You’d be forgiven for assuming London would be the fastest city in the UK to find a buyer for your property. Until relatively recently, you’d have also been right on the money.

Five years ago, the average time needed to secure a buyer for property in London was just 36 days. According to Rightmove, average selling times had almost doubled by 2018, reaching approximately 60 days.

Interestingly, average property selling times in Scotland plummeted during the same period, from 66 days to just 41 days. This would suggest that sellers in Scotland are currently finding it much quicker and easier to shift their properties than equivalent sellers in the capital.

Beyond Brexit uncertainty

Various key areas of London’s property market have demonstrated signs of a rapid slowdown over recent years. The south-east of England in general has been struggling with a somewhat stagnant property market, though the most dramatic price plummets in the region have been in and around London.

In the meantime, general property prices across the rest of the UK are still on the rise.

A recent study carried out by Rightmove suggests that average property selling times in London are back where they were almost 10 years ago, in 2011. This would seem to suggest that demand is dwindling in London, which has been attributed to both Brexit and other pressing issues.

“While it would be easy to link that with the Brexit vote, there are other factors at play, especially increasingly stretched buyer affordability,” commented Rightmove’s housing market analyst, Miles Shipside.

One of the key factors affecting property sales in London is the growing reluctance among buy-to-let investors, who are discouraged from purchasing investment properties due to changes in taxation. In addition, more first-time buyers than ever before are turning to parents and grandparents to help them buy houses rather than flats.

Real estate experts have also cited Scotland’s more transparent fee structure for home buyers and sellers as a key driver of prompt property sales across the country. Hidden costs, in particular, are much less of an issue for Scottish buyers.

Advice for UK sellers

Across the board, experts are advising prospective property sellers in the UK to be both proactive and realistic, given current market conditions. It’s important to remember that, where older flats in particular are concerned, sellers face the prospect of competing with new-build developments, often with gyms, restaurants, shops, and other facilities right on their doorstep.

Rather than simply considering the value of the property as a standalone asset, it’s important to be realistic about its locality. Even if the interior of the property is pristine, it may not be an attractive prospect for first-time buyers who prioritise convenience and accessibility.

All the usual rules and guidelines continue to apply. Examples of this are to depersonalise and de-clutter your home as much as possible prior to inviting anyone over for an inspection. It needs to be presented as something of a blank canvas, allowing the prospective buyer to visualise how they would decorate the place themselves.

In addition, real estate experts are also warning sellers and buyers alike to expect a long and drawn-out process. Whereas the average conveyancing time (when buying a flat) in England and Wales was around 100 days in 2011, the figure for 2018 came out at 123 days. Hence, agreeing on a sale in the late summer could mean failing to fully close the deal before Christmas.

The patience of sellers is therefore likely to be tested in more ways than one, particularly those attempting to sell properties in and around London.

The housing crisis in the United Kingdom means different things to different people. For some, skyrocketing property prices are playing directly into their hands and, indeed, their pockets. For others, it’s a case of accepting the stark reality that homeownership is unlikely at best.

Research suggests that approximately 90% of young people in Britain intend to own their own home at some point. Unfortunately, research from Santander suggests that only one in four young Britons (26%) will be on the property ladder by 2026.

This contrasts starkly with figures from 2006, at which time approximately half of young Britons (under the age of 34) owned their own home.

Of course, none of this will come as a real surprise to younger generations in the United Kingdom. The combination of astronomic property prices and stagnant wages has made the dream of homeownership an unlikely reality for most. Precisely why more than 70% of millennials believe that their chances of owning their own home are slim to none.

An escalating issue

With the state of the UK housing market as it is, fewer would-be first-time buyers than ever before are making concerted efforts to get on the property ladder. Research suggests that only 42% have anything put away to cover the deposit on a prospective property. Interestingly, of those who had earmarked savings for a deposit, men were found to have saved twice as much as women.

While the men polled who had deposit savings put away had an average of £11,600, the women polled had saved an average of £5,620. Across both gender groups, the average target amount for those saving towards a property purchase was £24,000.

