Tag Archives: crisis
Housing market confidence remains strong in the UK, latest sentiment index shows
Confidence in the UK housing market remains strong and the majority believe that property prices will be higher rather than lower in 12 months’ time. There has also been a small rise in positive selling sentiment in the final quarter of 2015 and a fall in the number who expect it to be a bad time to sell, according to the latest quarterly Halifax Housing Market Confidence Tracker index report. Despite declining steadily since last May, house price optimism in the final quarter of 2015 continued to show that a majority, +61 compared to +68 in May, think prices will keep rising with 13% believing they will be at least 10% higher. ‘Solid economic growth, rising real earnings and falls in already very low mortgage rates are all stimulating housing. At the same time, there is an increasingly acute imbalance between supply and demand, which is causing property prices to rise at a robust pace,’ said Craig McKinlay, Halifax mortgages director. ‘This situation, which is unlikely to reverse significantly in the short term, is reflected in the public’s continuing high levels of optimism regarding house price growth over the coming 12 months,’ he added. There has been a small rise in positive selling sentiment since last quarter, with 55% (+3) of people thinking the next 12 months will be a good time to sell. By contrast, there has been a drop in the proportion who expect it to be a bad time to sell, down three points in the same period, to 29% now. Positive buying sentiment has increased marginally, at 54% (+1), with negativity down two points to 31% while the proportion who think it would be a good time to buy and to sell property has risen to 39%, up three points on the previous quarter, while 15% of people think the next 12 months would be a bad time to do both. The proportion identifying rising property prices as a barrier to buying a property has risen to 37%, up six points on the previous quarter and the highest this figure has been since the survey’s inception, with average UK house prices now standing at £208,286 following a 10% increase during 2015. However, raising a deposit is still believed to be the main barrier to buying property, with 58% of people choosing this as a reason, up one point from last quarter). Job security is the number two reason, at 42%. Concerns about interest rate rises as a barrier have fallen, with only 11% of respondents mentioning this, down five points from last quarter. ‘Difficulties in raising a deposit, concerns about job security and high property prices remain the main barriers to people buying a home. The proportion identifying rising prices has risen to the highest in the survey’s history. The decline in affordability that this highlights is expected to dampen housing demand and property price growth over the medium term,’ said McKinlay. Half think mortgage interest rates will be higher in 12… Continue reading
Prime property markets in key UK towns set to see continued demand
Price growth for prime properties in key urban markets in the UK is likely to continue this year, driven by growing demand among buyers, new research suggests. In particular demand for properties in key town and city locations such as Oxford, Bath, Bristol and Cheltenham with access to good schools, transport links and amenities is expected to be high. They are attractive to buyers from London, including commuters, as infrastructure improvements make them and their amenities more accessible, according to the research from real estate firm Knight Frank. These include the electrification of the Great Western rail line to London from Bristol and Bath and the new Oxford Parkway railway station just opened to the north of the city. Annual price growth for prime properties in the Oxford city market eased to 1.3% in 2015, but the research suggests that as Oxford’s economy is diverse, led by IT, high tech manufacturing and publishing and the city’s hospitals and two universities are major employers, demand from local buyers is ever present. ‘Activity is expected to remain strong in early 2016, especially as some buyers look to complete purchases ahead of the introduction of new stamp duty rules which have the potential to impact a small section of the market,’ the report says. The report points out that annual price growth for prime properties in the Bath city market was 4.5% in 2015, compared to a 3.1% rise across the wider prime country market and this outperformance reflects the continued demand among buyers for prime properties in city centre locations. Bath is an international tourist destination home to a wealth of museums, Georgian streets and other attractions that mark it out as a desirable place to live and visit, including a compact city centre with a good retail offering. This was underlined by a 6% rise in the number of potential buyers registering their interest in purchasing a home in Bath through Knight Frank year on year, a 15% jump in sales volumes over the same period and a 43% increase in the number of people searching for homes in Bath on Knight Frank’s website. A number of these individuals were relocating or looking to relocate from the capital. Knight Frank data shows that outside of the Home Counties, Bath along with Oxford was the most popular location for Londoners looking to move in 2015. ‘The prospect of more regular services between Bath and London from 2017 as a result of improvements being made to both the track and the trains will make commuting an even more viable option,’ the report explains. Property prices in Bristol rose by 6.6% in 2015 driven by the growing trend among buyers for properties in key town and city markets with access to good schools, transport links and amenities and a lack of available properties for sale has been the biggest driver of the market in Bristol over the last year, according to the report. Stock levels were at… Continue reading
Demand remains strong in all commercial property sectors in UK
Commercial property prices in the UK continue to rise as demand remains strong in all sectors according to the latest survey from the Royal Institution of Chartered Surveyors (RICS). UK Commercial Property is still seen as a safe haven for investors with rents and capital values set to continue rising despite macro concerns, the survey says. With businesses across the UK thriving and employment data still strong, the industrial sector has the greatest momentum in occupier demand. Some 43% more chartered surveyors are seeing a rise in demand for industrial space in the fourth quarter of 2015, compared to 29% more seeing a rise rather than fall in demand for offices and 26% more seeing a rise in demand for retail. As demand increases, supply has continued to decrease across the UK with the survey recording the eleventh consecutive quarterly drop in available space across the commercial property market. The survey report also says that development nationally has only increased marginally with anecdotal evidence suggesting that there is a lack of commercial construction activity in many locations. It also explains that a deepening skills crisis is playing a key role in inhibiting development. One notable exception to the low level of new build across the UK is in the London office sector, where development has risen sharply over the last three quarters and 34% more surveyors saw a rise rather than fall in office development starts in the quarter. In the face of continued demand and lack of supply, rent expectations for the next quarter are strongly positive across all sectors with 35% more chartered surveyors projecting a rise in rents across all sectors. Industrial space was again the strongest performer with 43% more surveyors envisaging a further rise rather than fall in rents. Looking at the investment market, buyer enquiries have risen in each sector albeit less than previously and the upward trend in foreign buyers has noticeably flattened. Notwithstanding this, capital values are forecast to rise further in all sectors of the market in both the near and longer term with prime office and industrial sectors most likely to outperform. Looking further forward, all sector rents are set to continue to rise both in the medium and longer term. Over the next 12 months, respondents are most confident of seeing rental increases in the prime industrial market with 87% more respondents foreseeing a rise as opposed to a fall. At the other end of the scale, secondary retail space exhibits the most modest reading on a sectoral comparison, but still posted a relatively healthy balance of +51% expecting rents to grow. Regionally price expectations are positive across the UK, with the strongest performers expected to be London and the East, however, 81% of respondents in the capital now view commercial real estate in central London to be overpriced, slightly up on the 77% who took this view in the third quarter survey. The report also points out that there… Continue reading
