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Latest quarterly figures show house prices up 3.4% in Scotland
House prices continued to rise in Scotland in the fourth quarter of last year taking them to their highest level since current records began in 2003. The data from the Registers of Scotland shows that the average house price in Scotland was £165,197, an increase 3.4% on the same period in 2013. The figures also show that the total value of sales across Scotland was up by 3.1% compared to the previous year to just under £4.2 billion. Moray showed the highest percentage rise, with the value of sales increasing by 21.7% year on year. Edinburgh remained the largest market with sales of just over £656 million, an increase of 2.8%. North Ayrshire recorded the highest percentage rise in average price compared with the same quarter of the previous year, up 17.1% to £124,260. Aberdeenshire had the highest average at £232,331, a rise of 5% while the largest percentage fall in price was in Falkirk, which showed a drop of 4.3% with an average price of £123,180. However, the total volume of sales across Scotland fell by 0.3%, the first decrease in sales volumes since 2012. Argyll and Bute showed the largest percentage rise in the number of sales with an increase of 18.2% and Edinburgh again recorded the highest sales volume but this was down 1.5% on the previous year. The largest percentage decrease was in Stirling, which showed a drop of 14.2%. All property types, with the exception of detached properties, showed an increase in average house price in this quarter, the biggest being in semi-detached properties at 5.5%. With the exception of flats, all property types experienced a decrease in sales volumes, with detached properties recording the biggest decrease of 4.2% compared to the previous year. Property consultancy, CKD Galbraith, said it saw a steady growth in sales throughout 2014 which is continuing into 2015. There was also a 23% increase in the number of viewings against 2013’s figures for the same period. ‘Prices achieved for all properties sold by the firm during 2014 were on average 1.54% over the asking price. The past three months have proved to be busy and productive with buyers hesitancy around the referendum period translating into a surge of activity and successful transactions during the final quarter of the year,’ said Simon Brown, partner and head of residential sales at CKD Galbraith. ‘The momentum has continued throughout January and we expect there to be more movement at the higher end of the market before the stamp duty changes occur in April. Although the general election is likely to cause a slight slowdown in activity, we can say that 2015 looks set to be a promising year for the property sector,’ he added. Scotland’s property market can continue to take confidence from these latest results, according to Peter Grant, chief executive officer of Grant Property. ‘It’s notable that total volume of sales continues to be up and this is reflected by our own business activity,’ he… Continue reading
Recovering European real estate markets set to be magnet for investors in 2015
Berlin is expected to be the top European real estate investment market in 2015, followed by Dublin, Madrid, Hamburg and Athens. Recovering markets like Dublin, Madrid and Athens which were hit by the economic downturn are regarded as being fertile grounds for property investors, according to the latest annual emerging trends report from the Urban Land Institute and PwC. The report points out that competition for prime assets in Europe’s major real estate markets is leading property investors to continue their move into secondary assets and recovering markets. It highlights a surge in popularity for real estate investment opportunities in a number of cities that were hit particularly hard during the last market downturn, with dramatic rises in this year’s city rankings for Madrid, up 16 position, Athens up 23 positions, Birmingham up 14 positions, Amsterdam up 17 positions and Lisbon up 17 positions. Berlin has moved up the rankings from last year, knocking Munich off the top spot for investment prospects in 2015. Historically dominated by domestic buyers, Berlin’s investment climate has now changed as international investors pour capital into the city, the report says. The city is described as a hotspot for media and technology and its young population has helped boost the investment appeal of its residential sector. Ranked again in second place, Dublin has had another strong year in which investors have jostled for opportunities. There was strong rental growth based on low supply, employment growth and an improving economy. Office rents and values are recovering strongly but still have some way to go before they reach their pre-crisis peak. Madrid has shot up the rankings for investment prospects and many overseas investors are targeting the city. But whether Spain offers solid, long term business prospects is hotly debated among opportunistic investors, the report points out. Hamburg has slipped by one place this year, but this is mainly due to investors looking to smaller, less established markets rather than any real decline in the city’s fundamentals, the report explains. International investors are flooding into Hamburg, accounting for half of the €2.4 billion of deals in the first three quarters of 2014. Its growing population means the residential sector is thriving. Athens is the biggest mover on the list this year, up 23 places to number five. In recent Emerging Trends surveys, investors have indicated a willingness to enter other distressed markets such as Spain, Ireland and Italy, but Greece is starting to gain attention, the report says. Although Europe’s hardest hit economy remains fragile, a few trail blazing investors are moving in to take advantage of pre-rebound opportunities. The report finds that in spite of economic uncertainties in Europe, property remains fertile ground for investors. Some 70% of investors expect more equity and debt will flow into their markets this year in a quest for the best real estate. The biggest problem investors are anticipating is a shortage of assets, ahead… Continue reading
Private rents up an average of 1.7% in 2014 in Britain, official data shows
Private rental prices paid by tenants in Britain rose by 1.7% in the 12 months to December 2014, according to official figures from the Office of National Statistics. A breakdown of the figures show that private rental prices increased by 1.8% in England, 2% in Scotland and 0.2% in Wales in the 12 months to December 2014. Rental prices increased in all the English regions over the year to December 2014, with rental prices increasing the most in London at 2.4%, followed by the South East at 2.1%. A spokesman for the ONS pointed out that improved methodology means that the annual growth rate has been revised upwards considerably. ‘Improved methodology has been implemented leading to revisions to the full IPHRP time series. The latest data uses the new methodology,’ he explained. David Whittaker, managing director of Mortgages for Business, said it is no surprise as those in the industry have seen rents rising much faster than the ONS previously estimated. He pointed out that even a plain vanilla buy to let property now commands an average yield of 6.3%, according to our the firm’s latest Complex Buy to Let Index, while a larger, multi-unit freehold block can provide a landlord with a 9.3% rental yield. ‘But rents still aren’t rising much faster than inflation. We’re talking an average annual rent rise of 2.1% over the last couple of years instead of 1.2%. Affordability of renting, like the affordability of most things in an unprecedented economic slump, has been squeezed. But the culprit hasn’t been excessive rent rises,’ he explained. ‘That’s thanks to the vast investment that landlords are pouring into this industry, supported by a healthy buy to let mortgage market. More homes to let are keeping rents from rising at an unhealthy pace,’ he added. He also pointed out that the latest figures from the Bank of England showing approved mortgage increased in December 2014 for the first time since June, only goes to show the importance of investing in the private rented sector. ‘The mortgage market has continued on a mainly stable trajectory, going in the right direction but not taking off. Private renting will continue to dominate the housing market, and as an industry it needs all the investment and financial support it can get,’ he concluded. Continue reading
