HomeNow

📉🏡 Property Prices Drop Over £5,000 in November: Is Now the Time to Buy? According to Rightmove, the average asking price of a home in the UK has dipped by over £5,000 this November, with a 1.4% decline compared to the usual seasonal drop of 0.8%. This marks the second month in a row of weaker-than-expected price growth. Despite this slowdown, experts are optimistic about a rebound in 2025, forecasting a 4% rise in asking prices as mortgage rates stabilise and buyer confidence returns. However, the market remains competitive, with sellers needing to price attractively to secure buyers amid a high number of listings. Many first-time buyers still face challenges in saving for a large deposit, even with lower prices. As the housing market experiences ups and downs, HomeNow's rent-to-buy scheme offers a fresh approach for those eager to get on the property ladder. Instead of waiting for the perfect moment, renters can start building equity in their future homes right away. This means no hefty deposit is needed upfront, giving buyers a head start as prices and demand are predicted to rise next year. For anyone worried about the uncertainty of rate cuts, HomeNow provides a flexible and accessible path to homeownership, turning rent into an investment in your future. Read the full article here: https://lnkd.in/eNSG9xTD #HomeNow #FirstTimeBuyer #RentToBuy #HousingMarket

Mortgage Costs Are Rising Despite Interest Rate Cuts 💸 Despite the Bank of England's recent decision to lower the base interest rate from 5% to 4.75%, mortgage costs are unexpectedly climbing, with the average rate on a two-year fixed deal now at 5.5%. Major lenders like Barclays, HSBC, and Nationwide have increased their rates, surprising many borrowers who were hopeful for a consistent drop in costs. This unexpected rise is partly due to the market's reaction to recent economic signals from the Budget. While the base rate cut was widely anticipated, the announcement of new government spending raised concerns about inflation, causing lenders to adjust their pricing strategies. The uncertainty surrounding future interest rate cuts has also led to a "higher for longer" expectation in the financial markets, pushing borrowing costs up despite the central bank's efforts to reduce them. 🔍 What Does This Mean for Borrowers? For homeowners whose fixed-rate mortgages are expiring, and first-time buyers hoping to enter the market, these rising costs present a significant challenge. With over 800,000 fixed-rate deals, many of which were initially locked in at rates below 3%, set to expire annually until 2027, many borrowers will face higher monthly payments when they renew. The increased costs are especially tough on first-time buyers, who were already struggling with high house prices and saving for deposits. In this fluctuating mortgage landscape, HomeNow's rent-to-buy scheme offers a unique solution for aspiring homeowners. Instead of dealing with the pressure of securing a mortgage at high interest rates, renters can start building equity in their future homes through monthly payments. This approach provides a clear path toward homeownership without the immediate need for a large deposit or exposure to volatile mortgage rates, making it an accessible and stable option for those looking to get on the property ladder. Read the full article here: https://lnkd.in/edDXwg_c #HousingMarket #FirstTimeBuyers #HomeNow #PropertyNews #Budget2024

🏡 Stamp Duty Hike Expected to Fuel Pre-2025 Buying Rush 📈 The recent 2% hike in stamp duty for landlords and second-home buyers, introduced in the autumn Budget, is likely to impact the UK’s already strained rental market. With new stamp duty charges now at 5%, property purchases by landlords are expected to fall below 100,000 a year for the first time in a decade, as smaller landlords consider exiting the sector and larger investors hesitate to expand portfolios. Experts predict that fewer buy-to-let properties in the market could drive rents even higher in the coming months, particularly in high-demand cities like London and Birmingham. While this policy aims to open the market for first-time buyers, it may unintentionally reduce rental options for tenants who are already facing rising rents. For renters, this translates to increased competition and fewer affordable options, further stretching budgets impacted by the cost-of-living crisis. At HomeNow, we understand that navigating high upfront costs and rising interest rates can be challenging. Our rent-to-buy scheme provides an affordable, stable alternative by allowing renters to build equity in their future homes without the immediate need for a large deposit and no upfront costs. It’s a flexible path to homeownership for those seeking options in today’s market. Read the full article here: https://lnkd.in/e4QCKMXT #StampDuty #HousingMarket #FirstTimeBuyers #RentToBuy #HomeNow

🏡 How the Stamp Duty Rise Could Reshape the Rental Market The recent 2% hike in stamp duty for landlords and second-home buyers, introduced in the autumn Budget, is likely to impact the UK’s already strained rental market. With new stamp duty charges now at 5%, property purchases by landlords are expected to fall below 100,000 a year for the first time in a decade, as smaller landlords consider exiting the sector and larger investors hesitate to expand portfolios. Experts predict that fewer buy-to-let properties in the market could drive rents even higher in the coming months, particularly in high-demand cities like London and Birmingham. While this policy aims to open the market for first-time buyers, it may unintentionally reduce rental options for tenants who are already facing rising rents. For renters, this translates to increased competition and fewer affordable options, further stretching budgets impacted by the cost-of-living crisis. At HomeNow, we’re here to help renters who are seeking more stable paths to homeownership amid these shifts. Our rent-to-buy scheme provides an affordable, gradual way to build equity in a future home without requiring an immediate deposit or mortgage approval, offering flexibility and stability during a turbulent time. Read the full article here: https://lnkd.in/gsCjWAPb #StampDuty #RentalMarket #HousingCrisis #Homeownership #HomeNow

