Tag Archives: european
Demand for retirement homes in UK slows
The uptake of retirement housing in the UK softened in the second quarter of this year as many downsizers paused plans ahead of the European Union referendum vote, according to the latest quarterly review. Overall new buyer registrations for retirement properties slipped by over 20% from the first quarter to 4,744, a 30% fall on the same period last year, as uncertainty before the referendum slowed the market. However, the data from retirement property specialist Retirement Homesearch, also shows that the number of property viewings at 2,974 and instructions at 513 remained steady on first quarter numbers, showing that registered buyers are still actively looking to downsize. ‘Uncertainty around the referendum may have caused many downsizers to sit on their hands until after 24 June, but the outcome could mean a further delay in decisions, as markets fluctuate and affect pensions, which will have a knock-on effect on Britons’ retirement plans,’ said Nick Freeth, managing director of Retirement Homesearch. ‘However, with six million older Britons now living in houses with two or more excess bedrooms, downsizing could help retirees free up capital, reduce the cost of running large properties and move to homes better suited to their needs,’ he added. A recent report on the state of the UK’s housing, published by the International Longevity Centre (ILC-UK) and supported by Retirement Homesearch parent company, FirstPort, shows that under occupancy amongst the older generation is now a widespread issue with six million people living in houses with two or more excess bedrooms. Since 2005 there has been a significant increase in the number of 65 to 74 year olds living alone to 300,000. ‘As experts in retirement housing, we know that having access to specialist advice is especially important in the post-Brexit landscape where it is essential to minimise uncertainty. By ensuring downsizers get the guidance they need, they can begin to look forward to a new home, as well as a new lifestyle,’ Freeth concluded. Continue reading
Italian commercial real estate investment going from strength to strength
Investment in Italy’s commercial real estate markets is going from strength to strength with the first half of 2016 seeing over €3.4 billion of sales, up 35% on the same period last year. The latest investment analysis report from international real estate advsor Savills says that favourable market conditions are fuelling supply in the Italian market through fund liquidations or equity fund investors who are taking advantage of the point in the market’s cycle to dispose of some of the most liquid assets in their portfolios. It says that it is significant that cross border investment into Italy accounted for more than half of the total investment volume in the first six months of 2016, and close to 65% of all deals. Savills has recorded that international funds are increasingly dominating the market, with 80% of foreign capital coming from Europe. ‘Our analysis suggests Italy is at an earlier stage in the cycle compared to Europe’s primary markets in France, Germany and the UK, therefore international investors are still identifying the potential for capital growth and better returns from core Italian product,’ said Eri Mitsosterigiou, director of research, Savills Europe.. ‘We believe that investment demand for the remainder of the year will continue to be driven by European investors, however we also envisage domestic investors to up their buying activity,’ Mitsosterigiou added. According to Savills, investment into the office sector in Italy this year accounted for circa 46% of all activity, over 40% ahead of the first half of 2015. The retail sector represented 26% of the total investment volume, also a yoy 40% hike. The report points out that the high streets of Milan, Rome and Florence are dominating the retail investment market and the first six months of this year saw around €505 million invested, an increase of circa 80% compared to the previous year. ‘Italy is a country with above average household disposable income and strong tourist flows in some of its biggest cities. The resilient characteristics of high street retail, with stable or rising rents, low vacancy and high demand is attracting investors,’ said Marco Montosi, head of Investment, Savills Italy. Savills also recorded that the first half of 2016 saw a notable increase in investment into alternative commercial real estate sectors including hospitality. Almost 22%, some €761 million, of the total volume can be attributed to investment into the alternatives sector, markedly within healthcare. Also of note is that the vast majority of the transactions so far in 2016 were on a single asset basis, whilst portfolio transactions accounted for 21% of the total, down from 35% in the first half of 2015. Looking at the next 12 months, Savills believes that the supply of commercial real estate is set to increase as funds will take advantage of the improving market conditions, particularly the ones that purchased in the low point of the cycle in 2011/2012. ‘Prime locations of major Italian cities… Continue reading
New research shows huge fall in home ownership in England, not just London
Home ownership in England has fallen to a 30 year low with cities in the north of the country worst hit by lower number of people owning their own home, according to new research. Greater Manchester, South and West Yorkshire and the West Midlands Metropolitan area have seen double digit falls in home ownership since their early 2000s peak, the analysis report from think tank the Resolution Foundation. The analysis shows that having peaked at 71% in 2003, the proportion of people owning their own home across England has fallen steadily over the last decade by 8% and suggests that the widely reported increase in home ownership in 2014 was likely a blip to correct a sharp fall the year before, rather than a welcome reversal of a long standing trend. The Foundation says that while much of the discussion around the struggle to buy a home has centred on London, Greater Manchester has actually recorded the sharpest fall in home ownership of any major city area in the last decade or so. In 2003 some 72% of households living in Greater Manchester were owners, slightly above the average across England as a whole. However, home ownership has since plummeted by 14%, almost twice as fast as it has in England and a whole, and by last year just 58% of households living in Manchester owned their own home. The Foundation notes that people living in Greater Manchester are no more likely to own a home than people living in Outer London, and that home ownership rates have fallen below all other big northern city areas apart from Tyne and Wear. It says falling deposit affordability has played a major role in this trend. The Foundation warns however that plummeting home ownership isn’t confined to Greater Manchester. It notes that Outer London, South and West Yorkshire, and the West Midlands Metropolitan Area have also experienced double digit falls in home ownership since the early 2000s. This fall in home ownership has corresponded with a near doubling in the proportion of private renters across England, up from 11% in 2003 to 19% in 2015. The proportion of households renting privately in Greater Manchester has more than trebled over that period, from 6% to 20%, while Outer London and West Yorkshire have also reported double digit growth. The Foundation says that the shift from home ownership to private renting, which is taking place throughout England, particularly among young people, is concerning for a number of reasons. It notes that households in the private rented sector spend a far higher share of their income on housing than those who own with a mortgage, 30% compared to 23%, helping to explain the fact that the share of income that households spend on housing across the UK has increased by around a quarter since 2003 and by around a third in the North West. Renters are also more likely to face the greater insecurity associated with short term contracts,… Continue reading
