High costs of living alone
Living without roommates or a partner is becoming more popular despite the high costs of living making this more difficult.
Within the last year the amount of people living alone has risen from 178,000 to 237,000.
Alan Boswell Group have compared the cost of living alone to the square footage of a 1 bed flat, studios and single room occupancies to determine the cheapest and most expensive areas of the UK to live alone.
The cheapest places to live alone
The cheapest places to live alone are in the North of England or in the midlands with an exception of Plymouth which sits at NO. 9 on the Alan Boswell list with the price per square meter at £11.77.
Price per square meter is £8.85 making it the cheapest place to live as a single occupant.
Price per square meter is £9.17.
Price per square meter is £9.22
Price per square meter is £9.91.
The most expensive places to live alone
Cities in the South of England are the most expensive to live alone with an average price per square meter of, £18.09 which is a 76.95% increase from the North which is, £10.22 per square meter.
Price per square meter is £23.39.
Price per square meter is £19.33.
Price per square meter is £19.32.
Price per square meter is £17.40.
The cost of living alone
Living alone will always be a more expensive option than sharing the cost of rent and household bill with a partner or roommate.
The average monthly costs of living alone are reported at £651 excluding the costs of rent. These costs include, council tax, household bills, groceries, phone bills and more.
Those who live alone are spending on average 92% of their disposable income on living expenses compared to 83% for couples.
Living alone also means spending on average, £15 more on grocery shops per week.
This explains the data that 47% of young singles have no savings at all.
How to cut down costs
There are a few ways in which you can reduce your spending including, lowering your energy bills through useful tips to lower your energy usage or installing a smart meter.
If you are on a low income then learn a few ways you can still budget and use you money efficiently to stay afloat.
Setting yourself a budget which prioritises rent and bills to help you keep track of your money. This can be done by using finance apps.
Don’t be defeated by high living costs and a low budget, learn ways to make your money work for you.
When it comes to hard money loans, you might wonder if there are differences between commercial and residential projects. In truth, they differ in several ways, particularly in terms of collateral, loan-to-value ratios, and interest rates.
Understanding these differences can help you choose the right loan for your project. John Pribble, CEO of DFW Hardmoney said: “Whether it's a commercial or residential project we offer distinct plans tailored to suit your needs”.
You should be prepared to navigate these financing options. Making informed decisions can significantly impact the success of your project. Always remember, that the quality of your real estate investment often dictates the terms of your hard money loan.
Defining Hard Money Loans
A hard money loan uses real estate as collateral for quick cash. Typically, it is not from a bank but from a private entity.
- Rapid Loan Processing: You can get the funds within 10 working days.
- Suitable for Short-Term Investors: If you're looking to renovate and sell properties swiftly, this loan type is for you.
- Unconventional Approval Measures: Unlike traditional entities, hard money lenders have their approval standards.
- Higher Interest Rates: These loans tend to carry high interest rates to compensate for the risk taken by the lender.
When choosing a lender, consider their rates, options, and customer service. Always aim for a good lending experience.
Working of Hard Money Loans
Hard money loans are preferred as an alternative funding source, primarily by real estate investors, developers, and flippers.
They originate from non-traditional lenders, the primary reason behind them being termed as 'last resort' or interim loans.
These loans offer rapid capital acquisition but at a higher expense, making them unique compared to traditional financial institutions.
Mechanisms Applications
Used in real estate transactions Favored by property flippers
Sourced from non-bank entities Rapid approval process within ten business days
Emphasizes collateral over financial status Suitable for short-term real estate investments
Negotiable terms between lender & borrower Funds range from six to 18 months
Selecting a hard-money lender requires careful evaluations of factors like interest rates, loan options, accessibility, and quality of customer service.
Usage of Hard Money Loans
Hard money loans are unique forms of lending used mostly in real estate transactions. It's a favourite option for investors and those with equity in properties.
What makes hard money loans unique?
These loans don't follow the traditional route. Private lenders or investment groups issue them instead of commercial banks. The approval depends more on the equity in the property than on your credit history.
What are the attributes of hard money loans?
The key characteristics of hard money loans include being short-term loans that typically last several months to a few years.
