Tag Archives: australian
The growth of London house prices has slowed down, new data suggests
London house price growth has slowed in the first quarter of 2016 and is now nearly three times lower than it was in the last quarter of 2015, new research shows. The London market recorded price growth of 1.2% in the first three months of the year while nearby regions have seen higher price growth, according to the latest UK House Market report from the Lancaster University Management School. For example, the Outer Metropolitan area has seen price growth of 3.1%, Outer South East 2.5% and East Anglia 4.1%, the data from the report shows. The report says that this is in line with the so-called ripple effect, suggesting that substantial house price increases in London over the last few years spread out to surrounding regions over time and have a leading effect on the UK housing market. It suggests that the slowing growth in the London property market has coincided with two factors, possibly working in opposite directions: an increase in the uncertainty of global economic conditions, especially in the East, and the run-up to the introduction on the 01 of April of extra 3% stamp duty on additional property purchases. The Observatory has been set up to monitor for signs of exuberance in prices in the UK regions, and releases its analysis each quarter alongside the house price data. Continue reading
New home loans falling in Australia, latest data shows
New home loans in Australia saw a further decline in February from the high levels of late 2015, according to the latest report from the Housing Industry Association. Despite a growth in the total number of owner occupier loans, excluding refinancing, new home loans fell by 6.5% month on month and were 2.7 per cent lower than a year earlier. During February the number of loans for the construction of new dwellings eased back by 1.9% in seasonally adjusted terms, while the number of loans for the purchase of new dwellings fell by 15.4%. Compared with a year earlier, loans for dwelling construction were down by 2.8% and there was a 2.6% decline in the number of new dwelling purchase loans over the same period. However, HIA senior economist Shane Garrett said that it is important to remember that new home lending volumes are still high by historic standards. ‘The decline in new home loans during January and February is consistent with our view that new home building will moderate during 2016 from last year’s record highs even though the number of new home starts this year is still likely to be one of the highest on record,’ Garrett explained. ‘While the markets that have risen on the recent wave of construction are likely to continue to perform in the near term, there is a risk that markets which didn’t fully participate in the boom may find this more painful,’ he pointed out. ‘It is vital that state governments are prepared to step in and offer support to our industry as required over the next few years,’ he added. Compared with a year earlier, the number of loans to owner occupiers building and buying new homes in the three months to February 2016, increased most strongly in the Northern Territory with growth of 37.4%, followed by growth of 20.2% in New South Wales and 9.3% in Victoria, New home lending volumes also rose in South Australia by 4.7%, in Queensland by 3% and in the Australian Capital Territory by 2.5% but over the same period, lending volumes fell in Tasmania by 33.1% and in Western Australia by 20.4%. Continue reading
UK landlords should be prepared to offer longer tenancies, says inventory organisation
UK landlords and property managers should consider offering long term tenancies as there is increasing demand but it means a different approach, according to the Association of Independent Inventory Clerks (AIIC). The organisation said that heightened preparation must include thorough administration and more thought about the choice of furniture and interior design themes. The AIIC points out that in the recently released English Housing Survey 2014/2015 showed that the average private tenancy length is now four years, up from three and a half years in the previous survey. It also found that some 46% of 25 to 34 year olds lived in the private rented sector in 2014/2015, up from 24% in 2004/2005. ‘Despite numerous reports suggesting that the average tenant doesn't want a long term contract, the official statistics show that average tenancy lengths are increasing, particularly among families, as people rent for longer,’ said Patricia Barber, chair of the AIIC. The organisation explained that these figures should encourage landlords to think harder about what will make their rental property feel more like a home and what can be done to facilitate renters staying in their property for longer. Barber also pointed out that the phenomenon of long term renting highlights how important it is for landlords to be organised and make sure they're on top of their administration duties. ‘When tenants stick around for longer, often the chances of confusion and disagreement over certain issues are increased when the tenancy does eventually come to an end,’ she said. ‘The longer time goes on, the more likely landlords and tenants are to forget details from the tenancy agreement or important information about the deposit, and that's why stringent administration, including keeping copies of everything and organising it accordingly, is so important,’ she added. The AIIC also highlighted that landlords should be aware of the need for evidence and records, especially for long term tenancies, and this again demonstrates the value of a thorough and professionally prepared inventory carried out at the start of the rental. ‘There are more grey areas over the condition of a property the longer a tenancy goes on. A detailed inventory will help landlords and tenants to determine exactly how the property's condition has changed over the course of the tenancy, what can be deemed fair wear and tear and what needs to be replaced and therefore deducted from the tenant's deposit,’ Barber explained. Should a dispute arise at the end of a tenancy, the AIIC maintains that a detailed inventory, which has been signed and agreed by the tenant, is the most important piece of evidence available to a landlord or letting agent. Continue reading
