Tag Archives: investment
Home prices rising faster in East of England than anywhere else in UK
Asking prices in the East of England are rising faster than anywhere else in the UK, raising concerns about the sustainability of the region’s property market. Indeed, the region's average asking price has risen twice as fast as the rest of the country over the last 12 months, according to the June index from property search engine Home.co.uk. Year on year prices in the East of England increased by 13.9%, compared to an England and Wales average rise of 6.8% and a rise of 6.7% in Scotland over the same period. The data also shows that the East of England's rises far outstrip Greater London's 7% year on year rise and the South East's increase of 7.8%. Asking price figures for May and June 2016 provide further evidence of how the East of England has become the UK's hottest market. Over this period, the region's average asking price rose by 1.6%, while London's fell by 0.4% and prices in the South East only rose by 0.2%. Across England and Wales the latest monthly rise was 0.4%. Properties are also selling faster in the East of England than in any other region. The typical time on the market for homes in the East of England in June is 54 days, compared to 80 days across England and Wales and 62 days in London. Lack of supply is a key factor in these regional variations in asking price. There was an 8% fall in supply of property in the East of England between May 2015 and May 2016. Over the same period, the UK wide fall in supply was 7%. In contrast, between May 2015 and May 2016, the supply of property rose in Greater London by 2% and in the South East by 1%, a key indicator as to why asking prices in those two regions are now flagging compared to the East of England. Home.co.uk is predicting that the East and West Midlands are set to follow the East of England's rapid rate of asking price inflation, as the supply of property in each area has dropped by 13% and 14% respectively over the last year. These are the largest regional declines in property supply since May 2015. ‘A cooling London market has changed the dynamic of the UK property market and is now less of a focus for property investors,’ said Home.co.uk director Doug Shephard. ‘The new regional champion is by far the East of England where terrific price rises look set to rival even London in its heyday. But investors should be aware as if prices rise too far and too fast, a severe correction becomes a significant risk in the region,’ he added. Continue reading
New partnership meets for first time to boost UK home building industry
A new partnership made up of representatives of house builders, warranty providers and training and trade bodies aimed at attracting new people to the construction industry in the UK has met for the first time. The Board of the Home Building Skills Partnership (HBP) has started work in earnest on plans to attract and train tens of thousands of new workers, led by Redrow Homes chief executive officer John Tutte with a strong group of leaders from across the home building sector. The HBP aims to develop, grow and sustain a programme to provide the workforce the industry requires to deliver the further increases in housing supply the country desperately needs. It will focus on attracting new entrants into the industry, and on providing focussed training to develop the qualified workforce needed to construct today's high quality new homes. The Board will guide and direct the Partnership and define its operational parameters and priorities. It will also oversee the recruitment of a dedicated team that, in collaboration with the wider supply chain, will drive forward the initiatives on a day to day basis. Over its first four years it is hoped that HSP programmes will engage with over 3,500 companies, more than 40,000 workers and some 180 Colleges and Training Providers. ‘The house building industry is totally committed to increasing output and meeting the housing needs of the country. The Partnership will help us attract and train the people we need to deliver more, high quality homes in the coming years,’ said Tutte. ‘The broad experience of the Board we have recruited will help us put in place the building blocks we need to succeed. Over the coming years the Partnership will help secure tens of thousands of skilled employees for house builders and the wider industry who will help us solve the housing crisis we now face. More quality people will enable us to deliver more quality homes,’ he added. The HBP aims to develop an improved public identity for home building, influence the development of a more professional, fully trained workforce and increase productivity and the value added per employee. It also aims to improve the quality and relevance of industry training, co-ordinate the tackling of common workforce challenges and influence and leverage investment in skills to the benefit of the home building industry. Continue reading
Rents up month on month across Scotland, recording fastest May rise on record
Rents in Scotland are at a record high, up 1.3% in May, the fastest month on month growth on record, according to the latest buy to let index. Across Scotland the average rent now stands at £549, led by growth in Edinburgh and the Lothians with a year on year rise of 12%, the data from the Your Move index also shows. The report suggests that the cost of the Land and Buildings Transaction Tax (LBTT) surcharge of 3% for additional homes introduced in April has pushed up prices in the market. ‘Rents are rising rapidly as a result of the new Land and Building Transaction Tax surcharge for buy to let properties. This tax hike has dissuaded landlords from investing in the sector leading to a shortage of homes to rent, compared to the demand for housing,’ said Brian Moran, lettings director at Your Move Scotland. ‘With the limited supply of rental properties, potential tenants have been forced to compete to secure homes, pushing up rents. The introduction of this anti-landlord legislation from Holyrood has ensured the cost of the policy has hit tenants hardest,’ he pointed out. He also said that the rent control policy in the Scottish Government’s private tenancies bill will affect the market and not necessarily in a positive way. ‘By limiting the rent that can be charged on a property, becoming a landlord will become less appealing, limiting investment and forcing many to consider leaving the sector. This will lead to an even greater shortage of homes to rent,’ he explained. ‘In addition, without the potential incentive of higher rents, landlords will lack the motivation and finance to improve the quality of their properties. The Government needs to look at incentivising landlords to increase the supply of rental properties in Scotland. With more homes available to rent, tenants wouldn’t need to compete for properties and rents would be more affordable,’ he added. A breakdown of the figures show that on a monthly basis, rents rose across all of Scotland’s regions in May. Glasgow and Clyde has seen the steepest uplift month on month, with rents in the region increasing 1.9% from April. This amounts to a £11 jump in cash terms, with typical rents increasing from £538 in April, up to £549 in May. The smallest monthly upswing in rents occurred in the Highlands and Islands. Rents in the region increased by just £1. With a smaller population and fewer high paying jobs than other parts of Scotland, competition for rental properties in the region has not been as fierce. In the South of Scotland, the increase in rents was also marginal, with only a 0.2% uptick leaving typical rents to standing at £514, the lowest average of any region. Meanwhile, in Edinburgh and the Lothians, rents continued their upward trajectory, rising 1.7% or £11 from April, pushing the typical rent in the region to a… Continue reading