Right to Buy Under Review: Rayner Proposes Changes to Protect New Council Homes🏡 Deputy PM Angela Rayner has announced plans to restrict the sale of newly built council homes under the Right to Buy scheme in England. Speaking to the BBC, Rayner highlighted the urgency of preserving social housing stock amid the ongoing homelessness crisis. Since its introduction in 1980, Right to Buy has enabled over 2 million social housing tenants to purchase their homes, often at significant discounts. While this policy increased homeownership in the past, critics now argue it has led to a severe depletion of affordable housing, making it an outdated approach given today’s housing challenges. Rayner’s proposal aims to keep newly built council properties within the social housing system, ensuring they are not lost to the private market. With Labour committing to deliver the largest number of social and council homes since World War II, the government is looking to safeguard this new stock to address the affordability crisis effectively. The recent budget also allocated £233 million towards tackling homelessness, signalling a broader strategy to support vulnerable households. While limiting Right to Buy may protect social housing stock, the government must also consider alternative ways to help people onto the housing ladder. HomeNow’s rent-to-buy scheme offers a modern, well-thought-out approach for aspiring homeowners. By allowing renters to gradually build equity while paying rent, we provide a flexible pathway to homeownership without requiring a large upfront deposit. This scheme helps bridge the gap for those who struggle to save, making it easier to secure a stable home even as market pressures increase. Read the full article here: https://lnkd.in/ewqqW9HH #RightToBuy #SocialHousing #RentToBuy #HomeNow #UKHousing

🏡 Forecasts Show House Prices and Rents Outpacing Inflation: A Challenge to Affordable Housing Goals Despite ambitious plans to boost affordable housing, new projections from JLL suggest that house prices in Britain are set to grow at nearly twice the rate of inflation over the next five years, with prices expected to rise by 20% by 2029. This uptick would surpass forecasted inflation of 11.6% and a 14% increase in wages, presenting a major challenge to the government’s goal of delivering 1.5 million affordable homes. With high construction costs, a shortage of skilled tradespeople, and complex planning procedures, JLL predicts that only 1.2 million new homes will be built in the next five years. On top of this, rent prices are also expected to increase by 17%, further stretching affordability and putting pressure on renters already struggling with high costs. For those navigating this challenging market, HomeNow’s rent-to-buy scheme offers an alternative solution by providing renters the opportunity to gradually build equity toward ownership without the immediate need for a mortgage. In a market where prices and rents continue to climb, HomeNow’s approach is designed to make homeownership more accessible by fixing rent and linking their future deposit to the future house price. Read the full article here: https://lnkd.in/epfcFVny #HousingCrisis #AffordableHousing #HousePrices #Inflation #RentToBuy #HomeNow #PropertyMarket #Budget2024 #UKHousing

🏡 Stamp Duty Changes: What Buyers and Investors Need to Know The latest Budget has brought significant updates to Stamp Duty Land Tax (SDLT), particularly for second-home buyers, landlords, and companies purchasing properties. Starting from October 31, the additional rate paid on second homes and investment properties in England and Northern Ireland will increase from 3% to 5%. Companies purchasing residential properties over £500,000 will now face an increased SDLT rate of 17%, up from 15%. Currently, no stamp duty is paid on properties worth less than £250,000 (£425,000 for first-time buyers), thanks to a threshold change from the 2022 mini-Budget. However, these higher thresholds will revert to previous levels in March 2025, meaning those looking to buy may face higher costs down the line if purchasing below these limits. In Scotland, the equivalent Land and Buildings Transaction Tax (LBTT) applies, with the additional dwelling supplement at 6%. In Wales, the Land Transaction Tax (LTT) has a similar tiered rate but includes a higher starting rate for additional properties, beginning at 4% and reaching up to 16% for the highest property values. These updates, aimed at curbing speculative buying and promoting property availability for primary homeowners, could influence buyer behaviour significantly. By increasing the upfront cost for second-home buyers and investors, the government hopes to reduce competition in certain property markets, giving first-time buyers more room to enter the market. Read the full article here: https://lnkd.in/eqjHwBt #StampDuty #PropertyMarket #HomeBuyers #HousingBudget #UKProperty #SecondHome

