Tag Archives: europe
Well over half of UK home buyers rent before they can buy a property
Some 64% of aspiring home owners in the UK rent a property before they pick up the keys to their very own home, new research has found. Saving a deposit is one of the biggest financial hurdles facing potential first time buyers and the survey found that renters are less likely to benefit from help from family, with only 41% receiving any financial assistance, compared to 62% of those who are living with their parents or family members. Building up the necessary deposit is also challenging for those who are paying rent as the research revealed an average monthly rent in the UK of £681.70, according to the research from Clydesdale and Yorkshire Banks. Of those who live with their parents before buying their own property some 21% don’t pay rent with a third of these potential home buyers putting this money towards their deposit instead. However 52% do pay a fixed amount every month to their family landlords while 22% contribute towards food and bills and others simply pay what they can afford on a monthly basis. The research also found that those in rented accommodation find getting on the property ladder more stressful as 28% admit to putting themselves under pressure compared to just 16% of those who are still living with their parents and are in less of a rush to flee the nest. ‘Buying a first home is one of life’s most significant financial milestones and the banks can work with the individual needs and circumstances of potential first time buyers to help make their dreams of becoming a homeowner a reality,’ said Steve Fletcher, head of customer banking networks at Clydesdale and Yorkshire Banks. Meanwhile, separate research commissioned by Royal London shows that almost five million renters in the UK have no plans in place to cover their rent if they became too ill to earn for three months or more, even though recent cuts to housing benefits could leave them at risk. This is despite the fact that some 27% of renters in paid employment said they knew someone who had struggled in this situation and the survey found 34% admit they don’t know how long they could survive. The research also found that 60% of those who had some idea said that they could only survive on their savings for three months or less. Some 53% said their first move would be to apply for state benefits, some 47% would reduce their household expenses and 39% start using their savings. Only 7% of renters in paid employment have ever consulted a financial adviser. The most common place people turn to for financial advice is their family and friends. ‘Renters who assume that housing benefit will be there when they need it could find the reality is very different. A series of cuts to housing benefit means that more people would not get their rent paid in full if their income fell unexpectedly,’ said… Continue reading
Housing market activity in Auckland, New Zealand, slowed in March
Auckland house sales activity quietened in April after a busy March, with only a marginal increase in the average price, and sales numbers down significantly. The latest data from agents Barfoot & Thompson shows that the average price in April was $878,599, up 0.8% from March and up 8.6% compared to April 2015. ‘Auckland house prices have pulled back from breaking into new territory. For the past year we have been looking at monthly year on year increases of around 12%,’ said Peter Thompson, Managing Director of Barfoot & Thompson. He pointed out that sales numbers at 944 for the month were also down significantly, falling 29.6% on those for March and down 11.8% on those for April last year. It means that in April the firm sold the lowest number of homes we have sold in an April in four years, and the likely cause of this was caution around current pricing and the low number of properties on the market, restricting choice. The data also shows that the median sales price for the month at $820,000 was up 2.8% on that for March and also up 8.8% on that for April last year. ‘In part, the climb in the midway price point (median price) can be attributed to the low number of homes sold in the month for under $500,000. In April only 7.1% of all homes sold were in this price category compared to 10.9% in March,’ Thompson said. He also pointed out that while house sales above the $1 million mark were the second highest for seven months, overall, activity in April could best be described as restrained. New listings in April at 1,496 were down 20.2% on those for March and down 5.3% on those for April last year. April’s new listings were the lowest in an April in three years. ‘For the third consecutive month the number of properties on our books at month end declined, and at 2,846 fell 8% below where they were at the end of March. The number of homes on our books at the end of April was the lowest they have been in an April for more than 15 years,’ Thompson explained. ‘While choice across all price segments was low, interest in top end homes remained high, and 355 properties, or 37.6%of all homes sold, attracted a price in excess of $1 million,’ he added. Continue reading
UK farmland values down 3% in first quarter of 2016
As uncertainty around the UK referendum on the country’s future in the European Union grows, values for farmland fell by 3% in the first quarter of 2016, dropping back below £8,000 an acre. The drop was the largest quarterly since the 5% decrease that occurred following the collapse of Lehman Brothers in the fourth quarter of 2008, according to the latest analysis report from real estate firm Knight Frank. It shows that around 25% fewer acres of farmland had been advertised by the end of March, compared with the same period in 2015. However, despite the uncertainty and value drop, a recent survey by Farmers Weekly shows that 60% of farmers will be voting to leave the EU on 23 June. The report also looks at what has happened to farmland prices since the UK joined what was known as the European Economic Community (EEC) in 1973. Data from the Ministry of Agriculture/DEFRA shows land values increased sharply around the time, even managing to beat the hyper-inflation of the 1970s. Over the long term that trend has continued with land values outpacing inflation. But the sobering trend for farmers is how agricultural commodity prices have failed to keep up. The report also points out that investors’ priorities have changed dramatically over the past year, as they are now looking much further afield and for value-add opportunities such as diversified income streams or development potential And it also shows that prime country house prices rose by 0.3% on average in the first quarter of 2016, taking annual growth to 2.4%, down from 5.2% in 2014 but there was a notable rise in activity in the first quarter of the year with Knight Frank figures showing a 24% rise in sales volumes across the prime country market, compared with the same period in 2015. Activity was focused on the sub-£1 million market, which showed strongest price growth of 4% across the last 12 months. Homes worth £5 million or more saw values fall by 2.7% in the same period. ‘From weighing up the hugely complex issues surrounding the EU referendum, to coping with a slump in agricultural commodity prices and working out what the implications of the latest changes to the planning system could be for them, estates, farms and other rural businesses are having to take some extremely big decisions,’ said Andrew Shirley, head of rural research at Knight Frank. ‘Long term strategic planning can be extremely helpful when it comes to coping with such challenges and there are also exciting opportunities to be grasped and the level of innovation and entrepreneurship in the countryside has never been greater,’ he added. According to James Del Mar, Knight Frank’s head of rural consultancy, the tax environment for the rural landowner in the UK is becoming more challenging, particularly for those who are domiciled elsewhere. ‘At the same time, the pent up demand for new housing and infrastructure, combined with changes to the planning system, presents what some… Continue reading
