Tag Archives: real-estate
Flats cost more in the UK than semi-detached properties, new research shows
On average home buyers in the UK are paying almost £20,000 more for flats than semi-detached properties, new research has found. This could be one reason why first time buyers are bypassing flats in favour of semi-detached homes, according to a study by leading lender the Halifax. It shows that the average price of a flat in the UK has risen by £86,474 since property prices were at their lowest in late 2008 from £150,749 to £237,223 at the end of 2015. The 57% increase in the average price of a flat is significantly higher than the 37% rise for all residential properties over the same period. Additionally, it means that buyers are on average now paying almost £20,000 more for a flat than for a semi-detached home. Detached homes recorded the smallest rise at 20% over the past seven years, while terraced and semi-detached houses saw price rises of 38% and 34% respectively since 2008. The research report explains that a considerable proportion of the national rise in flat values since 2008 is due to the rapid increase in flat prices in London with growth of 62% Flats represent a much higher share of the property market in London than elsewhere with 50% of sales in the capital being flats compared with a UK average of 17%. However, if London performance is excluded, then price growth is greatest for terraced homes at 31%, closely followed by semi-detached houses at 29% and flats at 26%. Detached home properties remain the worst performer with 19% growth on this basis. Prices have increased by around 20% across all property types since 2013 with the exception of detached properties, which have seen a much lower rise of 8%. ‘The high prices being paid for London flats have had a significant impact on the national picture when it comes to property type winners and losers. This is the result of more flats being sold in the capital and at the higher end of the market. Such is their popularity that flats continued to outperform other property types in the capital last year, with an annual price growth of 17% by the end of 2015,’ said Martin Ellis, housing economist at the The research also shows that at 30% terraced homes are the most popular followed by semi-detached at 29% as was the case in 2008. But there have been some changes in market composition over the past seven years, with an increase in the share of semi-detached homes from 25% to 29%, whilst the proportion accounted for by flats has fallen from 22% to 17%. This shift from flats to semis has been particularly marked for first time buyers. Semi-detached homes have risen in popularity, accounting for 29% of purchases in 2015 compared with 23% in 2008. However, flat sales for first time buyers have fallen from 32% of all property sales to 23% over the same period. ‘Semi-detached and terraced homes have remained the most popular… Continue reading
Views sought on UK Government’s Starter Home regulation
The UK government is seeking views on regulations surrounding its flagship Starter Home programme in England and has issued a consultation document. Under the regulations, which will form part of the Housing and Planning Bill, the government plans to allow build to rent developers to build Starter Homes off-site. ‘We propose that private rented sector developments could contribute to starter home provision and the requirement should be met through an offsite contribution for delivery of starter homes,’ the consultation document says. Overall it proposes a new statutory framework for Starter Homes that will include a general duty on local planning authorities to promote the supply of Starter Homes when carrying out their planning functions. The Bill would include a clause that sets a Starter Home requirement which means that local planning authorities may only grant planning permission for residential developments if the Starter Homes requirement is met. There would be reporting arrangements to ensure local communities, and especially first time buyers, are aware of what action local planning authorities are taking to support the delivery of starter home; and powers for the Secretary of State to intervene if local planning authorities fail to carry out their functions related to Starter Homes. ‘We are taking forward ambitious measures to increase the supply of housing and improve prospects of home ownership for many. We aim to deliver one million new homes to boost housing supply significantly. We want to ensure young people are not denied that which their parents took for granted, the opportunity to buy their own home, settle down and enjoy the security that home ownership brings,’ said Housing and Planning Minister Brandon Lewis. ‘That is why we have committed to building 200,000 high quality Starter Homes exclusively for young first time buyers under 40, to be sold at a minimum of 20% below the open market value. We want to see Starter Homes built on housing sites across the country,’ he explained. ‘The Housing and Planning Bill sets out the statutory framework for the delivery of Starter Homes, and will be supported by changes to national planning policy,’ he pointed out. The Government has already announced a £2.3 billion funding package to support the delivery of up to 60,000 Starter Homes. Of this funding £1.2 billion will, in the first instance, be made available to remediate or assemble brownfield land to deliver at least 30,000 Starter Homes through the Starter Homes Land Fund. The technical consultation document seeks views on the details for the regulations to be made under powers contained in the Housing and Planning Bill, including options for the Starter Homes requirement on reasonably sized sites. ‘We want to hear views so the resulting regulations are feasible, proportionate and effective. I am confident that these reforms will help a generation of young people into home ownership,’ Lewis added. The British Property Federation has been calling for build to rent developments to be exempt from providing an on-site Starter Home provision throughout the… Continue reading
Low supply results in existing home sales in the United States tumbling by over 7%
Existing home sales in the United States tumbled in February amidst unshakably low supply levels and steadfast price growth in several sections of the country, according to the latest index report. But prices are still increasing with the data showing that the median existing home price for all housing types in February was $210,800, up 4.4% from February 2015. It was the 48th month in a row for price growth. The data from the National Association of Realtors also shows that all four major regions saw sales fall, led by the Northeast and Midwest, with overall transactions down by 7.1%, the index report data shows, but sales are still 2.2% higher than a year ago. ‘Sales took a considerable step back in most of the country last month, and especially in the Northeast and Midwest,’ said Lawrence Yun, NAR chief economist. Yun explained that a lull in contract signings in January from the large East Coast blizzard, along with the slump in the stock market, may have played a role in February's lack of closings. ‘However, the main issue continues to be a supply and affordability problem. Finding the right property at an affordable price is burdening many potential buyers,’ he added. According to Yun, job growth continues to hum along at a robust pace, but there appears to be some uneasiness among households that the economy is losing some steam. This was evident in NAR's latest quarterly which revealed that fewer respondents believe the economy is improving, and a smaller share of renters said that now is a good time to buy a home. ‘The overall demand for buying is still solid entering the busy spring season, but home prices and rents outpacing wages and anxiety about the health of the economy are holding back a segment of would-be buyers,’ Yun pointed out. The data also shows that total housing inventory at the end of February increased 3.3% to 1.88 million existing homes available for sale, but is still 1.1% lower than a year ago. Unsold inventory is at a 4.4 month supply at the current sales pace, up from four months in January. All-cash sales were 25% of transactions in February, down from 26% both in January and a year ago. Individual investors, who account for many cash sales, purchased 18% of homes in February compared to 17% in January, matching the highest share since April 2014 while 64% of investors paid cash in February. ‘Investor sales have trended surprisingly higher in recent months after falling to as low as 12 percent of sales in August 2015. Now that there are fewer distressed homes available, it appears there's been a shift towards investors purchasing lower priced homes and turning them into rentals. Already facing affordability issues, this competition at the entry level market only adds to the roadblocks slowing first time buyers,’ Yun explained. The share of first time buyers fell to 30% in February, matching the lowest share… Continue reading
