Tag Archives: crisis
Scottish house prices see biggest monthly jump since 2007
Scottish property prices increased by 1.7% in February, the biggest monthly jump since the 2007 taking the average value to a new record high of £169,742. The latest data from the Your Move Scotland house price index also shows that the annual price growth has now reached 6% and there was a spike in sales of homes worth over £1 million, probably due to the introduction of the new property tax in April. The annual growth is the strongest it has been since August 2010 and Stirling experienced the fastest increase in property values across Scotland during February, with house prices soaring 5.3% while Aberdeen, Edinburgh, East Lothian and Angus all set new house price peaks in February. The index data also shows that overall sales were up 14% month on month but they are still 4% below the same levels seen in February last year. Christine Campbell, regional managing director of Your Move, explained that the monthly growth was much higher than in England and Wales where it was just 0.4% in February. ‘The impressive rise in house prices in February has been influenced by the introduction of the new Land and Buildings Transaction Tax (LBTT) in April, as high end buyers sought to complete expensive purchases under the old stamp duty rates,’ said Campbell. She pointed out that 15 properties priced at £1million or more were sold in Scotland during the month of February, compared to just six the previous month. ‘Tactical tax considerations have helped foster price growth in the Scottish housing market, and are likely to play a significant role in the months to come too,’ she said. ‘Now that the LBTT has come into force, we expect to see a temporary drop-off in the number of properties sold above £750,000, now liable for the top rate of tax, similar to the impact we’re currently seeing in London among £2 million properties in light of December’s stamp duty changes,’ Campbell added. She also pointed out that typically in the housing market cycle home sales ease back in February, in the aftermath of the costly Christmas period but this February moved against the seasonal grain, with completed home sales up 14% on January levels. A breakdown of the figures shows that over the past three months, completed home sales have fallen in every local authority area of Scotland on an annual basis, with Midlothian seeing the sharpest 31% drop. ‘However these year on year benchmarks have been artificially propped up following the extraordinary headway in sales activity over 2014, and as well as having to recalibrate onto a steadier course, the housing market this year also has an upcoming general election to contend with,’ said Campbell, who added that the slowdown in Scottish sales activity is being mirrored south of the border, as all across the UK political uncertainty is infusing home buyers with a new hesitancy. ‘But as soon as there is a… Continue reading
Farm land in England breaks the £8,000 an acre barrier
Even the impending general election in the UK has failed to pull back the farmland market in England, with prices continuing to rise in the first quarter of the year. The farmland market in England has gained further ground this year with the average price of bare agricultural land rising by almost 2% between January and March to break the £8,000 an acre barrier for the first time. An acre is now worth £8,059, according to the Knight Frank Farmland Index. Values have risen by 10% over the past 12 months and by 192% over the past 10 years. This compares with 10 year capital growth of 138% for the prime central London residential market, 40% for the FTSE 100, despite the index hitting its own record high earlier this year, and 250% for gold. An imminent General Election, particularly one with so many possible outcomes, might have been expected to cause the market to pause for breath, but it appears the appeal of farmland is overriding the uncertainty, according to Andrew Shirley, head of rural research. But he pointed out that the market continues to separate into two clear sub-markets, each with their own distinct performance trends. Large blocks, ideally over 1,000 acres, of arable land are being eagerly sought after by investors and demand is so strong that prices upwards of £12,000 an acre are regularly being paid and even £15,000 an acre has been achieved on a number of occasions. Although East Anglia has traditionally been the main source of investment farmland, buyers are now looking across the country and exceptionally strong results have also been recorded in counties such as Hampshire. Continue reading
Survey finds home owners think peer to peer lending is risky
Almost half of home owners in the UK who have not invested in peer to peer finance are put off by a perceived risk, new research has found. Some 42% who took part in a new survey feared it was too risky, 22% had never heard of it, 17% do not understand how it works but 5% had invested on at least one peer to peer platform. Younger generations however are more open to risk, with just 28% of those aged 25 to 34 citing risk as a factor for not investing in peer to peer, compared to 46% of 55 and overs, according to the YouGov poll commissioned by buy to let peer to peer platform Landbay. Some 30% of those home owners who do use peer to peer platforms invested moderate amounts of £1,000 or less. However at the opposite end of the spectrum, 18% invested larger sums of over £5,000. Investment in peer to peer finance appears to be divided into consumers trying out platforms with small amounts of cash invested, and those who regularly invest larger sums. ‘We’ve gone out of our way to be open and up front about the risks involved on our platform, but we’re equally open about the unique range of protections our model offers. We’ve based our proposition around creating the most risk proof peer to peer platform, in an industry sometimes reluctant to mention the risk,’ said John Goodall, cofounder and chief executive officer of Landbay. ‘These research findings highlight the need to debate the merits of risk more in financial planning. We need an open and proper discussion on whether more people should consider moving a small proportion of their savings into an investment,’ he pointed out. ‘Of course risk is not for everyone, but it appears too many hoard large amounts of money in cash savings when it might be wise to consider putting a small amount of those savings at risk in exchange for better returns as part of a balanced approach,’ he explained. ‘The question is whether too many people see it as a binary choice between keeping all their money safe in the bank or putting it all at risk. Instead it should be about finding the right balance to achieve what you want to with your hard earned cash,’ he concluded. Continue reading
