Tag Archives: city
Rental prices in Spain fall for 34th month in a row
Rental values in Spain are continuing to fall with the latest figures showing that average rents fell by 0.4% in January compared to the same month of 2015, the 34th month in a row of declines. The data from the National Statistics Institute (INE) shows that rents fell in all regions except in Galicia where they increased by 0.3%, the Balearic Islands and Catalonia both up 0.1%, ad were static in Murcia and Navarra. The most significant fall in rental prices were in La Rioja where they were down by 2% while in Castilla y Leónand Castilla-La Mancha rents fell by 0.9%, were down 0.8% in Madrid and Extremadura and down 0.7% in Asturias and Valencia. The regions of Andalucía and Aragón registered the same rate of decline as the national average at 0.4%, while in Cantabria rents fell by 0.3% and the Canary Islands, the Basque Country and Ceuta all recorded declines of 0.2%. But in the buying and selling market the news is more positive with the INE data showing that the Spanish housing market grew by 11% last year after bottoming out in 2014. There were 318,055 home sales last year, the first time sales have risen above 300,000 a year, and following 260,000 in 2012 and 2013. But sales are still considerably below the 700,000 recorded before the global economic downturn in 2007. In terms of percentage growth, the housing market expanded by 11% last year, after rising 4% in 2014, and according to Mark Stucklin of Spanish Property Insight this suggests that the market has finally turned around. The crash in sales started back in 2008, and declined in five of the six years between 2008 and 2013, with dramatic double digit falls in most of those years. However, looking just at December, sales were up 8% year on year, meaning the market expanded every month in 2015, the first year that has happened since the crisis began. There were 77,865 new home sales registered last year, and 276,267 resales, meaning that resales were 78% of the market, down from parity as recently as 2013. ‘The new homes market has failed to recover as quickly as resales in part due to a lack of new developments on offer, though sales may start to recovery this year as more new projects come on stream,’ Stucklin explained. Of the selected regions most of interest to foreign buyers, Barcelona’s property market increased the most last year, up by 20%, but new home sales fell 20% while resales were up 32%. This was followed by Cadiz province, Las Palmas in the Canaries and the Balearics all up 15%. Indeed, all regions were positive with the exception of Huelva, home to the North Western end of the Costa de la Luz, also known as the Spanish Algarve, where they fell by 2%. ‘The Spanish property market now looks to be on a growth path after years in crisis. Sales growth was particularly… Continue reading
Scotland sees strongest house price growth for seven months
Property prices in Scotland increased 0.8% in December month on month and 2.5% year on year, according to the latest index figures. It is the strongest year on year increase since May 2015, taking the average house price to £170,641, with the typical property up by £4,000, according to the index from Your Move. But Aberdeen recorded a steep fall in house prices, down 6.8% year on year as demand fell due to the falling oil price. Overall sales were strong with transactions up 21% in December 2015 compared to the same month in 2014 and the top end of the market is recovering, with 11 million pound home typically sold each month by the end of 2015. But Christine Campbell, Your Move managing director in Scotland, pointed out that the increase over the year to December is still below the 4.4% rise in 2014, as growth was skewed by the introduction of the Land and Buildings Transaction Tax (LBTT). She also pointed out that the average house price has now broken through the £170,000 barrier again for the first time since May and 2015 was a turbulent one for some parts of Scotland. Aberdeen experienced the biggest dip in house prices with property values in the area falling 6.8% or £15,551. ‘This decline has been driven by the drop in demand for homes in the area, as the tumbling oil price reduces employment and investment into the city,’ said Campbell. ‘Aberdeen has also felt the negative affect of the introduction of the LBTT, as it’s home to a large number of higher value properties which the tax hit hardest. The city has now slipped to sixth in the house price rankings, down from third at the end of 2014,’ she explained. Total sales for the year were 6% higher than in 2014, in stark contrast to England and Wales where sales are down 2.6% year on year. In Scotland, the type of homes selling swiftest were flats, up 18.4% in the last quarter of 2015 compared to the same period in 2014. The smallest increase was in pricier detached properties, but sales still rose 8.8% over the same time period. ‘As typically the cheapest type of property on the market, flats have benefited most from the switch to LBTT which removed tax paid on purchases under £145,000. With an extra 3% surcharge on second homes coming into force in April, we can expect another jump in sales during the first quarter of 2016, as sellers hurry to beat the tax hike,’ Campbell said. The million pound property market has seen the most extreme changes this year. Overall, there has been a 30% annual increase in the sale of high value homes in 2015. Half of these sales came in March, as owners rushed to beat the introduction of the LBTT. This was followed by a short term drought which saw the average number of million pound… Continue reading
Help to Buy deposit saving financial product proving popular in UK
The UK Government’s new Help to Buy ISAs savings scheme for first time buyers is proving popular with a quarter of a million opening one of the financial products since it was launched in December 2015. Some 250,000 first time buyers, more than half of whom are aged 30 and under, have opened a Help to Buy ISA which helps them to save for a deposit for their first home. The first home buyers have also claimed their Help to Buy government bonus this week, which means the new Help to Buy ISA is already helping first time buyers onto the housing ladder. Chancellor of the Exchequer, George Osborne, said he was pleased with the figures. ‘It is all part of our plan to back working people who are doing the right thing and saving for their first home,’ he said. The scheme gives first time buyers the opportunity to save up to £200 a month in a dedicated ISA that the government will top up by 25%, up to a maximum of £3,000. First time buyers eager to make the most of the scheme can also open their account with a one-off lump sum of up to £1,000 in addition to the monthly maximum. And couples buying together will be able to combine their bonuses, meaning a potential boost of up to £6,000 towards a deposit for a first home. The government’s other schemes, the Help to Buy mortgage guarantee and Help to Buy equity loan, have also been popular with over 100,000 buyers involved. A special Help to Buy scheme has also been launched for first time buyers in London who face paying far more for a home than elsewhere in the country. It gives first time buyers and second steppers the opportunity to own a new build home in the city with a deposit backed by a 40% equity loan from the government that is interest free for the first five years. Rohan Sivajoti, advisory services director at eVestor, believes that the Help to Buy ISA is vital for those struggling to get a foot on the housing ladder. ‘The upcoming increase in Stamp Duty on second home purchases signals another small victory for those looking to buy their first home, but it is important to take a step back and access how much impact these schemes will actually have,’ he said. ‘With an annual increase of 9% on average house prices across the UK, the worry is that not enough is being done. It's a simple supply and demand market and supply needs to increase significantly to stop first time buyers being priced out of the market,’ he added. Continue reading
