Tag Archives: middle-east
UK’s Home Counties prime property rents seen as competitive
Prime rents across the Home Counties in the UK rose by 0.9% in the first three months of 2016, and on an annual basis rents were 1.7% higher than a year previously. The annual figure is down from 4.7% in March 2015, according to the latest Knight Frank index report which says that this moderation in annual rental growth reflects a desire from landlords to remain competitive in what is increasingly becoming a tenant’s market. The index report also shows that the number of tenancies agreed between January and March was nearly 10% higher year on year and there was a 31% rise in enquiries from individuals relocating for work both from London and internationally. However, the rental market has continued to be location specific with Guildford and Beaconsfield seeing the highest levels of rental growth so behind these headlines a number of submarket trends exist. While activity has been focused on the sub £4,000 per month price bracket so far in 2016, with such tenancies accounting for over 50% of deals over the year to date, there has also been a pick-up in interest for lets of £10,000 and above after a fairly subdued 2015. The report says that landlords of larger properties have been more willing to negotiate on rents which reflects the relatively high levels of prime stock on the market, and a desire to keep void periods to a minimum. ‘This greater flexibility at the top end of the market, and the continued demand for smaller family homes close to good schools, underpinned a 9% increase in the number of tenancies agreed across the Home Counties between January and March compared to the first quarter of 2015,’ said senior analyst Oliver Knight. He pointed out that there was also an uptick in demand from individuals relocating for work both from London and internationally, with 31% more corporate enquiries compared to the previous three months. ‘However, more volatile economic conditions and a weaker financial services industry mean corporate budgets have been reduced. The European Union referendum in June is likely to heighten this mood of uncertainty in the short term,’ he added. Continue reading
Official figures confirm buying frenzy in UK in run up to stamp duty change
Official figures from HMRC confirm that there was a large increase in property sales in the UK in March 2016 which was associated with stamp duty change. House sales were 77% higher than March 2015 and 75% up month on month and the HMRC report states this must be directly linked to a rush to buy ahead of the new 3% stamp duty charge for additional homes. There has been plenty of anecdotal evidence that buy to let investors were rushing to beat the 01 April deadline and this is now confirmed. However it is likely that sales in April will fall considerably as a result of the frenzy. Even the seasonally adjusted estimate shows that the number of residential property transactions increased by 41.5% between February 2016 and March 2016 and increased 69.7% compared to March 2015. ‘The large increase in transactions for March 2016 is likely to be associated with the introduction of the higher rates on additional properties in April 2016,’ the HMRC report says. ‘Additional non-tax factors may have played a role as well, for example the Bank of England's plans to curb buy to let mortgages resulting in a rush to purchase,’ it adds. The HMRC figures also shows that for March 2016 the number of non-adjusted residential transactions was about 74.8% higher compared with February 2016. Lucian Cook, Savills head of residential research, pointed out that even on a seasonally adjusted basis volumes were up 40% on February 2016 against a backdrop of economic uncertainty, the forthcoming referendum on the future of the UK in the European Union referendum and no loosening of mortgage lending criteria. He also pointed out that the latest data from the Council of Mortgage Lenders shows mortgage lending was 43% higher in March compared to February, and 59% higher than March 2015. ‘This suggests that while borrowing to support this uplift in sales volumes has been significant, there has also been a notable weighting towards cash buyers. All these figures confirm a frenzy of buying activity before the 01 April introduction of the 3% stamp duty surcharge for additional homes purchases,’ Cook explained. ‘It underscores the significant distorting effect that stamp duty changes can have on the housing market. This is clearly a one off event and such volumes are unsustainable against a backdrop of economic uncertainty and the prospect of an increased regulatory environment for buy to let borrowing,’ he added. ‘We’d expect a significant fall in transaction levels in the second quarter of the year to offset the March activity and the stamp duty surcharge to act as a longer term drag on housing transactions,’ he concluded. Doug Crawford, chief executive officer of My Home Move, said that March was the busiest month the business has ever seen with a record number of transactions. The busiest ever day for completions was 31 March, reaching a total of 1,120 in the single day. ‘The new stamp… Continue reading
House prices fall in Scotland for first time in eight months
Scotland has seen its first dip in house prices for eight months with the latest index showing a fall of 1% month on month despite a surge in sales. Prices are also down 2.1% year on year, taking the average price of a home to £168,020, according to the latest Your Move monthly index. It is the first monthly fall since June 2015 and comes at the same time that homes sales registered their strongest February since 2008 with growth of 19% year on year. It suggest that the growth in sales is down to added demand from buy to let investors ahead of the April stamp duty change and adds the hesitation at the higher end of market ahead of the upcoming elections could be having an effect. Edinburgh has been knocked off the top spot for price growth and Midlothian was the only area to break a record for property values in February, surpassing its pre-crisis peak. According to Christine Campbell, Your Move managing director in Scotland, the sudden dip in prices will be a welcome reprieve for those attempting to get their foot on the property ladder. ‘House prices are also down compared to the same time last year, but this tells us more about the turbulence caused by the introduction of the Land and Building Transaction Tax (LBTT) at the beginning of 2015, than anything happening in the market right now,’ she explained. She pointed out that another key barometer is pointing to a lot of positivity in the market and that is that property sales in Scotland have flouted seasonal trends to jump 10% month on month. ‘This impetus also meant that purchase activity was concentrated at the lower end of the market with aspiring landlords snapping up affordable options. We can see evidence of this in Edinburgh and Glasgow, where sales of flats, a popular investment choice, have soared in the three months to February 2016,’ said Campbell. ‘But at the same time, there has been a slowdown at the top end of the market due to uncertainty surrounding the upcoming Scottish Parliament election and European Union referendum, particularly among foreign buyers. This imbalance between the volume of cheaper and more expensive property sales is skewing the overall measure of price growth, and tipping it downwards,’ she added. Campbell also pointed out that a hesitation at the prime levels of the market has hit average house prices in Edinburgh, knocking Scotland’s capital off the top spot and into second place in the ranking of areas by property value. The index shows that Edinburgh’s house prices have declined 3.2% month on month due to a drop off in high value home sales, with foreign buyers possibly delaying purchases until after the EU referendum. Meanwhile, East Lothian has seen home values up 9.1% or £19,548 from January and in Midlothian house prices have set a new record. The typical home in the area is now worth £198,977,… Continue reading
