly built home, you aren’t in a purchasing chain. You pay a reservation fee and it’s yours – making the process much less stressful. What’s more, you can move in as soon as you’re ready without having to take into consideration a seller’s plans – so from the start there is no uncertainty.
You will not only have a point of contact with your sales representative and excellent customer care but you’ll also have a 10 Year Home Warranty for peace of mind.
You’ll be spoilt for choice with a range of property styles, sizes and locations to choose from and whatever you choose, it could be the best investment you can ever make especially if you’re using the Mortgage Guarantee Scheme.
Laurieston Living Happy Buyers When Kayleigh Lewis’ partner Danny popped the question, they began looking for their first home together. The newly-engaged couple knew they weren’t ready to take on a house and were originally considering buying a tenement flat in the Sha read more
My Sustainable Home Competition
To celebrate the opening of COP26 House, we’re inviting primary school pupils to design their own sustainable home using recycled materials.
Taking inspiration from COP26 House, we want to see a model of what your sustainable home could look like and hear what makes your design both special and environmentally friendly.
To create a model of your sustainable home, you could use materials such as:
- Used cardboard packaging
- Empty cans
- Toothpicks
- Corks
- Egg cartons
- Bottle caps
To be in with the chance of winning £100 worth of Smyths vouchers, please ask a parent or guardian to send the following to info@urbanunionltd.co.uk
- Full name
- Name of primary school
- Class / Name of teacher
- Photograph of your sculpture along with a short description of your design
- Please note, you must also attach a consent form signed by a parent or guardian. This can be downloaded below:
The most creative entry will be selected by a panel of judges from Urban Union & Beyond Zero Homes.
To bring this to life, the digital construction team at Robertson will transform the winning design into a rendered 3D digital model.
The competition closes on 22nd November.
Good Luck!
COMPETITION TERMS & CONDITIONS
- The parent or guardian of the entrant must apply by email as stated above
- A winner will be chosen by Urban Union and representatives from Beyond Zero Homes
- The winner will receive £100 voucher for Smyths
- The prize is non-transferable and no cash alternative will be offered.
- The competition closes at 5pm on 22nd November
- The competition is open to primary school pupils in Scotland only.
- This competition is not sponsored, endorsed or administered by Facebook or Instagram.
- The competition excludes Urban Union and Robertson Group employees and their immediate family.
- Entries are limited to one per person
- The winner will be notified within fifteen working days of the competition closing via the email
- In the event that the winner does not respond to our message informing them they have won within five working days, we reserve the right to choose a new winner.
- We reserve the right to cancel this promotion at any time.
Why This Could be the Best Time to Buy Your First Home
The property market is starting to cool down, offering a renewed opportunity for people to get their foot onto the property ladder. Recent research has revealed that 40% of first-time buyers plan to purchase their first home between September and November 2021.
Property demand over the last 18 months has been unprecedented – for several reasons. Interest rates are low, there is an increase in the availability of high LTV mortgages, the stamp duty/LBTT holiday gave the market a boost, there has been a re-evaluation of what we want from our homes, and demand continues to outweigh supply which has meant homeowners have moved forward plans to capitalise on their gains.
These factors have led to a steep rise in house prices which has priced many buyers out of the market. However, now could be the time where that’s all about to change. Prices are levelling off or falling in some places and there is now support in place for first-time buyers making a home purchase more affordable.
In Scotland the LBTT holiday ended in March and across England and Wales, the stamp duty holiday came to an end in June and this has fuelled interest in first-time buyers looking to buy a home. In order to make informed decisions around where, how and what to buy, technology is also providing a helping hand to many first time buyers that need professional advice and assistance.
Recent research has shown that understanding mortgages and property jargon is a barrier to home ownership to many young people, however there is a lot of information online about everything from mortgages to legal advice, in addition, new technology has helped to make the home buying experience into one user-friendly process. Not only does it save first time buyers time and money by helping to find them the right home, in the right area, at the right budget, but it can also provide much needed information on the process of buying a home.
Even though the pandemic meant that prices went up at record-breaking rates, it’s believed that the market will calm down and cool off which will give first-time buyers a chance to look past the uncertainty of the pandemic and provide an opportunity to buy their first home.
As prices start to level off in the next 3-6 months there is an opportunity for first-time buyers who managed to save a deposit could purchase a property before the market is predicted to pick up in the second half of 2022.
