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Gazumping is back in the UK with buyers in Brighton most affected
Brighton leads the way as the gazumping capital of Britain with 34.9% of residents losing out in this way, new research has found. As if getting a foot on the property ladder wasn’t already hard enough for some, the danger of being gazumped is now becoming a reality again for property buyers, according to a study by online estate agent eMoov. It found that on average across the UK some 22% have experienced the turmoil of being gazumped which can leave prospective buyers out of pocket and back to square one in the buying process. In the London market gazumping is over the national average with 31.9% in the capital have come within touching distance of a purchase before it was snatched from their grasp. The tactic of sealed bidding, particularly rife in the capital, provides the ideal environment for potential gazumpers. Outside of the South East the average drops from 22% to 18%. Birmingham figures show 27% of property buyers in the area have been gazumped with Sheffield at 22%, Bristol at 21%, Leeds and Nottingham at 20%. Although gazumping is not a new concept it has become a more regular occurrence across the country. The research also found that the higher the price of the property, the more likely you are to be gazumped. Of those that had been previously gazumped 27% were over properties of £500,000 or above. This dropped to 25% for properties valued between £200,000 and £500,000 and a further 6% for properties under £200,000. ‘It is one of those things in the current structure of property purchasing unfortunately. Buyers that have displayed honest interest in a property only to be let down by owners with pound signs in their eyes, often encouraged by traditional estate agent looking to increase his fee percentage,’ said Russell Quirk, the firm’s chief executive officer. Liverpool was the least affected area of England for gazumping at just 13%, however this doesn’t necessarily put an end to unethical behaviour during the buying process. ‘If these markets cool off too much, we could see gazundering coming back in. This is a tactic in areas with little demand where the buyer calls up just before the exchange of contracts and demands to pay less,’ explained Quirk. Continue reading
Rents fall across majority of UK regions in October, latest monthly index shows
Most regions in the UK saws rental prices fall in October and while they are still higher than a year ago the last three months data indicates a cooling in the market, according to the latest index. Outside of London the average monthly rent is now £708, according to the HomeLet index which also shows that Plymouth, Cardiff and Leeds most affordable major cities to rent in the UK while London, Edinburgh and Birmingham are least affordable. Overall the rents landlords are charging on new tenancy agreements are continuing to fall across the UK with rental prices dropping in seven out of 12 regions of the country in October 2014. While rents for new tenancies in October were still higher than in the same month of 2013, HomeLet has now recorded lower rental prices in each of the past three months in many regions, indicating a cooling in the rental market. Regions that have previously recorded high growth such as Greater London, East Anglia the South East and the South West of England are now recording falling rental prices. In Greater London, for example, rents levied on new tenancies signed in October 2014 were 3.8% lower than September 2014. In the South East, rents fell 3.1% and in East Anglia prices dropped 5.4%, while the South West saw the biggest monthly drop with rents falling by 9.3% Meanwhile, in areas of the country where rents have not been rising quite so fast, October saw continued growth. In the North East of England, rents on new tenancies rose by 3.8% in October and in the East Midlands, October’s increase was 3.4%. A breakdown of the figures show that in Scotland the average monthly rent it £587, down 4.4% month on month but up 2.6% annually while in Wales it is £597, down 1% month on month and up 3.3% year on year. Northern Ireland saw monthly rents fall 6.3% to £578 but up just 0.9% year on year. The average monthly rent in East Anglia is £781, down 5.4% compared with September but up 8.5% annually. In the South West it is £787, down 9.3% month on month and up 3.6% annually while the South East saw rents fall 3.1% to £880, an annual rise of 7.3%. In the North West rents increased by 1.7% on a monthly basis to £671 and are up 7.5% year on year. Yorkshire and Humberside also saw a monthly rise with rents up 0.2% to £608 and up 4.8% annually. In the North East rents increased by 3.8% to £528 and are up 2.3% year on year while the West Midlands saw a rise of 0.6% to £660 but rents are 11.7% higher than a year ago. The East Midlands also saw a rise with rents up 3.4% to £605 and up 2.9% annually. London, which tends to be on a different trajectory to the rest of the country, saw rents fall by 3.8% compared to September,… Continue reading
Sales in Miami soared last month due to increased demand
Sales in the Miami real estate market, one of the most popular US locations with overseas buyers, soared in October, exceeding record activity recorded in 2013. Single family home sales increased by 13.6% compared to October 2013 condominium sales increased 6.5% while combined, residential real estate sales increased 9.5% compared to a year ago. ‘Miami continues to experience population growth, interest from foreign and domestic second home buyers, and economic expansion,’ said Liza Mendez, chairman of the Board of the Miami Association of Realtors. ‘The Miami real estate market continues to strengthen due to demand for local properties, as evidenced by sales that exceed record activity in 2013,’she added. Overall the data shows that single family home prices, which again increased in October, remain at affordable 2004 levels despite 35 months of consistent year on year growth. Condo prices also increased in October, marking 40 months of growth in the last 41months. Condo prices declined in August for the first time in more than three years but rebounded in September. The median sale price for single family homes increased 9.1% to $240,000 but the average sale price decreased 6.6% to $393,515 last month. Compared to October 2013, the median sale price for condominiums increased by 8.8% to $185,000 and the average sale price for condominiums increased 22.3% to $362,657. The association monthly report points out 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 October was 43 days, an increase of 7.5% from October 2013. The average percent of original list price received was 95.3%, down a negligible 1% from a year earlier. The median number of days on the market for condominiums sold in October was 58 days, an increase of 31.8% compared to the same period in 2013. The average sales price was 93.7% of the asking price, a decrease of 3.9%. 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. Some 55.8% of total closed sales in October were all cash transactions, compared to 61.7% in October 2013. Cash sales in Miami are still more than double the national figure of 27%. All cash sales accounted for 40.8% of single family home and 67.8% of condominium closings compared to a year earlier. Since nearly 90% of foreign buyers in Florida purchase properties all cash, this continues to reflect the much stronger presence of international buyers in the Miami real estate market. After three years of record sales activity that resulted in an inventory shortage, seller confidence continues to result in more properties being listed for sale in Miami. But new listings are now increasing by narrower margins, according to Francisco Angulo, residential president of the Miami Association of Realtors. ‘Seller confidence is resulting in greater inventory becoming available in the Miami real estate market. But strong home sales in Miami continue… Continue reading
