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UK home owner confidence dips as mortgage concerns rise
Home owners in the UK are less confident about further house price growth in the next six months and many are concerned about getting a mortgage, new research shows. The housing market sentiment survey from Zoopla reveals that confidence has now fallen a 15 month low and it also found that 39% of respondents believe it is harder to get a mortgage than it was three months ago. Overall the survey found that the proportion of home owners expecting property prices in their area to increase over the next six months has fallen from 92% three months ago to 88%, the lowest level since July 2013. Home owners in the East of England are the most bullish about continued house price rises, with 91% expecting property values to increase over the next six months. The South West has seen the most significant drop in confidence over the past three months, with the proportion of home owners anticipating further price gains falling from 95% three months ago to 85% today. Following the implementation of stricter affordability criteria for borrowing, 39% of those homeowners surveyed stated that they thought it was more difficult to get a mortgage now than it was three months ago. ‘The property market signals are somewhat harder to decipher at the moment than they were a few months ago,’ said Lawrence Hall of Zoopla. ‘With the lengthier funding approval process following the Mortgage Market Review and fewer homeowners predicting that house prices will continue to rise in the short term, the coming months will be crucial to determine if the housing market recovery has stalled or simply paused for breath,’ he added. Continue reading
Home sales in Spain up over 12% on a quarterly basis
The number of homes sold in Spain increased by 12.1% in the second quarter compared to a year earlier and was boosted by an increasing number of foreign buyers. Data from the Ministry of Public Works shows that a total of 91,338 homes were sold in the quarter, the best second quarter since 2010. It also shows that 16.4% of the sales were to foreign residents, as the number of purchases by non-Spanish citizens rose for the 12 quarter in a row. In the 12 months from July 2013 to June 2014, some 337,115 homes were sold in Spain, a 12.2% increase from the same period a year earlier, according to the Ministry’s data. The gains were led by a 12.2% increase in the Canary Islands. Other areas continued to see sales declines but much more moderate than in previous quarters. Meanwhile, a judge in Almeria has awarded €135,000 damages to three British families who bought illegal homes a decade ago in Albox, in a case which might open the door for similar legal action around Spain. The judge ruled that they bought their homes in ‘good faith’ and decided that they deserved compensation for living with the possibility of losing their home. The judge also awarded €7,800 to another British family, whose savings were trapped in a home that was half built before work was stopped. It is estimated that more than 250,000 homes were built illegally in Andalusia during the boom years, creating an emotional and complex issue for local authorities. A plan was approved by the ruling junta in 2012 to legalise homes, but there has been little progress. A few weeks ago junta president Susana Díaz announced an additional 25,000 homes could be saved from destruction, under a new amendment to the plan. But there is still uncertainty about the fate of and ultimate legal status of the homes. For years owners, many of them expats, have not known whether their homes would be demolished. In many cases they could not rent or resell their property with the legal case ongoing. Last month prosecutors called for the demolition of 93 homes in Albox but the local mayor said the homes would likely be saved by the new legislation. ‘This whole drama of illegal homes remains a terrible stain on the reputation of Andalusia as somewhere to invest, discouraging fresh money and ultimately impoverishing the local community,’ said Mark Stucklin of Spanish Property Insight. ‘People who bought in good faith and ended up with illegal homes through no fault of their own have been treated appallingly by the Spanish authorities,’ he added. ‘It’s very probable that the homes might be legalised in a time frame that depends upon administrative procedures,’ the sentencing judge said but the judge in the Albox case went a step further, awarding damages to the owners. Developers and architects are liable for the payments. But if they can’t pay, the judge ordered the local town hall to pick up the bill for failing to control the situation and… Continue reading
Million dollar sales push up Auckland’s average house price in September
The average price of homes sold in Auckland, New Zealand, reached a record high last month, according to the latest published figures. There are signs that prices and sales activity in the Auckland residential housing market will lift after the forthcoming general election, says agents Barfoot & Thompson. This comes as the average house sales price in the city reached £738,876, the highest on record, some $13,000 up on the previous highest average price established in March this year, and up 3.8% on the previous month’s average price. ‘The sales data shows the high average price was the result of a relatively modest number of homes being sold, of which a high number sold for in excess of $1 million. Of the 959 homes sold, 164 or 17.1% were for in excess of $1 million,’ said Peter Thompson, managing director of Barfoot & Thompson. ‘Properties in the higher price range are less affected by the uncertainties that exist during a run in to a general election, and with such a high number of sales at the high end, the average price has lifted more than might be the case in a normal month’s trading,’ he added. He pointed out that in contrast, September’s median price at $635,000, is up less than 1% on that for August, and is more in line with the median price over the past four months. ‘Without doubt, the election’s influence can be seen in September’s sales numbers. However, what can also be seen in the month’s figures is that housing activity was starting to lift during September, and normal spring trading can be expected now the election is behind us,’ said Thompson. The data also shows that new listings, at 1,314 for the month, were already starting to build and were up 16.4% on listings during August and only 5.9% down on July’s 1,396 new listings. ‘One factor which has the potential to put pressure on sales prices in the short term is the low number of listings at month end. At 3,075 listings, this is the lowest number this year and the lowest at the end of a September for more than a decade, and means that at the start of the month choice is extremely limited,’ explained Thompson. He said it may take another month for the new listing pipeline to build and added that sales of property for under $500,000 held up during September, accounting for 30.1% of all sales. Continue reading
