Tag Archives: british
UK property prices record surprise 1.3% rise in June
Property prices in the UK increased by 1.3% in June but the underlying pace of growth is slowing with year on year prices down to 8.4% from 9.2% in May, the lowest since July 2015. This takes the average price to £216,823 and the data from the Halifax house price index also shows that quarterly growth was 1.2%, also down, compared to 1.5% the previous month and the lowest since December 2014. ‘House prices continue to increase, albeit at a slower rate, but this precedes the European Union referendum result, therefore it is far too early to determine any impact since,’ said Martin Ellis, Halifax housing economist. He pointed out that the month on month changes can be erratic and the quarter on quarter change is a more reliable indicator of the underlying trend. The figures show that despite Brexit the UK housing market is fundamentally strong, according to Russell Quirk, chief executive of eMoov. ‘With a continuing, acute shortage of new housing being built and a growing population even if immigration numbers are now curtailed, the demand and supply imbalance and the prospect of even low interest rates will underpin the market,’ he said. David Cheetham, market analyst and FX broker at XTB, pointed out that the month on month rise could be regarded as unexpected following an increase of just 0.6% the previous month. ‘The rise is somewhat surprising considering the impact on house building shares and property funds that has been seen following Britain's decision to leave the EU last month,’ he explained. ‘The worst hit shares in the FTSE100, in both the immediate aftermath and days that followed the Brexit were in the building sector with the majority of observers forecasting the decision to be negative for UK house prices. So far this week numerous asset managers have taken the steps of suspending trading in their property funds as withdrawals have surged amongst jittery investors,’ he pointed out. Sales should start to pick up in the coming months, according to Rob Weaver, director of investments at property crowdfunding platform Property Partner. ‘The fundamentals in the housing market remain unchanged. People still need a roof over their heads. There’s been a stand-off between sellers and buyers with transactions dropping off since the stampede in March to beat the stamp duty deadline. But sales should start to pick up in coming months with the weight of uncertainty now partially lifted,’ he said. ‘While people clearly delayed house purchases in the lead-up to the referendum, that backlog in transactions should unwind through the second half of the year. Life decisions like moving house can’t be put on hold forever. During periods of volatility in the stock and currency markets, investors tend to prefer assets which can provide a reliable income, combined with lower risk to preserve their wealth. For investors, residential property offers both of these attributes,’ he pointed out. ‘Historically, residential property has been the best performing… Continue reading
UK residential tenants out of pocket from unexpected rental costs
Tenants in the UK are being caught out by unexpected costs not covered by their landlord, for example boiler repairs, flood damage, and property maintenance, new research shows. Some 14% are facing unexpected costs of £165.41 per person on average each year with 70% of them not agreeing with the reasons for the charges given by their landlords, the study from insurance providers Endsleigh shows. The study also shows that 47% were not expecting yearly rises in rent, worsened by a high confusion of the possible effects of the recent 3% surcharge on stamp duty. It found that 45% of tenants are unaware of what is their responsibility when it comes to tenancy agreements, driving apart expectations between landlords and tenants across the country. The study also sheds lights on the current relationship between tenants and landlords. Despite possible grievances, some 83% of tenants surveyed said they were happy with their current landlord, while 41% of landlords say they would unreservedly go an extra mile to keep their tenants happy. Unknowingly to tenants, some 28% of landlords say they would absorb the cost of rental increases to keep reliable tenants in their property for a longer period. ‘Although the research could paint a picture of discontent in the worlds of both landlords and tenants, the positives far outweigh the worries. Noticing the number of landlords surveyed willing to go the extra mile for their tenants is reassuring to say the least, highlighting the fact that they are valued, and listened to,’ said David Hadden, head of property at Endsleigh Insurance. ‘Inevitably, costs will continue to be held high on the tenants’ agenda, and though unexpected charges may occur in some cases, hearing that almost a third of landlords will absorb these is very encouraging,’ he added. Continue reading
South Americans top search rankings for property in south Florida
Property in south Florida continues to be popular with buyers from South America topping the list for people from overseas searching for real estate, the latest research shows. Colombia has been the top country of origin for five months in a row and four out of the top five countries are in South America, according to the data from the Miami Association of Realtors. In second place is Venezuela, then Argentina with Israel in fourth place and Brazil in fifth. Georgia registered the most searches of Miami real estate among American states. ‘South Florida is known around the world for embracing all cultures. Foreign born residents love Miami. Their passion is visible in our monthly property searches and in Realtor.com global searches, which continue to show South Florida as the most searched US market by international consumers,’ said Mark Sadek, chairman of the association. Colombian home buyers tied with Argentinians in purchasing the third-most Miami real estate among foreign countries and 10% of all foreign South Florida transactions. Only Venezuela with 13% and Brazil with 12% bought more. Colombians moving to South Florida are often upper middle class families who want to enjoy their prosperity earned in their homeland as professionals and entrepreneurs. Colombians spend the second most on South Florida property among foreign buyers. The $516,000 average purchase price of Colombians tied with Argentina and only trailed Brazil at $766,000. Israel posted the fourth most searches of South Florida real estate in April. It was the country’s highest finish since it took fourth in September 2015. India was sixth for the second consecutive month, while in seventh place was Canada, then the Philippines, Spain and Peru. Georgia, which had been climbing the ranks in recent months and finished second in March, moved ahead of New York for the most South Florida web searches in April 2016. In third place was Texas, followed by California, Tennessee, Illinois, Ohio, Indiana, North Caroline and Michigan. The top market for overall international real estate demand: was Miami-Fort Lauderdale-West Palm Beach in Florida, followed by Los Angeles-Long Beach-Anaheim in California, then Bellingham in Washington State. South Florida ranked as a top-five market for consumers in eight of the world’s 10 largest regions in April 2016. South Florida finished as the most searched market in four of the regions. Continue reading
