Tag Archives: investment
Commitment to build new homes to cope with demand reaffirmed after EU vote
UK Housing Minister Brandon Lewis and Communities Secretary Greg Clark have reaffirmed that new homes are still a top priority of the Government post Brexit. At a meeting with the Home Builders Federation (HBF), whose members build around 80% of new homes in England and Wales, they reiterated the Government’s ambition to build a million more homes. They pointed out that this ambition is underpinned by a record £20 billion housing package announced in the Spending Review and Government backed schemes, including Help to Buy and Shared Ownership, which have supported over 309,000 home owners since 2010. The HBF and its members stated that all indicators show reservations and sales rates have not been affected by last week’s referendum on leaving the European Union. Members restated their commitment to driving up supply and increasing the number of new home owners. Parties spoke of their confidence in the strength of the housing market with strong demand for housing. The Government and HBF agreed to continue to work jointly over the coming weeks to ensure shared ambitions are met. ‘The action we have taken over the last six years to get the country building again has put the industry in a position of strength. We have doubled investment in housing and set out the largest affordable house building program since the 1970s,’ said Clark. Peter Andrew, HBF deputy chairman pointed out that the need for new homes continues as does the Government’s commitment to getting them built and extending home ownership to anyone that aspires to own a home of their own. ‘We were very pleased to hear the Secretary of State reaffirm the Government’s commitment to increasing housing supply. We welcome his reiteration of support for successful programmes like the Help to Buy: Equity Loan scheme which is underpinning demand and helping tens of thousands of buyers each year to take their first steps on the housing ladder,’ he said. ‘House builders remain confident in the underlying level of demand for housing and will continue to deliver the homes the country needs,’ he added. Continue reading
Brexit uncertainty affects prime country houses in UK
Prime country house prices in the UK fell by 0.2% between April and June as uncertainty surrounding the outcome of the EU referendum filtered through to the market. On an annual basis, price growth over the year to the end of June 2016 eased to 1.3%, down from a recent high of 5.2% in 2014, according to the latest index from real estate firm Knight Frank. It is the first quarterly fall since late 2012 and prices for larger properties in the £2 million and above sector fell by even more, down 1.1%, the data also shows, taking the annual rate of growth to 0.7%. In contrast, properties priced at under £2 million recorded an average rate of growth of 0.4% over the quarter, taking the average rate of growth to 3.3%. The index reports that there was a softening in demand in the immediate run up to the vote, with potential purchasers awaiting the outcome of the referendum. The number of viewings conducted in June was 10% lower than the same month last year, and there was also a dip in new buyer enquiries. However, it points out that the EU referendum has not been the only factor at play in the market. ‘Higher purchase costs as a result of two stamp duty increases in the space of 18 months have also had an impact, weighing on price growth in some sectors of the market, most notably for homes valued in excess of £2 million,’ said Knight Frank associate Oliver Knight. The strongest markets continue to be in prime urban locations, where price growth has outperformed that in more rural locations, the report also points out. Looking ahead, the report explains that all eyes will now turn to the impact of the UK’s vote to leave the EU on the market. ‘There is likely to be a further period of uncertainty as the terms of the UK’s exit are worked out and this has the potential to affect some parts of the market as discretionary buyers weigh up the implications,’ said Knight. ‘However, the primary drivers of this market remain unchanged, with schools and key transport links remaining a draw for town and city markets. Prime prices are still 14% below their previous market peaks on average and, as such, there may be scope for outperformance in the short to medium term,’ he added. Continue reading
Residential asking prices up 5% across Ireland in second quarter of 2016
Asking prices for newly listed properties in Ireland increased by 5% nationally and by 3.6% in Dublin in the second quarter of 2016, the latest figures show. As housing supply continues to decline, average time to sale agreed has fallen to just four months, according to the property report from MyHome in association with Davy. The report says that Brexit may dampen medium term expectations but the UK’s decision to leave the European Union is not expected to have material impact on the Irish housing market in 2016. It also says that while the sharp gains in asking prices mainly reflect the recovery in house prices across the country with newly listed properties in Dublin rising by a more modest amount this is still four times the 0.9% increase recorded in the capital in the first quarter of the year. The mix adjusted asking price for new sales nationally is now €231,000 and €326,000 in Dublin, an increase of €11,000 for both markets compared with the first quarter of the year. For the entire stock of properties listed for sale on the MyHome website the national mix adjusted figure is €213,000, up 2.5%, the biggest quarterly increase since the third quarter of 2006. In Dublin the figure is €296,000, up 2%, which brings it back above the level seen in the second quarter of 2011. The author of the report, Conall MacCoille, chief economist at Davy, said the supply shortage and wage inflation were the key factors underpinning the latest price surge and pointed out that the number of homes for sale is down 6.7% on last year to 23,520, which is close to historical lows. ‘Not surprisingly properties are selling increasingly quickly with the average ‘sale agreed’ time falling to just four months, a new low. Outside of Dublin it has fallen to 4.8 months, the first time it has fallen below five since the financial crisis of 2008. While the government has outlined ambitious housing plans, there is no prospect of the shortage of housing supply being alleviated by new construction in the near term,’ he explained. ‘At the same time, home buyers are feeling the heat and reacting to the lack of supply by taking out ever higher mortgage debts, helped by rising wages and growing consumer confidence. In May the average mortgage approval for house purchase rose to €208,000, the first time that the average mortgage approval has exceeded €200,000 since the series began in 2011,’ he added. MacCoille believes that overall the data points to sharp gains in Irish house prices through the remainder of 2016. ‘While the potential impact of Brexit remains something of a wild card, its overall impact on the Irish economy and broader fears regarding the health of the European economy could help to temper medium term expectations for house price growth,’ he said. ‘However that probably won’t emerge until… Continue reading
