Tag Archives: investment
UK property supply down almost 5% in May
Residential property supply in the UK increased by 4.8% in May but a breakdown of the figures show that the number of homes for sale fell in half of the towns covered by the index. In total month on month supply was down in 50.4% of towns with the biggest falls coming in the towns of Southport and Loughborough at 28% and 24.1% respectively. The data from the index from online estate agent HouseSimple also shows that towns in the Midlands saw the biggest increase in supply with Lichfield up 56% and Chesterfield up 36%. The index, which tracks the number of new properties marketed every month in more than 100 major towns and cities across the UK and all London boroughs, also shows that of the areas that saw the biggest falls in supply some 47% were in the North of England. In London supply was also down by 2.4% overall in May with the City of Westminster seeing the biggest drop at 33%. The overall fall follows a decline of just 0.8% in April. The borough of Bexley also saw a significant fall following a huge peak in April, when new property listings were up 58.9%. However, despite the overall fall in London dome 53% of its 32 boroughs saw an increase in supply last month. Waltham Forest saw property supply rise 31% month on month following an 8% increase in April and Merton saw supply increase 30% in May following a 15% increase in April. ‘Although property supply was up in May, in large swathes of the country, the number of new properties listed fell,’ said the firm’s chief executive officer Alex Gosling. He believes that the confidence of buyers could be affected by the forthcoming referendum on the future of the UK in the European Union and predicts that in the run up to the poll on 23 June there could be a significant drop off in activity at a time when historically there is a lot of activity in the property market. ‘On the flip side, this could actually provide an opportunity for prospective buyers, who have their finance in place and can move fast, as they may be able to negotiate a good deal with motivated sellers keen to tie up a sale before 23 June,’ he added. Continue reading
House price growth slowing in Spain, but headline figures mask regional differences
Although generally the housing market in Spain is perceived as recovering well there are signs of growth slowing, according to some of the latest figures to be published. Residential prices grew by 1.3% in May and by 1.5% in the first five months of the year, but this is lower than the 1.9% registered up until the end of April. The data from the latest index property appraisers, Tinsa, also shows that the average price of a property in Spain is still down 41.4% since 2007. However, the national figures hide signs of real growth in some sectors and locations. For example, prices in capitals and large cities as well as in the Balearic and Canary Islands were up 3.5% year on year in May. On the Mediterranean Coast prices increased by 1.6% and metropolitan areas saw smaller annual growth at 0.7%. But in the rest of the municipalities category prices have been falling, down 2.5%. But even the breakdown of the figures shows there are signs of slowing growth. Since the beginning of 2016 average prices on the Mediterranean Coast remained at the same level as the beginning of the year but were up 1.3% in the capitals and large cities and the metropolitan areas. In the first five months of the year the rest of the municipalities category saw growth of 1.5%, and the Balearic and Canary Islands have seen the strongest price growth at 4.2%. Meanwhile, the latest asking price index from property portal Fotocasa shows that sellers reduced their price expectations by an average of 0.7% in April compared to a year ago. The average asking price in April was €1,624 per square meter, down by 0.2% month on month but overall the index has been stable for 12 months now with prices never varying more than 1% either up or down. Beatriz Toribio, head of research at Fotocasa, believes that house prices will continue to go in different directions during 2016. ‘Whilst in some areas of the country prices are stabilising or even rising, in others they continue to fall hard. This is a consequence of the crisis the sector has lived through, which has left a market of two or more speeds,’ she explained. Official figures released by the Government also suggest a slowing in recent months. It says that year on year prices have increased by 2.4% but by only 0.2% in the first quarter of 2016. A breakdown of the figures show that house prices rose the most in the Balearics with growth of 9.6%, followed by Catalonia up 4.9%, Madrid up 4.2%, Extremadura up 3.7%, Galicia up 2.6%, the Valencian region up 2.4%, and the Canaries also up 2.4%. Continue reading
Demand for rental properties in UK increased in first quarter of 2016
Despite attempts by the UK Government to dampen the buy to let market and stimulate home buying, the first quarter of 2016 saw demand for properties to rent continue to rise, new research shows. The number of landlords reporting tenant demand as either increasing slightly or significantly stood at 39%, up from 34% in the fourth quarter of 2015. A further 36% of landlords described tenant demand as being stable. According to the latest survey by BDRC Continental for Paragon Mortgages, the sector is also witnessing high levels of tenant satisfaction. Some 79% tenants surveyed said they are satisfied with their current landlord. The research also found that 85% of tenants consider their current rental property to be their home and 69% believe the level of rent they pay to be good or very good value for money. Reflecting the changing balance in housing tenure, the average length of time tenants are spending in their current properties now stands at nearly seven years. The average length of time spent in the Private Rented Sector (PRS) in total was reported to be nearly 13 years. Landlords also agree that the PRS plays an increasingly important role in housing the UK. With the social housing sector having lost around one million homes since 1991, some 78% of landlords polled agreed the PRS compensates to some extent for the decline of the social housing sector. An overwhelming majority, 89%, of landlords also stated the PRS has an important role to play in accommodating those who are priced out of home ownership, while 74% agreed the PRS plays a role in accommodating those excluded from social housing by dwindling supply. ‘The rise of the PRS and the decline of the social housing sector have been the predominant trends in the UK’s changing housing tenure over the last 20 years. This data gives an interesting insight into how both tenants and landlords perceive these trends,’ said John Heron, director of mortgages at Paragon. ‘It’s good to see tenant satisfaction at such high levels. The sector often suffers from negative PR and the good work done by the vast majority of landlords to provide homes for those who cannot or do not want to buy goes unremarked,’ he explained. ‘This survey clearly demonstrates that the PRS is increasingly providing longer term solutions in housing and that responsible and professional landlords are supporting the provision of housing to those that rely on the PRS for their home,’ he added. Continue reading
