Archive for November, 2010
Surfers on Broad Beach, Rhosneigr, Anglesey
Just a week after Clarence House announced that Prince William and Kate Middleton are engaged and due to marry in 2011, the Isle of Anglesey or Ynys Môn, as referred to by the locals, is having its moment of glory and has been branded the ‘Island of Love’.
Flight lieutenant Wales is based on the island at RAF Valley as a search and rescue pilot and is set to remain there for another three years. So, he’ll start married life on Anglesey…will he buy a property or rent a property?
If he rents, he won’t be short of choice but if he bought a property, he may find himself with a nice little nest egg after a few years…not that he exactly needs it!
The island is well known to those based in the North West and is home to many second homes, holiday homes and property that is passed down through generations of families who use the property as a seasonal getaway. But with its new found glory, spectacular coastline and stunning award-winning beaches perhaps it’s set to attract those from further a field?
Property values on Anglesey
|Area||Av. property value November 2010||Av. property value November 2009||Value change £||Value change %|
1. £2,350,000, Plas Rhianfa, Menai Bridge - 16 bedroom house for sale
2. £695,000 Bryngwran, Holyhead – 5 bedroom detached house for sale
3. £430,000 The Drive, Bodorgan - 3 bedroom bungalow for sale
4. £375,000, Llanddona, Beaumaris – 2 bedroom detached house for sale
5. £299,950 Yr Uncorn, Llanfairpwllgwyngyll - 4 bedroom detached house for sale
Mark Zuckerberg, founder of social networking giant Facebook, recently revealed he actually rents his property and doesn’t own it. Whilst, in the early days of Facebook, his money may have been tied up with his business, surely he’s now in a position to buy? According to Forbes his personal wealth stands at $6.9bn…
If ‘Zuck’ was based here in the UK, he may find our latest research of interest…
It shows that the cost of renting has risen further, compared to home ownership in Britain across 50 towns and cities in Britain. Renting a home is now more expensive than buying across 80% of Britain. The figure is up from 74% in July as asking prices have come down and rents have increased.
- Average renter pays 9.9% more than an owner with a 5% mortgage
- York most expensive to rent vs. buy
- Aberdeen cheapest to rent vs. buy
Buying has always been somewhat cheaper than renting, but we’re now seeing a real insider-outsider divide in the housing market. For those who are able to buy a home, costs are low, but for those who can’t, costs are much higher – and the doorway to entry into the housing market is narrower than ever. The freezing up of credit has put home-ownership beyond the reach of many renters, and it’s driving a larger and larger wedge between them and owner-occupiers.
In some locations, the extra cost of renting is staggering. In York rents exceed mortgage payments by 39% – with average monthly rents at £978 York renters are left £3,270 a year worse off. A further thirteen of the largest 50 cities and towns saw rents exceed mortgage payments by more than 20%.
Even in London, which has the highest asking prices in the country, buying is still the most cost-effective option. The average rent of £2,121 per month is still high compared to the average asking price of £444,553, and buyers stand to save 14% annually compared to renters.
We should point out however that, while buying wins over renting today, the impact of a rise in interest rates cannot be ignored. If interest rates were to increase by 1% and rents to remain the same, renting would become more cost-effective in 72% of the locations studied.
Top 10 locations where buying beats renting
|Rank||Location||Avg. Asking Price*||Avg. Monthly Rent*||Rental Premium|
Top 10 locations where renting beats buying
|Rank||Location||Avg.Asking Price*||Avg. Monthly Rent*||Rental Discount|
The full list of 50 towns and cities can be found here
*The research compares current asking prices to average rents for two-bedroom flats in the 50 largest cities and towns around the country. Mortgage payments were calculated assuming an interest-only mortgage at 5% p.a.
We’re a little bit curious here at Zoopla and we believe the key to buying, selling or renting a home is having the right property related information. Not just general information, but specific, detailed and contextual information.
Even if you’re just looking; it’s the facts that matter. Being in the know, doing your research and gathering as much information as possible is the smart thing to do.
The constant stream of conflicting house price reports makes it hard for property owners to make sense of what is really happening in their local housing markets. Monitoring the value of an individual property as well as staying on top of local market statistics and recent sold prices is easy with Zoopla.co.uk. Whether buying, selling or staying put, it pays to do your research and gather as much information as possible before making any property-related decision.
So, we did a little research of our own which reveals London as the curtain twitching capital of Britain. In London more residents monitor the value of their neighbour’s homes online than anywhere else in the country. Meanwhile, Bournemouth comes out on top for having the highest proportion of informed homeowners, regularly tracking the value of their own properties online.
Here are the top ten most and least ‘knowsey’ neighbours. In other words, those most (and least) informed about the values of their neighbour’s homes…perhaps the British should be regarded as ‘knowsey’ rather than ‘nosey’?”
BRITAIN’S KNOWSIEST NEIGHBOURS
|Rank||Town||Avg. property value||Knowsiness Index*|
BRITAIN’S LEAST KNOWSEY NEIGHBOURS
|Rank||Town||Avg. property value||Knowsiness Index*|
Source: Zoopla.co.uk - *100 is UK average knosiness based on valuations run relative to number of homes
Related links: Asking prices reduced in the run up to Christmas
Are you a registered user of Zoopla? Are you a little bit curious when it comes to property matters? Then why not suggest a poll for us to run live on the Zoopla.co.uk website?
As a registered user of Zoopla you can suggest any property related poll to test the market, find out what those active in the property market are currently thinking or research a specific topic you’re curious about.
Suggest a poll here (right hand side) and we’ll consider making it live on Zoopla today.