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Property prices in Ireland growing faster outside of Dublin, latest index shows
Property prices in Ireland increased 1.3% nationwide in September and are 8.9% higher year on year, the latest official figures shows. But a breakdown of the data from the Central Statistics Office reveals that prices are now growing faster outside of Dublin than in the capital city which is no longer leading the nation. In Dublin residential property prices rose by 0.9% in September and they are now 6.5% higher than in September 2014. This was the lowest annual increase since June 2013 and contrasts with the 20% rise recorded in April. Dublin house prices rose by 1.1% in September while apartment prices decreased by 0.4%. Experts said that the decline is due to the introduction of lending restrictions by the Central Bank’s lending restrictions and the ending of the Capital Gains Tax (CGT) waiver for property purchases. Outside of Dublin residential property prices rose by 1.6% in September and they are now up 11.4% compared with September 2014. This means that across Ireland prices were 34.6% lower than their peak level in 2007 while in Dublin they were 35.6% lower. Excluding Dublin prices were 47.7% lower. Peter Stafford of Property Industry Ireland, which represents property sector firms, pointed out that the last few months have been relatively stable for house prices, with fairly consistent low level growth. He believes that the slowdown in house price growth in Dublin is largely driven by reduced borrowing capacity because of the new Central Bank mortgage rules and he also pointed out that sales are doing well. Between January and August 2015, there were 29,916 housing sales nationwide compared to 23,626 in the same period of 2014 and 16,462 in January to August 2013. But he warned that there is a severe shortage of affordable homes to buy in many urban areas. ‘Population growth, demographic trends, as well as internal migration, will lead to increased transactions into the future. So it is vital that people looking to move house have a genuine choice of affordable accommodation,’ he added. Stafford also explained that the Irish government missed an opportunity in the recent Budget to boost home building and address the shortage. While the government has pledged 20,000 new homes by 2020 it could do more to encourage private builders by reducing the cost of new housing through a fall in VAT and development levies, the organisation has said. He added that while the delayed revaluation of housing for Local Property Tax to 2019 will help home owners over the short term, more needs to be done as part of a wider overhaul of property tax to create a sustainable, predictable and fair property tax system. Continue reading
Rural homes in the UK £43,490 more expensive than those in urban areas
Property prices in the countryside in the UK are, on average, £43,490 or 22% higher than in urban areas, according to the latest annual Halifax Rural Housing Review. There is a rural premium in all regions with countryside homes typically commanding a significant price premium over urban areas, although there are large variations across the country. In rural areas of West Midlands the average house price of £252,927 is £84,610 or 50% higher than in the region's urban areas at £168,317, the largest difference in the index. In the East of England, the premium is £16,806 or 6%, the smallest difference. House prices in rural areas are less affordable than in urban areas, the research also shows. The average property price in rural areas is seven times average annual earnings compared with a ratio of 5.9 in urban areas. The least affordable rural local area district is Tandridge in Surrey where the average house price of £433,932 is 10.8 times local annual average earnings of £40,266. All 10 of the least affordable rural districts in Britain are in southern England, including East Dorset where the average house price of £329,056 is 9.6 times local annual average earnings. This is followed by Purbeck in Dorset at 9.4, Mid-Sussex, Cotswold and North Devon all at 9.2. The least affordable rural district outside the south are Hambleton at 8.2 and Ryedale at 8.1, both in the North York Moors. Copeland in West Cumbria is the most affordable rural district with an average house price of £140,364 that is 3.7 times local average annual earnings of £38,367 while Chiltern is the most expensive with an average house price of £465,970. The next most expensive rural districts are Waverley in Surrey at £462,145, Tandridge and South Oxfordshire at £396,287. The average house price in Chiltern is four times higher than in East Ayrshire at £115,394 which is the least expensive rural district. Despite the higher price for buying in the countryside the gap with urban prices is narrowing, and property prices have risen more slowly in rural areas during the past five years, according to the research. Between 2010 and 2015, the average price of a home in the countryside rose by 13% compared with an average increase of 23% in urban areas. Between 2014 and 2015, the average price of a home in the countryside has risen by 5% compared with an average 8% increase in urban areas, excluding Greater London. Overall, the rural/urban premium has narrowed from 34% or £52,279 over the last decade. First time buyers account for 42% of all mortgage financed purchases in rural areas. This is significantly lower than in urban areas where first time buyers account for 54% of such purchases. Affordability difficulties are the key factor behind the lower level of first time buyers in rural areas. Due to the high level of property prices, getting on the rural property ladder is at its most challenging for first time… Continue reading
Sales of UK property priced over a million fell in first half of 2015
The number of property sales worth at least a million pounds in the UK has fallen in the first half of 2015, down by 11% compared to the same period in 2014. This is in stark contrast to the 46% increase seen in the first half of 2014 and is the first decline in sales since the first half of 2012 when the number of property transactions in this market segment fell by 7% over the corresponding period in 2011. However, since the first half of 2005 million pound home sales have grown by 264%, the data from the latest research report from Lloyds Bank also shows. It adds that whereas last year the top end of the market outperformed the rest, the decline in million pound home sales this year has tracked the rest of the market with sales of properties under £1 million also falling by 11%. Despite falling sales nationally, some areas continue to buck the trend. Virginia Water, Cobham and Beaconsfield are the most expensive towns, with an average house price of over £1 million. This is the first time the average property price has hit £1 million outside of London. Virginia Water, in the historic Borough of Runnymede, where the Magna Carta was signed 800 years ago, is Britain's most expensive town with an average house price of £1,168,992. To live amongst the celebrities of Cobham in Surrey will require paying, on average, £1,042,552 for a home, making it the second most expensive town. In third place is Beaconsfield where the average property price is £1,003,367. ‘The number of homes sold for over £1 million has fallen sharply over the past year, with a pronounced slowdown in the prime and central London market. This may be the effect of the new Stamp Duty rates introduced last December and uncertainty generated by the election in May,’ said Sarah Deaves, private banking director at Lloyds Bank. However, the regional picture is much more mixed and we’re seeing the emergence of towns where the average price is at least £1 million. Whilst there are several London neighbourhoods where prices are already at this elevated level, outside of the capital this is a first,’ she added. Overall there is a mixed regional picture, as sales fall in London but rise in Scotland. Sales of million pound homes in London fell by 15%, the largest decline in the capital since the first half of 2009 when transactions fell by 43% during the lowest point of the housing downturn. In the South East sales in this sector fell by 9% in the first half of 2015 compared to a year earlier. However, in Scotland the sale of million pound homes has more than doubled with a rise of 158%. The only other regions to have seen an increase in sales were Yorkshire and the Humber with growth of 10% and the East of England up 8%. In Wales transactions rose by 29%, albeit… Continue reading
