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UK landlords fear more woe in UK Budget
Landlords in the UK are concerned that the forthcoming Budget speech by the Chancellor of the Exchequer George Osborne could hold more bad news for their property investments. Some 66% feel there will be more bad news and a fifth are already planning to pull out of buy to let this year, according to new research by property crowd funding platform The House Crowd. It suggests that property investors feel increasingly under attack, with legislation such as the EU Mortgage Credit Directive and increase in stamp duty on buy to let properties coming into force. Over 70% of those surveyed believe that these changes will have a negative impact on their investments, with smaller investors set to be hit hardest by ever tightening profit margins. 43% feel that the government is trying to squeeze small investors out of the market altogether. Over half, 54%, of landlords indicated that they do, however, support tighter regulation from the Bank of England to clamp down on rogue landlords. Despite sentiment towards traditional buy to let turning sour, it appears that investors still view bricks and mortar as the best way to secure their futures. The UK wide survey found 33% still prefer to invest their money in property as it is a tangible asset. It also found that 38% think landlords need to be looking at smarter ways to invest while 57% think buy to let will remain a strong option as there is a continued housing shortage in the UK. ‘With house prices continuing to rise and the property market outperforming the FTSE, bricks and mortar presents a strong investment option,’ said Frazer Fearnhead, chief executive officer of The House Crowd. ‘Despite this, new legislation is making buy to let ever less accessible for the small landlords who want to invest in something sensible and tangible to secure their futures. As many of the landlords surveyed identified it's time for beleaguered investors to be looking at their options,’ he pointed out. ‘February was our strongest month yet, as investors turn to property crowdfunding to achieve the returns that property offers minus the stress and risk of being a landlord. Times are hard for the UK's small property investors but it's time to adapt, not despair,’ he added. Continue reading
London to get another 11 new housing zones
The Mayor of London has announced 11 new Housing Zones that will provide 24,554 new homes and create new neighbourhoods across the capital. An additional £200 million has been designated to the final 11 zones, which stretch from Havering to Kingston and Enfield and bring the total number planned in London to 31 which will see 77,000 new homes built. The aim is to boost housing supply, stimulate building and produce the new low cost homes London needs to meet its growing population. Some 34% of the 77,000 new homes will be affordable, alongside transformational regeneration of key town centres, train station hubs and housing estates. The Mayor made the announcement as he officially opened a new affordable housing development in the heart of London's West End. Trenchard House, spanning across Broadwick and Hopkins Street, is a former derelict Metropolitan Police hostel, on Greater London Authority acquired land released by the Mayor. The site has undergone a £54 million redevelopment to build 78 new homes, including 65 affordable one to three bedroom apartments. The affordable apartments are intermediate rent with some offered at 75% discount to market rates. Exact rents are based on resident's incomes, and many of them work night shifts in the theatres and bars surrounding Soho and will now be within walking distance of their jobs. The site, which had lain vacant for almost 13 years, is one of the 414 hectares of land transferred to the Mayor with every surplus site owned by City Hall now released for development. The intermediate homes are part of the 100,000 affordable homes the Mayor is on track to deliver by the end of his term. ‘Meeting the unprecedented demand for housing after 30 years of historic failure to build new homes is a critical issue affecting the capital. That is why I have led an enormous programme of regeneration with my 31 housing zones that will transform communities across London, creating nearly 80,000 new homes, plus new transport hubs and schools,’ said Johnson. ‘This new housing development in the heart of the West End is delivering a life line to hard working local people who were priced out of Soho and desperate to reside nearby their places of work. These apartments are just some of the 100,000 new affordable homes being delivered over my two mayoral terms,’ he explained. ‘This site forms part of more than 400 hectares of developable land the GLA inherited and which I have now released every inch of, to ensure as many homes as possible are built throughout London,’ he added. As part of the Mayor's commitment to double house building, London's Housing Zones will unlock regeneration on hundreds of hectares of brownfield land across the capital. The special status has been awarded to areas identified and packaged up by local authorities. It removes all unnecessary planning restrictions, combined with the funds to maximise development, and fast track homes and supporting infrastructure. Continue reading
Sales prices still rising in Miami at beginning of 2016, latest data shows
Sales prices in Miami continued to rise in January as existing single family homes and condominiums sold close to list price, according to the latest data from real estate agents. The median sales price for single family existing homes rose 13.7% year on year in January from $237,500 to $270,000, according to the figures from the Miami Association of Realtors, but single family home prices remain at 2004 levels despite four years of increases. The median sales price for existing condominiums increased 8.8% to $205,000 from $188,500 a year ago. Miami-Dade County existing condo prices have risen in 55 of the last 56 months, a period encompassing more than four and a half years. ‘On the heels of a historic 2015 that saw Miami real estate register its most-ever single-family home sales and its third-most total residential transactions, Miami properties remain in high demand,’ said Mark Sadek, 2016 chairman of the association’s board. ‘Properties are selling for higher prices and near asking. While total residential sales decreased in January, single family home and condominium sales remain consistent with historic averages,’ he added. Total existing Miami-Dade County residential sales, which posted a record year in 2013 and near record years in 2014 and 2015, decreased 12.1% from 2,043 sales in January 2015 to 1,796 last month. January 2016’s total sales are in the range of Miami sales during the past five Januarys. Miami-Dade County single family home transactions were 14.4% lower year on year in January, from 963 to 824. Existing condominium sales declined 10% in January 2016, from 1,080 to 972. ‘Strong sales are important for a healthy residential real estate market, but it is not sustainable to set a new all-time sales record each year. Miami-Dade County’s five years of record sales have been unique in the US real estate market. It is anticipated Miami will continue in a sales range consistent with a strong market,’ explained Teresa King Kinney, the association’s chief executive officer. Miami-Dade has continued to experience a significant year on year decrease in distressed sales. Increased competition from new condominium construction has also played a role in the lower total residential sales. Only 22% of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, compared to 34.9% in January 2015. Short sales and REOs accounted for 4.4% and 15.7% respectively, of total Miami sales in January. Short sale transactions dropped 50% year on year while REOs fell 42.2%. Single family home sales increased 18.3% year on year in January in the $250,000 to $400,000 sector, growing from 241 to 285. This sector represented about 34.6% of all total single family home sales in January 2016. Existing condos priced at $150,000 to $300,000 range saw a 25.1% rise in January sales, increasing from 299 to 374. The median days on the market for all Miami properties increased in January. New mortgage disclosure rules, known as the TILA-RESPA Integrated Disclosures (TRID), could be playing a… Continue reading
