Tag Archives: europe
Demand for property grows across the UK but not in London
National property demand in the UK has increased by 3% overall since the first quarter of the year but it is down by 2% in London, the latest hot spot index shows. Despite the initial artificial spike in demand ahead of April’s stamp duty deadline, the changes to tax brackets for second home and buy to let properties seems to have had a detrimental impact on London property demand, according to the index report from eMoov. Removing this decrease in the London market from the national picture sees the increase in demand for property elsewhere around the nation increase by 8% since the first quarter of 2016, taking it to 40% overall. Despite demand cooling across the capital, the London Borough of Bexley remains the hottest spot in the UK for property demand at 71 although it has cooled by 7% since the start of the year in line with the decrease felt across the capital as a whole. Bristol remains the hottest spot outside of the London bubble, with demand increased, albeit marginally, to 69% followed by Bedford at 67%, then Aylesbury and Medway both at 64%, then the London Borough of Sutton and Watford both at 61%. Both Cambridge at 21st and Milton Keynes at 15th are out of the top 10 and are replaced by Northampton and Coventry, where property demand is currently at 64% and 58% respectively. The Scottish capital continues to lead north of the border, with Edinburgh at 54% the 18th hottest spot ahead of Glasgow with 48% at 34th. This is also the case in Wales, where property demand in Cardiff is currently at 44% making it the 44th hottest spot in the UK, with Swansea trailing way down in 90th place at just 27%. Kingston Upon Thames at 59% and Southwark at 47% are two of only five boroughs to have seen a positive increase in property demand levels since the first quarter and are the first and second largest increases across the UK respectively. There has also been a resurgence for property demand across the North East after a tough year for home owners in the region. Stockton-on-Tees at 47%, North Tyneside at 46%, Gateshead at 42%, Durham at 37%, Newcastle at 32% and Sunderland at 23% have all recorded some of the biggest increases in property demand since the first quarter. At just 12% the London Borough of Westminster continues to prop up the table, joined by its prime central London neighbours Kensington and Chelsea also at 12% and Hammersmith and Fulham at 17%, as well as Camden at 20%, the coldest spots in the UK for property demand. Despite its slight revival in the first quarter demand for property in Aberdeen is also low at just 13%. ‘The changes to stamp duty tax brackets for those looking to secure a second home or buy-to-let property seem to have hit the London market harder than the rest of the UK,’ said Russell Quirk, chief executive… Continue reading
UK’s new housing minister urged to get on with tackling major challenges
The new housing minister Gavin Barwell has been urged to tackle the major challenges facing the property industry including lack of supply and new home building. Estate agents and letting agents welcomed his appointment in the new government under new Prime Minister Theresa May and said that his appointment as Minister for London should help tackle the housing issues that particularly affect the capital city. ‘This is a crucial time for housing, with demand greatly outstripping supply and an urgent need to reshape Britain’s housing mix,’ said David Cox, managing director of the Association of Residential Lettings Agents (ARLA) and Mark Hayward, managing director of the National Association of Estate Agents, in a joint statement. ‘We worked closely with the previous administration to increase transparency in the UK property and sector and remain very supportive of the need for a beneficial ownership register,’ they pointed out. ‘Property transparency is particularly a problem in London where housing stock has increasingly become a vehicle for money laundering operations, so we applaud the decision to provide the Minister with a duel oversight for London,’ they added. The statement pointed out that the Government’s decision to sell the Land Registry risks reversing its good work on transparency and they are calling on the new minister to work with the new Business, Energy and Industrial Strategy Department to think again on this proposal. They say it is also essential to honour the commitment of the previous Housing Minister to bring forward a review of the need for mandatory Client Money Protection (CMP) for letting agents, following the discretionary powers that were brought in as part of the Housing and Planning Act as they believe that only this can provide the adequate level of protection for landlords and tenants alike. ‘These challenges are not insurmountable and we greatly look forward to working with the new Minister to find a solution to these issues in the months and years ahead,’ the statement concluded. Barwell said that he is looking forward to working with councils, housing associations, developers and investors to ensure ‘we build the homes people need and deserve and to working with the Mayor of London to ensure the continued success of our wonderful diverse capital and that all Londoners share in it’. Barwell has previously held various parliamentary private secretary roles, including to the Minister of State for Decentralisation and Planning Policy and Secretary of State for Education, and has more recently been Assistant Government Whip and Lord Commissioner of HM Treasury. He is taking over from Brandon Lewis who has moved to the position of Minister of State for Policing and Fire Service. Barwell joins the team at the Department for Communities and Local Government (DCLG) which is led by Sajid Javid, who was appointed Communities Secretary last week. Continue reading
Caution due to Brexit likely to affect UK housing market in short term
Caution is likely to affect sales in the mainstream housing market in the UK as a result of the decision to leave the European Union but low interest rates will underpin prices, according to a new analysis. The market is seeing initial caution, particularly among discretionary buyers, and this likely to curtail housing market activity as buyers’ willingness to commit to a major purchase weakens. Over the medium term, the analysis from real estate firm Savills, suggests that sentiment will improve but also fluctuate as negotiations to leave the EU proceed. It also suggests that buyer sentiment is likely to lead to lower sales volumes in the short term. Also, the possibility of tighter lending could pull transactions numbers further down from recent UK highs of 1.3 million a year. ‘However, at this stage, we do not expect sales volumes to decline to post credit crunch lows,’ said Lucian Cook, director of residential research as Savills. The report points out that so far it has been business as usual for lending. ‘Should downside risks persist, there is a possibility that lenders tighten lending criteria. If stricter borrowing rules come into play, first time buyers and second steppers will be the most affected,’ Cook explained. He believes that low interest rates will underpin house prices with the prospect of a cut in base rates and this may present opportunities for those on low loan to value mortgages. Overall, house price growth is likely to slacken as a result of weaker demand in the short to medium term but looking ahead, Cook said that the possibility of a slower economy could have an impact on price growth. ‘We do not rule out the possibility of price falls in weaker markets. Low levels of house building has resulted in a market that is fundamentally undersupplied. This has not changed,’ he added. The analysis report also points out that the short term impact on sentiment is also likely to vary geographically and between different buyer groups, in part dependent on the level of opposition to or support for Brexit. That would potentially indicate more caution in the domestic markets of London and among first-time buyers and second steppers but less among mature home owners. ‘While this short term sentiment effect is likely to take longer to feed into the house price indices, we would expect the first indications of this impact to come from consumer confidence surveys and mortgage approvals,’ Cook pointed out. ‘At this stage, it appears that the downside risks to the housing market are milder than the events that led to the 2008 financial crisis. However, political and economic uncertainty is likely to curtail housing market activity initially as discretionary buyers exercise caution,’ he said. ‘The potential for lenders to tighten lending criteria presents a longer term risk to market activity, especially among first time buyers and second steppers. This could mean that UK housing transactions, which reached a post credit crunch high… Continue reading