You're primarily granted approval for these loans based on the equity in your property, which is used as collateral.
Your credit history isn't a significant deciding factor. Moreover, these loans often have higher fees and interest rates compared to standard commercial loans.
Are there differences between hard money loans and all-cash offers?
Yes, there are. For one, hard money loans are subject to financing contingency, while all-cash offers are not.
An appraisal is usually required for hard money loans but not for all-cash deals. Furthermore, hard money loans tend to be more expensive due to higher interest rates and fees.
Interest Rates on Hard Money Loans
Your interest rates on hard money loans may vary. This depends on numerous factors, like your credit history. An experienced borrower may receive lower rates.
The Influence of Your Relationship with the Lender
Having a strong relationship with your lender can help. This bond could influence your interest rate positively. However, adding this factor could also add complexity to the process.
Paying Points on Hard Money Loans
Besides interest rates, lenders also charge points. You might be required to pay these upfront or appended to your loan balance.
Making Informed Decisions
Evaluating these factors helps you make decisions. Your knowledge of hard money loans will be enhanced. Better understanding leads to a rich user experience.
The Importance of Exceptional Resources
Obtaining reliable and concise resources is crucial. This aids in enhancing efficiency while checking their options. A well-informed decision provides tailored solutions to user needs.
Role of Hard Money Lenders
Hard money lenders, essentially, provide funds for short-term real estate investments. They differ from other banking companies in your journey.
- Loan Security: they lend money based on the property's potential. It means the purchased or renovated asset provides the loan security.
- Funding Sources: these lenders get their funds from private investors looking for a higher return rate.
- Flexible Financing Options: unlike traditional banks, they offer more adaptable loan solutions, especially for projects others don't finance.
- Diverse Borrowers: real estate investors, house flippers, and property developers are a few of the types that usually seek hard money loans.
Your loan approval happens faster with a hard money lender compared to traditional banks.
Making your real estate purchase or renovation achievable is their primary role in providing these loans.
Comparing Commercial and Residential Hard Money Loans
Hard money loans can be a feasible financing solution. The type that suits you best - commercial or residential - depends on your specific needs.
Residential hard money loans are often used when traditional mortgage lenders won't provide financing. This happens typically due to issues with the borrower's credit history.
On the other hand, commercial hard money loans can be a lifeline for businesses. Especially for those desiring to acquire properties quickly without meeting traditional lending criteria.
Critical differences lie in the purpose of each loan and whom they serve. They have unique terms and requirements adjusting to individual business or homeowner needs.
If you're exploring hard money lenders, a reputable source to check is Forbes' list, which includes trusted institutions such as Easy Street Capital and RCN Capital.
Examining Pros and Cons of Hard Money Loans
Your choice of lender matters as much as comparing rates. The one with a lower rate may not always be ideal.
- Fixed vs Adjustable-rate: Consider the implications and trade-offs between these types of mortgages.
- Lack of Regulation: Private money lenders, including hard money lenders, operate with minimal oversight and charge higher fees.
- Faster Capital Access: Hard money loans offer quick funding for real estate investments, perfect for time-sensitive projects.
- Risky Investment: These loans are generally more suited for seasoned investors due to their higher costs and stricter terms.
Last but not least, remember the importance of a clearly defined exit strategy in repaying your loan.
Exploring Alternatives to Hard Money Loans
Your assets, like specialized equipment or industry-specific inventories, might be challenging to sell.
These assets could present problems if your business requires swift funds or if you aim to diversify your collateral.
Understanding Asset-based Lending
Asset-based lending can provide access to capital but typically has higher interest rates and costs than conventional bank loans.
This is due to the increased risk for the lender as their focus is more on your collateral than your credibility.
The Role of Loan Brokers
Loan brokers can help by choosing the right lender for you based on your assets.
They prioritize accounts receivables as primary collateral, followed by commercial real estate, equipment, and inventory.
Considerations for Hard Money Loans
Hard money loans provide immediate cash but usually have high interest rates, short terms, and sizable origination fees.
This makes them unsuitable for those needing long-term funds or applying the loans towards low-margin or long-horizon business endeavors.
The Purpose of Bridge Loans
Bridge loans are short-term financing commonly used in real estate transactions and can be an alternative to hard money loans.
