Tag Archives: european
The growth of London house prices has slowed down, new data suggests
London house price growth has slowed in the first quarter of 2016 and is now nearly three times lower than it was in the last quarter of 2015, new research shows. The London market recorded price growth of 1.2% in the first three months of the year while nearby regions have seen higher price growth, according to the latest UK House Market report from the Lancaster University Management School. For example, the Outer Metropolitan area has seen price growth of 3.1%, Outer South East 2.5% and East Anglia 4.1%, the data from the report shows. The report says that this is in line with the so-called ripple effect, suggesting that substantial house price increases in London over the last few years spread out to surrounding regions over time and have a leading effect on the UK housing market. It suggests that the slowing growth in the London property market has coincided with two factors, possibly working in opposite directions: an increase in the uncertainty of global economic conditions, especially in the East, and the run-up to the introduction on the 01 of April of extra 3% stamp duty on additional property purchases. The Observatory has been set up to monitor for signs of exuberance in prices in the UK regions, and releases its analysis each quarter alongside the house price data. Continue reading
New body launches in UK to bring professionalism to multi home rental sector
With the residential rental sector attracting more investors than ever before the first cross-industry organisation dedicated to driving the professionalism in the sector has been launched. The UK Apartment Association (UKAA) said it will focus on driving up standards of customer service and delivery to ensure that all renters are given the best possible experience. Its creation has been championed by Housing Minister Brandon Lewis, who is calling on the industry to work together to deliver more homes for rent and better standards for tenants. The UKAA aims to differentiate the multi-family housing market from the amateur ad hoc rental service provided by small scale landlords that currently make up the bulk of rentals. ‘I want to see the private rented sector respond to the nation’s housing needs by providing new forms of supply and improved quality and choice,’ said Lewis. ‘I welcome the UKAA as a body that can help build the capabilities of the build to rent sector in this country, bringing together the needs of private renters with the institutional capital that wants to invest in meeting their demands,’ he added. With more than nine million renters in the UK and vast potential for that number to grow, there is a huge opportunity for build to rent developments as an institutional asset class. In recent months alone, the number of developers and investors committing to projects has risen but there is still a distance to go before renting becomes the professional, service led industry backed by large institutional investors that it is in the United States. As the first international partner of the US-based National Apartment Association (NAA), the UKAA will benefit from the experience of the US multi-family industry. A federation of nearly 170 state and local affiliates, NAA encompasses over 69,000 members representing more than 8.1 million apartment homes throughout the United States and Canada. ‘The NAA is eager to bring industry training, best practices and networking opportunities to the UK. In addition, our US members are increasingly seeing opportunities for global growth and are looking to NAA for guidance when entering a new market. Our partnership with UKAA will be invaluable to our association as we address the growing need for a global rental housing industry,’ said Doug Culkin, president and chief executive officer of the NAA. As well as providing a valuable platform for the industry, the UKAA aims to lead educational training, customer service delivery, study tours and provide a suppliers’ forum, market data and a range of resources. A growing number of high profile companies and professionals from across the sector have already signed up as members including Atlas, Hermes, Greystar, Manchester Life and Savills with suppliers including Roomservice by CORT and Yardi. The UKAA is working in conjunction with all of the other industry bodies and is in the process of establishing regional branches, which are so far under way in Manchester and Scotland. ‘This evolution of the rental sector… Continue reading
Asking prices rise across the UK apart from in London
Asking prices increased in all parts of the UK except London, up 0.5% month on month, according to the latest property index to be published. The East of England saw the largest monthly rise of 1% as demand continues to outweigh supply in the region but overall the annual home price for England and Wales fell to 7.5%, the data from the Home.co.uk index shows. The report suggests that typical time on Market figures in the East of England, the South East and Greater London are contrary to seasonal expectations, and this is a clear indicator that the anticipated slowdown is taking hold as demand dips, at least for the time being, while the market pauses for breath. The total stock of property for sale remains historically very low indeed despite gradually rising supply in London and Scotland. In all English regions outside of London and in Wales, scarcity holds firm as the key market driver. Overall, the number of properties entering the UK market is down 6% compared to a year ago. The supply shortage is most keenly felt in the West Midlands where 12% less new stock arrived on estate agents' books during last month compared to March 2015, and this will ensure prices in this region keep rising over the summer months. Similarly, the South West of England supply shortage is worsening as indicated by 11% less stock being registered on agent portfolios last month. The index report point out that market activity in the formerly lacklustre North East shows signs of significant improvement. There and in the North West, marketing times have reduced considerably and prices are on the rise. The North West market is improving more quickly as supply levels in this region indicate a new declining trend and consequently prices may show further significant upward progress across the rest of the year. Meanwhile, the Welsh property market remains the poorest performer. Prices there have fallen by 0.2% over the last six months and marketing times are higher than in any English region or Scotland. ‘Overall, the current mix-adjusted average asking price for England and Wales is now 7.5% higher than it was in April 2015, and we predict further rises over the next few months due to worsening supply in an increasing number of regions. However, the year on year rise is expected to attenuate as the London market cools,’ said Doug Shephard, the firm’s director. He explained that a buy to let stampede ahead of the new stamp duty charges means that growth might now slow. ‘Any sort of lull in demand from investors will be welcomed by first and next time buyers, especially those who had the wisdom to sit on their hands until the dust settled,’ he said. ‘The current figures suggest that London will be the best area to take advantage of waning demand and rising supply, but prices today remain very high and properties will need to hang around on the market much… Continue reading
