Tag Archives: africa
Falling asking prices in Spain could encourage British buyers despite Brexit
There are signs that British buyers are still keen on buying property in Spain but those selling are likely to be more successful if they lower their asking price. Agents are reporting continued interest in the Spanish property market from British buyers despite the decision to leave the European Union. This is coming from holiday home buyers and those considering moving to Spain to live. But the latest index suggests that sellers in Spain are having to be realistic about the price their property is likely to achieve outside a few popular areas. Data from the latest asking price index from Idealista shows they fell national by 3.1% in June year on year. Month on month asking prices fell 1.4% to their lowest level since the economic downturn despite rising briefly at the beginning of the year. But there are substantial regional differences. Whist the national average index continues to fall, some areas are already recovering. Idealista point out that prices in some big cities and areas on the coast have risen substantially since bottoming out, led by Barcelona with growth of 19.5%, Madrid up 6.4% and Valencia up 6.1%. There is effectively a two speed recovery in the Spanish market, according to Fernando Encinar, head of research at Idealista. He explained that prices continue to fall in inland locations but rise in popular coastal spots such as the Costa del Sol and cities such as Madrid and Barcelona. On a quarterly basis asking prices rose the most in the second quarter of the year in Malaga with an increase of 1.5%, up by 0.8% in the Costa Blanca and up 0.8% also in Tenerife and the Canary Islands. Real estate agents believe this could attract more foreign buyers. Lucas Fox International said it has seen a rise in enquiries from British based buyers since the vote to leave the European Union. Some disillusioned with the referendum result and considering a move to Spain, in particular to the key cities of Madrid, Barcelona and Valencia, where there are job opportunities and the local economy is rapidly recovering. A report last week claimed that the number of British citizens looking to move abroad had increased by 30% with Spain being the third most sought-after destination after Australia and Canada. Another study by the London School of Economics suggested that around 10% of 18 to 25 year olds who voted to stay in the EU are now considering a move abroad. An example is Sebastian King, a 22 year old living in the South of England working in financial services. He contacted Lucas Fox just a few days after the result. ‘I have been looking to move to Valencia for a year or so now but the Brexit result made me want to get a move on,’ he said. ‘For me Valencia has it all, the climate, it's exciting, full of history and culture as well as having a beach. Overall, I think Spain has lots of… Continue reading
Thousands of home owners with interest only mortgages have no pay off plan
Up to one in 10 home owners aged 55 and over across the UK are still paying interest only mortgages with some unsure of how they will pay off their debt. Research shows that 10% of the 1.4 million owners in this age group still paying a mortgage have an interest only deal, amounting to 143,500 households, according to research from Homewise. It also found that while the majority are confident of clearing the debt some 17%, or 24,300, admit they will be unable to clear the debt. The average amount owed by over 55s with interest only mortgages is around £91,000 with one in seven owing more than £150,000. Homewise, which offers the Home for Life Plan enabling over-60s to buy homes at discounts of up to 59% under a lifetime lease, is urging those with interest only issues to start planning ahead. The Council of Mortgage Lenders estimates that at end of 2015 there are around 1.7 million pure interest only mortgages outstanding with another 500,000 part repayment and part interest only loans. That represents a major success by mortgage lenders and the Financial Conduct Authority which has campaigned since 2012 to help borrowers focus on repaying loans and the number of outstanding interest-only loans has been cut from 3.2 million in three years. Mark Neal, managing director at Homewise, said that the mortgage industry has made massive strides in tackling the interest only issue and has helped borrowers to take action and it is good news from the research that the majority have plans in place to ensure they can pay off the capital but there are still substantial numbers who do not appear to know what they will do. Homewise’s research also shows 34% of over 55s plan to clear their interest only mortgage with cash from savings and investments while 10% aim to use pension cash to clear the debt. Another 11% are banking on an inheritance. Continue reading
Commitment to build new homes to cope with demand reaffirmed after EU vote
UK Housing Minister Brandon Lewis and Communities Secretary Greg Clark have reaffirmed that new homes are still a top priority of the Government post Brexit. At a meeting with the Home Builders Federation (HBF), whose members build around 80% of new homes in England and Wales, they reiterated the Government’s ambition to build a million more homes. They pointed out that this ambition is underpinned by a record £20 billion housing package announced in the Spending Review and Government backed schemes, including Help to Buy and Shared Ownership, which have supported over 309,000 home owners since 2010. The HBF and its members stated that all indicators show reservations and sales rates have not been affected by last week’s referendum on leaving the European Union. Members restated their commitment to driving up supply and increasing the number of new home owners. Parties spoke of their confidence in the strength of the housing market with strong demand for housing. The Government and HBF agreed to continue to work jointly over the coming weeks to ensure shared ambitions are met. ‘The action we have taken over the last six years to get the country building again has put the industry in a position of strength. We have doubled investment in housing and set out the largest affordable house building program since the 1970s,’ said Clark. Peter Andrew, HBF deputy chairman pointed out that the need for new homes continues as does the Government’s commitment to getting them built and extending home ownership to anyone that aspires to own a home of their own. ‘We were very pleased to hear the Secretary of State reaffirm the Government’s commitment to increasing housing supply. We welcome his reiteration of support for successful programmes like the Help to Buy: Equity Loan scheme which is underpinning demand and helping tens of thousands of buyers each year to take their first steps on the housing ladder,’ he said. ‘House builders remain confident in the underlying level of demand for housing and will continue to deliver the homes the country needs,’ he added. Continue reading
