Tag Archives: european
January saw highest total approvals for home buying in UK for a year
The number of loan approvals for house purchase in the UK increased by 22% in January with the month seeing the highest number of total approvals since the beginning of 2014. The data from the Bank of England also shows that the number of remortgage approvals increased by 33% year on year. A breakdown of the data shows that purchase approvals reached 74,581 in January compared to the average of 70,221 over the previous six months while those for remortgaging was 42,228, compared to the average of 40,306 over the previous six months. According Peter Williams, executive director of the Intermediary Mortgage Lenders Association, the threat of a rate rise is no longer driving the remortgaging uplift and instead it is being supported by home owners looking to improve their financial situation through cheaper monthly repayments. ‘In particular, landlords are preparing for fewer tax reliefs like the loss of the wear and tear allowance and restriction of mortgage interest deductability. Accessing cheaper deals through remortgaging will help offset these when they come into place,’ he said. ‘With rising home owner equity and a range of competitive deals in the market, home owners have also been determined to capitalise on currently low rates and intense market competition amongst lenders,’ he explained. He also pointed out that the stability in lenders’ mortgage funding continues to improve. ‘While the government and the Bank of England have supported funding the market, an increase in retail deposits over mortgage balances is underpinning improved mortgage lending, with the savings inflow exceeding that lending by £215 billion or 17% in the last quarter of 2015,’ he added. Adrian Gill, director of Reeds Rains and Your Move estate agents, believes it signals a strong spring buying season ahead. ‘Interest rates aren’t going anywhere fast and while cheaper mortgage deals stick around, buyer demand is chomping at the bit. With all the various government initiatives now in place, many first time buyers consider this their best shot at making the finishing line and purchasing their own home and they are upping the ante to make sure they don’t miss out,’ he said. But in reality, he pointed out that the market currently favours sellers. ‘Those looking to put their home on the market haven’t been in such a strong position since before the recession. House price growth is gaining strength on both an annual and monthly basis, and with an army of eager first time buyers it’s a brilliant time for existing home owners to be advancing up the property ladder. Ultimately, activity levels won’t be able to keep up the pace unless there’s a steady stream of homes for sale entering the ring,’ he added. But Martin Stewart, managing director of the independent mortgage broker, said that the forthcoming referendum on the UK as a member of the European Union could slow the market. ‘The beginning of 2016 has been far busier than usual in the… Continue reading
Prime property market in Gibraltar offers value for money on global stage
After several years of strong growth Gibraltar, a British overseas territory on the southern tip of Spain, is seen as offering good value for prime property, according to a new report. Indeed, prime property prices have increased by 15% from 2013 to 2015 with demand driven by Gibraltarian, UK and other international buyers, says the new analysis from international real estate firm Savills. It points out that Gibraltar is among an elite and small club of territories within Europe with special and unique governance, independence and tax status. A self-governing territory with a population of 32,000, bordering a much larger neighbour, it draws parallels with Monaco. Hybrid centres of business and leisure and located in the Mediterranean, both have the characteristics of ‘city’ and ‘resort’ and each has developed an international professional services sector and are centres of commerce in their own right. Prices in these territories appreciated at a time when other national markets in neighbouring countries have been languishing. Comparisons with Monaco only go so far, the report explains. Gibraltar has its own unique characteristics, history, culture, and has developed on its own path. Emerging later on the global stage, Gibraltar’s prime property market still offers value when compared to rival jurisdictions, the report says. It explains that diversification in Gibraltar’s economy has supported economic growth, generated wealth in the local economy and spurred a wave of new development. ‘Entirely new market tiers have opened up to attract the global wealthy. The hybrid nature of Gibraltar as a conurbation, destination and recreation location diversifies risk while maximising the market for property. This comes at a time when the prime markets of many world cities are at a high plateau,’ the report says. It points out that as Monaco and Hong Kong are becoming the preserve of only the super-rich, Gibraltar has the potential to fill a gap in the Mediterranean for high net worth individuals at various levels. ‘While it may not yet have the cachet of Monaco, proposed new developments, the right investment and infrastructure could propel Gibraltar onto the circuit of the global wealthy Gibraltar offers certain tax advantages for those wealthy individuals who make it their primary home. The territory levies no inheritance tax, wealth tax or capital gains tax,’ the report explains. Gibraltar’s prime markets are dominated by two nationalities: those from the UK, and those from Gibraltar, who have accounted for 39% and 34% of buyers in the last three years, respectively. The remaining 26% come from across the European Union and the rest of the world, and include Swiss, Germans, Russians and Australians. It describes Gibraltar as a place to relocate to, not as a second home market. Some 79% of the prime market is for main residences, while there is also an active investment market, accounting for 20% of sales. Investors favour smaller apartments, the average size being 81 square meter with an average price of £436,000, compared to 120 square meters… Continue reading
UK would be less attractive to property investor if it left the EU, new poll suggests
Property investors have warned that the UK would be a less attractive place to invest were it to leave the European Union, according to findings of a new survey. The survey of investor clients by global property advisor CBRE reveals that sentiment has hardened against leaving the EU in the three years that the poll has been taken. This year’s results show a reduction in those who think exiting the EU would make no difference to investment from 33% in 2014 to 21%. The proportion of respondents who think the UK would be a slightly worse place to invest has risen from 32% in 2014 to 46% in the latest poll, bringing the total that think the UK would be a worse place to invest to 73%, up from 69% last year. The UK will hold a referendum on whether to remain in the EU on 23 June and CBRE believes investors and occupiers are likely to behave during the referendum campaign in the same way as they did in Scotland during its 2014 independence referendum by delaying decisions until after the vote. However, after Scotland voted to stay in the UK there was a ‘catch up’ effect and CBRE expects the same for the UK, assuming that it decides to remain in the EU. ‘Property investors have, over the past three years, become increasingly gloomy about the impact of the UK leaving the EU. The UK has experienced record property investment in the last few years and the property investors we surveyed fear that a Brexit would adversely affect the attractiveness of the UK as an inward investment destination,’ said Miles Gibson, head of UK research at CBRE. ‘David Cameron’s reforms are likely to be useful, but not decisive, in affecting public sentiment. The most important concession that the Prime Minister has secured is to ensure that non-Eurozone countries are not discriminated against within the EU’s single market. This aims to ensure that key parts of the UK economy, particularly financial services, can continue to operate from the UK rather than having to move to the Eurozone,’ he added. The report shows that the majority of experts feel that the UK would suffer economically from exit, but estimates of the impact on growth vary substantially. The majority view is that the UK property market would suffer an adverse ‘demand shock’ were it to vote to leave the EU. Finally, the report argues that reductions in labour availability arising from migration controls will vary substantially because some sectors are more dependent on migrant labour than other. The food and hospitality sectors, for example, could be very exposed to labour market restrictions. The financial services sector is also exposed because of the potential change in the regulatory environment, and in terms of trade with the EU. Continue reading
