Tag Archives: finance-update
Housing demand in UK reaches 11 year high
H ousing demand in the UK has reached an 11 year high with the number of housing hunters registering with estate agents reaching almost 430 per branch at a time when fewer homes go on sale. The number of house hunters registered per branch of members of the National Association of Estate Agents reached 439 in June, the highest since August 2004, and sales to first time buyers fell. This is 15% more than in May when 383 house hunters were registered per branch and it comes at a time when supply of housing stock fell from 46 in May to just 44 houses available per branch, widening the growing gap between supply and demand. ‘What we’re seeing is a market that lulled over the general election period, coming back to life in full force,’ said Mark Hayward, managing director of the NAEA. ‘Buyers are feeling more confident and those who put their plans on hold over the election and political aftermath have kicked off their hunt, causing this massive jump in demand. There’s also an impetus to buy right now in light of the impending interest rate rise as buyers fight to buy and fix mortgage rates. But the fact that demand is at an eleven year high without the housing stock to fuel it, is bad news for the market,’ he added. The monthly NAEA report also shows that as the gap between supply and demand widened in May, activity remained consistent, with nine sales made on average per branch for the second month running. However, the number of sales made to first time buyers declined in June, with the group accounting for just 24% of sales, compared to 29% in May. ‘Although activity is still slow, it’s very promising to see that the surge in demand and dip in supply hasn’t caused activity to halt, and houses are still being sold. However, the growing gap between supply and demand is worrying and clearly demonstrates that more needs to be done to plug this. The election was full of promises to build more houses, but now those promises need to be put into bricks and mortar to respond to demand,’ Hayward explained. Continue reading
Firm identifies trend for changing commercial buildings for residential use
There is a growing trend in the property market in Scotland for empty commercial buildings to be changed into residential use, according to real estate consultants. Many commercial properties have recently being sold with a view to being occupied for alternative use, according to CKD Galbraith, which is increasingly being asked to evaluate the future potential of a building when valuing the property. The firm says that within the commercial sector, a number of buildings utilised as commercial properties are now being marketed with a view to change of use to residential and offering opportunities for private individuals and property developers. ‘We have been involved in many sales of commercial properties where we have determined that demand for commercial uses was limited and that a property’s prospects were greatly enhanced by promoting them for alternative use, in particular residential,’ said Harry Stott, of CKD Galbraith’s commercial team. Many present fantastic residential opportunities for developers or potential home owners alike to create some unique and stunning homes full of character and history,’ he added. This trend also particularly applies to town house properties in Edinburgh, according to Katie Gibson, a commercial agent within CKD Galbraith’s Edinburgh office. The firm was recently been involved in the sale and purchase of Edinburgh Townhouse Commercial properties in Gayfield Square and Chester Street, which again were of more interest to the residential market. ‘Whilst there is greater demand in Edinburgh for commercial use of town house buildings the potential returns and demand are often far greater for residential conversion particularly in the New Town,’ she explained. ‘We also get a number of private client requests looking to purchase town houses and commercial buildings that have outlived their current usage and offer fantastic opportunities for residential conversion,’ she added. Other examples include the former Ballathie Estate Office which offers limited demand as a commercial property, but presents a prospect for residential purposes subject to consent. Situated in a rural location in Perthshire, it is a single story U-shaped stone building arranged around a private courtyard with feature archway. The property was constructed in 2001 and has been utilised as a farm shop and café and estate office. The internal accommodation comprises two self-contained units which could be used as two separate residential units or linked to form one larger property. North Range, East Lodge at Stanley Mills is another such commercial property which lends itself well to potential residential use. Formerly used as office space it is part of Stanley Mills, a listed complex of buildings established as a cotton mill in the 1780s. However, restricted demand in the area for office use has resulted in CKD Galbraith applying for a change of use consent on North Range, East Lodge to residential which is where the firm believes the principal demand lies. Continue reading
Survey reveals majority of UK tenants are satisfied with current landlord
Some 81% of UK tenants renting their home in the private rented sector are satisfied with their current landlord and 70% believe their rent is value for money, new research has found. The survey also found that 82% said they consider the property they rent to be their home, a fifth of respondents said in the long term they plan to buy their own home and 35% said they expect to stay in the PRS. The survey, carried out during the first quarter of the year for specialist buy to let lender, Paragon Mortgages also revealed that 12% of tenants felt uncomfortable approaching their landlord about extending their tenancy agreement and 6% who had asked for a longer tenancy were refused. However, 57% said they had always been happy with the tenancy offered and 17% had asked for a longer term and their landlord had agreed. ‘The research is really interesting. It is important that we understand the world from the tenant’s viewpoint so we can continue to deliver products that support better standards in the private rented sector,’ said John Heron, the firm’s director of Mortgages. ‘There has been a lot of noise around the need for longer term tenancies for some time and I think there is a common misconception that landlords are not willing to be flexible in the tenancies they offer. Our landlord research demonstrates that many are more than willing to extend terms and in 71% of cases it was the tenant who chose to end the tenancy and not the landlord,’ he explained. ‘We are big supporters of offering longer term tenancies and we were one of the first buy to let lenders to announce we would support the Government’s new model lease and allow landlords to offer 36 month tenancies to those tenants who need that extra security, as we believe this is our social responsibility,’ he added. Continue reading
