Tag Archives: crisis
Property prices in England and Wales up for second month in row to new record
The price of UK properties being put up for sale has increased for the second month in a row by 0.1% taking the average price to a new record high of £294,542, the latest index figures show. But there has been a sharp drop in the number of new sellers, adding to an already diminishing supply of homes for sales and a shortage of people trading up, according to the July market report from Rightmove. Year on year prices are up 5.1% but the headline figures hide considerable regional variations. In Wales prices are down 1.7% year on year but up 1.5% month on month, taking the average price to £177,280. Annual growth is small in the North East at 0.9% but monthly growth is 2.1%, taking the average price to £147,251. In the West Midlands annual price growth is 3.2%, taking the average price of a home to £200,129 but the region saw a 0.5% fall month on month. In neighbouring East Midlands average prices have climbed 7.4% year on year and 1.2% month on month, to an average of £313,255. The South West has also seen prices fall month on month, down 0.6% but prices are still up 2.9% year on year to an average of £286,155. Elsewhere in the south growth has been largely positive. In the South East prices are up 5.8% year on year and 0.4% month on month to £386,988 and in Greater London they are up 7.8% year on year but down slightly by 0.2% month on month to £615,115. The East Midlands, the North West and Yorkshire and Humber, areas where price growth has struggled to keep up with other parts of the country, have seen positive growth. In the East Midlands prices are up 4.2% year on year and 0.7% month on month to £190,192 and in the North West they are up 2.7% year on year and 0.1% month on month to £176,277. Meanwhile in Yorkshire and the Humber average prices have increased by 2% year on year and by 0.8% month on month to an average of £172,412. Indeed, the number of new sellers is down 10.6% compared to 2014 and this comes at a time when demand is high. Rightmove reports that visits and enquiries to agents are both up 22% on last year. The shortage is most acute for smaller homes with two bedrooms or fewer, where Rightmove sees the biggest demand in excess of supply. According to Miles Shipside, director and housing market analyst at Rightmove, the drop in new homes for sale could be due to the onset of the seasonal summer slowdown, and buyers’ constraints in affording record prices. He said that the latter underlines the need for more new build homes that are affordable, of the right type and in the right locations and emphasises the importance of the recent government announcement on speeding up residential planning permissions aimed at boosting supply. ‘Another month, and… Continue reading
Almost half of UK renters will never get on the property ladder, poll suggests
Some 44% of renters in the UK believe they will never own their own home with not being able to afford a deposit the most common reason for not getting on the property ladder. Just 2% of renters plan on getting on the property ladder this year, according to an independent survey for construction and regeneration company Keepmoat. The average house price in England and Wales now stands at £178,000, according to the latest Land Registry figures, although significant regional variations exist. The average price of property in the capital is currently £462,799. Despite houses in the North generally being more affordable, non-homeowners in Liverpool at 62% were the most likely to say they never expect to purchase a property. This was followed by 60% in both Newcastle and Glasgow and 41% in London. Not being able to afford a deposit was by far the most common reason for not getting on the property ladder, cited by 56% of respondents. The pressure of saving a deposit was also the top concern for those hoping to buy a home at 58%, with 61% of this group saying they will be saving their own deposit. Some 38% of home owners polled said it took between two and five years to save for a deposit although it took 13% of those polled up to 10 years to save their deposit. The research also suggests low awareness of the government’s Help to Buy scheme, an initiative that helps people take their first steps on the property ladder. Less than one in three prospective buyers polled said they will be using the scheme, with 38% claiming they don’t know what the scheme is. ‘It’s clear that the amount of money first time buyers need to raise for a deposit continues to stop many from getting on the property ladder. However, we were surprised that the results show Londoners are more confident about owning a home than those in other cities, particularly in the North,’ said Dave Sheridan, chief executive of Keepmoat. ‘There is plenty of assistance available for buyers in the form of the Help to Buy scheme and help is available when saving for a deposit with the Help to Buy ISA,’ he added. Continue reading
London leads eight year high in European corporate real estate sales
Some €14.6 billion in European corporate real estate assets were sold in Europe in 2014, the highest number for eight years, with London leading the growth, new research shows. Over 350 deals were recorded thanks to a continued low interest rate environment and exceptional levels of equity pouring into real estate, according to a new report from JLL. Since 2012 the number of companies raising capital from real estate assets in Europe has been on the increase, coinciding with a period of rising real estate values, the report points out. Indeed, in a separate recent survey from JLL some 40% of respondents reported increasing demands from senior leadership to raise capital through the real estate portfolio. JLL expects this market momentum to continue as businesses take advantage of opportunities to create a property portfolio that better meets their needs whether it’s reusing capital to support business growth, obtaining greater flexibility to aid downsizing or removing unwanted surplus property. ‘Companies are now faced with a once in a cycle opportunity to exploit the best market conditions since 2007. Last year global real estate investment volumes stood at US$710 billion, a level only ever exceeded in the peak of 2007,’ said Michael Evans, head of Corporate Capital Markets at JLL. ‘This momentum has continued into 2015, with an abundance of equity targeting real estate. This presents opportunities for companies with owned real estate to raise capital via sale and leasebacks. Activity has been widespread across Europe involving a range of companies with appetite across a variety of sectors and asset types,’ he added. The report has identified that traditional office and industrial occupiers across pharmaceuticals, energy, manufacturing, IT and telecoms dominated European corporate sales last year, accounting for 38% of activity. Meanwhile hotel operators made up 27% of the sales market followed by retail at 16%. The most notable sales were seen in the media and telecoms sector which included the largest corporate property sale of 2014, sold for €680 million in Paris. In terms of locations, the UK, Germany and France continued to govern the volume of corporate real estate sales, representing 60% of European activity in 2014. This was driven predominantly by the UK, with an 18% year on year increase and almost double the volume achieved in 2008. Spain and the Nordics also featured strongly with 18% of total corporate sales last year. According to Karen Williamson, associate director for EMEA research, with such a compelling market now is the time for companies to rethink their own versus lease decisions. ‘There are a range of solutions available to companies considering raising capital from their owned real estate. Sales can benefit the wider business by allowing capital to be recycled back into the organisation to support growth and expansion,’ she explained. ‘It can also be used to enable financial flexibility and unlock value from assets as part of a planned… Continue reading