Had they managed to hit this target, which the vast majority didn’t, they would still have fallen short of the required funds to buy a home. Today, taking out a mortgage on an average property in the United Kingdom means coming up with a deposit of £44,000. For most everyday earners, this is simply out of the question.

In 1996, approximately 65% of people on low to medium incomes (between £20,000 and £30,000) owned a home. By 2016, this had fallen to just 27%.

Today, it’s estimated that around 65% of homebuyers have incomes of more than £40,000—significantly higher than the national average. Salaries have been rising on average by a mere 18% over the past decade, failing to maintain pace with average house prices, which are all around 47% for the same period.

Speaking on behalf of Santander Mortgages, managing director Miguel Sard acknowledged the difficulty facing an entire generation of first-time buyers.

 “It’s clear that while the aspiration to own a home is just as strong as in previous generations, it’s a dream that is looking increasingly out of reach,” he said.

 “Without change, homeownership in the UK is at risk of becoming the preserve of only the wealthiest young buyers over the next decade. This report should be a wake-up call for industry and the government to think more creatively to keep the homeownership dream alive for the next generation of first-time buyers.”

With conventional purchase channels all but closed, more first-time buyers than ever before are turning to friends and family for help. In fact, the study from Santander suggests that almost 40% of all first-time buyers now rely on support from parents and grandparents to purchase their homes.

In the meantime, the number of British people taking on second homes as buy-to-let properties is reaching an all-time high, having doubled since 2001. As wealthier Brits continue to capitalise on sky-high property prices and accelerating rental yields, an entire generation risks being priced out of the market. All attempts by the government to address the issue (Help to Buy, lifetime ISAs, etc.) have so far been criticised as inadequate or simply not fit for purpose. Unless more drastic action is taken, the issue is only predicted to continue worsening over the years and decades to come.

Despite the rather gloomy outlook from some industry watchers a short time ago, housebuilder Barratt Developments PLC is now expected to beat initial market forecasts. Having completed a record number of new home builds and significantly improved its margins, the organisation’s annual profit is set to comfortably beat expectations.

Barratt has published a new trading update for the year running up to June 30, in which it revealed that a record 17,856 homes have been constructed during this year. That’s up slightly from 17,579 last year, including an impressive 17,111 wholly-owned completions. This represented a 2.6% increase year-on-year, with joint venture completions down 17.1% to 745 homes.

Supported by the decision to purchase sites with higher margins, the company’s operating margin increased to 18.9% this year from a prior 17.7%. Barratt’s performance has also been bolstered by the reversal of inventory impairment provisions and the disposal of legacy commercial assets.

In a pre-Brexit era of uncertainty where the British housing market is all over the place, Barratt continues to perform above and beyond most realistic expectations.

Declining average home prices

Completions may have hit a new record high, but the average selling price for a new property for the year ending June 30 came out at £274,000, which is a sizeable decline from the previous average of £288,900. According to Barratt, this is the result of a change in the mix of completions.

For example, private home completions grew 0.7% to 13,533, while affordable home completions increased 10.4% to 3,578. In the affordable homes bracket, average prices increased from £123,700 to £131,000, but the average selling price of a private home fell from £328,000 to £312,000.

On the whole, the company stated that its joint ventures have delivered a higher overall profit than expected of £35 million, which is a significant improvement on last year’s £18.6 million. This was due largely to sizeable gains in land sales.

Total profits are better than expected

In terms of total pre-tax profits, Barratt now expects to comfortably exceed the estimates of analysts. The company now expects a total profit of £910 million, up from 2018’s £835 million.

Like many major housing companies, Barratt has responded to the Central London housing market slowdown by focusing more heavily on developments further afield. The company now has 18 private properties scheduled for completion within its Central London portfolio, a far cry from last year’s 145.

Going forward, Barratt intends to continue focusing on margin improvements.

“While there remains some economic and political uncertainty, the group is in a strong position,” Barratt said.