Buying a home at a fixed price could be an ideal scenario as there are no offers over or closing dates to content with.
At Urban Union we aim to make the process of finding your first home less stressful and time-consuming with a simple reservation process – take a look at our handy guides.
New release Pollokshaws Living
The long awaited collection of high quality one and two-bedroom apartments starting from £160,995 will be released from Thursday 16th September. Our last release sold in a matter of days, and we anticipate high demand for these homes.
Pollokshaws Living is within an easy commute of Glasgow city centre and Pollokshaws West train station is very close to the development. The M77 motorway is within a five-minute drive, as is Silverburn Shopping Centre. The development is next to a range of amenities and Pollok Park, which provides the perfect escape from city life. Nearby Shawlands has a host of bars, restaurants, independent shops, boutiques and health and sports facilities.
First time buyer?
Are you looking to purchase your first home, but don’t understand how mortgages work? According to a Bank of Scotland study carried out last month, a quarter (25%) of young Scots aged 18 to 34 said a lack of financial knowledge is a key barrier to home ownership.
The study showed that 39% of young people in Scotland were unable to confidently outline the mortgage process and that the key barriers for home ownership was affordability (73%), saving for a deposit (62%) and finding a suitable home (34%).
Half of all 18 to 34-year-olds either rent from a private landlord, while 34% rent from a private landlord, 16% life with their parents and 21% live in a mortgaged home.
A quarter of those who live with their parents are doing so by choice whilst three quarters are only at home because they have no other option and cannot afford to move out. Some young people anticipate that inheritance will help them release their home ownership ambitions but 11% believe they will never be able to afford their own home.
Younger people who plan to purchase their own home believe they will achieve this by the time they are 31 – the average first time buyer in Scotland is 30 years old according to Halifax.
The research also found that young Scots aren’t financially confident when it comes to understanding how mortgages work, and this gap in their knowledge is causing them to delay their home ownership dreams.With that in mind, here’s a brief guide to give you some tips to help you secure a mortgage.
Finding a high loan to value mortgage
Although the pandemic meant that many lenders withdrew many mortgage products, we have seen the reintroduction of some great deals with low rates making home ownership much more affordable and accessible for first time buyers. There are plenty of 90 or even 95% mortgages available but it’s essential that you can afford the repayments. Talk to a mortgage broker who can search the whole of the market to find the best deal and to explain how the application process works. You could also discuss a guarantor mortgage whereby your parents or grandparents will secure your mortgage against their home or put their money into a fixed-term account.
Mortgage Guarantee Scheme
The mortgage guarantee scheme is a 95% loan to value (LTV) mortgage scheme to help buyers with a 5% deposit. Under the scheme, buyers can purchase a property priced up to £600,000 and it is open to everyone, not just those who are buying their first home and never had a mortgage before – as was the limitation for the Help to Buy Scheme.
New build
With house prices rising since the housing market reopened at the end of June at an unprecedented rate – due to the stamp duty holiday and a re-evaluation of buyers’ priorities – buying at a fixed price means you aren’t being priced out of the market. The price you see is the price you pay with no closing dates, offers over or paying over the odds due to high competition for the same property. In addition, there are often house builders incentives such as free fixtures and fittings, stamp duty bills and legal fees.
Ensure your credit rating is in order
It’s important that you have a good credit score so that you can obtain a good rate on your mortgage – the lower the score the lower risk you are considered to be by the lender, and the deals available to you will be limited. Check your credit score before you look to buy a property to give you time to improve this.
A larger deposit
If you can gather together a larger deposit to put towards the cost of your mortgage it will keep your outgoings down and open up betresr rate mortgages. Ideally you want to have 15% deposit to get the best possible deal.
New release Pollokshaws Living
The long awaited collection of high quality one and two-bedroom apartments starting from £160,995 will be released from Thursday 16th September. Our last release sold in a matter of days, and we anticipate high demand for these homes.
Pollokshaws Living is within an easy commute of Glasgow city centre and Pollokshaws West train station is very close to the development. The M77 motorway is within a five-minute drive, as is Silverburn Shopping Centre. The development is next to a range of amenities and Pollok Park, which provides the perfect escape from city life. Nearby Shawlands has a host of bars, restaurants, independent shops, boutiques and health and sports facilities.
