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Number of new homes being built in the UK up 10% since 2013
New figures show a rise in the numbers of new homes being built across the UK, with starts now 10% above 2013 and at their highest annual total since 2007. Starts on new homes in 2014 totalled 137,010 overall and in London, starts in 2013 to 2014 were the highest since 2005 to 2006, according to the figures released by the Department of Communities and Local Government. Overall 700,000 new homes have been delivered since the end of 2009 and over 200,000 of which have been since the launch of the government’s flagship Help to Buy scheme. ‘We inherited a broken housing market in which builders couldn’t build, lenders wouldn’t lend and buyers couldn’t buy. We’ve done a lot to help get the housing industry back on its legs, but there’s more to do,’ said Housing Minister Brandon Lewis. ‘These figures show we’re on track and turning this around. Now, housebuilding levels are at their highest annual total since 2007, and first time buyers are getting on the property ladder in record numbers. This is thanks to our long term economic plan and efforts to tackle the deficit we inherited, which are keeping interest rates at their record low and mean now is the best time on record to take out a mortgage,’ he added. The department pointed out that the 2008 economic crash devastated the house building industry, bringing building levels to their lowest since the 1920s and leading to the loss of a quarter of a million jobs but the government has prioritised limited financial resources to house building as a key part of its long term economic plan. This includes helping people onto the housing ladder and over 77,000 households have become homeowners with a fraction of the deposit they would normally require thanks to the Help to Buy scheme, with developers building more as a direct result. According to Lewis, reforms to the planning system has put power back in the hands of local people to have a say over the future development of their area, meaning support for local house building has increased dramatically over the past six years, and permission was granted on 240,000 homes in the year to October. The figures also show that nearly 217,000 affordable homes have been delivered since 2010 and £19.5 billion public and private funding has already been invested in affordable house building, with plans for a further £38 billion which will help ensure a further 275,000 new affordable homes are provided between 2015 and 2020. Lewis also pointed to efforts to keep interest rates low and mortgages more affordable and said that the numbers of first time buyers are at a seven year high, with the Mortgage Advice Bureau recently reporting now as the best time on record to take out a mortgage. Continue reading
Oxford prime property market outperforms rest of UK
Rising demand from international buyers and others from London relocating to Oxford has contributed to price growth in the city’s prime property market, new research shows. Oxford is a key city outside of London and attracts people because of its internationally renowned university and research from real estate firm Knight Frank shows that last year it outperformed both the wider prime property market in the UK and in the South East. Prices increased by 1.8% between October and December 2014, taking the annual rise in values in the city to 6.1%. Demand for homes valued between £1 million and £2 million was especially strong. Knight Frank says that a key driver of Oxford’s property market performance has been demand for homes from buyers from outside of the city. Indeed, the proportion of property buyers from outside Oxford more than doubled in 2014 compared to the previous year, accounting for 52% of all Knight Frank sales in the city last year, compared to just 24% in 2013. Demand from Londoners relocating to Oxford rose significantly year on year, from 3% to 18%, with many such buyers looking to take advantage of the relative price difference that currently exists between house prices in the capital and in Oxford. The proportion of international buyers in the city also rose to 17% in 2014, up from 11% the previous year. Access to top performing schools, strong local employment, as well as improving transport links into London, including a new rail line between Oxford and London Marylebone which is due to open this summer , have helped boost high levels of demand in Oxford, according to the report. The number of potential new buyers registering their interest in purchasing a new home was 18% higher last year than 2013 and the number of property viewings in the city was 8% higher over the same time. ‘All of this helped contribute to an increase in the number of sales completed by Knight Frank in Oxford in 2014, with the total number of transactions last year 22% higher than in 2013 and 41% higher than in 2012,’ said Oliver Knight of the firm’s residential research team. ‘The market for properties valued between £1 million and £2 million is especially strong and accounted for nearly 50% of all sales in 2014, compared to 41% in 2013,’ he added. Continue reading
Overseas buyer confidence strengthening in Italy
With the euro at a seven year low against the pound and prime prices in some parts of Italy at their lowest level since the financial crisis, buyer confidence is strengthening, it is claimed. According to Rupert Fawcett, Knight Frank’s head of Italian sales, stock levels remain high. ‘As we move into the traditional spring selling season, more good quality homes are coming onto the market. Not only are vendors being more realistic on price but in some cases prices are 30% below their 2009 peak, with even larger margins being observed in areas such as Umbria and Lombardy,’ he said. ‘There is a growing sense that prices have reached the bottom of the curve and that whilst we are unlikely to see price growth in the short term, we are also unlikely to see significant falls. Sterling and the dollar are now at record highs against the euro making a second home purchase in Italy even more attractive to buyers from the UK, the US and increasingly amongst expats who have relocated to Asia,’ he explained. He also pointed out that the European Central Bank’s decision to introduce quantitative easing at the end of January may ultimately lead to a stronger Euro but it has, for the moment, strengthened confidence amongst Eurozone purchasers. The Greek election result by comparison has had little impact on enquiry levels. All of these contributing factors have led to a visible increase in enquiries and viewing numbers. The number of viewings generated by Italian properties on Knight Frank’s website jumped 31% between December and January. ‘This is an indication that recent currency fluctuations and the ECB’s shift in policy is impacting on buyers’ minds,’ added Fawcett. In terms of the focus of demand, the firm has found that Tuscany continues to generate the highest number of viewings and sales, but Liguria, Venice and Rome are also attracting strong interest. ‘The latter two underline the increased interest in city living, with Florence joining this triumvirate. Whilst an improved lifestyle remains the key motivation amongst buyers in Italy, the potential investment opportunity is increasingly a consideration for those looking at a city purchase,’ Fawcett said. He added that apartments provide an easier ownership route without the need for a large capital outlay and minimal ongoing maintenance. Continue reading
