Tag Archives: crisis
Scotland sees strong rise in property sales in third quarter of 2015
Residential property sales in Scotland increased by 6.5% in the third quarter of 2015 and the total value of sales by 6% compared to the same period in 2014, the latest index data shows. This is the highest volume and total value of quarterly sales in Scotland since 2009, according to the figures published by the Registers of Scotland. The highest rise in volume of sales was recorded in West Lothian, with an annual increase of 23.1% compared with the same quarter the previous year while Aberdeenshire saw a drop of 13.5%, the steepest fall. The data also shows that Edinburgh was the largest market with sales of over £805 million for the quarter, an increase of 6.2% on the previous year. But prices have dipped slightly. The average property price in the quarter was £169,397 a drop of 0.5% compared to the previous year. Semidetached properties showed an increase of 2% to £159,854 on the previous year while detached, terraces and flats saw decreases in average prices of 0.9%, 3.1% and 2.4% respectively. Overall the Scottish property market is demonstrating healthy growth and stability with good quality properties selling quickly, according to Simon Brown, partner and head of residential sales at CKD Galbraith. ‘These are very encouraging signs for the final months of year and moving into 2016. Success in the current market comes down to a number of key ingredients: sensitive pricing, demand for high quality property and effective marketing,’ he added. Michelle Grant, investment director at Grant Property, believes that the outlook for the market continues to be positive. ‘This signals growing confidence and has created a more competitive environment for buyers and investors,’ he said. ‘Glasgow and Edinburgh are proving particularly popular with most properties selling for more than the Home Report valuation, on some occasions up to 15% more. It is also not uncommon to be bidding against up to eight to 10 people for a property in sought after areas of the capital,’ he pointed out. ‘From a buy to let perspective we are experiencing 100% occupancy eight out of 12 cities in which we operate with high levels of demand from tenants. This is great news for investors looking to secure assets with long term yield prospects,’ he added. Continue reading
Rents in prime Home Counties market in UK down 0.8% in third quarter
Prime rents in the English Home Counties fell by an average of 0.8% in the third quarter of 2015 despite robust activity levels but are up 4.1% year on year, according to the latest data. The prime rental market in these counties around London, tends to be very seasonal and the three months leading up to September are often among the busiest of the year as tenants look to complete moves before the new US and UK school terms start in August or September respectively. This year was no exception, according to the index report from international real estate firm Knight Frank, with the number of tenancies agreed in the three months to September 54% higher than over the preceding three month period. But while activity levels have been robust, rising stock levels across the prime market, have meant that some landlords have been willing to reduce asking rents slightly in order to remain competitive, according to research executive Oliver Knight. ‘As ever, demand from individuals relocating for work continues to form a significant proportion of the market, especially in the prime commuter hotspots of Ascot, Cobham and Esher where corporate tenancies accounted for 42% of all deals agreed over the three month period,’ he said. ‘This corporate demand for rented accommodation has been particularly strong from individuals working in the technology sector. The share price of technology businesses has performed well this year, especially when compared to the banking and oil and gas industries,’ he added. He pointed out that the market continues to attract international tenants with some 38% of new renters across the prime Home Counties market coming from outside of the UK between July and September in Ascot, Cobham and Esher where corporate tenancies are more prevalent this rises to 51%. Individuals from North America were the most active movers during this time, with the start of the American school term in August likely to have been a factor. Continue reading
Home owner confidence in UK housing market up 4% year on year
UK home owners’ confidence home owners in the property market has risen 4% year on year with expectations that prices will rise by more than 7% in the coming six months, new research shows. Some 92% are anticipating prices in their area to rise within the next six months, a steady increase from a year ago when only 88% were confident, according to the latest Zoopla Housing Market Sentiment Survey. The research also found that almost half of home owners, 41%, were planning to improve their property. In addition, 9% of respondents said they plan to refinance their house, a 3% increase from the end of 2014, as mortgage rates remain at historical lows. The proportion of respondents planning to sell property has risen to 19% having bottomed out at 15% last year as more home owners look to capitalise on rising prices. The East of England has the highest percentage of optimistic home owners, with 97% expecting the price of property in their area to rise over the next six months. Home owners in London and the South East are almost as confident, with 96% of respondents across those regions expecting price appreciation. Despite home owner confidence around house prices, sentiment around the accessibility of funding is more volatile. While the percentage of respondents declaring it harder to get a mortgage now than three months ago has almost halved from 49% to 26% since the Mortgage Market Review (MMR) was introduced in April 2014, the fact that more than a quarter of homeowners have noticed a recent increase in difficulty suggests that it isn’t all plain sailing, the report says. It also suggests that with ongoing speculation around when the Bank of England will raise interest rates and lenders maintaining a watching brief, it may well be that competitive products aren’t quite as freely available as they were in the earlier part of the summer and borrowers previously spoilt for choice are noticing the change. ‘As the end of the year approaches, homeowners are the most optimistic they have been in some time. With the brightening national economic outlook this bodes well for the property market in 2016,’ said Lawrence Hall of Zoopla. ‘While traditionally the estate agency market tends to take a break over Christmas in terms of completions and viewings, home owner confidence shows no sign of slowing down and many individuals use the end of the year as a landmark to evaluate how much their property has appreciated over the calendar year,’ he explained. ‘The only slight chink in the armour is the fact that a sizeable number of people still feel securing a mortgage is becoming more difficult, despite the fact that the MMR was implemented with consumers’ best interests at heart,’ he pointed out. ‘It could also be an indication that the supply of… Continue reading
