Sports
Confidence in UK housing market continues, latest sentiment index shows
Households in the UK perceived that the value of their home rose in June and are more confident that they will continue on an upward trend, the latest house price sentiment index shows. Some 23.7% of the 1,500 households surveyed across the UK said that the value of their home had risen over the last month, while 4.6% reported a fall, according to the index from real estate firm Knight Frank and Markit Economics. This resulted in an HPSI a reading of 59.5, the twenty seventh consecutive month that the reading has been above 50. June’s reading is an increase on the 58 recorded in May and is the highest the index has been since October 2014, indicating that households believe that any uncertainty caused by the General Election has passed. The future HPSI, which measures what households think will happen to the value of their property over the next year, rose in June to 70.5, up from 70 in May and the index report also shows that households are now more confident that the value of their home will rise in the next 12 months than at any time since December last year. ‘Households’ expectations for house price rises have reached the highest level this year as the results of the General Election provide some clarity on the outlook for the housing market and household finances,’ said Grainne Gilmore, head of UK residential research at Knight Frank. ‘Interest rates remain advantageous, with mortgage rates hitting record lows for those who can clinch a new deal. However the future house price index still remains below levels seen last year as constrained mortgage lending and affordability affect the market,’ she added. According to Chris Williamson, chief economist at Markit, house price growth looks set to revive again after what appears to have been a lull due to the general election. ‘The resumption of political stability is clearly good for the housing market. At the same time, survey data shows that low inflation has meant home owners have pushed back their expectations of when interest rates will start rising, adding fuel to the bullish view on house prices,’ he explained. ‘Notable exceptions are Scotland and Wales, where devolution uncertainty seems to have led to marked falls in views on future prices in June following the election,’ he added. The index also found that some 6.6% of UK households said they planned to buy a property in the next 12 months, up from 6.4% in May. Individuals aged between 25 and 34 are the most likely to be considering buying a home in the short term, with 9.2% of such respondents saying they planned to purchase a home within the next 12 months, followed by those aged 35 to 44 at 9%. Continue reading
A short commute and sports facilities nearby are what UK buyers want, research suggests
Location is still important for home buyers in the UK with new research suggesting that a short commute to work and having access to sports facilities, green space, bars and restaurants are increasingly important. The research has also found that home buyers would pay a premium for peace of mind, stumping up £7,000 to move to a safer neighbourhood along with an extra £5,900 for living alongside nicer neighbours. And the home itself is becoming less important, with decreases in those valuing having more space, a garage or parking space, a south facing garden or private outdoor area, according to the survey from Santander Mortgages. Cutting the daily commute is the most important factor for home buyers, with 33% looking to buy a home citing closeness to work as essential and 28% naming proximity to public transport as a key factor, more than any other categories. House hunters are increasingly looking to maximise their free time by buying properties near leisure facilities, with increases in the number of those naming proximity to bars and restaurants since the research was last conducted in 2011 at 8%, up from 6%. Those wanting sports facilities increased from 2% to 5%. In contrast, features inside the home are becoming less important to prospective home buyers, with decreases in those valuing more space down from 29% to 27%. Having a garage or parking was down from 18% to 15%, a south facing garden fell from 18% to 12% and a private outdoor area from 14% to 11%. Those seeking to buy are also shunning their nearest and dearest in favour of increasing the quantity and quality of their leisure time, with closeness to family and friends both seeing decreases in the percentage of home buyers who see them as essential. While moving into an area with strong broadband signal has increased in importance over the past four years, it is still only an essential factor for 10% of home movers. ‘We are becoming a recreation nation as we look to minimise the amount of time we spend travelling to and from work, and maximise the time we can spend enjoying ourselves playing sports, enjoying green spaces and socialising in bars and restaurants,’ said Miguel Sard, managing director of mortgages for Santander UK. The findings also reveal 26% are looking to buy a new home in the next five years. On average they would pay £6,297 extra to live closer to work. The average buyer would pay over £6,900 to move to a safer neighbourhood, a 4% premium on the average UK house price. This compares to around £6,400 to be close to shops, £5,900 for nicer neighbours and over £6,300 to have eco-features such as solar panels, nearly twice what they would have paid four years ago. Continue reading
British govt releases enough unused land for over 100,000 new homes
Enough unused public sector land has been released in England to build over 103,000 new homes, it has been announced. Communities Secretary Eric Pickles said that the amount of land sold by the government surpasses the original commitment set by the Prime Minister, and is expected to rise again by the end of March this year. Now, the government is calling on councils and developers to help turn it into housing as soon as possible, and is urging local authorities up and down the country to follow this example and sell their redundant sites and buildings. ‘House building is at the heart of the government’s long term economic plan. That’s why, rather than leaving surplus public sector land idle, we are putting it to good use by releasing it to build new homes across the country,’ said Pickles. ‘I now want to see councils following Whitehall’s example and explore what they can do to release land and deliver new homes and savings for local taxpayers,’ he added. Housing Minister Brandon Lewis pointed out that housing starts are at their highest annual total since 2007, but acknowledged that more homes are needed. ‘That’s why for the last four years we’ve pulled out all the stops to release formerly used surplus public sector land for house building meaning we have now exceeded our own target,’ he added. On top of this, there are plans to release land with capacity for 150,000 homes between 2015 and 2020. Lewis also pointed out that the government has already taken major steps to boost house building and get more people into a home of their own by simplifying the planning system, making it easier to convert empty buildings into new homes and prioritising development on brownfield land. ‘The results are clear as house building starts are now at their highest since 2007, empty homes are at their lowest level since records began and government backed schemes have helped nearly 192,000 people buy or reserve a property since 2010,’ he added. The land released to date comprises of 899 sites across England, and includes Ministry of Defence land at Aldershot in Hampshire where planning permission has been granted for up to 3,850 homes as well as road improvements, two new primary schools, extensions to two secondary schools, two new pre-schools and day care centres and 110 hectares of new managed green space, play areas, sports and community facilities. At Norton Barracks, site of the former Army archives in Worcestershire, sold by the Ministry of Defence to Rooftop Housing Group in partnership with Wychavon district council, is now the site for 10 new affordable homes for returning services personnel and those who have retired from the Armed Forces. Bexhill former galley sidings, a derelict former oil storage depot with railway sidings site sold by the British Railways Board, now has permission for 64 properties on the site, a mixture of two three and four bedroom properties, including affordable homes. At Stratford City former railway land, sold… Continue reading
