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Sales up over 50% year on year in prime Alpine resorts
The prime ski property market in the Alps is continuing on its upward path with sales volumes up 52% year on year, according to the latest index from Savills. More alpine sales are taking place at lower price points as the resilience of the ultra-prime markets starts to ripple down the market ladder, according to the report. ‘A year ago we predicted prolonged periods of sunshine and blue skies for the Alpine property market. This may have been a somewhat easy prediction, given a recovering world economy, increased confidence and job security and in the case of UK buyers, a steady strengthening of sterling,’ said Jeremy Rollason, managing director, Alpine Homes. ‘The Alpine property market however continues its upwards trajectory in terms of increasing sales volumes, up 52% year on year, although this does not necessarily mean rising prices,’ he explained. ‘While buyers are more prolific for the above reasons, prices in the Alps have not generally kept pace with house price increases back in the UK, particularly in London,’ he added. The index report points out that Switzerland’s position outside the European Union cements is appeal as a safe haven for wealth and as such resorts carry a price premium. In the case of Verbier, values can reach €22,400 per square meter or 80% more than the average. It’s therefore no surprise that five Swiss resorts, Gstaad, St Moritz, Zermatt, Verbier and Crans Montana, appear in the Savills Top 10 Ultra-Prime Resorts Index. The family friendly resort of Saas Fee stands out as offering a long season with good quality snow but with comparatively lower priced property at averages of between €4,000 and €8,000 per square meter. ‘Verbier and The Four Valleys remains ever popular and is the destination of choice for many international buyers. Supply restrictions with the new Lex Weber law limiting the number of second homes to no more than 20% of the total will begin to bite in the next one to two years, once existing supply is absorbed. Upwards price pressure in the leading Swiss resorts is inevitable, although there are still deals in the resale market for those that shop around,’ he added. Austria’s comparative affordability, dual seasonality, diverse culture and attractive rental returns make it the country of choice for those chasing bang for their buck. Indeed, rental returns of ski property in Austria are roughly double those of either France or Switzerland, at circa 5% to 7% gross. Kitzbuhel is the only Austrian resort included in the Savills Top 10 Ultra Prime Resorts Index where prices range from €8,000 per square meter to €15,000 per square meter. For buyers seeking value, Bad Gastein and Zell am See offer lower priced property and average ski conditions, although the latter boasts a particularly strong summer season. The resort of Ischgl, the Ibiza of the Alps, is highlighted as one to watch. Prices here are under €4,000 per square meter. Stability is… Continue reading
Research reveals almost half of UK non-home owners think they will never buy
Almost half of non-home owners in the UK don’t ever expect to own their own place and 1.1 million, or 7%, would consider moving abroad to fulfil their dream of owning a property, new research has found. Those aged 18 to 24 are most likely to take drastic measures to own a home, according to the study from Santander Mortgages which shows 49% think they will never own a property. Some 9% would be willing to move jobs or relocate somewhere else in the UK to get a foot on the ladder, rising to 23% of 18 of 24 year olds, some 20% were willing to reduce their standard of living and 20% were willing to sacrifice luxury purchases such as a car or holiday. The research also found that 28% of 18 to 24 year olds are living with their parents or partner’s parents while they save money for a deposit and an additional 6% of this age group would be willing to move back in with parents despite having already flown the nest. Some 30% of 18 to 24 year olds who are non-home owners would use their inheritance to build deposit funds and 11% will use their parents as guarantors to secure a mortgage. The same number would be willing to withdraw money from pension savings, compared to only 6% of 45 to 54 year olds. ‘With living costs rising ahead of salaries for many people, raising a deposit remains one of the biggest concerns for first time buyers, especially for younger generations,’ said Miguel Sard, head of Santander Mortgages. ‘However, there are a variety of options available to suit most budgets, so it is crucial that prospective buyers shop around for the best deals and get sound advice in terms of properties and mortgages,’ he explained. ‘Santander can help with upfront costs and our range of Help to Buy mortgages offer competitive fixed and tracker rates to buyers with a 5% deposit. Our 1|2|3 Current Account also gives 1% cash back on Santander mortgage payments, rewarding our customers and helping them make the most of every penny they spend,’ he added. Continue reading
Second steppers finding it hard financially to move up housing ladder
Second Steppers in the UK need to find an extra £58,400 to fund the move to their second home, over double the average first time buyer deposit, according to new research. This gap is around £15,000 bigger than in 2013 and £18,000 bigger than in 2012, the fourth annual second steppers report from Lloyds Banks shows. Almost half, 46%, say the costs and fees associated with moving house is the biggest barrier to moving up the ladder. However, 40% of second steppers think it will be easier to sell this year, almost double the figure of 2013 and treble that of 2012. The report points out that growing house prices mean there is an ever widening gap for those making the move to the second step on the housing ladder. Yet despite this, many have increased confidence in the housing market and as a result, more confidence in being able to make the jump to the next step. Second steppers are the link between first time buyers and the rest of the housing ladder. They are living in the homes that the first time buyers need to buy to keep the market moving. Without movement from second steppers, movement on the ladder comes to a standstill on the second rung. Despite increasing house prices boosting equity levels for second steppers, the findings show people living in their first home have to find an extra £58,400 to plug the gap between the sale price of their current property and the cost of the house they would ideally move to. This figure is over double the amount of the average first time buyer deposit of £25,848, meaning it is far more expensive to move up the ladder than to get on it in the first place. Year on year, this figure has significantly increased. Nationally, the figure of £58,400 has risen by £14,900 since 2013 and £17,900 in 2012, when the figure was £40,500. However, across the country, there are significant regional variations in the perceived size of this gap. In the West Midlands, people will need to find just £21,000 extra to make the step to their desired second home. At the other end of the scale, people in East Anglia say they need £80,800 to make the jump. The report also points out that despite the growing financial gap between first and second properties, confidence in the market is improving. Just a quarter of second steppers see economic uncertainty as a key challenge, reducing by 10% in a year. Unsurprisingly, the number seeing negative equity as a challenge also reduced by 11 percentage points to just 14% of respondents. The Help to Buy Mortgage Guarantee scheme has had an impact on the mortgage market, with Treasury data showing that 79% of purchases with a mortgage guarantee were completed by first time buyers. This has contributed to second steppers being more confident that there is the demand coming through allowing them to sell. Just 29% see a lack of first time… Continue reading
