Tag Archives: british
Fewer foreigners buying in France as housing market shows signs of improvement
Foreign buyers are not yet returning to the French property market with the latest figures from Notaires showing that numbers have dropped almost threefold in the last decade. Overseas buyers made up just 1% of property sales in 2015 compared to the peak of 2.8% in 2006, just before the global economic crisis. This number dropped to 1.4% by 2014 and then to 1% in 2015 and numbers are not likely to rise much in 2016. But there are signs that the property market in France is picking up with figures, which exclude new builds, from the Notaires showing that overall house prices increased by 0.4% in the final quarter of 2015 while apartment prices rose 0.3% in metropolitan areas, but are down 1.6% and 1.9% year on year respectively. In Paris and the surrounding area house prices increased by 1% in the third quarter of 2015 and apartment prices were up by 0.7%, House prices are now down 1.1% and 1.3% year on year respectively. In rural areas house prices increased by 0.2% quarter on quarter but apartment prices fell by 0.1%. House prices are down 0.7% year on year and apartment prices down 2.3% year on year. They predict a stable market in the coming months with apartment prices up around 0.4% and house prices by 1.4% by the end of the first quarter. The report adds that a year on year rise in sales of 12.5% up to the end of November 2015 bodes well for the market in 2016. This level of sales has not been seen since Spring 2012. British buyers still make up the majority of overseas buyers, purchasing some 32.6% of foreign bought property in 2015. The next most common nationality was Italian, at 15.3% and Belgians at 11.1%. The most popular parts of France for British buyers remain old favourites like Normandy, Brittany, the Dordogne and the Loire. They buy just 7% of foreign owned property in Paris. In Normandy and Brittany some 72% of buyers are British, 10% Belgian and 3% German, while next door in an area covering the Loire and Dordogne some 78% of foreign buyers are British, 6% Belgian and 5% Dutch. The British are also the biggest group of foreign buyers in Aquitaine and along the Spanish border towards Provence at 42% with 15% Belgian and 12% Spanish or Portuguese. While in the Alps and down the Rhone some 32% are British, 22% Swiss and 12% Belgian. In PACA the largest group of foreign buyers are Italians at 28%, British at 15% and Scandinavians at 12%. In the North East 28% are Belgian, 17% British and 14% Dutch while in an around Paris 20% are Italians, 8% American and 7% British. Despite the fall, the report from the Notaries’ indicates that the financial climate for foreigners, particularly British people due to currency rates, for buying a house in France remains positive. The Notaries’ report says that since the Spring of 2015 the… Continue reading
Rental values increased across almost every London borough in 2015
Residential rental values have climbed to record highs across almost every borough in London as renting a home has become a more attractive option that buying, a new report suggests. Changes in stamp duty, fluid job markets and the way many overseas professionals are taxed in the UK, means that many people are opting to rent, according to the report from Benham & Reeves Residential Lettings. With demand continuing to rise and the anticipated exit of amateur landlords from the market due to more restraints such as the new 3% top up stamp duty, rental values in 2016 are likely to continue on this upward trajectory, the firm says. Its figures for 2015 show that virtually every borough in zones 1 and 2 saw rental values increase by more than 4% year on year. Indeed, only Richmond-upon-Thames and a small area around Edgware Road in central London saw rents fall. However, rental values became slightly more modest the further away from the city centre with even outlying boroughs such as Barnet and Ilford seeing significant growth, the report points out. Hackney saw the biggest increase in rental values in 2015, up 33% while Bow, Bethnal Green and Haringey all experienced double digit growth as well. As the British economy has emerged from recession and tenants have finally moved to bigger accommodation in line with increasing household income, the rental market has benefitted, the report also points out. The most significant change, however, has been the changes to stamp duty which have affected London more than any other area of the country. With the average of a house in London now standing at over £500,000, many family homes are now liable for the 10% stamp duty rate with many modest family homes even incurring the 12% stamp duty rate. Many tenants have calculated that they can rent for years, often in better neighbourhoods than those in which they could afford to buy, for the sum they'd pay in stamp duty alone. ‘George Osborne has done more for the rental market than any other chancellor in history. Thanks to the changes in stamp duty rates, he has made renting long term a more attractive option for many tenants. Couple that with the fact that many overseas tenants can write their rent off against tax but must pay capital gains on any property they own and renting becomes a no brainer,’ said Marc von Grundherr, the firm’s lettings director. ‘We are advising landlords who are already in the market to hang onto the properties, and not be tempted to sell ahead of changes to wear and tear allowance and mortgage relief. Many nervous investors will leave the market and when they do, supply will be limited even further. The rent increases that will inevitably result will more than mitigate landlords' extra costs,’ he added. Continue reading
House price growth continued across the UK in November, latest ONS data shows
House prices in the UK increased by 7.7% in the year to November 2015, up from 7% the previous month, according to figures from the Office of National Statistics. House price annual inflation was 8.3% in England, 1.3% in Wales, 0.4% in Scotland and 4.6% in Northern Ireland. The ONS data also shows that house price growth in England were driven by an annual increase in the East of 10.2%, the South East at 9.8% and London also at 9.8%. Excluding London and the South East, UK house prices increased by 5.8% in the 12 months to November 2015. On a seasonally adjusted basis, average house prices increased by 0.8% between October and November 2015 and prices paid by first time buyers were 7.4% higher on average than in November 2014. The continued upward trend is likely to exacerbate affordability issues for first time buyers, according to Steve Bolton, founder of Platinum Property Partners who added that it is a result of the current dearth in property supply. ‘Recent initiatives aimed at addressing the challenges faced by first time buyers show little signs of reversing this trend. The Chancellor’s decision to levy a 3% surcharge on stamp duty for landlords and second home owners may be with first time buyers’ interests at heart, but in reality this is likely to drive up house prices further in the short term as buyers rush to compete purchases before spring,’ he explained. ‘The stamp duty changes and restriction on buy to let tax relief gives the impression that a strong private rental is a barrier to popular home ownership. However, the reality is that by attacking private landlords and increasing buy to let costs, tenants are likely to face rising rents which is a huge barrier to future home ownership,’ he pointed out. ‘The tax grab is targeted purely at landlords with mortgages, excluding the wealthiest landlords. This is unfair and undemocratic, which is why we’re currently co-heading a legal challenge to fight these changes. Having received considerable industry support, as well as raising funding for the initial stage in a matter of days, its clear many landlords agree the tax changes pose a serious threat to the future of the buy to let market,’ he added. Rishi Passi, chief executive of Oblix Capital believes that the lack of supply is unlikely to change in the short term. ‘Better job prospects, wage improvement and recurring delays in interest rate rises mean that it’s likely this surge in house sales and price inflation will continue, for the meantime at least,’ he said. ‘Further investment is needed to encourage house building, stem the supply imbalance in crowded markets, and ensure that small and medium sized developers have access to the finance they need,’ he added. Jonathan Hopper, managing director of buying agents Garrington Property Partners, pointed out that overall first time buyer prices are rising more… Continue reading
