Tag Archives: middle-east
Latest RICS survey confirms UK price growth slowdown
UK house price growth, especially in London, is slowing after the historic vote to leave the European Union, according to the latest data from the Royal Institution of Chartered Surveyors. The monthly report from RICS posted the lowest survey reading in three years in July. Just 5% more respondents nationally saw a rise rather than fall in prices, down from 15% the previous month. This downward trend that is evident across the UK and the London price indicator remains more downbeat with net balance of -33% which is broadly consistent with an outright drop in prices in the capital but not quite as sharp as that reported in June. The report also says that as price growth slows for now, near term price expectations across the UK were negative for the third month in succession with 12% more respondents predicting a decline in house prices over the next three months. It is the longest stretch of negative readings since 2012. As activity falters, interest from new buyers in the UK also continues to wane, with the results showing a fourth consecutive month of falling demand to a net balance of -27. Notwithstanding the potential for near term weakness, respondents are slightly more optimistic about the 12 month outlook, upgrading their estimates for price growth relative to June. The latest data shows the net balance of those expecting prices to increase over the year ahead rising from zero to 23% but this still represents a significant softening compared to six months ago, when 66% more surveyors anticipated rising prices. For the second month running, the regional breakdown shows London and East Anglia are the only areas in which prices are expected to fall over the year ahead. Nonetheless, London exhibits amongst the strongest projections over the medium term three month average, with respondents pencilling in around 4% growth, per annum, over the next five years. On the same basis, prices are expected to rise by close to 3% nationally. The report also points out that the acute shortage of property for sale appears to be providing some underpinning for prices at present. Indeed, after staging a mild recovery through the early months of 2016, average stock levels on agents’ books have since started to fall again. In fact, the flow of new sales listings coming to the market has contracted at the fastest monthly pace on record in each of the last three reports. With supply at or around record lows in most parts of the UK, lack of choice may weigh further on activity going forward. New buyer enquiries declined markedly at the headline level during July, the fourth consecutive month of falling demand. This weakness was widespread, with virtually all areas of the UK experiencing a dip in demand during July. In keeping with the deteriorating demand backdrop, sales volumes declined sharply and at the national level, a net balance of 34% more respondents reported a fall in sales… Continue reading
Research shows just 18% of UK mortgage holders overpay to reduce their loan
Mortgage holders in the UK could save over £1,800 in interest alone through regular overpayments, according to new research. Some 18% overpay on their mortgage every time a payment is due and 11% have even delayed buying a new car to make the extra payment, however 58% never overpay. Overall UK mortgage holders could save over £14 billion over the next two decades by regularly overpaying, the research from Comparethemarket shows. Overpaying each month by as little as £59, or around 10% of an average monthly payment, means mortgage holders could reduce their mortgage term by approximately one year and four months and possibly save £1,842 on interest alone. For first time buyers the potential savings are even greater. Mortgage holders between 25 and 34 years old could reduce their mortgage term by approximately two years and eight months and save roughly £6,553 on interest by overpaying by 10%. Many home owners are already aware of the benefits of overpayment. The survey found that 52% said that contributing more towards their mortgage each month would make them feel more financially secure, with 19% agreeing that it would make them feel much more secure. Those who do regularly contribute extra to their mortgage overpay by an average of 4.7%. Nearly a fifth said that they overpay every time a payment is due and 15% admitted to overpaying by more than 10% in the last 12 months. Many mortgage holders are willing to give up day to day luxuries in order to afford overpayments. To pay off more of their mortgage, over one in ten people delayed buying a new car, 18% had not taken a holiday abroad and over a fifth put off buying a luxury item such as expensive clothes or a new gadget such as an iPad. However the majority of people still hesitate to put more money towards their mortgage every month, with 58% admitting to never overpaying. Of those who don’t overpay, a fifth think they have too many other outgoings such as household bills, and one in 10 were not aware they could overpay on their mortgage or thought it seemed too complicated. Of those who do not overpay, 44% thought they couldn’t afford the extra payments, yet respondents also said they spent on average £167 each month on non-necessity items, with nearly one in 10 admitting to more than £300. The research also shows that 25 to 34 year olds admitted to spending closer to £210 on luxuries such as going out for dinner or attending the theatre. ‘As a nation we are getting more proactive in searching for the best deals, whether on energy providers or insurance. Whilst committing more of your pay cheque towards your mortgage can seem financially daunting, making small contributions each month, or even a one-off lump sum overpayment, could save mortgage holders thousands of pounds in the long term,’ said Jody Baker, head of money at the comparison website. ‘Sacrificing one meal… Continue reading
More affordable houses to be built at key London regeneration site
The Mayor of London has approved plans for the first major housing development at the Old Oak regeneration site in West London, after intervening to boost the number of affordable homes in the scheme. The Oaklands development will see 605 new homes built, together with a nursery, health centre and commercial space. A target of 50% affordable housing has been agreed for the development, following an intervention by the Mayor Sadiq Khan to boost the number of affordable homes through investment and a profit-sharing mechanism. Old Oak and Park Royal has the potential to deliver 25,500 new homes and 65,000 jobs over the next 30 to 40 years, as well as becoming the key transport interchange for Crossrail and HS2. ‘The development marks a significant step in realising the huge potential of this part of the capital. I am pleased that we have been able to increase the proportion of genuinely affordable homes as part of our ongoing efforts to fix the capital's housing crisis,’ said Khan. ‘The scale and ambition for this development shows London is very much open for business. Despite the uncertainty caused by the UK's vote to leave the European Union, it remains clear that developers and investors see long term potential in our city,’ he added. According to Neil Hadden, chief executive at Genesis Housing Association, the redevelopment at Oaklands in one of Hammersmith and Fulham's most important regeneration sites. ‘We will now be able to provide hundreds more affordable homes for Londoners on a once derelict site. Partnerships such as the one we have with Queens Park Rangers Football Club (QPR) enable us to invest, not only in building new homes, but in developing new communities. We will now be able to provide hundreds more affordable homes for Londoners on a once derelict site,’ he added. QPR co-chairman Tony Fernandes said the firm is committed to bringing forward other development sites in Old Oak as soon as possible to create the homes that London desperately needs. Of the 242 affordable homes, half will be for social and affordable rent, with the other half being for shared ownership. The application was approved by the Old Oak and Park Royal Development Corporation, the organisation that has planning control over the Old Oak regeneration site, on July 13, 2016. The project will also include a new link road into Old Oak which could unlock further development north of the Grand Union Canal. The initial application from Queens Park Rangers Football Club and their development partner Genesis Housing Association proposed 200 affordable homes or 33% of the total. The scheme has now attracted GLA Affordable Housing Grant Funding to raise the number of affordable homes to 242, some 40% of the total with a review mechanism to ensure that any surplus profit as the scheme is implemented will be used to provide more affordable units up to 50%. Continue reading