 “We have a substantial net cash balance, a well-capitalised balance sheet, a healthy forward sales position, a continued focus on the delivery of operational improvements across our business, and an ongoing commitment to deliver the highest quality homes across the country.”

 “We believe that this gives us the resilience and flexibility to react to potential changes in the operating environment in fiscal year 2020 and beyond.”

Despite its declaration of better-than-expected profits for 2019, the positive news didn’t have any real impact on Barratt’s share prices. Shares traded at 576.2p during morning trading, which was no real difference from the day before.

Nevertheless, experts at Peel Hunt spoke with great optimism regarding Barratt’s current performance and future outlook, increasing its target price to 630p.

“The group’s margin story has been a key differentiator over the last 6–12 months, especially as others have been hit by quality and leasehold concerns,” the broker said.

“While a chunk of the value gap has now been closed, Barratt remains a well-run business.”

It’s easy to take the various conveniences and freedoms of the modern workplace for granted. Particularly if you’ve only recently joined the workforce, it can be hard to imagine the workplace of yesteryear.

But what have been the biggest changes to the modern workplace over the past 20 years or so? Prior to the turn of the new millennium, what kinds of conveniences we now take for granted were predominantly out of the equation?

Working remotely

 

For one thing, remote working, aka the virtual workplace, was practically unheard of just a few decades ago. Today, it’s estimated that around 30% of the entire work force has worked remotely at some point or another. Modern technology has transformed every device with a working Internet connection into a fully functional office suite.

Frequent job changes

The vast majority of employees are always on the lookout for a bigger and better deal. In times gone by, it was the norm for people to stay with the same company for 30 or 40 years before leaving with a gold-plated watch and a decent pension. These days, it’s the norm for people to stick with the company for no more than five years before searching for greener pastures.

Equality and diversity

Particularly in the United Kingdom and the United States, there’s been a gradual yet radical adoption of workplace equality and diversity policies. Rather than simply encouraging workplace diversity, official government policy has made it a legal requirement to champion diversity and equal opportunities. Discrimination in any form is no longer tolerated and is considered abhorrent.

Flexible dress codes

Some of the world’s biggest and most successful companies have acknowledged the fact that you don’t necessarily have to dress in a stiff power suit to do a good job. Enormous enterprises like Google encourage their workforce to express their personalities and individuality, wearing pretty much anything they want to wear to work. Piercings, tattoos, and gravity-defying hairstyles are all part and parcel of the modern office experience.

Employee input

It may be hard to believe that there was once a time when the prospect of any lower-level member of the workforce communicating directly with ‘the boss’ would have been out of the question. particularly if said employee wanted to make a rather outlandish suggestion or bring up a grievance of some kind. Today, employees at all levels are actively encouraged to share their thoughts and opinions with their superiors. Communication in general in the average workplace has transformed beyond recognition over recent years.

Transparency

No longer can an organisation expect to get away with operating in a shroud of secrecy. Company policies, salaries, benefits, promotion opportunities, and organisational performance—extensive efforts are made to keep all employees in the loop. The idea is that by ensuring everyone is on the same page, everyone takes equal pride in their work and performs better accordingly.

Availability

Even as recently as the mid-1990s, it was comparatively rare for anyone other than an executive to carry a mobile phone. Today, it’s almost unheard of for anyone not to carry a mobile phone. The result of this is the near-constant availability of workers at all levels on a 24/7 basis. The ability to contact any person from any place in the world at any time has radically transformed the way the world does business.

General workplace culture

Last but not least, the culture of the modern workplace embraces motivation, satisfaction, and enjoyment at an unprecedented level. Businesses worldwide are acknowledging the fact that when employees are happy to come to work, they perform better. Flexible working hours, a relaxed working environment, stocked kitchens, pool tables, coffee machines, and so on—all have an enormous impact on employee motivation and retention. It’s taken some time, but it’s now acknowledged that the most effective way to motivate workers is to create an enjoyable working environment, not simply force them to do the job.

