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Spanish property market recovery fastest in the Balearic Islands
The Spanish Balearic Islands, which reported some of the lowest house price falls in Spain during the six year economic downturn, is now experiencing the fastest and highest rises in the country. The strong property market is being supported by a healthy tourism sector and a multi-national house buying population, according to Alejandra Vanoli, managing director of Mallorca Sotheby’s International Realty. She pointed out that Calvia alone has 19,000 non-Spanish residents from 100 different countries and this year the firm is selling more houses than ever. In Ibiza it is a similar story. According to Glynn Evans, the firm’s managing director in Ibiza the international buyers are attracted by exciting culinary business ventures from multi-Michelin starred chefs, supercar and powerboat championships, 70 metre plus berths for the finest private mega yachts and several new five star hotels. On top of this, at the end of April, the Bank of Spain confidently declared an end to the property crisis. José Luis Malo de Molina, said that ‘the adjustment in the housing sector, in principle, is complete’ and ‘the process of price adjustment, in principle, has already bottomed out’. The mortgage market is also well into recovery. Data from Spain’s National Institute of Statistics show that property loans in the Balearics, for example, were up 36.2% in February 2015 over the previous year, above the national average of 29.2%. Meanwhile, the Spanish rental sector is also improving. Average rents increased by 0.2% in April, compared to the previous month, to €6.98 per square meter per month, according to the data from property portal Fotocasa, and year on year they increased by 1%. ‘In the last few months we have gone from registering widespread declines in home rental prices, to registering increases in every region except one. Rental prices, therefore, are starting to increase in most of the country,’ the Fotocasa report said. But rents are still down 31.1% since the peak of the rental market in May 2007 when it was €10.12 per square meter per month and all regions have seen serious declines since the peaks before the economic downturn. Rental prices have fallen the most in Aragon with a decline of 41.9%, are down 37.8% in Cantabria, down 36.5% in Valencia, down 35.9% in Castilla-La-Mancha, down 34.8% in Murcia, down 30.5% in Rioja, down 30% in Asturias and down 29.5% in Andalucia, since the peak of the market. However, prices increased in April month on month in all regions except in Castilla-La Mancha where they fell by 0.1%. Rental prices increased the most in La Rioja with growth of 4.2%, they increase by 3% in the Balearic Islands, and by 0.9% in Madrid. Continue reading
Home lending in Scotland falls in first quarter of 2015
Lending for homes in Scotland decreased in the first quarter of 2015 by 20% compared to the fourth quarter of 2014 and down 1% year on year, the latest data from the Council of Mortgage Lenders shows. These loans reflected lending of £1.7 billion, down 13% compared to the previous quarter but up 15% on the first quarter 2014. First time buyers took out 5,400 loans in Scotland, worth £580 million, down 23% by volume compared to the fourth quarter of 2014 and down 24% by value. Compared to the first quarter of 2014, the number of loans decreased by 7% but the amount borrowed increased by 2%. The CML data also shows that first time buyer affordability changed slightly in Scotland quarter on quarter with first time buyers typically borrowing 2.86 times their gross income, less than the 2.9 income multiple in the fourth quarter 2014 and less than the UK average of 3.37. The typical loan size for first time buyers was £94,795 in the first quarter, down from £97,200 in the previous quarter. The typical gross income of a first time buyer household was £33,499 compared to £33,965 in the previous period. There were 6,700 loans to home movers valued at £1.1 billion, down 17% in volume and down 6% in value compared to the fourth quarter 2014. Compared to the first quarter of 2014, there was an increase of 5% in volume and an increase of 24% by value. Seasonal factors play a part in the lull commonly seen in lending activity during in the beginning of the year, according to Linda Docherty, chair of CML Scotland. ‘What is encouraging is that home movers have been increasing year on year and first time buyer and remortgage levels are relatively consistent with last year,’ she said. ‘It is likely that we will see an upward trend in lending moving forward as we approach the summer months. The introduction in Scotland of the Land and Buildings Transaction Tax will mean the majority of new borrowers paying less tax, which should also provide a boost to the market,’ she explained. She also pointed out that while overall loan numbers are relatively on par with last year, the value of this lending has climbed 15% as the value of Scottish homes continues to rise. ‘Now that the Land and Buildings Transaction Tax has come into force, buyers will be looking to capitalise on the new savings on offer, as well as competitive loan rates. Combined with the lenders’ appetite to lend, this should assist the housing market bounce back post-election as we enter the summer months,’ she added. Christine Campbell, managing director of Your Move Scotland, also pointed out that lending in the opening three months of the year is typically lower as the mortgage market is more lethargic before getting back into a rhythm. ‘In light of that, and despite having to negotiate an unpredictable general… Continue reading
RICS launches quality mark for the UK property and construction industries
The Royal Institution of Chartered Surveyors is launching a new initiative to make the land, property and construction sector in the UK more inclusive and diverse. The land, property and construction sector is not known for its diversity but RICS said it has been working across the industry and learning from other professions to find out what is not working and what can be done differently. Findings from the organisation’s research have led to it launching a scheme known as the Inclusive Employer Quality Mark, designed to help firms gain a competitive advantage and a diverse workforce. Launching next month, the Inclusive Employer Quality Mark asks employers to pledge their commitment to adopting and continually improving several key principles including increasing the diversity of the workforce engaging and attracting new people to the industry from underrepresented groups. It also includes developing training and promotion policies that offer equal opportunities for career progression, introducing flexible working arrangements and adaptive working practices and creating an inclusive culture where all staff engage with developing, delivering, monitoring and assessing the diversity and inclusivity policies. It also wants firms to continually refresh and renew commitments to being the best employer as well as sharing and learning from best practice across the industry Accompanying each of RICS’ these six principles are multiple ‘proof points’, against which signatories will be required to assess, on a bi-annual basis, the actions they are taking and the outcomes to date. RICS has created two separate criteria metrics too so that both small and large firms are assessed fairly. RICS will be using the assessment to document the outcomes and trends for the profession as a whole. Once a firm becomes a signatory they gain access to details about how they are performing according to RICS standards across all six principles in comparison with their peers, as well as a spread of support, ideas and case studies from high performers to help drive up improvements for all. Signatories will be published on the RICS website, and member firms may then use the tag line ‘signatory to the RICS Inclusive Employer Quality Mark and the logo’. Louise Brooke-Smith, RICS president said the launch will mark a step change that the profession needs. ‘This initiative has been discussed with, and has the support and encouragement of, a number of leading firms, both large and small, across the land and property sector,’ she explained. ‘Employee needs are changing, along with their expectations and demographic make-up. The competitive war for talent has also shifted the focus to attracting and retaining talent in the industry. Only by doing so, can we deliver a sustainable future. By committing to the Quality Mark, firms will gain a competitive advantage. An inclusive approach allows organisations to reflect and engage with their clients more effectively and efficiently,’ she added. Kim Worts, external affairs director at RICS,… Continue reading
