Tag Archives: house
Better lending conditions leads to rise in first time buyers in Northern Ireland
Better mortgage conditions have led to Northern Ireland seeing 25% more first time buyers in in the third quarter of 2014 than a year ago, according to data from the Council of Mortgage Lenders. Then figures point to significant growth in first time buyer and home mover activity with first time buyer loans 25% up on the third quarter 2013. The number of loans to home movers increased by 5%compared to the second quarter and were up 36% compared to a year ago. However, remortgage lending in Northern Ireland declined quarter on quarter in both volume and value. It also declined in number of loans compared to the third quarter of 2013. The data also showed that first time buyer affordability being favourable may account for this growth. First time buyers typically borrowed 2.73 times their gross income, considerably less than the UK average of 3.41. The typical loan size for first time buyers was £80,000 in the third quarter, unchanged from the previous quarter. The typical gross income of a first time buyer household rose to £29,768 compared to £27,009 in the second quarter. First time buyer monthly payment burden decreased to 16.2% of gross income being spent to cover capital and interest payments in the third quarter, from 17.6% in the previous quarter, remaining lower than 19.6% in the UK overall. Affordability for home movers also improved, with home movers typically borrowing 2.45 times their gross income compared to 2.5 in the second quarter but substantially less than 3.05 for the UK overall in the period. The typical loan size for home movers was £103,500 in third quarter, down from £104,000 in the previous quarter. The typical gross household income for home movers was £44,000 in the third quarter compared to £41,241 in second quarter. Home movers' payment burden remained low in Northern Ireland compared to the UK at 16.1% of gross income being spent to cover monthly capital and interest payments, slightly up from 15.9% in the second quarter but less than the 18.8% UK average. ‘Northern Ireland saw higher house purchase lending growth year on year than the UK overall in the third quarter. The Northern Irish market in 2013 was really driven by first time buyers but this year we have seen a resurgence of growth in home movers, suggesting it is becoming easier to transact,’ said Derek Wilson, chairman of CML Northern Ireland. ‘Borrowers are seeing good affordability conditions as the economy recovers, attractive rates are being offered by lenders, and there is further choice available through government schemes like Help to Buy,’ he explained. ‘Two quarters have passed since the new Financial Conduct Authority rules were introduced and they do not seem to have had any unintended consequences in the Northern Ireland market. This is not surprising given that house prices and the amount people borrow next to their household income is less than the UK average. The Northern Ireland market is open to those who aspire to be home owners,’ he added…. Continue reading
Home sellers likely to benefit from new UK property tax rules as well as buyers
House sellers in the UK could be set to save £213 million a year to the tune of almost £7,500 each, according to research by property website Zoopla. The reform of the stamp duty property tax which took effect today will remove ‘dead zones’ that existed before each previous Stamp Duty band and see a more progressive approach adopted where buyers will only liable to the portion of the property’s value above each new level. In an analysis of property sales in the 12 months to May 2014, the firm reckons that 28,635 properties have been under priced in order to make them more appealing to buyers by avoiding steep jumps in stamp duty. Zoopla found that the number of property sales in the price bands immediately before an existing stamp duty threshold is significantly higher than expected, while the number of sales in the price band immediately after a threshold, the stamp duty dead zone, is considerably lower. ‘The new, graduated Stamp Duty system is a long overdue overhaul to what the Chancellor admitted was a poorly designed tax and represents a fairer system for the vast majority of home buyers,’ said Lawrence Hall of Zoopla. ‘It also means that those selling their home at certain levels are more likely to achieve the real value of their homes and won’t be forced to discount their properties to sneak under certain bands,’ he explained. ‘Unfortunately those buying property worth more than £937,000 may feel unduly penalised by the new reforms, but the new structure represents a more balanced system overall and a welcome alternative to the mansion tax plans that had been proposed,’ he added. As an example, a house purchased at £300,000 would have resulted in a £9,000 stamp duty bill. With the new system, a buyer will save £4,000 calculated as follows: 0% tax up to £125,000, 2% tax on £125,000 to £250,000 which is £2,500, 5% tax on the remaining £50,000, which is £2,500, leading to a total stamp duty bill of £5,000. Kevin Hollinrake, managing director of Hunters estate agents with 125 branches nationwide, said the firm has already had deals secured as a result of this change. ‘In our opinion, this is great news. For too long, stamp duty has distorted the market deterring sellers from marketing their homes and buyers from buying them in the dead zones above the key thresholds such as £250,000 and £500,000. This should mean more property coming onto the market, and therefore, more sales which is good for the housing market and the economy as a whole,’ he explained. There will be substantial savings for around three quarters of a million home buyers across England and Wales according to research from Savills as all buyers up to £937,000 will benefit. By contrast, around 17,000 transactions above a value of £937,000 will bear an increased stamp duty tax burden, undermining the case for any further taxation of high value property. ‘The change is likely to make the… Continue reading
Real estate market in Turkey expected to be healthy in 2015
Rising foreign demand, record levels of tourism and healthy economic conditions throughout 2014 mean Turkey should expect further growth in its real estate market in 2015, it is claimed. House sales to foreigners in the first 10 months of 2014 increased 66% year on year to reach 15,417, according to the Turkish Statistical Agency (TurkStat). The province with the most foreign buyers between January and October was Antalya, home to the city of Antalya, as well as the resorts of Kalkan, Belek, Side and Alanya. Istanbul had the second highest number of non-Turkish buyers. ‘This rise in foreign interest is especially noteworthy as overall sales in Turkey, including those to Turks, fell slightly for the period compared to 2013,’ said Julian Walker, director at Spot Blue International Property. ‘By the end of September this year though, the number of foreign purchases in Turkey had already exceeded the total for the whole of 2013. This shows how important the foreign market is becoming to Turkey and will continue to be in 2015,’ he explained. Property prices have shown steady increases during 2014, with Turkey recording the highest house price growth of all G20 member countries between the second quarter of 2013 and the second quarter of 2014, up by 14%, according to an index by international property consultants Knight Frank. Meanwhile, Turkey's Reidin-GYODER New House Price index recorded a month on month rise of 1.33% in October and 7.3% rise compared with the same month last year. Revenue generated by tourism in Turkey hit a new record for the January to September period this year, generating $26.6 billion, according to TurkStat. The country welcomed more than 30 million visitors during this period, a 6.1% increase over the same period last year. These figures would suggest the country is on course to receiving 43 million tourists for the whole of 2014, hitting its revenue target of $36 billion, according to a forecast made by the Association of Turkish Travel Agencies. Turkey is now the sixth most popular holiday destination in the world, according to 2013 data from the United Nations World Tourism Organization (UNWTO). As well as attracting high numbers of foreign property sales, Antalya is also Turkey's most visited destination. ‘This year has seen ongoing improvement in air access to Turkey, which attracts more tourists as well as gives confidence to investors and the international business community. Significantly, new routes launched recently include to the Americas and Asia, with increased frequency to the Middle East,’ Walker said. He also pointed out that under pinning Turkey's bullish tourism and real estate markets in 2015 will be the country's economy. The IMF predicts GDP growth of 3% for 2014 after analysis done in September, while the European Economic Forecast published in November forecasts growth of 3.3% in 2015 and 3.7% by 2016. Continue reading