🏡 Budget 2025: London’s Housing Winners and Losers Chancellor Rachel Reeves’ first budget has left many in London’s housing market reeling, especially renters and first-time buyers. Despite expectations for bold measures to address London’s housing crisis, the budget fell short for those struggling most to afford a home in the capital. Here’s a breakdown of who wins and loses under the new policies: Winners: The Homeless and Vulnerable Families: Reeves acknowledged the impact of past policies on the housing crisis, boosting funding for social housing and homelessness support. The Affordable Homes Programme will receive an additional £500 million annually, allowing councils to reinvest funds from Right to Buy sales. Additionally, £1 billion has been allocated to address unsafe cladding, following the Grenfell Tower tragedy. Planning Departments: Local councils received a £46 million injection for planning departments, aimed at speeding up the building process by training more planning officers. This move could accelerate housing development across the city, alleviating some of the housing pressure. Future Homebuyers Along the ‘Brain Belt’: The government has committed to accelerating the Oxford-Cambridge ‘brain belt’ rail project. By connecting these cities, the government hopes to stimulate job growth and housebuilding along the corridor, adding more housing choices in the South East. Losers: Renters and Landlords: The additional 2% stamp duty surcharge for second homes and investment properties is expected to deter private landlords, leading to fewer rental properties in an already tight market. In London, where demand for rentals far outstrips supply, this move could push rents even higher. The National Residential Landlords Association warned that the budget missed an opportunity to boost high-quality rental housing stock, risking more strain on tenants. First-Time Buyers: The budget offered no new incentives for first-time buyers, a key demographic that fuels housing market growth. With the stamp duty discount set to end in April, buyers in London will see the nil-rate threshold drop from £425,000 to £300,000, leaving them with a steeper financial burden. In a city where only 8% of homes are below the £300,000 mark, this lack of support could keep many young people renting longer. Non-Domiciled Individuals: Labour’s pledge to abolish the non-dom tax regime will be implemented in April 2025, replacing it with a residence-based scheme. This change is likely to dissuade ultra-high-net-worth individuals from residing in London, potentially impacting central London’s economy, where high-spending non-doms support luxury sectors like hospitality, leisure, and cultural industries. Read the full article here: https://lnkd.in/enyj3Xvy #Budget2025 #FirstTimeBuyers #RentToBuy #HomeNow #HousingCrisis

🏡 Why This Month's Inflation Figures Matter: The Impact on Mortgages, Rent, and the Economy 📉 September's inflation figure of 1.7% has significant implications for the UK housing market and economy. As inflation falls below the Bank of England’s 2% target, there are strong indications that interest rates could drop in the coming months, which would directly affect mortgage rates and household costs. With inflation now lower than expected, there’s a growing likelihood that the Bank of England will cut interest rates, possibly as early as November or December. Mortgage borrowers could see a reduction in interest rates, which would lower the cost of borrowing and create new opportunities for those looking to buy a home or remortgage. Currently, the average two-year fixed mortgage rate sits at 5.38%, but further rate cuts could bring these down significantly. This would offer much-needed relief to the 1.6 million homeowners whose fixed-rate deals are expiring this year, many of whom are facing steep increases in monthly repayments. Additionally, lower mortgage rates could help first-time buyers and renters who are looking to step onto the property ladder, making previously unaffordable homes more accessible. While falling mortgage rates could provide some relief for homeowners, renters are still grappling with high costs. Over the past year, rents have increased by 8.4%, squeezing the budgets of millions of tenants. The rental market remains highly competitive due to limited housing supply, and any significant drop in mortgage rates could encourage more landlords to hold onto their properties, potentially easing some pressure on the rental market. At HomeNow, we understand that economic uncertainty, rising rents, and fluctuating mortgage rates make the path to homeownership difficult for many. Our rent-to-buy scheme offers an alternative solution, allowing renters to build equity in their future home while continuing to pay rent. By easing the transition from renting to buying, HomeNow provides stability in a volatile housing market, helping aspiring homeowners avoid the immediate challenges of securing a large deposit or dealing with unpredictable mortgage rates. As the UK navigates shifting inflation and interest rates, HomeNow’s rent-to-buy scheme provides a flexible and affordable option for those seeking a more secure path to homeownership. Read the full article here: https://lnkd.in/eY8KSZk5 #CostOfLiving #RentToBuy #HomeOwnership #HomeNow #HousingMarket

🏡 Stamp Duty ‘Chaos’: Changes Could Hit First-Time Buyers Hard 📉 Chancellor Rachel Reeves’ decision to end stamp duty exemptions is sparking concern across the property market, with buyers potentially paying up to £2,500 more in taxes. As the nil-rate threshold for home purchases reverts from £250,000 to £125,000—and from £450,000 to £300,000 for first-time buyers—experts predict a significant disruption. Property guru Kirstie Allsopp called the levy a “monster,” warning that it will create confusion while doing little to boost government revenues. With nearly 9 in 10 property purchases now set to be hit by stamp duty, first-time buyers face a steep climb to get on the property ladder. In areas with higher house prices, such as London, the percentage of first-time buyers affected by stamp duty will rise to 71%, making the dream of homeownership even harder to achieve. At HomeNow, we understand that these stamp duty changes could put extra pressure on potential buyers, especially those struggling to save for a deposit. Our rent-to-buy scheme offers a flexible solution, allowing renters to build equity over time while bypassing the immediate challenges of high taxes and upfront costs. This makes homeownership more accessible, even in a highly turbulent market. Read the full article here: https://lnkd.in/eNYGRH8Z #StampDuty #HousingMarket #HomeNow #RentToBuy #Budget2024