The existing property's value forms the base for purchasing a new building.
Utilizing Property Improvement Loans
Property improvement loans permit property owners to finance maintenance and upgrades using the future value of the property.
This kind of loan could result in a higher resale price or better rental prices.
Evaluating the Downsides of Hard Money Loans
Hard money loans typically carry higher interest rates because the decision is based on collateral, not your credibility.
There's also a significant foreclosure risk associated with these loans.
Your Key Takeaways
In comparing commercial and residential projects, you'll find notable differences with hard money loans. Your choice should depend on your unique project needs.
Commercial loans often have higher interest rates and stricter terms, while residential loans are usually more flexible. Ensure you understand these distinctions to make informed decisions.
For insights into future financial trends, familiarize yourself with funding in the retail sector. This could help guide your project's financing strategies.
With the elections result naming Labour as the winners we now wait for the action they promised to be delivered.
Labour promises for home owners and renters will be watched to see which ones come through to help those getting onto the property market.
Their Promises for the housing market
- They have promised to begin work on their housing target to build 1.5 million houses in England through the next parliament. Building more houses should help increase supply for the property market. A large problem has been the difference in people wanting to buy a home to the small amount of homes for sale. This has caused prices to increase as seller take advantage of the limited choice.
This promise also included the building of affordable and council housing helping those on lower incomes also get onto the property market.
- They have stated they will keep the Stamp duty threshold at £425,000 meaning first time home buyers won't have to pay the tax on their home below this amount. This takes off some of the financial pressure for first time home owners encouraging people to be able to make this step.
- Banning ‘no fault’ evictions to protect renters. Also ensuring that landlords investigate and fix reported health hazards in their rented properties.
- National Warm Homes plan to eliminate fuel poverty by 2030. This would need upgrading every home that needs it to EPC standard which would save families £500 on energy bills and keep households warm.
- They have also noted their wish to keep mortgage rates low and help people get onto the property market.
Now Labour are in parliament we wait to see when and if their promises and followed through to see what a labour government means for the housing market.
We know first time buyers are fighting against the cost of living to try to get on to the property market and own their first home. This is causing the age of first time buyers to increase with the average age now being 33-34 across the UK.
Uswitch have recorded data surrounding first time buyers so we can stay up to date on trends and patterns in the housing market.
Are any of these surprising to you?
When you are going to view a house it's important to go with questions in mind so you get all the information you can. This is a big decision so make sure you get both sides.
The real estate agent may not give you the whole truth about everything, they are trying to sell it after all but asking the questions could still give you details you didn't know before.
Researching the property and the area before or after the viewing is also a huge factor that should go towards your decision.
Questions you should ask...
With buying a home and owning your own property becoming an almost impossible task for first time buyers due to the cost of living and high mortgage rates, many people are forced to continue renting properties instead. This is causing the age for people to own their own home to increase each year.
This has caused the demand for rental properties to double since pre-pandemic levels however, the supply remains at 28% below pre-pandemic level. The race to rent is intense across the country as properties don’t stay on the market for long.
Average rent
Zoopla report that the average rent prices across the UK is at £1223 which is +7.8% from the last year. Despite the increase this is still the lowest level of rent rises seen in the last two years, could prices be coming down?
The cheapest places to rent
With London being the most expensive place to buy property is continues the theme with being the most expensive place to rent too, not surprising to anyone.
If you are looking for cheaper areas to live to help your money go further then this list is for you.
With the cheapest area being the North East of England to rent with average rental property costing £695 per month.
The cheapest cities to rent
- Burnley – Average rental price at £566
- Grimsby – Average rental price at £608
- Hull - Average rental price at £612
Popular Cities below £1000
There are some areas of the UK which are popular among young people and professionals to rent and live which have average rental prices below £1000 a month. These include:
- Liverpool – Average Rental price a £801
- Sheffield - Average Rental price at £809
- Newcastle - Average Rental price at £833
- Nottingham - Average Rental price £947
- Leeds - Average Rental price at £969
David Beckham has launched a prize draw to win a £5m luxury home located in East London.
The draw is part of Omaze’s biggest ever helping to raise money for London’s Air Ambulance.
