Tag Archives: house
Two sets of figures confirm improvement in sales and prices in Spain
Residential property sales and prices in Spain are rising year on year and more new mortgages are being granted, suggesting the market continues to recover from the economic downturn. The latest figures from the General Council of Notaries show that in September sales increased by 8.7%, house prices rose by 1.7%, and the number of new mortgage loans granted grew by 17.4%. Overall sales stood at 30,328 transactions in September but saes of new homes are not doing well. Indeed, while second hand homes sales increased by 13% year on year, sales of new homes fell by 19.7%. Sales of individual family homes also registered significant growth of 14.7% year on year. The data also shows that the average price per square meter was €1,242, a rise of 1.7% compared to September 2014. Apartments saw prices rise by 2.7% year on year and individual family homes were up 2.3%. A breakdown of the figures shows that new apartments are doing better than existing sales. The average price per square metre of second hand apartments was €1,359, a rise of 2% year on year, while the average price for new apartments was €1,632 euros per square metre, an increase of 13.6% year on year. The Notaires report also says that the home mortgage market in Spain is improving and mirroring the upturn in the real estate sector. The number of new loans approved increased by 17.4% year on year. The average mortgage value was €122,993, a rise of 0.1% compared to September 2014. The statistics also shows that the percentage of home purchases financed through a mortgage was 39.7%, with the average amount of the loan 77.1% of the property value. The latest quarterly data from property registrars confirms the good news. They show that prices increased by 6.6% year on year in the third quarter of 2015, and 2.2% quarter on quarter. It means that prices are now 28.4% below the peak of the market in 2007. The data also shows that sales increased by 6.4% quarter on quarter and 16.6% year on year but they also confirm that new home sales are not doing as well. Quarter on quarter existing homes sales increased by 8.8% while new home sales fell by 2.5%. There has also been an increase in foreign buyers. They bought 13.5% of properties sold in the third quarter compared to 12.8% in the second quarter of 2015. British buyers were the most prolific with 23% of sales to overseas buyers, followed by the French at 8.7%, Germans at 6.4%, Swedes also at 6.4% and Belgians at 5.5%. The number of Russian buyers continue to fall, down to 3.4%. Continue reading
Homes in a National Park in England and Wales cost on average 44% more
Buying a home in a National Park in England and Wales will cost an average of £100,000 more than other properties nearby, new research has found. The New Forest is the most expensive National Park with an average price of £531,162 but all properties in these areas are costly and prices have increased by £57,718 over the last decade. The research from Lloyds Bank shows that overall prices in the National s in 2015 are on average, £101,880 higher than their county average, a premium of 44%. Properties in the New Forest command the largest premium relative to the average for the surrounding area in both monetary and percentage terms at £258,042 and 94%. The Peak District at 89% and the Lake District at 72% have the next highest percentage premiums to the surrounding area. Snowdonia is the only National Park where property prices are actually below the average for the surrounding area at 3% less. Of the 12 National Parks included in the research, 11 have higher house prices than the average for their county, with four attracting a price premium of more than £100,000. Seven of the 12 National Parks surveyed have an average house price that exceeds £250,000. ‘Many home buyers are prepared to dig that bit deeper to benefit from the lifestyle associated with living in National Parks,’ said Andrew Mason, mortgages director at Lloyds Bank. ‘As areas of outstanding natural beauty, they are also prime locations for those seeking second properties. The combined impact of these factors is that house prices are typically much higher than those in surrounding areas,’ he explained. ‘When we take average local earnings into account, this situation can make it really tough for many of those living and working in National Parks to afford to buy their own home,’ he added. So it is no surprise that home affordability in National Parks is significantly worse than for the country as a whole. The average house price in a National Park of £332,755 in 2015 is, on average, 10.9 times higher than local average gross annual earnings. The New Forest is both the most expensive and the least affordable National Park with an average house price of £531,162 that is 14.2 times local gross average annual earnings. The South Downs, at 12.5 times average earnings, is the second least affordable National Park, followed by the Peak District at 10.3. Snowdonia is both the least expensive and the most affordable National Park with an average house price of £165,840, which is 6.2 times local average annual earnings. Snowdonia is the only National Park with an average price below £200,000. The average house price in National Parks across England and Wales has increased by £57,718 or 21% over the past 10 years, from £275,037 in 2005 to £332,755 in 2015. The biggest percentage increases were in the South Downs at 44% and the Pembrokeshire Coast at 29%. At the other end of the spectrum, the Broads Authority is the only… Continue reading
Rents in England and Wales fall 1.2% month on month
Rents across England and Wales fell in October, taking the average to £806 per month, down 1.2% from the all-time high recorded the previous month, according to the latest buy to let index. Despite this, rents are considerably higher than a year ago and in the 12 months since October 2014, average rents have risen by 4.7%. After negative CPI inflation of 0.1%, this represents real terms annual rent rises of 4.8%. The index from Your Move and Reeds Rains also shows that four out of 10 regions in England and Wales have seen local rents defy the more general monthly slowdown. In the lead, the East of England has seen rents rise by 0.7% between September and October. Following this, rents are up 0.4% on a monthly basis in the North East, up 0.3% in the neighbouring Yorkshire and Humber region, and rents in the East Midlands have seen 0.1% month on month growth. On the back of these rises, rents in the East Midlands are now at the highest level on record, at £604 per month, while Yorkshire and Humber has also witnessed a new all-time record, with rents reaching £552. By contrast, rents in the South East lead the generally downwards monthly trend, dropping by 2.5% between September and October. This is followed by the South West with a 2.1% monthly dip and by London where rents are 1.1% lower than in September. On an annual basis, London still leads the field with rents now 10.7% higher than in October last year, followed by annual rises of 8.9% in the East of England and 5.7% in the East Midlands. At the other end of the spectrum, recent falls take Welsh rents to levels 6.7% lower than a year ago. According to Adrian Gill, director of estate agents Reeds Rains and Your Move, the very peak of the lettings season has now passed which means better deals are possible for tenants looking to rent later in the autumn. ‘However, there has been no huge change in the fundamentals pushing rents higher than in previous years. Whether or not the sharpest mismatch between supply and demand lasts into October, the fact remains that the private rented sector is growing rapidly, driven by demand and new properties coming onto the rental market are letting quickly,’ he said. ‘Many tenants are earning more, and while buying a home is still an unrealistic stretch for millions, renting a home is luckily still within reach. The private rented sector is much more closely connected to what people earn than the property purchase market, which has the financial insulation of mortgage payments and interest rates. By contrast, rents are more fundamentally limited by monthly budgets and now that ceiling is being lifted, average rents are likely to continue to rise rapidly on an annual basis,’ he explained. … Continue reading
