Call our friendly team

01702 606 301

Post-pandemic house prices, cost of pet damage, mortgages for repaired cladding issues, and other UK property news

There’s been a mixed bag of UK property news making the headlines. You might want to calculate just how much the value of your home has grown since the start of the recent pandemic, or you could be a landlord worried about the damage caused by your tenants’ pets.

The good news for the owners of flats in blocks with dangerous cladding that is soon to be repaired is that mortgages may become available. And the biggest energy cost savings are achieved in new-build homes.

Post-pandemic house prices: How much has your home risen in value?

In a press release on the 20th of July, online listings website Zoopla calculated that the value of the average UK home has grown at the rate of £48 a day since the start of the recent coronavirus pandemic.

The surge in property values has come against a background of flexible working from home and a growing demand for homes with more space inside and out, with a preference for out of town, semi-rural or coastal locations.

As that demand has taken off and outstripped the available supply, so prices have inevitably risen. But there have been marked regional differences, with values in some areas rising by as much as £106 a day whereas in others they have fallen by as much as £40 a day.

Lets with pets: 85% of landlords and agents have experienced pet damage in rental properties 

A recent survey by the National Residential Landlords Association (NRLA) suggests that many landlords are hard pressed to meet the cost of repairs for damage caused by tenants’ pets.

Announcing the results of the survey, the NRLA revealed that 85% of landlords reported some degree of property damage caused by their tenants’ pets.

So that they do not continue to suffer unacceptable financial losses, the NRLA suggests that one of the outcomes of the current “lets with pets” debate is the ability for them to charge the cost of pet damage insurance premiums or a supplementary deposit from pet-owning tenants to cover the cost of such damage.

Banks agree to lend on properties with updated cladding

On the 18th of July, online mortgage brokers, Mortgage Solutions, reported that six leading lenders have agreed to consider granting mortgages on flats in blocks where the necessary repairs to hazardous cladding will be paid for from the public purse or the relevant property developers.

Ever since the tragic fire that decimated London’s Grenfell Tower in 2017, hundreds of thousands of flats have been identified in similar jeopardy and danger from hazardous cladding. If those issues are identified, the flat becomes effectively unsaleable and unmortgageable.

The recent decision by banks and building societies to grant mortgages in those cases where the cost of the necessary repairs and safety measures have been approved by the government or the relevant developers will come as welcome relief to their owners.

Buy a new build and save £5,000 over 5 years on energy costs

Savings of almost £5,000 a year can be made if you buy a new-build home compared with the energy costs for an existing dwelling.

That is the conclusion reached in a survey by estate agents Savills and reported by the Buy Association on the 13th of July.

Since the beginning of the coronavirus pandemic, new-build homes have become popular among 41% more buyers than before. In the brief period between the first quarters of 2021 and 2022, a 7% increase has been recorded in the number of buyers reserving new-build rather than existing houses.

Against a background of rapidly increasing costs of domestic energy, the greater efficiency of new-build homes compared with older, existing buildings means that savings of an estimated £4,900 can be made by the average homeowner.

This entry was posted in Landlord News. Bookmark the permalink.