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Property industry says Scotland No vote will bring renewed enthusiasm
Scotland’s property market is likely to see renewed enthusiasm and a rise in prices in sales after the historic referendum vote which saw independence rejected. The residential real estate industry welcomed the No vote and said that the market, which has been stalled to a certain extent, can now not only return to normality but is also likely to see growth as those who put buying or selling on hold are now reassured. ‘With the outcome now certain and Scotland voting to remain part of the United Kingdom, we can expect to see some positive movement in the Scottish housing market. It is good news for Scottish estate agents and their customers who can now look forward to a less frenetic housing discussion and market,’ said Mark Hayward, managing director of the National a Association of Estate Agents (NAEA). ‘Although the outcome does not necessarily guarantee clarity for the market, the mist of ambiguity will clear much earlier than if the outcome to Scottish independence was Yes. Therefore, there is likely to be a substantial increase in market activity in the coming months, with an increase seen in the volume of sales and investments,’ he explained. But he warned that this could disrupt house prices in the short term, although not significantly. ‘The existing concerns around increases in interest rates and a significant hike in stamp duty will undoubtedly have a bigger impact over the next 12 months,’ added Hayward. According to Ran Morgan, head of Knight Frank Scotland, the certainty provided by the No vote will allow the property market to return to more normal trading conditions. ‘The fundamentals are in place to ensure a full recovery, led by the key cities of Edinburgh, Aberdeen, Glasgow and rural counties within commuting distance of large employment hubs. Improving economic activity levels in the UK, better consumer sentiment and higher bank lending will all help to kick-start the market,’ he said. ‘We expect we will be very busy in the coming months as vendors and buyers, many of whom have put off making a decision to buy or sell a property in Scotland due to the referendum, return to the market. This will lead to an increase in the number of transactions at all levels of the market,’ he pointed out. ‘We believe that the outlook for the prime property market in Scotland is positive. Our forecast is that prime values will rise by 3% by the end of this year and by a further 3% to 6% in 2015,’ he added. Andrew Rettie, head of agency for Strutt & Parker in Scotland, also believes that the No vote will inject confidence, optimism and stability into the market which will experience a renewed vigour in the latter months of 2014. ‘We all hope this will be a shot in the arm for the Scottish housing market and that the momentum seen earlier in the year returns to the sector. Buyers and sellers who have stalled in… Continue reading
UK govt announces new building standards proposals
New measures will save UK house builders and councils £114 million per year by cutting red tape and ensuring homes are built to demanding standards. The current system of rules on how new homes can be built encourages wide differences across the country with councils able to select from a range of standards in a ‘pick and mix’ approach that gives an unlimited number of permutations in local rules. This creates cost, uncertainty, bureaucracy and duplication for house builders. So Communities Minister Stephen Williams has announced that the government is consulting on the details of how it will consolidate this mass of standards into a core range of five standards. ‘We need to build more homes and better quality homes and this government is delivering on both. It’s now time to go further by freeing up house builders from unnecessary red tape and let them get on with the real job building the right homes, in the right places, to help families and first time buyers onto the property ladder,’ said Williams. ‘The current system of housing standards creates a labyrinth of bureaucratic rules for house builders to try and navigate, often of little benefit and significant cost. We are now slashing this mass of unnecessary rules down to just five core standards saving house builders and councils £114 million a year whilst making new homes safer, more accessible to older and disabled people and more sustainable,’ he explained. ‘Current housing standards required of new development can be unworkable, including demands for solar and wind energy sources that can’t physically fit onto the roofs of apartment buildings, or unnecessary including compliance regimes which add thousands to the cost of building a new home without any benefit,’ he added. A national regulation on security standards in all new homes will be introduced with the aim of protecting families from burglary and for the first time ever, a national, cross tenure space standard that local authorities and communities can choose to use to influence the size of new homes in their local area. There will be new optional building regulations for accessible and adaptable mainstream housing to meet the needs of older and disabled people and the introduction for the first time of an optional building regulation setting standards for wheelchair housing. The consultation seeks views on the detailed technical requirements supporting this new approach to housing quality. The government proposal is for the security standards to become a new mandatory regulation, and for councils to be able to decide whether to apply the other remaining standards to developments built in their areas. In addition a new zero carbon homes standard will come into force through the building regulations from 2016, building on the 30% energy efficiency improvements already introduced into building regulations in 2010 and 2013. These will save householders up to £200 on energy bills. Continue reading
English landlords enjoying a booming rental market, says new research
Landlords in England are witnessing a booming rental market, with earnings from rental payments in excess of £32 billion per year or almost £2.7 billion per month, according to new research. London landlords collect the largest proportion of private rental income in England at £14 billion per year, more than the North East, East Midlands, West Midlands, Yorkshire and East Anglia combined, says the report from Direct Line for Business. In total, 44% of the entire country's rent is paid in London. Outside the capital, Leeds pays the greatest amount of any city, with annual private rent totalling £565 million, followed by Birmingham at £521 million and Manchester at £401 million. The research also reveals that London and the Home Counties dominate rental incomes, with the highest average rents in Inner London at £19,596 per year or £1,633 per month. Elmbridge in Surrey, has the highest rents outside London, worth £18,948 per year or £1,579 per month, followed by South Buckinghamshire where monthly rental costs are £1,530 in the private sector. Despite this dominance, landlords outside of these regions can also make a healthy rental income. Many areas outside the London commuter belt can command high rental costs, for example Bath and North Somerset, and the Cotswolds both command annual rental incomes of more than £11,000 per year. Outside of London, Bournemouth leads the line in terms of private rentals with 30% of households there privately rented. The isles of Scilly at 29.7% and Brighton and Hove at 29.6% follow in second and third place respectively. Across the country, Inner London has the highest proportion of private renters, at 30.7%. ‘Buy to let is becoming an increasingly attractive option for people as property prices continue to soar. Landlords and potential landlords looking to take advantage of this should also appreciate the risks involved,’ said Jazz Gakhal head of Direct Line for Business. ‘Bad payers and potential damage to property are but just a few of the costs that can lead to landlords paying out 25% of the revenues they receive in rental payments annually. Taking the necessary precautions such as letting through an agency and taking out landlord insurance can help to alleviate concerns and ease the rental process,’ he added. To help landlords keep track of charges paid, ongoing expenses and to assist in calculating the yield on their portfolio Direct Line for Business has launched a new landlord app, Mobile Landlord that enables landlords to manage up to five properties on the go through a single online, mobile portal. Mobile Landlord is free to download and available on both iOS and Android. Continue reading
