Tag Archives: british
British property rents up 2.7% annually, fastest rate in three years
Private rental prices in the UK increased by 2.7% in the 12 months to September 2015, but there are considerable regional variations, according to the latest data from the Office of National Statistics. Private rental prices grew by 2.8% in England, 1.6% in Scotland and 0.5% in Wales, while excluding London they increased by 1.8% year on year. In the capital city they were up 4.1%. Rental prices increased in all the English regions. The largest annual rental price increases were in London followed by the South East at 2.7% and the East also at 2.7%. Rental price increases have been stronger in London than the rest of England since November 2010. The ONS index report says that the rental market in Great Britain continued to show signs of strength with rental prices now growing at their joint fastest annual rate since October 2012. Increasing demand for rental properties coupled with low supply may be supporting price growth, it adds. August’s ONS House Price Index showed that house price growth has typically been stronger than rent price growth for a number of years. The Bank of England’s Agents’ Summary of Business Conditions for the third quarter of 2015 reported the long term growth in demand for rental properties continued in the three months to September. The Residential Market Survey from the Royal Institution of Chartered Surveyors (RICS) for September confirmed this robust growth, noting the strongest tenant demand since the second quarter of 2012 in the third quarter of 2015. Despite signs of a slight increase in supply growth, growth in demand continues to outpace supply. While the latest RICS release did suggest a marginal increase in new landlord instructions, the longer term trend within the wider housing market is one of under supply, the report points out. Reflecting the Bank of England’s August Inflation Report, which noted that supply remains weak within the housing market, the Association of Residential Letting Agents reported a dwindling supply as the average number of properties held per branch fell by 5.8% in August. According to Rob Weaver, director of investments at property crowdfunding platform, Property Partner, it is no surprise than rents rose the most in London, as the supply issue in the capital is especially pronounced. ‘We need to build more homes, but there are a number of obstacles getting in the way, from slow moving planning departments to the practice of land banking. Recent initiatives such as the Government's decision to make it easier to convert commercial property into residential property are a step in the right direction,’ he said. ‘Unused office space is a way to tackle the housing shortage without eroding the green belt. We need more initiatives like this from both the public and private sector if we are to get Britain building and genuinely improve supply,’ he added. Steve Bolton, founder of Platinum Property Partner, also believes that a shortage of suitable properties, coupled with strong demand, both… Continue reading
Demand from overseas buyers in the Alps rising, says latest index report
Demand for Alpine property is rising, spurred on by a more resilient Eurozone, greater clarity over tax and the second home cap in Switzerland, as well as a weaker euro, the latest index report says. Val d’Isere and Meribel in France have seen the biggest annual growth in property prices with a rise of 5.8% and 4.5% respectively, according to the 2015 Ski Property Index from international real estate firm Knight Frank. The index, which tracks the price performance of prime ski chalets across 15 key resorts in the French and Swiss Alps, indicates that prime sales activity in the French Alps is focussed between €1.5 and €2.5 million with resorts such as Chamonix and Courchevel 1550 increasingly popular. It also shows that the number of sales completed in Megeve in the first half of 2015 was double the number of sales agreed during the whole of 2014 and adds that previous uncertainty in the Swiss market is giving way to renewed optimism as clarity emerges surrounding taxation and the second home cap. Overall it says that the market is broadly stable with only 13% percentage points separating the strongest and weakest performer and currency movements have played a pivotal role in determining demand across the region. French resorts occupy the top five rankings this year as uncertainty surrounding Lex Weber in Switzerland dampened sales, and as a result price growth. In the past year ski homes in Europe’s top resorts have continued on the same trajectory that they have been following since 2008; no radical acceleration or deceleration just small single digit shifts year on year. Overall, the index proved largely static with only a marginal 1% fall recorded in the year to June 2015 and explains that in the case of a resort like Val d’Isere, for example, the length of its ski season explains its long standing appeal, particularly with British buyers. Few other Alpine resorts can guarantee sufficient snow to ski during both the Christmas and Easter holiday periods, it continues and in Meribel’s case, a combination of its location in the heart of The Three Valleys and its pricing explains its annual growth. Meribel provides better value than Courchevel 1850, but can compete with 1550 and 1650 in terms of facilities. Investment in the form of new residential developments such as Olympe in Les Allues and Point de Vue in Meribel Village has also helped to build confidence amongst buyers. In real price terms, the exclusive resorts of Courchevel 1850 and Gstaad come out on top, with prime prices typically around €25,000 and CHF30,000 per square meter respectively. A prime ski chalet in Gstaad is, on this basis, four times the price of an equivalent property in the French resort of St Gervais. The report also shows that in the French Alps, the focus of sales activity in the last 12 months has been within the €1.5 million and €2.5 million price bracket. The super prime market at… Continue reading
Data shows foreign buyers are back in the Spanish property market
The number of international buyers back in the Spanish property market is rising with British people now representing almost 20% of foreign sales, new data shows. In absolute terms, the number of purchases by foreigners is increasing to over 42,000 in a year with close to 11,000 transactions quarterly, and over 42,000 in a year. According to figures from the Ministry of Public Works sales to foreign residents in Spain increased year on year in the latest quarter by 17.2%, the 16th quarter on a row of growth to this sector of buyers. The nationality with the greatest volume of home purchases is the British, amounting to 19.8%, and it is suggested that this is due to the UK’s economic recovery and currency rates which give buyers more euros to the pound. French buyers accounted for 8.1% of sales to foreigners, Germans 7.6%, Belgians 6.4%, the Swedish some 5.5% and Italians 5.3%. But sales to Russian buyers have dropped from 9% during 2012 and 2013 to less than 4% currently, and this is likely due to the fall of the rouble and the price of oil. Asian buyers still only account for a small percentage of sales. Quarter on quarter sales to foreign non-residents reached 17,307 while sales to foreigners who are not residents increased by 5% to 1,244 transactions. A rise in foreign demand has also been recorded by the Association of Registrars whose latest data suggests that while there was a slight decline in the first quarter of the year, in the second quarter sales reached 12.8% of the total home transactions. In the first half of the year, foreign home buyers accounted for between a third and a quarter of all the home purchases in some regions. For example, in the Balearic Islands, some 33.5% of all the home purchases in the second quarter were made by international buyers, while in the Canary Islands they accounted for 27.5%, and in Valencia some 25.7% of all transactions. The regions of Murcia, Andalucía and Catalonia recorded percentages of home purchases by international buyers of between 12% and 15%, while in Madrid they accounted for only 4.7% of sales. The data also shows that in Aragón foreigners bought 4.5% of homes, in La Rioja it was 2.8%, in Navarra 2.3%, in Asturias and Cantabria 1.9%, in Castilla-La Mancha 1.8%, in the Basque Country 1.7%, in Castilla y León 1.1%, in Galicia 0.6% and in Extremadura just 0.4%. Meanwhile, the latest house price data suggest the housing market in stable with average national prices down by just 0.8% in the 12 months to the end of September, according to data from appraisal company Tinsa. A second set of figures from Idealista suggests year on year property prices fell 1.6% to a national average of €1,574 per square meter. According to Mark Stucklin of Spanish Property Insight, these latest figures back an overall trend of stabilisation in the country’s real estate market. But he is sceptical about official figures from… Continue reading