The Air Ambulance Charity spends £15million a year to maintain their services providing life saving car in London. In 2023 they attended to over 2000 patients and are the only service in London able to provide these on scene interventions in the city.
David Beckham has teamed up with Omaze to support a charity he truly believes in and values.
To enter
You can enter online at Omaze before July 28 to have a chance of winning. To enter you will have to make a donation which buys you so many entries into the draw. For example, £10 will get you 15 entries and £50 will grant you 85 entries. Alternatively, you can subscribe to Omaze to double your entries.
The winner will also be given £250,000 as a cash prize to help them settle in to the house.
Those who enter before the 14th July could be in for an extra win of a Maserati GranTurismo Trofeo worth over £170,000.
The money raises will go towards the Air Ambulance charity to replace their two helicopters which are needed before September to continue their specialty care.
The House
The house is worth over £5,000,000 and is their biggest prize to date. A four bedroom house in Victoria Park Village, Hackney with a gym and a spa.
With no stamp duty, mortgage or conveyancing fees to pay, furnishing included and a cash prize of £250,000 one lucky winner will be able to move straight in, rent the property out or sell it on.
This luxury property will have you living a brand new life with access to your own jacuzzi and sauna, games room and gym under your own roof. A light and spacious property offering everything you dreamed of.
Would you enter into this draw for the chance of winning?
We know that the property market is incredibly difficult to get on to with higher mortgage rates and struggling to save enough for high deposits. The age for first time home buyers is increasing and people are having to wait longer and spend longer saving and scraping before they can afford to buy their own house.
Due to the cost of living not only are mortgage rates harder to aim for, utilities, food and other living costs make it hard for first time buyers to save enough to move with 53% of renters citing 'affordability' as the main reason for them not planning to buy a house in the next 5 years.
Is there a lack of hope?
Average age for…
Mojo Mortgages has revealed that the average age does also vary depending on the region but the national average for first time home owners is now 33. The region can make a significant difference with location being a large factor in the price of a home. London will always be the most expensive place to live with high demand and not enough supply.
Since 2011 the average age has increased by 3 years showing just how much the prices for mortgages and deposits has risen.
When you buy a residential property such as a new home you will have to pay stamp duty, a tax to transfer the ownership of the property. Stamp duty is another part of buying a house you need to be aware of and make sure you know how much you have to pay.
How much do I pay?
How much stamp duty tax you pay is dependent on the price of the property. Any property under £250,000 is exempt from paying any stamp duty.
Property worth £250,001 - £925,000 there will be a 5% stamp duty charge.
Properties worth £925,000 - £5.1m will have a 10% stamp duty charge.
Those over £1.5m will have a 12% stamp duty charge.
For first time buyers the threshold is £425,000 before having to pay any Stamp Duty, which the conservative party have pledged to maintain If they will the 2024 election.
How to pay stamp duty
Stamp duty is a tax which pays for the transfer of ownership of a property and is paid to HM Revenue and customs. You can pay this yourself by submitting a return form or it could be included in your solicitor fees if so, they will do this for you. If you do not pay or you don’t submit your form on time (within 14 days) then you will have to pay penalties with interest.
Stamp duty is tax which goes to the government to be included in their budget which covers sectors such as, transport, roads, police, health and the emergency services.
Today, the Conservative party have announced their manifesto with Rishi Sunak stating their pledges for their time in parliament if they are voted in on July 4th.
The pledges which could affect you
If you're planning to buy a home
- Reviving the Help to Buy scheme for first time buyers. The government will support buyers with a equity loan of up to 20% towards the cost of a new home. Trying to get onto the property market has become a great challenge so the help to buy scheme should help more people struggling to afford the deposit start the process.
- The threshold for stamp duty will be risen so that first time buyers will not have to pay unless the property costs more than £425,000. This means that 8 in 10 first time buyers would not pay stamp duty according to Zoopla. Stamp Duty is a payable tax when you buy property.
If you are a pensioner or will be retiring soon
- Implementing the Triple lock plus for pensioners to ensure they do not have to pay income tax. The state pension has been rising with inflation for pensioners to have a healthy income, as this rises it has become dangerously close to the income tax threshold. This Triple Lock Plus means that the state pension with rise alongside the tax free threshold for pensioners.