It’s no secret that the gender pay gap remains an issue for almost every industry and sector in the United Kingdom. Nevertheless, evidence suggests some industries are performing far worse than others, as far as equal pay issues are concerned.

The worst offender of all is the financial services sector

According to the results of a recent joint study carried out by researchers at Queen Mary University of London and the University of Sussex, the gender pay gap in the UK finance sector has shown little to no real signs of improvement over the past 10 years. Despite ongoing pressures from within the sector and external forces, drastic measures may need to be taken to bring things under control.

Immediate and substantial changes are required

Despite moderate improvements to gender-related pay issues over the past decade, progress in the financial sector has been comparatively slow. What’s more, the study also found that female representation at executive levels throughout the industry remains far below the expected level as of 2019.

As a result, experts believe it may be in the interests of UK policymakers to target certain sectors more specifically, with appropriate legislation to tackle the issue. Should the sector be unable or unwilling to make the needed improvements internally, it may be necessary to enforce external measures.

The study noted that the gender pay discrepancy was most notable among the highest earners within the financial sector. At the lower end of the scale, the average gender pay gap from 2009 to 2017 was just under 14%. Right at the top of the pay table, the discrepancy reached almost 57% for the same time period.

On the whole, the researchers found that between 2009 and 2017, female workers in the financial sector earned on average 44% less than their male counterparts. Even when factoring in all additional variables, including experience, expertise, specialist skills, and so on, the study found that women continue to earn around 14% less than men in the financial services sector.

This despite the fact that the nationwide campaign to tackle gender pay issues in the financial sector has now been underway for more than a decade.

Higher pay, bigger pay gap

Speaking on behalf of Queen Mary’s School of Business and Management, Professor of Employment Relations Geraldine Healy highlighted how the gender pay gap grows as the respective female employee climbs the ranks:

“Our analysis shows that, when all other factors such as education, experience, and childcare responsibility are taken into consideration, women earning the highest wages in the sector are subject to more discrimination, and this has decreased only very marginally since before the credit crunch,” she said.

“The irony is that the more successful and better paid the woman, the greater the penalty in pay she suffers compared to her male comparator. In addition, lower-paid women have experienced year-on-year less pay than lower-paid men, with little change since the recession.”

“The sector continues to be seeped in discriminatory practices with respect to pay and unequal treatment favouring men and disincentivising women. The increasing intensity of working hours over the ten-year period has had a negative effect on the gender pay gap.”

“Financial services have undoubtedly introduced and promoted positive diversity initiatives, but these have been undermined at a strategic and operational level, including by discretionary bonuses and increasingly long working hours.”

Ms Healy also suggested that, despite continuous reassurances from financial service providers committed to positive change, external pressures may be the only viable solution.

“Change is unlikely without external pressures, whether from the unions, women’s networks, and pressure groups, but ultimately by the state introducing more stringent statutory regulations, she said.”

It’s hard to think of a time in recent history when the face of British politics was such an unmitigated mess. May’s imminent departure is highly unlikely to serve as a catalyst for stability anytime soon. Understandably, there are many who blame the Tories squarely and exclusively for the vast majority of issues the UK is facing right now.

One of which is the Brexit saga; the other is the UK’s ongoing housing crisis.

In the case of the latter, we’ve long-since entered an era where homeownership, even sensible rentals, are completely inaccessible for an entire generation. Things have been heading this way for a while, but a complete lack of decisive action on the part of the Conservatives has been cited as a key contributor.

Is there anything that can be done to steer things in the right direction? Should Labour take control at the next (and now-inevitable) general election, how will Jeremy Corbyn attempt to succeed where his predecessor failed?

A new state-backed estate agency

It’s no secret that whispers in Westminster and even political promises are about as reliable as a plumber’s estimate. Nevertheless, there’s growing speculation that a Corbyn government could introduce the UK’s first ever state-backed national estate agency.

The idea was first mentioned a while back by Owen Jones in his Guardian column, though it has popped up once or twice again in more recent discussions.

In his column, Owen Jones stated quite clearly that “Estate agents are justifiably bogeymen for Generation Rent: why not set up a national, state-backed estate agency that works on a not-for-profit basis purely to help tenants?”

