News
Wealthy buyers returning to the Caribbean market
Wealthy British buyers who are feeling more confident about the economic outlook are returning to the luxury real estate market in the Caribbean, with Barbados proving popular again. Indeed, the luxury Royal Westmoreland resort in Barbados, which is popular with British footballers and celebrities, has reported the best sales period in more than 10 years, with $60 million of villa sales largely going to British buyers. The firm says that overall the appetite for overseas property is returning and Barbados is regarded as an appealing place to have a second home with $30 million of new villas now being built and another $30 million of homes in the next six to nine months. ‘This is the busiest period for me in 11 years at Royal Westmoreland. Everything we are building is for somebody who has purchased the property so we are not building anything speculative. We have seen a substantial turnaround from the previous five years,’ said Royal Westmoreland construction director Ian Putley. According to his colleague, sales Director Kim Goddard, Most of the sales are to British buyers who are feeling more confident about the economy back home and in the product that is Barbados. ‘They want a sure bet when it comes to making their lifestyle choice for a second home. This means built amenities, established vibrant community and lower risk on protecting resale values,’ she explained. The Royal resort, which is itself up for sale currently, with a price tag of $75 million, has expanded onto new land purchased in 2006 which covers 250 hectares and has planning permission for another golf course and hotel. The new collection of 31 lots are on a high ridge with views over the golf course and the southern stretch of the sought after west coast. Famous owners of homes at Royal Westmoreland include former cricketers Andrew Flintoff, Michael Vaughan and Ian Botham, golfers Ian Woosnam and Lee Westwood, boxer Joe Calzaghe and footballers Wayne Rooney, Andy Cole, Rio Ferdinand and Stuart Pearce. It is the only completed gated community in Barbados with a golf course and a beach club, and is a short drive inland from the Platinum Coast known for its white sandy beaches, chic restaurants and laid back beach bars. Wealth intelligence firm Wealth-X has just brought out a report saying that there is increased demand for homes in the Caribbean. It points out that while Caribbean luxury real estate values remain 10% to 15% below their 2009 highs, prime property sales increased by more than 10% in 2014. According to Wealth-X president David Freidman, the firm’s latest research shows that resurgent luxury real estate markets in the Caribbean, and specifically Barbados are in a good position to take advantage of long term growth trends in global ultra high net worth buyer demand for real estate. The report suggests that wealthy investors from China and Russia in particular are looking to buy in the Caribbean. They are looking to buy luxury real… 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
UK property prices up 3% month on month with record highs across the country
UK residential property prices have risen to a new record as buyers act but sellers hold back with six out of 10 regions posting price highs, the latest real estate index shows. Prices were up 3% or £8,460 to an average of £294,351 and the clear cut general election result is regarded as having boosted the market, according to the May index from online portal Rightmove. It also reveals tighter supply in the market with number of properties coming to market down 8.5% on same period a year ago, though £2 million plus properties buck this trend with and 86% month on month leap in new listings. The firm says that such high demand and low supply highlights the urgency for the delivery of more new build homes. ‘Some buyers had been holding back in the weeks before the election, leading to some sellers suffering an unseasonal price standstill in the late spring. In particular, sentiment and prices got hit in the mooted mansion tax price brackets. Now the unexpected election outcome has caused a strong rebound, prompting an upturn in buyer demand and helping new seller asking prices to hit their highest ever levels,’ said Miles Shipside, Rightmove director and housing market analyst. ‘Agents report that the election surprise has given a boost to market sentiment, driven by more certainty about future economic and taxation policies. While would be buyers have been able to respond quickly to these events, many potential sellers have so far failed to come to market. This has pushed up some of the asking prices of those properties that have been marketed, meaning that buyers are faced with paying a new average record price high for the more limited choice available. It could be said that this is the price of political certainty,’ he added. But he pointed out that pre-election jitters contributed to a small fall of 0.1% in Rightmove’s May index, which has made the size of the rebound in June appear somewhat more dramatic. However, while June’s 3% rise is partly catching up on lost ground from last month’s fall, it is also a reflection of strong housing demand not being matched by suitable supply in many parts of the country. He says that evidence of this is that six out of 10 regions have set new record price highs this month as the supply/demand imbalance and consequent upwards price pressure continue to head further north. As well as the four southern regions, both the East Midlands and West Midlands reached all-time price highs this month. London has seen the strongest monthly price performance, up by 5.7%, aided by the higher priced boroughs seeing more top end owners willing to come to market now that the threat of the mansion tax has been removed. Continue reading
