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New home sales pick up in Australia, but peak of growth has passed
Sales of new homes in Australia increased in August following a weak July but an overall downward trend in total seasonally adjusted new home sales is still apparent, the latest data shows. There was an increase of 3.3% in August driven primarily by a strong increase in the usually volatile multi-unit sector, the new home sales report from the Housing Industry Association shows. However the report, which covers Australia’s largest volume builders, says that despite the August bounce, the HIA still believes that new home sales reached their peak for the cycle back in April this year.” ‘The result for August was driven primarily by a strong lift the multi units sector where sales increased by 19.8%, taking this component of sales to its second highest level this cycle,’ said HIA economist Diwa Hopkins. She pointed out that new detached house sales didn’t fare quite so well, up by only 0.5% although this slight rise stopped a decline which stretched to three consecutive months. ‘As leading indicators of new home construction activity, both HIA New Home Sales and ABS Building Approvals are displaying a moderate downward trend. Current levels remain elevated by a historical standard, which is consistent with still healthy levels of new home building throughout 2014/2015,’ she explained. ‘It is important for the new home building sector and the broader domestic economy that we continue to see evidence of historically high levels of building approvals and new home sales throughout 2014 and into next year, even if the peak for these indicators has passed,’ she added. A breakdown of the figures show that detached house sales increased by 11.1% in New South Wales and by 2% in Western Australia but fell by 6.8% in South Australia, by 6% in Victoria and by 0.7% in Queensland. Over the three months to August 2014 detached house sales decreased in each of the surveyed states, albeit to varying degrees, with the exception of New South Wales where sales increased by 0.4%. Sales fell by 9.8% in Victoria, by 4.6% in Western Australia, by 4.4% in South Australia, and by 3.2% in Queensland. Continue reading
NLA reminds UK landlords about upcoming immigration checks
The National Landlords Association is reminding UK landlords about the importance of conducting tenant checks shortly before new legislation will require them to check the immigration status of every new tenant. As of the 01 December 2014 landlords in the West Midlands where a pilot scheme is being introduced, will be responsible for carrying out ‘right to rent’ checks in order to identify if a potential tenant has the right to reside in the UK, before they grant a tenancy. If the checks are not carried out landlords could face a fine of up to £3,000. The new rules, set out in the Immigration Act, will be rolled out around the rest of the UK in 2015. The NLA recommends that landlords always check potential tenants thoroughly in order to reduce the risk of letting to unreliable tenants and minimise the risk of rent arrears. Services such as the NLA Tenant Check give landlords the ability to vet their tenants and be confident it has been done to a professional standard. ‘In some areas as early as this December, the Immigration Act will place a legal responsibility on landlords to help prevent illegal immigrants from accessing private rented accommodation,’ said NLA chairman Carolyn Uphill. ‘It has always been best practice to conduct a thorough check on prospective tenants, but if landlords don’t do their due diligence on tenants they could be in line for a hefty penalty,’ she explained. ‘The NLA exists to support all landlords to make a success of their lettings business and to ensure they comply with the law,’ she pointed out and added that to see how the NLA can help with this forthcoming requirement landlords can go online to the NLA Tenant Check website. Meanwhile, Harrison Murray Lettings (HM Lettings), the lettings arm of the Nottingham Building Society, said it aims to lead the way in ensuring all potential tenants are eligible to live in the UK. ‘We want to safeguard and support the rights of both landlord and tenant whilst ensuring we are operating in line with the latest legislation,’ said Group Lettings controller Paul Offley. The Home Office has not yet issued specific instructions but it is likely that British passport holders will only need to show their current passport and those without passports will have to produce alternative documents including birth or adoption certificate in combination with a National Insurance number, driving licence, naturalisation certificate or a right of abode certificate. Citizens of the 27 member countries of the European Union plus Iceland, Lichtenstein, Norway and Switzerland, are expected to show as evidence a passport and national identity card or evidence of receipt of UK benefits. People from other countries should have a Biometric Residence Permit which clearly states the time limit on their stay but foreign visitors staying for less than six months cannot obtain a Biometric Residence Permit and would need to show a passport containing a UK immigration stamp with a time limit that is still valid. Continue reading
Quarterly prime country house price growth slows
Concerns over the introduction of a mansion tax, an impending interest rate rise and tighter mortgage lending in the UK has meant that quarterly price growth in the country house market slowed to its lowest level in almost two years. Between June and September prime property values increased by just 0.3% in the third quarter of 2014 while annual growth also slowed, to 4.7%, according to the latest data from Knight Frank. Despite these concerns, there hasn’t been a noticeable impact on sales volumes and the total number of exchanges completed so far this year was 8.4% higher than the corresponding period last year. The rising number of exchanges suggests that underlying demand has remained strong, says the report. However, there are signs that this momentum is easing. While the number of property viewings was fairly steady during the three months to the end of September compared to the same period last year, the number of prospective buyers registering their interest in buying a prime country home fell by 9%. The report points out that anecdotal evidence would suggest that concerns surrounding the possible introduction of a mansion tax on properties worth more than £2 million after next May’s general election are becoming more widespread among both prospective buyers and vendors. ‘Any further property tax would come on top of the large contribution purchasers of high value property already make in the form of stamp duty. Data for the 2013/2014 tax year shows that across England and Wales over £1 billion of stamp duty revenue, of the total £6.4 billion annual tax take, was collected from the £2 million plus price bracket alone,’ says the report. Price growth over the last quarter was strongest in the South West, at 1%, followed by Yorkshire and the Humber. On an annual basis, prime homes in these areas have risen by 7.7% and 5.1% respectively. ‘Prime town and city markets across the UK have benefited from rising demand from those relocating from London and downsizers and price changes in urban locations have reflected this. Growth of 1.3% was seen in the three months to the end of September, while annual growth totalled 8.9%,’ the report adds. Continue reading
