Tag Archives: asia
Housing affordability falls in Scotland for third year in a row
Rising house prices in Scottish cities has led to a further deterioration in affordability with average values up 3% from £176,009 in 2015 to £181,077 in 2016. This has resulted in average affordability in Scotland’s cities worsening in the last 12 months from 5.25 to 5.36 times gross average annual earnings, the third successive annual decline in affordability. The data from the Bank of Scotland Affordable Cities Review also shows that on average, affordability in Scottish cities is now at its lowest level since 2009 but is still 12% lower than the peak of 6.12 times earnings in 2008 at the height of the last housing market boom. The overall improvement in affordability across Scottish cities as a whole over the past eight years has been driven by a combination of an increase of 10% in the gross average annual earnings and an average house price decline 3%. Edinburgh is Scotland’s least affordable city where the average house price is 6.12 times the gross average earnings in the city. With an average price of £220,099, houses in Edinburgh are more expensive compared with average earnings than in any other Scottish city. Inverness at 6.03, Aberdeen at 5.72, Dundee at 5.38 and Perth at 5.24 make up the top five least affordable cities in Scotland while Stirling is the most affordable city and the second most affordable in the UK with an average property price of £165,658 which is 4.11 times the gross average annual earnings. Glasgow is the second most affordable city in Scotland and 10th in the UK, with an average house price of £159,580, which is 5.07 times the gross average annual earnings in the city. House price growth has been highest in Aberdeen over the past decade and since 2011 Aberdeen has recorded the biggest price rise of any Scottish city over the past decade and with a gain of 58%, is the only Scottish city to appear in the top 10 UK cities with highest house price growth in fifth place. The report explains that this is as a result of rising housing demand due to the strong performance of the oil and gas sector over most of the period. More recently, Aberdeen has seen a 22% rise since 2011 but prices are not declining due to a decline in the resources sector. ‘The rising house prices over the past three years have resulted in a deterioration in home affordability in Scotland’s cities. Although affordability is at the lowest level since 2009, it is still much lower than the height of the last housing market boom in 2008,’ said Nicola Noble, mortgages director at Bank of Scotland. ‘Aberdeen has recorded Scotland’s highest house price growth over the past decade and more recently during the economic recovery, due to strong performance in the oil and gas sector,’ she added. Continue reading
Property near London’s Crossrail could see price growth of up to 16% by 2020
The Crossrail train system in London, now due to open in less than three years, is likely to result in a 7% rise in average house prices at many locations along its route by 2020, according to new research. Many locations are already benefitting from higher property values, as well as new development and regeneration, and activity is expected to step up another gear in the run up to the line’s opening, the report from real estate services firm JLL says. The research shows that some Crossrail locations are expected to see house price growth of 16% above the Greater London average by the end of 2020 while on average, residential prices around Crossrail stations are forecast to see 7% greater uplift compared to non-Crossrail stations. Woolwich, West Drayton, Whitechapel and Ealing Broadway are the most advantageous locations to develop apartments for sale, the research also says. Woolwich is forecast to experience the highest house price growth along the Crossrail route, with prices expected to rise by 39%, while West Drayton, Whitechapel, Slough, Abbey Wood and Iver are all set to see prices rise by more than 33% over the next five years. ‘Crossrail continues to drive value growth right across its length. In the current market, what is becoming clear is the additional benefit it brings to some of the lower value locations along the route,’ said Neil Chegwidden, residential research director at JLL. ‘It is supporting regeneration through improved accessibility and, as a result, offers a longer-term capital growth potential that may be harder to identify in central zones,’ he added. Continue reading
Inventory disputes falling on the side of landlords in UK
New research shows that for the first time since the start of the tenant deposit schemes in 2007 in the UK more landlords and agents are being awarded 100% of the disputed amount at adjudications than tenants. The figures from the Tenant Deposit Scheme Annual Review 2015 show that 19.8% of all disputes raised by landlords or agents resulted in 100% pay outs to them, while 19.2% of all disputes raised resulted in 100% pay outs to tenants. The remaining 61% of cases saw the disputed money split between the parties. This compares with 2014 when 20.25% of all disputes raised by tenants resulted in 100% payouts to them, compared with 18.21% to landlords and agents. In previous years, tenants have always been awarded the full deposit more often than landlords and agents. Although adjudicators do not seek to decide in favour of one side or the other, many landlords and agents believe that the Courts are biased towards tenants. According to Jax Kneppers, chief executive officer of Imfuna, these results are a sign that the landlords and agents are presenting better documented evidence at adjudications. ‘For the first time, landlords and agents are now more successful than tenants at winning 100% of deposits. This is a significant achievement, an 8.5% increase year on year,’ he said. ‘More and more landlords and agents are recognising the power of digital professional inventories and mid-term inspections and this is why the balance is starting to shift. Many landlords and agents are ensuring that the condition of the property is fully recorded at the start of the tenancy, with a comprehensive inventory, along with a thorough check-in and check-out report,’ he explained. He also pointed out that historically many tenant disputes have gone in favour of tenants, as there was simply not enough evidence to support the landlord or agent’s damage claim and the most common mistake in most inventories is the lack of detail. Often there is not enough appropriate photographs and any accompanying description to show the condition of the property and its contents. For example, many landlords and agents fail to record the condition of sinks and bathroom fittings, as well skirting, doors, floor coverings and kitchen units. If an inventory is not a professional and thorough report on the property, then it is not worth the paper it is written on. ‘Inventory reports should contain a full description of the condition of the property, noting detail on every aspect of damage and its location at the start of a tenancy. Good photographs provide vital evidence and should be of a high quality when printed up to A4 or A3 size, so that any damage can be clearly seen,’ said Kneppers. ‘Unless landlords and agents have a water tight inventory, they are at risk of disputes and expensive repair bills. Our research shows that landlords and agents who… Continue reading
