Tag Archives: crisis
Property prices in England and Wales up just 0.5% in September
In many regions in England and Wales average property prices have yet to reach levels before the economic downturn and price growth is slowing, the latest index shows. House prices increased by just 0.5% in September, taking the average price to £275,820, the smallest monthly increase this year, according to the LSL house price index. On an annual basis prices are up 10.6% but when London and the South East is excluded from the calculation prices are up just 4.5% and overall prices are up just 2% a year since the crisis. For six regions of the UK, average property prices achieved on completion are yet to match their pre-crisis score and a North/South divide in the remains evident. The North has the furthest ground to travel, with average prices still 8.3%, or £13,400, below their housing boom high in March 2008. However, average house prices on sales completion in the South West set a new record in August, surpassing their October 2007 peak for the first time. This makes it the fourth region after London, the South East and East Anglia to scramble out from under the shadow of the financial crisis. Areas further afield like Warwickshire, Northamptonshire, and York are breaking cover too, with prices also towering to new heights. David Newnes, director of Reeds Rains and Your Move estate agents, pointed out that the London property scene is on a different scale to the rest of the country. Overall, the capital has seen the strongest housing market recovery, with prices having now grown 47.3% from their previous peak in February 2008. However, the rate of annual house price inflation in the capital eased off by 0.1% in August, as we see growth relaxing into a slower tempo from the heady pulse earlier this year. ‘Across all of England and Wales, house prices have risen on average by 2% every year in the aftermath of 2007/2008 housing boom and bust. But this growth falls short of the 2.8% annual increase in CPIH over the same period meaning it is only home owners in London who have seen their properties climb in value in real tangible terms,’ said Newnes. ‘September saw the lowest monthly increase in property prices in 2014 so far, as a new spell of market adjustment sets in for the autumn. But while price growth dulls, activity in the market is still vibrant, and total house sales completions are up 16% year on year in September,’ he explained. ‘First time buyers have been bringing much of the vitality and optimism to the party. Over the three months from June to August, the sale of flats, typically the preserve of new buyers making their inaugural property purchase, has risen 26% when compared to the same period in 2013,’ he pointed out. ‘While the market adapts to a mellower beat, schemes like Help to Buy and an accessible lending environment are essential to ensure that confidence isn’t silenced, and activity continues to sing,’ he added. Continue reading
Prime property prices in Edinburgh up for fifth quarter in a row
Property prices in the Edinburgh City prime market rose for the fifth consecutive quarter between June and September despite a slowdown due to the referendum vote. Prices increased by 1.3% and are 4.9% higher on an annual basis and so far in 2014 transactions are 8% higher than a year ago, according to the latest report from real estate firm Knight Frank. Low stock levels and high demand are the main two characteristics which have typified the Edinburgh market so far this year and they have put upwards pressure on price. A snapshot of stock levels at the end of September reveals that there were 27% fewer properties available for sale than the same time last year. However, applicant numbers were 19% higher in 2014 to date compared to 2013 and viewings increased by 1% over the same time. According to Knight Frank, it is evidence of just how resilient the Edinburgh property market has been this year in spite of the uncertainty surrounding the outcome of the referendum. Indeed, agents reported activity only noticeably slowed in the three week period before the vote. Since the result was announced activity has returned to more normal levels, suggesting that at least for now it is back to business as usual. The result means there is now a more certain environment for the property market to function and it is expected that this, combined with growing consumer confidence, should act as a further boost for the city’s already robust prime market. ‘While the flurry of activity that was predicted in the event of a No vote hasn’t materialised yet, we have dealt with a number of buyers and vendors who put off making decisions until after the vote,’ said Edward Douglas-Home, head of Edinburgh City sales at Knight Frank. ‘The recent figures highlight just how buoyant the Edinburgh market has been. Premiums have been paid for the very best homes in the best locations and high demand from would-be buyers is evident across the market. We expect that activity will continue to pick up in the coming months,’ he explained. However, despite the optimism in the market, the market has more hurdles to clear, most notably the ongoing negotiations between Holyrood and Westminster concerning further devolution and the upcoming May 2015 UK general election could create more uncertainty, especially when it comes to tax changes affecting high-value residential property. Additionally, from April 2015, Stamp Duty for Scottish residential and non-residential property sales (SDLT) will be replaced by a new Land and Buildings Transaction Tax (LBTT), which will be administered and collected within Scotland. Guidance surrounding the final rates will be provided this month, but it is expected that buyers of more expensive homes will have to pay more tax up front when purchasing a property. Meanwhile, the No vote in the referendum could Now that the uncertainty of the referendum is over there could be a rise in the number of people from London who would rather own property in Edinburgh and commute,… Continue reading
Home sales in Spain up over 12% on a quarterly basis
The number of homes sold in Spain increased by 12.1% in the second quarter compared to a year earlier and was boosted by an increasing number of foreign buyers. Data from the Ministry of Public Works shows that a total of 91,338 homes were sold in the quarter, the best second quarter since 2010. It also shows that 16.4% of the sales were to foreign residents, as the number of purchases by non-Spanish citizens rose for the 12 quarter in a row. In the 12 months from July 2013 to June 2014, some 337,115 homes were sold in Spain, a 12.2% increase from the same period a year earlier, according to the Ministry’s data. The gains were led by a 12.2% increase in the Canary Islands. Other areas continued to see sales declines but much more moderate than in previous quarters. Meanwhile, a judge in Almeria has awarded €135,000 damages to three British families who bought illegal homes a decade ago in Albox, in a case which might open the door for similar legal action around Spain. The judge ruled that they bought their homes in ‘good faith’ and decided that they deserved compensation for living with the possibility of losing their home. The judge also awarded €7,800 to another British family, whose savings were trapped in a home that was half built before work was stopped. It is estimated that more than 250,000 homes were built illegally in Andalusia during the boom years, creating an emotional and complex issue for local authorities. A plan was approved by the ruling junta in 2012 to legalise homes, but there has been little progress. A few weeks ago junta president Susana Díaz announced an additional 25,000 homes could be saved from destruction, under a new amendment to the plan. But there is still uncertainty about the fate of and ultimate legal status of the homes. For years owners, many of them expats, have not known whether their homes would be demolished. In many cases they could not rent or resell their property with the legal case ongoing. Last month prosecutors called for the demolition of 93 homes in Albox but the local mayor said the homes would likely be saved by the new legislation. ‘This whole drama of illegal homes remains a terrible stain on the reputation of Andalusia as somewhere to invest, discouraging fresh money and ultimately impoverishing the local community,’ said Mark Stucklin of Spanish Property Insight. ‘People who bought in good faith and ended up with illegal homes through no fault of their own have been treated appallingly by the Spanish authorities,’ he added. ‘It’s very probable that the homes might be legalised in a time frame that depends upon administrative procedures,’ the sentencing judge said but the judge in the Albox case went a step further, awarding damages to the owners. Developers and architects are liable for the payments. But if they can’t pay, the judge ordered the local town hall to pick up the bill for failing to control the situation and… Continue reading
