Tag Archives: middle-east
Average house prices in UK continued to rise in May, latest ONS index shows
Average house prices in the UK increased by 8.1% in the year to May 2016, unchanged from the previous month and continuing a run of strong growth seen since the end of 2013. The data from the Office of National Statistics (ONS) also shows that the average UK house price was £211,000 in May 2016, some £16,000 higher than in May 2015 and £2,400 higher than April 2016. The ONS report says that the main contribution to the increase in UK house prices came from England where they increased by 8.9% over the year to May 2016, with the average price in England now £227,000. Wales saw house prices increase by 3.6% over the latest 12 months to stand at £143,000. In Scotland, the average price increased by 4.0% over the year to stand at £141,000 and the average price in Northern Ireland is currently £118,000. On a regional basis, London continues to be the region with the highest average house price at £472,000, followed by the South East and the East of England, which stand at £306,000 and £265,000 respectively. The lowest average price continues to be in the North East at £124,000. London was also the region which showed the highest annual growth, with prices increasing by 13.6% in the year to May 2016. The South East at 12.9% and the East of England at 12.8% also had high annual growth. The lowest annual growth was in the North East, where prices increased by 3.2% over the year. It is low interest rates, increasing employment and wage inflation that are supporting house price growth, according to John Goodall, chief executive officer of peer to peer platform Landbay. But he pointed out that the index has yet to see the effects of Brexit on prices. ‘What is clear is that a lack of housing supply will remain a crucial issue. Theresa May's new government must now commit to further housebuilding pledges and recognise the increasingly important role the private rented sector plays in the housing mix,’ he added. Rob Weaver, director of investments at property crowdfunding platform Property Partner, believes that housing activity was relatively mute in May due partly to a double whammy of tax changes, namely the stamp duty hike for second homes and the cuts to mortgage interest relief. ‘However, prices appear to be holding and even increasing in many areas due to the fundamental imbalance in supply and demand. Despite a recent slowing down in London, the capital still remains the engine of the housing market in the longer term, showing price rises more than almost double the annual rate of all other regions apart from the South East and East of England,’ he pointed out. ‘Following recent Bank of England announcements on softening monetary policy, it looks likely home owners mortgage interest payments will remain historically low for much longer than expected. This could help continue to support prices over the next 12 months,’ he added. However, Jonathan Hopper, managing director of the buying… Continue reading
Calls for new home building quality to be improved in UK
Members of Parliament in the UK and construction experts are calling on the Government to set up a New Homes Ombudsman to mediate in disputes between home buyers and house builders. This is one of 10 recommendations setting out measures to improve the quality of workmanship in new homes and provide consumers with easier and cheaper forms of redress, to get problems fixed. According to the All Party Parliamentary Group for Excellence in the Built Environment (APPGEBE) house builders should be upping their game and putting consumers at the heart of their business model and the Government should use its influence to promote quality at every opportunity. ‘The Government is intent on seeing the construction of one million new homes within the course of this Parliament. However, our view is that increasing the quantity of new homes must not be achieved at the expense of their quality,’ said Chairman of the group, Oliver Colvile. ‘It is clear to us that there is a quality gap between customer demands and industry delivery. Closing this gap will only come about, we believe, if housebuilders make a concerted effort to create a more consumer focused culture. From the evidence we heard, consumers want to see an improved quality of build, homes that are fit for purpose and an easy to understand warranty,’ he pointed out. He added that when something is wrong, consumers want an affordable and accessible means of putting it right. ‘To this end we have set out a series of measures to redress the imbalance between buyers and sellers,’ he said. The report says that the role of the building control inspector is a key part of the process and it recommends that there should be a minimum level of compliance inspections. It also says that new home buyers should be given information about the building inspections carried out as this will improve transparency. The role of a New Homes Ombudsman would include mediating disputes between consumers and their builders or warranty providers to offer a quick resolution procedure paid for by a housebuilders’ levy. The report also recommends that house building sales contracts should be standardised as this would remove much of the uncertainty that presently arises from the bespoke nature of each builder’s sales contract, which can deter so many from pursuing claims Buyers should have the right to inspect properties before completion and this would discourage builders from serving notices to complete prematurely, or concealing major defects until after they have received the full purchase price, and would also encourage better quality control and site management pre-completion Builders should be required to provide buyers with a comprehensive information pack, the aim being to improve transparency of the design, building and inspection process. The pack should contain information including, designs and plans, specifications and details about both warranty and building control inspections, when carried out and by whom. The report suggests that the Department of Communities and Local Government should commission a thorough… Continue reading
Buy to let rush boosted rental supply in the UK, especially London
The buy to let rush in the UK ahead of stamp duty changes in April boosted rental supply with London seeing the biggest increase, a new analysis report shows. The rental market received a boost of 8% more new properties advertised to rent in the second quarter of the year compared to the same quarter in 2015, according to the data from property portal Rightmove. The majority of new properties were in London, up by 22% on the same period last year, resulting in a small drop in the region’s average asking rental price to just under £2,000 per month. Despite the increase in supply, all other regions recorded a rise in average asking rents this quarter, with the East of England’s 5% annual change leading the way. The data also shows that rental enquiries were up 2% in the second quarter 2016 compared to last year, and up 1% in the two weeks after the referendum compared to same two weeks in 2015, as the lettings market shows no immediate signs of a Brexit impact. The supply boost failed to stop rents rising 2.8% in the second quarter outside London in England and Wales, though this is only 0.1% higher than the rise in the second quarter of 2015. The East of England’s year on year increase of 5% was the highest of all regions, while the South East saw rents increase the most over the quarter, up by 5.1%. London saw the biggest increase in supply this quarter compared to any other region with growth of 22%, resulting in a fall in average asking rents by 1.1% to just under £2,000 per month. ‘The big spike in March transactions resulting from a large number of investors beating the more punitive stamp duty tax deadline has created a rental supply boost which is good news for prospective tenants actively looking for a new place to live,’ said Rightmove’s head of lettings Sam Mitchell. ‘Now that the stamp duty changes have come in this boost may be short-lived, as landlords consider whether or not to make further purchases. Our own research among landlords shows that just under a third of them are concerned that the stamp duty changes, plus the forthcoming tax relief changes, will potentially wipe out their profits,’ he explained. ‘Once the tax relief changes start to be phased in from next year new buy to let activity could slow further. However rental demand is still outstripping supply in many areas of the country so we may see a shift by investors to look in areas that offer better yields for long term property investments,’ he added. The report suggests that investors planning to continue expanding their portfolio could look to some of the areas with highest demand from prospective tenants. The top five places include Ashton-Under-Lyne, Stalybridge and Oldham in Greater Manchester where average asking rents for two bedroom properties are around £520 per month and you can buy a two bed… Continue reading