The idea is that should a state-backed estate agency plan go ahead, it would effectively serve as an enormous non-profit letting service for tenants across the country. The obvious issue with for-profit estate agents is their tendency to focus more on making money than the best interests of their clients.

An admirable idea, but with two fundamental flaws nonetheless. Along with the problem of funding and staffing the new nationwide agency, there’s the small matter of attracting landlords in sufficient numbers.

Presumably, a state-backed estate agency operating purely for the benefit of tenants would be completely unwilling to accept extortionate monthly rental prices and OTT deposits. Strict rules would be imposed to ensure that the tenant gained access to a good deal at a fair price.

From the landlord’s perspective, this could simply amount to lost earnings. If they can just as easily advertise their property privately for a much higher price and under their own terms, that’s probably what they’ll do. Hence, the idea of a state-backed estate agency has been interpreted by most as wishful thinking, important acknowledgement of the problem, but an imperfect and unworkable solution nonetheless.

Disappearing inventory

To be frank, if there’s one thing the government (Labour or Conservative) should be doing to combat the housing crisis, it’s to build, build, and build some more. Right now, the UK remains stuck within a period of record-low housebuilding—the lowest levels recorded during peacetime. Labour has already pledged its commitment to imposing an inflation cap on rent rises, but this doesn’t solve the problem that there are simply too few properties available.

It could also be useful to authorise local authorities to impose their own controls over excessive rent prices, but this is yet to be considered (or even mentioned) in Westminster.

In the meantime, there’s no realistic quick-fix solution out there to the UK’s ongoing housing crisis. Irrespective of who takes the torch in May, chances are things will only deteriorate further—at least until the seemingly endless Brexit fiasco reaches some kind of conclusion.

Changes to lending criteria over the years have affected the way most of us access credit facilities. Some changes in lending criteria have been more noticeable than others, most notably those affecting mortgage eligibility. Indeed, some have found that the more recent lending criteria changes on the High Street have counted them out of the running entirely.

Lower borrowing costs, higher rejection rates

It’s an interesting phenomenon, but as borrowing criteria have changed for UK borrowers, overall borrowing costs have become increasingly competitive. Though it’s something of a contradiction, lower borrowing costs have been somewhat augmented by higher rejection rates.

Of course, this is all dependent on the type of credit facility you’re applying for and the lender, respectively. But as a rule of thumb, loan products have become as competitive as they’ve ever been, though they are proving more difficult to access than ever before.

Specialist-secured loans may be the only exception to the rule, for which general lending criteria have remained fixed for some time. You provide collateral to cover the loan; you borrow the money you need and repay it as agreed. In the event of non-payment, ownership of the assets is passed to the lender, which is the simplest and oldest form of lending there is.

With conventional secured loans like mortgages and unsecured personal loans, however, it’s a different story entirely. Applicants at all levels are being squeezed and scrutinised like never before, resulting in a situation where millions of would-be borrowers are afraid to submit applications in the first place.

Bigger deposits are payable

One of the most significant changes to lending criteria over the past 10 years is the requirement for increasingly large deposits to qualify for a mortgage. The problem is that as average house prices continue to climb, deposit requirements are pricing prospective buyers out of the market. In a typical working example, a property with a modest £200,000 value subject to a 20% deposit to qualify for a mortgage would somehow come up with £40,000. For obvious reasons, this just isn’t the kind of cash most people can pull together.

Credit check reliance

The way things are today, it’s hard to remember a time when the credit rating system didn’t exist. Rather than becoming more relaxed and realistic as the years go by, the UK’s credit rating system is becoming harsher and more restrictive. Right now, the overwhelming majority of everyday credit facilities are approved or denied by way of credit scores alone. And if all this wasn’t enough, it’s becoming increasingly difficult to maintain a flawless credit history.