Buyers Continue to Search for More Space
For both first time buyers and those moving up the property ladder, the search for more space has been the theme of 2020 moving into 2021.
The spike in demand for houses was given a boost by the LBTT holiday earlier this year, with larger savings to be had on larger properties. It was further boosted by the surge in buyer demand for more internal and external space, with the series of lockdowns driving people to reassess their lifestyle and ultimately, their home environment.
At the same time, the trend for working from home has prompted people to leave city centres in favour of more rural locations, which are more likely to consist of houses rather than flats.
The demand for houses has more than doubled since the first lockdown back in March 2020, with family houses the most sought-after property type. In fact, buyers looking for houses has increased by 114% compared to the levels reported between 2017 and 2019.
According to the latest House Price Index from Zoopla, although the demand for all types of houses has doubled in the last year, demand for flats has risen by 34%. The result is that houses have risen in value by 7.3% over the last twelve months whilst the typical flat has risen by 1.4% and the price growth for houses has outstripped flats across all regions of the UK.
First time buyers
If you’re a first-time buyer and looking to buy a flat rather than a house, the good news is that the cost of this type of property has risen more slowly than houses right across the UK over the last year. Here in Scotland the price for this type of property has risen by 5.2%. If you’re considering buying a house, you could face stiff competition but will have an advantage if you have no property to sell and have your mortgage offer in place.
However, if you purchase a new property with a fixed price, you won’t pay an inflated price following an offers-over situation, so this may be a better option.
Remember, there are also ways to make buying your first home easier, including the Mortgage Guarantee Scheme.
Home movers
If you have a house to sell, you could find that you sell very quickly – especially as selling times in Scotland are the fastest in the UK. What’s more, you’ll have seen its value rise in the last twelve months. However, if you are looking to buy a house, you are likely to face stiff competition from other buyers and again, there are advantages of buying a fixed price new build – not just because of the price, but the speed of purchase, the ease of reserving and the price you see is the price you pay, allowing you to secure your mortgage options without fear of disappointment further down the line.
Scotland Leads the Way for Property Hotspots
The property hotspots for sellers in every region of Britain have been revealed following research from Rightmove.
Since June 2021 when the restrictions eased up and the property market opened, record numbers of people have looked to move home in the UK. The driving force behind this surge in home movers is a once-in-a-generation re-evaluation of people’s priorities. With long periods of working from home and home schooling, people have realised the importance of their environment and are seeking more space inside and out, to accommodate their new way of living. Although life is slowly going back to normal, many people are continuing to work from home either full or part time.
Rightmove has compared 13 million property listings, tracking the journey of a property going up for sale right through to being sold. The portal found that seven in ten sellers across Great Britain found a buyer between June 2020 and June 2021, which is the highest percentage recorded in a decade.
In addition, over half of properties up for sale successfully found a buyer between 2012 and early 2020, which highlights how exceptionally busy the market has been over the last twelve months.
According to Rightmove, Scotland is often where sellers are most likely to find a buyer, whilst London has the least. In fact, 89% of Scottish sellers have found a buyer for their properties whereas in London this figure was just 48%.
If you are considering purchasing a home in Scotland, take a look at our developments.
Looking for your first home?
Although last year saw a withdrawal of many high loan-to-value mortgages, these are now largely available once again making home ownership within many buyers’ reach once again.
At present there are plenty of 90% and 95% loan to value mortgage deals available, which means that you only need a 10% or 5% deposit in order to secure a mortgage.
Finding a high loan to value mortgage
Although most lenders withdrew their mortgage deals during the pandemic, many of them have reintroduced some fantastic deals with low rates making home ownership affordable for first time buyers. If affordability is still an issue, then you could consider a guarantor mortgage whereby your parents or grandparents will secure your mortgage against their home or put their money into a fixed-term account. Be aware that your family member’s cash, or property is at risk. Talk to a mortgage broker to find out what these deals involved and whether you are eligible.
Government schemes
There has been a high level of demand for homes since the property market re-opened last year due to pent up demand, the stamp duty holiday, low interest rates and a reassessment of buyer’s requirements. Last year buyers faced having to raise deposits of around 20% in order to secure a loan and this was against a backdrop of house prices increasing and, as a result, a substantial number of first time buyers have had to put their plans on hold. This scheme means that those with a small deposit can now realise their dream of getting onto the property ladder.