For your healthcare
- Investing more into better healthcare facilities and building 40 new hospitals by 2030 to improve care for patients. The Conservatives NHS productivity plan aims to see productivity grow by 1.9% a year from 2025-26 which will unlock £35 billion in savings by the end of the decade. The NHS improvements remain on each manifesto and with 40 new hospital promised to be built, will the staff, training and investment come with it?
If you are young and planning your next steps
- Cut funding for ‘rip-off’ degrees and use this money to fund 100,000 high-quality apprenticeships. This fits into their plan to raise productivity and efficiency during their parliament as seen by their pledge for National service for 18 year olds. The conservative claim they are securing the future for young people, how do young people feel about their options?
Paying taxes
- The Conservative have emphasised their plans to cut taxes this parliament, partly playing against Labour. They have pledged to cut National Insurance by 2p by April 2027 and abolish completely for self-employed. There are 4m self employed people in the UK with the number constantly growing, the conservative are aiming to please large target groups. The aim to cater to working people and the strain of finances through cutting taxes. This pledge means National Insurance will reach 6% by 2027, a tax cut of £1,350 for the average worker on £35,000 according the Conservative Manifesto.
- Cutting National Insurance will cost £2.6bn a year but the Sunak has stated their plans to bring the money from clamping down on tax avoidance which would raise £6bn as well as from lower welfare payments which should raise £12bn.
The Conservative manifesto lay priority on cutting taxes, improving investment which continues their economic trend of using trickle-down economics, in which cutting businesses and income taxes could see results in a greater economy for the UK.
The Renters’ Reform Bill has been seen by many as a silver bullet to rebalance the relationship between renters and landlords, but it will not be rubber stamped before the general election on 4 July.
Last month before the surprise announcement of the election the bill reached the House of Lords, but later it was pulled when the election was called.
Once an election is made known there is a “wash up” period up to the election day itself, where all parliamentary business is completed before the next government begins its work, and the renters’ bill didn’t make the cut of legislations to be finalised.
What is the Renters’ Reform Bill
Initially the bill was promised by the then Prime Minister Theresa May, and this was a commitment that was approved by her successors Boris Johnson and Rishi Sunak.
The main points of the bill are to scrap section 21 ‘no fault’ evictions, allowing a landlord to evict a tenant without any specific reason.
The bill would have made it illegal for landlords and agents to refuse to rent properties to people who receive benefits or have children.
Also the bill was designed to create a national landlord register through a new property portal.
This will give renters all the information they need to make an informed choice, before entering into a tenancy agreement.
The bill was also set to introduce new grounds for eviction for landlords, who genuinely want to sell their properties or move back in.
Critics complained of bill being watered down
Some leaked amendments to the bill has led to the government being accused of watering the bill down, for example Section 21 and no fault evictions only applying to new tenancies.
While existing tenancies would be forced to wait for the reforms to enter the court system.
The The Renters’ Reform Coalition which includes Shelter and Generation Rent said that the government was committed to Section 21 in name only.
So what are Labour and the Conservatives going to do?
With only a few weeks to go before the election renters will be keeping an eye on the campaign for any promises or pledges that may effect them.
According to a poll tracker by the BBC, Labour remain comfortably ahead of the Conservatives with a 20-point lead of 44% compared to 24% for the current government.
If Labour were to win then this would mean good news for those who are in favour of the bill, as they have said that they would pass renters reform legislation that they say would create a more level playing field for renters and landlords.
The award winning Goodlord, who can manage your tenancy process and are regulated by the Financial Conduct Authority, have said that there are many things you can expect from a potential Labour government.
It can be expected that the Renter’s Reform Bill is likely to dissolved in favour of another path to take on this issue, but Labour are also sure to be steadfast in abolishing Section 21.
In fact the party’s deputy leader Angela Rayner has said that in the event of a Labour victory, the section will be scrapped from day one in office.
Labour have also pledged to “close loopholes that disreputable landlords might use to exploit tenants” following the abolition of Section 21.
