Tag Archives: guides
Private rents up an average of 1.7% in 2014 in Britain, official data shows
Private rental prices paid by tenants in Britain rose by 1.7% in the 12 months to December 2014, according to official figures from the Office of National Statistics. A breakdown of the figures show that private rental prices increased by 1.8% in England, 2% in Scotland and 0.2% in Wales in the 12 months to December 2014. Rental prices increased in all the English regions over the year to December 2014, with rental prices increasing the most in London at 2.4%, followed by the South East at 2.1%. A spokesman for the ONS pointed out that improved methodology means that the annual growth rate has been revised upwards considerably. ‘Improved methodology has been implemented leading to revisions to the full IPHRP time series. The latest data uses the new methodology,’ he explained. David Whittaker, managing director of Mortgages for Business, said it is no surprise as those in the industry have seen rents rising much faster than the ONS previously estimated. He pointed out that even a plain vanilla buy to let property now commands an average yield of 6.3%, according to our the firm’s latest Complex Buy to Let Index, while a larger, multi-unit freehold block can provide a landlord with a 9.3% rental yield. ‘But rents still aren’t rising much faster than inflation. We’re talking an average annual rent rise of 2.1% over the last couple of years instead of 1.2%. Affordability of renting, like the affordability of most things in an unprecedented economic slump, has been squeezed. But the culprit hasn’t been excessive rent rises,’ he explained. ‘That’s thanks to the vast investment that landlords are pouring into this industry, supported by a healthy buy to let mortgage market. More homes to let are keeping rents from rising at an unhealthy pace,’ he added. He also pointed out that the latest figures from the Bank of England showing approved mortgage increased in December 2014 for the first time since June, only goes to show the importance of investing in the private rented sector. ‘The mortgage market has continued on a mainly stable trajectory, going in the right direction but not taking off. Private renting will continue to dominate the housing market, and as an industry it needs all the investment and financial support it can get,’ he concluded. Continue reading
Irish property prices up over 16% year on year amid bubble concerns
Residential property prices in Ireland increased by 16.3% year on year in December 2014, up marginally on the 16.2% recorded in November, the latest index data shows. But it is a substantial increase on the 6.4% recorded in the 12 months to December 2013, according to the figures from the Central Statistics Office. So, at a national level the 0.4% rise in the month of December compares with an increase of 0.5% recorded in November and an increase of 0.3% recorded in December of last year. A breakdown of the data shows that in Dublin residential property prices rose by 0.2% in December and were 22.3% higher than a year ago. Also, Dublin house prices rose by 0.3% in the month and were 22.5% higher compared to a year earlier. Dublin apartment prices were 21% higher when compared with the same month of 2013. However, a CSA spokesman pointed out it should be noted that the sub-indices for apartments are based on low volumes of observed transactions and consequently suffer from greater volatility than other series. The price of residential properties in the rest of Ireland rose by 0.7% in December compared with a rise of 0.1% in December of last year and prices were 10.2% higher than in December 2013. House prices in Dublin are still 35.6% lower than at their highest level in early2007 while apartments in Dublin are 44.9% lower than they were in February 2007. Residential property prices in Dublin are 37.7% lower than at their highest level in February 2007 and the price of residential properties in the rest of Ireland is 41.4% lower than their highest level in September 2007. Overall, the national index is 37.6% lower than its highest level in 2007 but there are still concerns about the annual rate of price growth and Ireland’s Central Bank is poised to introduce new mortgage rules, mainly aimed at raising deposit levels to try to ward off a bubble. According to the Society of Chartered Surveyors Ireland (SCSI), the rebound will moderate substantially this year as tighter lending rules exert a downward pressure on prices. It’s annual review and outlook report for 2015, which is based on a nationwide survey of members, predicts that the pace of property price inflation would moderate to 5% to 10% this year. However, the SCSI believes that a threshold of 20% deposits for residential buyers seeking a mortgage is too restrictive and members favour a 10% to 15% level. The SCSI report also suggests that property values rose by 14% nationally in 2014 and by 19.5% in Dublin. It also shows that rents increased by an average of 11% nationally and are now just 5% to 10% off peak levels in some prime Dublin locations. The society report also shows a 33% increase in housing completions last year, but said that this figure is still less than half of what is required annually. ‘The lack of supply of family type homes in the… Continue reading
Family home sales in Miami reach all time annual record, latest index shows
Miami home sales increased again in December with single family home sales setting an all-time annual record in 2014 and median sales prices continuing to increase at a more moderate rate, the latest data shows. Year-end sales of single family home sales in 2014 set an all-time record, increasing 4.8% and while condominium sales were the second highest in history, they decreased 4.3% compared to the previous year. Combined sales for the year decreased a negligible 0.4%, the data from the Miami Association of Realtors shows. ‘The Miami real estate market again reflected great demand in 2014. More single family homes were sold in Miami-Dade County than ever in history, while condominium sales marked their second strongest year ever despite competition from new construction supply,’ said Christopher Zoller, MAR residential president. Single family home prices, which again increased in December year on year, remain at affordable 2004 levels despite more than three years of consistent year on year increases. Condo prices also increased in December, marking 42 months of growth in the last 43 months. The median sale price for single family homes increased 3.6% to $255,000 from $246,180 in December 2013. The average sale price for single family homes decreased 1.7% from $414,560 in December 2013 to $393,340 last month. Compared to December 2013, the median sale price for condominiums increased 9.6% to $195,000 from $175,000 a year prior. The average sale price for condominiums increased 19.9% to $409,707 from $341,687 in December 2013. The report also shows that Miami properties continue to sell rapidly and at nearly asking price, reflecting strong demand. The median number of days on the market for single family homes sold in December was 45 days, an increase of 9.8% from December 2013. The average percent of original list price received was 94.7%, down 1.7% from a year earlier. The median number of days on the market for condominiums sold in December was 57 days, an increase of 9.6% compared to the same period in 2013. The average sale price was 93.8% of the asking price, a decrease of 3.3%. The median days on market for properties sold in 2014 were 45 days for single family homes, an increase of 9.8% and 57 days for condominiums, an increase of 23.9%. The average sales price was 95% of the asking price, a decrease of 0.6% for single family homes and 94.7%, a decrease of 1.7%, for condos. Cash sales in Miami continue to decline as more financing becomes available. Still, access to mortgage loans for condominium buyers remains limited, impeding further market strengthening. In Miami-Dade County, 55.9% of total closed sales in December were all-cash transactions, compared to 57.2% in December 2013. Cash sales in Miami are still double the national figure of 26%. All-cash sales accounted for 41.8% of single family home and 68.5% of condominium closings, compared to a year earlier when cash sales were 41% of single family home sales and 70.3% of condominium… Continue reading