Lack of flexibility

There’s a growing lack of flexibility in general today on the UK High Street. It’s a classic case of “our way or the highway,” wherein the lenders themselves expect their customers to bow to their demands. as opposed to fairly considering the requirements of the customer and offering tailored financial products accordingly. All of which goes some way to explain why more domestic and business borrowers than ever before are setting their sights on the UK’s alternative lending market.

Independent lender expansion

While all this is going on, the UK’s more proactive specialist lenders are creating dynamic financial solutions to compensate for the lack of flexibility on the high street. Particularly where secured loans are concerned, applicants are not expected to undergo extensive credit checks, provide long-term proof of income, and generally jump through hoops for the amusement of the lender. The growth and expansion of the independent lending sector is such that some (though comparatively few) major lenders have begun introducing new-era credit facilities like bridging loans and specialist property finance.

The extent to which Brexit further impacts lending criteria remains to be seen, though it’s unlikely the restrictiveness of today’s High Street will be reversed in the near future at least.

No matter how energy-efficient you think you are, a recent story published in The Mail confirmed you’re probably anything but.

For most of us, the homes we live in represent perhaps the biggest drains of all on our finite cash reserves. This is not the case for Colin Usher and his wife, who pay a total of just £15 per year in energy costs for their Wirral home.

That’s not a misprint; that’s £15 all-in. Lighting, heating, hot water, and cooking: a total annual energy bill of just £15.

Of course, it’s not as if the average homeowner has the ability or the inclination to go to such extremes. Nevertheless, the example set by the Ushers clearly demonstrates how every little helps.

And that energy efficiency isn’t only about eco-friendliness; it’s also good for your bank balance!

Simple changes, big improvements

Solar panels and loft insulation may be the most obvious ways to quickly and permanently improve energy efficiency. Nevertheless, they’re far from the only ways of cutting costs.

We have a responsibility to the environment to do what we can to reduce carbon emissions, but it’s the hard-cash savings that motivate eco-friendly initiatives in most households.

So with this in mind, here are perhaps the eight simplest yet most effective things you can do to be greener at home and reduce the pressure on your pocket:

Lower your thermostat

First up, the UK’s official energy watchdog states that by lowering your home’s thermostat to 15 degrees during the day, you’ll be looking at total annual energy savings of up to 15%.

Reuse your waste

If you have a garden, stop needlessly letting all that valuable organic matter go to waste. Composting is not only environmentally friendly but great for your garden and 100% free.

Low-flow taps and showers

Switching to low-flow taps and showers can reduce the amount of water used per minute by as much as 50%. While traditional shower heads blast around five gallons per minute, more efficient shower heads reduce this to 2.5 gallons per minute or even less.

Seal doors and windows

Weather-stripping costs next to nothing, yet it can make a remarkable difference to both the comfort and energy efficiency of your home. It’s incredibly easy to apply and makes no difference to the respective room’s aesthetic, so you may as well go ahead and use it.

Don’t rely on space heaters

They’re great when there’s an alternative, but space heaters have a tendency to be the most inefficient devices in the average home. They’re designed to emit as much energy as possible as quickly as possible, with no consideration whatsoever for energy efficiency. Hence, it’s best to minimise their use where possible.

Step up to LED bulbs

LED bulbs cost a small fortune a few years ago. Today, they’re comprehensively affordable and use up to 90% less energy than traditional light bulbs. They’re also designed to last years or even decades, which adds up to unbeatable value for money. The more light sources you have around the house, the more you’ll save by switching to LED lights.

Don’t leave chargers plugged in

If you thought leaving your various smartphone, tablet, and laptop charges plugged in was no big deal, think again. Incredibly, Energy.gov reports that unused chargers can be responsible for as much as 10% of the average home’s annual energy bill. All of which is money you’re throwing down the drain for no good reason.

Replace your electronics

Last but not least, boosting your home’s energy efficiency is also the perfect excuse for investing in the latest toys and gadgets. From computers to TVs to stereo systems to kitchen appliances, huge advances in energy efficiency are being made every year. So if there’s something you’ve not replaced for a while, it could be putting a drain on your resources. and therefore warrants replacement.