While the Conservatives had until 24 May to ensure that the reform bill was pushed through before the polling booths open, and the government has attracted criticism as this did not happen.
There have been no official announcements as to why the bill was not waved through parliament, and there has been accusations that the government caved in to pro-landlord vested interests by not ensuring that the bill was passed.
The bill was introduced to the House of Commons in May 2023, and at the time it was met with suspicion by some on the back benches that it would result in a lack of protection for landlords.
Yet a government spokesperson said that the failure to get the bill passed does not mean that renters have been ignored, and highlighted the fact that the bill was put forward in the first place in order for it to be passed.
This would also suggest that if the Conservatives were to pull off a shock election victory, then at the least a similar commitment to rent reform would be resumed.
Stephenson’s solicitors have said what this means for the future is that whichever party is elected would have to start from scratch, when it comes to developing new legislation around rented housing.
Therefore, it could be a quite a long amount of time before any subsequent bill of similar nature is passed.
The average asking price for a house in the UK has reached a record high in May according to online property portal Rightmove.
House prices have reached £375,131 as national average for this month, compared to the £372,324 average that was found for April.
It’s not unusual for prices to climb upwards during the spring season, as its often the busiest time of year for the housing market.
Yet Rightmove said that they have seen house priced edge up higher for every month since the turn of this year, reflecting the confidence of sellers that they can secure a better deal for their property.
The rise in growth has been driven by the prices of larger homes at the top of the market.
This has been seen in particular with five bedroom houses and detached houses, it’s a similar trend that Rightmove saw play put for last month.
More owners of these type of homes have been placing them up for sale, which is a reverse of the pattern of recent years as there has been significant evidence that there has been a pause in house sales of this sector in the market.
Rightmove property expert Tim Bannister said that while the top-of-the-ladder market is still leading the way, it’s important to remember that prices overall are still only 0.6% ahead of this time last year.
The market still remains price-sensitive, and with average asking prices reaching new records in most regions, and mortgage rates remaining elevated, meaning that affordability for many home-buyers is still stretched.
Figures from Rightmove showed that the national average asking price for first time buyers was £228,003 for May, a rise of £893 from April.
While for second time around buyers the average price was £343, 268 for May, in comparison to £342,501for April, which was the average asking price for the pervious month.
The online group also said that it found that the most common amount of time it takes to find a buyer is 62 days, but completing the deal and handing over the keys is taking longer up to 154 days, or around five months.
If you are looking to move house by the time that Christmas comes around, it would be a good idea to start now.
Government data supports Rightmove figures
The latest house price index released by the government agreed with Rightmove that house prices are moving upwards.
This is despite the uncertain climate over when interest rates will start to be cut, which has prompted mortgage lenders to increase lending rates for fixed two and five year deals.
In March house prices rose by 0.7% in comparison to February the index showed, and there has been an annual price rise of 1.8%, meaning that the average property in the UK valued at £283,000.
It’s a significant turnaround for the 12 months to February, where the annual house price growth figure went into negative figures with prices falling by a minus 0.2%.
The UK Property Transaction Statistics revealed that the number of house deals completed in March with a value of £40,000 or more was 84,000.
But compared to a year ago this was 6.5% lower.
Also, major mortgage lender Nationwide found that house prices had gone down in April, as potential buyers continued to face financial pressures combined with the higher cost of borrowing that turned them off purchasing a home.
Overall prices had fallen by 0.4% compared to the prices it found in March.
The next decision on interest rates by the Banks of England will take place on 20 June, the Banks’ deputy governor Ben Broadbent recently said that interest rates could be cut in the summer.
Election to steady housing market activity
The general election is set for 4 July, and as a result we are highly likely to see a stabilizing in the housing market over the next few months according to Rightmove.
Yet for many 2024 was finally the year to make their next move, after the huge challenges that the past four years have delivered, such as the Covid pandemic, a housing shortage and fast moving prices.
While property website Zoopla does not believe that the election will have an influence on the housing market, mainly because the lack of any real divisions in housing policy from both the Conservatives and Labour.
The main focuses have been on the reform of the private sector and the increase of house building.
However due to the election being called, the number of completed sales may now fall slightly short of the 1.1m that Zoopla forecast for this year.
