Tag Archives: cookies
UK city home prices see highest three month price growth for a decade
House prices in key UK cities increases by an average of 1.4% in the three months to April, the highest three month rate of growth for a decade. Overall growth is being supported by house prices playing catch-up with average prices in 11 cities still below their 2007 peak with Belfast down 49.1%, Liverpool down 14.9% and Glasgow down 13.6%. The data from the Hometrack UK Cities House Price Index also shows that despite a recent pick up in housing turnover, the average time between moves in some cities is up to 28 years, twice the average between 2003 and 2007 which was a move every 14 years. It explains that a 30% decline in the proportion of moves by existing mortgaged home owners over the last decade is starving the market of a source of new supply and driving prices up. House price growth across the index is running at an average of 9% and continues to exceed the overall UK rate of growth of 6.8% year on year. At a city level the annual rate of growth ranges from 3.5% in Liverpool to 11% in London. This is the smallest spread in city level house prices since 1996, as the rate of growth in high value markets such as London and Cambridge moderates whilst house prices in regional cities continue to recover off a low base. However, 11 of the 20 cities have house prices that are still below their 2007 peak. The index report says that house price increases are being driven by the improving economic outlook boosting market sentiment, record low mortgage rates and a low churn of housing stock which is creating scarcity of supply. The average number of years between moves is calculated from the number of housing sales in a year relative to the stock of private housing in each city. In the 1980s, the average house was changing hands every 10 years and this increased to an average of 14 years between 2003 and 2007. This has now climbed to an average of 21 years cross all cities and is as high as 28 years in some cities such as Liverpool. ‘Home buyers and investors shrugged off the run up to the general election and continued to bid up the cost of housing,’ said Richard Donnell, director of research at residential analyst Hometrack. ‘Record low mortgage rates, which are more than half the level of 2007, are boosting buying power, while low rates of housing turnover creates housing scarcity and is keeping an upward pressure on house prices,’ he explained. He pointed out that one factor driving housing scarcity has been a marked decline in the proportion of housing sales by existing mortgaged home owners, down to just 35% of all sales in 2014 and almost half the level seen in 2007. ‘This group owns half of all owner occupied housing but fewer… Continue reading
Research reveals the cost of bungled DIY by UK home owners
As home owners in the UK gear up for a bank holiday of DIY, new research shows that bungled workmanship leads to 90% paying the cost rather than claiming on insurance. Britain’s amateur handymen are set for a disastrous May bank holiday, according to research from the Nationwide Building Society and just 10% are likely to recover the costs of their mistakes by claiming on their insurance. But many people are completely unaware they can claim for accidental damage caused in this way, according to Nationwide’s head of general insurance, Martyn Dyson, when some 80% carry out home improvements themselves rather than asking a professional for help. Many undertake manageable tasks with 70% opting to do some wallpapering and painting, 65% bleeding a radiator and 62% improving the garden. Some tackle more onerous DIY with 24% knocking down walls, 21% laying loft insulation, 12% fitting a new kitchen or fitting a new bathroom. The research reveals the top disasters. Some 35% suffer spillages, including paint, glue or white spirit, 22% marking the walls, and 10% damage to furniture, breaking a window and damage to flooring. Some 90% of those who admitted to home improvement horrors ended up paying the cost of their mistakes themselves rather than claiming on their home insurance. And with 19% of people with DIY horror stories causing over £200 of damage, not knowing what your home insurance covers you for can prove quite costly. ‘The May bank holiday is prime time for getting stuck into jobs around the home you’ve been putting off. Unfortunately, you can end up causing more damage than good, especially if you’re inexperienced,’ said Dyson. ‘Nationwide’s advice to anyone looking to do home improvements this weekend is to not rush into it, stop and think about the job in hand, be realistic about your capabilities and make sure you are covered if things do go wrong, as not all policies include accidental damage like Nationwide’s Home Insurance. As the survey shows, many people may be completely unaware they can claim for accidental damage in this way,’ he added. Continue reading
Home leasing market in Hong Kong stable but flat
The residential leasing market in Hong Kong remained largely stable in the first quarter of 2015 but is experiencing low demand and slow take-up, according to a new research report. Average luxury apartment rents have now bottomed out, and the vacancy rate has fallen to a new low, the latest residential leasing report from Savills World Research. It shows that rents on Hong Kong Island rose by 2% in the first quarter of the year amid the bottoming out of luxury rents. Leasing was mainly active in the rental range of HK$50,000 to HK$80,000 per month. Townhouse rents also stabilised, down about 30% since their peak in 2011, with fewer vacancies and the report says that landlords have been very flexible in terms of lease renewal and are generally not willing to let units stand vacant. ‘Whilst this has attracted some new tenants to the townhouse market, few transactions have been reported and leasing volumes in the townhouse market remain thin,’ said Simon Smith, senior director for Savills Asia Pacific. The report suggests that leasing activity has been driven by a variety of sectors setting up new or additional offices in Hong Kong, mainly in retail and IT services. ‘Landlords are utilizing the stable rental renewal growth rate in prime areas to maintain occupancy levels,’ added Smith. On the demand side, Savills does not note any large expansion from the financial sector, where demand is largely flat, however, the report says that some new small to medium sized financial tenants have set up office in Hong Kong, which increases slightly the demand in the leasing market. New residential developments, such as Azura in Mid-Levels, are gradually entering the market for lease which the report says will gradually help to ease the tight stock situation. In Kowloon, rents are supported by local families who are looking to traditional districts such as Kowloon Station and Kowloon Tong. Vacancy rates in these traditional areas are also falling as vacancies are being filled quickly. Indeed, rents in Kowloon rose by 4.5%. ‘Looking ahead, we expect that the leasing market has now bottomed out, and luxury apartment rents are likely to see 0% to 5% growth in 2015, supported by tighter availability,’ said Smith. The report also says that in the serviced apartment market occupancy is rising alongside tightening vacancy rates in the luxury leasing market. Rents for serviced apartments rose by around 2% in the first quarter of 2015. Continue reading
