Tag Archives: investment
Almost half of UK estate agents think Brexit is having a negative impact
Some 42% of estate agents in the UK believe that the decision to leave the European Union has already had a negative impact on their business, new research has found. One agency even found that following the vote on 23 June some 10% of its sales fell through and valuations were reduced by 40%, according to a survey by software supplier Dezrez. A third of those surveyed predict that there will be between 5% and 20% less properties being put on the market and suggested that home owners may see the value of their house drop by 5 to 15%. But less than believe that property values will fall considerably. The research also found that 52% of estate agents expect vendors or buyers to pull out of sales, or for vendors to take their houses off the market but 53% had seen no affect to date. Indeed, some 37% believe leaving the EU won’t have a long term impact on their business, the remainder are either unsure or anticipate a change in the market and their business model. Few have actually prepared for any kind of Brexit impact. The poll showed that 54% believe it is too early to either have a strategy or indeed need one, while 16% said they have a strategy and 13% are working on one. ‘As the economic landscape continues to shift following the UK’s vote to leave the European Union, the Bank of England Governor Mark Carney has warned prospective buyers to proceed carefully if planning to borrow money,’ said the firm’s chief executive officer Justin Morris. ‘This warning, and the ongoing analysis from property professionals, is unsurprising. However, until the market settles, we won’t know the exact extent the effect Brexit will have on the residential property market. What is clear is that in the short term uncertainty will lead to a dip in market confidence,’ he explained. He added that while opportunist buyers may jump at the chance to renegotiate on price, more prudent buyers will be looking at the affects the turbulent economy is having on their finances, making sure that they will still be able to afford their mortgage. He pointed out that many of the estate agents believe that there are still more buyers than sellers. So, whilst a base reduction in housing stock and value is likely, the market could very well even itself out and remain steady. ‘The role of the estate agent will be increasingly important to vendors and buyers a like. Negotiations may become trickier and sales progression more complex, consumers will rely heavily on traditional estate agents for their experience and advice. There is no doubt that there are challenges and opportunities ahead,’ he concluded. 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
