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Major changes announced for Scottish rental sector and rural housing
The private rented sector in Scotland is facing change with improved security for tenants and rights and safeguards for landlords, it has been announced. The Scottish government said that a new Private Tenancies Bill will be introduced to provide more predictable rents and curb excessive rent rises with local rent controls for areas where prices are deemed too high. A new Rural Housing Fund will be created to help create more affordable homes in the countryside and more details on the current Help to Buy scheme for first time buyers will follow. The Scottish Private Rented Tenancy will replace the current Assured system. It will remove the ‘no-fault’ ground for repossession, meaning a landlord can no longer ask a tenant to leave simply because the fixed term has ended. It will also provide comprehensive and robust grounds for repossession that will allow landlords to regain possession in specified circumstances. The aim is to provide more predictable rents and protection for tenants against excessive rent increases, including the ability to introduce local rent controls for rent pressure areas and overall to create a more streamlined, clearer to understand tenancy system that is fit for the modern private rented sector. The First Minister, Nicola Sturgeon also revealed that the Scottish Government’s target to provide 30,000 affordable homes by the end of this parliament is set to be exceeded. By the end of March 2015, a total of 26,972 affordable homes, some 90% of the target, had been delivered. Another £195 million will be made available over next three years to extend the Help to Buy (Scotland) scheme which help at least 6,500 households and there will also be a review of the planning system with a particular emphasis on delivering more homes by delivering a quicker more accessible and efficient process. The Rural Housing Fund aims to help people who wish to stay and live in rural communities where there is often a lack of affordable homes. It will be available from 2016 for a period of three years. Graeme Brown, director of Shelter Scotland, described the PRS bill as a very positive step that is good news for tenants, landlords and letting agents alike. ‘We look forward to seeing the bill in more detail, the timescales for implementing these changes and how they will work in practice,’ he said. ‘The private rented sector is now home to 330,000 households across Scotland, including around 85,000 families with children. The changes included in the bill will begin the process of reforming the private rented sector and making it more modern, stable, flexible, predictable and fairer for everyone that calls it home,’ he added. Harriet Protheroe-Davis from the Living Rent Campaign, welcomed the move on rent controls. ‘It is important that the model of rent controls fully addresses the problems in rented housing, and we will continue to campaign to ensure that it does, but today’s announcement shows that the Scottish Government has listened to the thousands of people… Continue reading
Largest monthly rise for England and Wales house prices for a year
Property prices in England and Wales increased by 4.6% in July year on year, taking the average property value to £183,861, according to the latest data from the Land Registry. Month on month they increased by 1.7% with the East of England seeing the largest monthly rise of 2.8% and the biggest annual price increase with a rise of 8.9%, the data also shows. The North East saw the lowest annual price increase of 0.4% and Wales saw the only monthly price decrease with a fall of 0.3%. But transactions are down. The number of completed house sales in England and Wales decreased by 15% to 65,619 compared with 77,488 in May 2014. From February 2014 to May 2014 there was an average of 70,029 sales per month. In the same months a year later, the figure was 61,283. The Land Registry figures also shows that the number of properties sold in England and Wales for over £1 million decreased by 21% to 878 from 1,113 a year earlier. John Eastgate, sales and marketing director of OneSavings Bank, pointed out that it is the biggest monthly rise in house prices for a year and he believes it is driven by positive sentiment continuing after the general election and also by the lack of houses on the market for sale. ‘The simple fact that demand exceeds supply will continue to push house prices upwards and as long as that is the case, it’s hard to see prices moderating. The mortgage market remains supportive, and low rates aren’t going anywhere,’ he explained. ‘If economic turbulence from China pushes back a base rate rise until late 2016, as it appears to be doing, we may well see even more people capitalise on low mortgage rates to take their first step on the ladder,’ he added. Adrian Gill, director of Your Move and Reeds Rains estate agents, pointed out that there is still a considerable gulf between the rates of growth in the East, South East and London and other regions, but this hasn’t knocked confidence nationwide. What happens in London is being affected by outside factors, according to Peter Rollings, chief executive officer of Marsh & Parsons. ‘As the first port of call for international investors and prime property purchases, the housing market in London is more exposed to regulatory and stock market turbulence than the rest of the country,’ he said. ‘We’re still experiencing tremors from the new Stamp Duty banding, and as demand for million pound homes has eased, the harsher taxes at the top end may continue to rock the boat in London for the coming months. But this all needs to be kept in perspective. London is still achieving significantly above average house price growth, and retains its position at the top table,’ he explained. ‘In addition, the Chinese stock market slump may present more of an opportunity than a threat to the London property market as while it’s made property more… Continue reading
Home sales still rising in Auckland, but prices stall
Auckland house sales activity was at its highest in more than 15 years during July, but price increases have stalled, according to the latest real estate data. Indeed, the average sales price at $827,359 has remained much the same as for the past two months, the figures from real estate agent Barfoot Thompson show. In July the average sales price was within $1,000 of that for June, and only $5,000 ahead of that for May and managing director Peter Thompson pointed out that a stable average price over a three month period is a trend not witnessed for some time. ‘The combination of high turnover and stable price, points to buyer confidence in the strength of the market at current prices but also recognition that property is fully priced. The last three months of trading also demonstrates that high sales numbers can be sustained without prices increasing,’ he said. ‘The first signs that price increases were slowing could be seen in last month's sales figures, and this month's results confirm that prices are no longer racing ahead. In fact, the median price in July at $757,000 is down $29,000 on that for June, but up $7,000 on that for May,’ he explained. But property turnover is rising and in July the firm sold 1,388 homes, some 18.9% higher than the number in June and 41.2% higher than in July last year. It is the highest sales figure for a July going back to 1999, and 4.5% higher than in July 2003, the year normally regarded as the most active on record. The firm’s data also shows that new listings at 1,777 were the second highest for any month this year, the highest being in March at 1997, and were 27.3% higher than in July last year. Meanwhile, total listings at month end at 2,802 were at their lowest since December last year, and Thompson said this will contribute to choice remaining tight during August. Sales of properties in the million dollar plus category at 411 during the month were the second highest on record. There was also strong interest in property in the under $500,000 category, with sales numbers reaching 200 and representing 14.4% of all sales. In June sales of properties under $500,000 fell to 13.6% of sales. ‘With Spring approaching comparing market activity in the next few months with 2014 trading could be challenging, as in 2014 trading was significantly impacted by a 'wait and see' attitude that developed as we moved towards the general election. In the lead up to the election sales numbers slowed and prices did not recover until November,’ said Thompson. Continue reading