Although Help to Buy (Scotland) and the First Home Fund have now ended, the government backed ‘Mortgage Guarantee Scheme’ came into effect from April this year. The scheme aims to help buyers with a 5% deposit. Under the scheme, buyers can purchase a property priced up to £600,000 and it is open to everyone, not just those who are buying their first home and never had a mortgage before – as was the limitation for the Help to Buy Scheme. This means that the scheme will help both first-time buyers as well as those looking to move up the property ladder.
Buyer incentives
House builders often have incentives such as free fixtures and fittings, stamp duty bills and legal fees.
Pool resources with friends or family
One of the most common ways to purchase a property is to pool resources with friends, a partner or family. The ‘bank of mum and dad’ is increasingly popular but whoever you are committing to buying a home with, you need to think about what will happen if one party wants to sell or if they are unable to meet their share of the mortgage repayments. If you borrow you as borrowers are ‘jointly and severally liable,’ the lender can chase either of you for missed payments.
Buy at a fixed price
With house prices rising since the housing market reopened at the end of June at an unprecedented rate – due to the stamp duty holiday and a re-evaluation of buyers’ priorities – buying at a fixed price means you aren’t being priced out of the market. The price you see is the price you pay with no closing dates, offers over or paying over the odds due to high competition for the same property.
Reassess your wish-list
Lenders are becoming increasingly tough on what they will lend, resulting in stricter criteria for calculating what you can borrow, based on your income and expenditure. Some lenders are offering 4.5 times your salary instead of 5.5 previously which impacts what you can afford to buy. With this in mind it may be worth reconsidering where you want to live and the sort of home you want to buy. Do you need to live near public transport and travel links, could you purchase a new build home to make it more cost efficient and do you need an extra bedroom?
Credit rating
It’s important that you have a good credit score in order to obtain a good rate on your mortgage – the lower the score the lower risk you are considered to be by the lender. Check your credit score before you look to buy a property to give you time to improve this.
A larger deposit
If you can cobble together a little more savings to put towards the cost of your mortgage it will keep your outgoings down and open up more mortgage options. Some lenders are offering 10% mortgages aimed at borrowers in the local area and for those in particular professions. Ideally you want to have 15% deposit to get the best possible deal.
Talk to us at Urban Union if you’re looking for your first home. Our properties can be reserved with a small reservation fee and are available at a fixed price in our Glasgow and Edinburgh developments.
A New Way of Living and Working
Following the pandemic there has been a shift in how people feel about their home, and this has had a profound effect on the property market in the UK.
The lockdowns we have all experienced since March 2020 and the subsequent changing restrictions has caused people to re-evaluate what they want (and need) from their homes. Features that people previously didn’t place importance on suddenly became a priority. Gardens, a balcony, roof terrace, proximity to green spaces and a place to work or study all became must-have features.
According to a survey by Zoopla, despite working from home being the e norm for most people last year, 20% weren’t happy with their working set up. In addition, only 23% of those we surveyed had a dedicated study or workspace, with 18% working in their living room and a further 14% working in their bedrooms.
Lack of space was the biggest issue for homeowners and renters, with nearly a fifth of respondents complaining about being forced to share their workspace with a spouse, family member or housemate and 8% felt the lack of privacy for calls and virtual meetings was impacting on their work.
Open plan living has always been a popular feature of a home as people return from an office or work space and want to feel that the space in their home is maximised and allows for more sociable living. Since the pandemic 30% of people said their views on open plan layouts had changed, with 11% saying they did not think they were practical and 33% believing it wasn’t a good idea in the first place.
However, 17% of those surveyed said they now preferred the idea of open plan living – this could be because they felt cut off not being in an office environment.
Houses have been in high demand from those looking to move leading to a rise in house prices for homes with 3+ bedrooms and outside space.
Going forward, recent research from Deloitte found that 60% of people who don’t normally work from home will be doing so more often going forward and the Bank of England Chief Economist predict that 50% of all office-based staff will be working from home full or part time, compared to 5% before the pandemic.
If you are looking for a property with space, light, access to communal areas or with a balcony or garden, take a look at our developments with properties available at affordable prices, in regenerated communities and close to city hubs.