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Scottish house prices at their highest since records began
Scottish houses prices are at their highest level since records began, according to official statistics published by Registers of Scotland (RoS). The average house price in Scotland in the second quarter was £170,190, up 5.2% on the same period in 2013. This is the highest figure since RoS began compiling quarterly house price statistics in 2003. From July to September this year, the total volume of sales was also up, with an increase of 9.1% on the same quarter in the previous year. This figure represents the highest volume of sales for any quarter since quarter one of 2008/2009. ‘This is the second consecutive quarter in which the annual increase in average house price has risen by over 5%, bringing the average property price above pre-economic downturn levels, to just over £170,000,’ said Registers of Scotland’s director of commercial services, Kenny Crawford. ‘Combined with the increase in sales volumes, this has brought the total value of sales across Scotland to just under £4.5 billion for the quarter, up 14.8% on the same period last year,’ he added. Renfrewshire recorded the highest percentage rise in average price compared with the same quarter of the previous year, up 17.2% to £137,072. The City of Edinburgh recorded the highest average at £235,402, a rise of 5.6% compared with the same quarter in the previous year. The largest percentage fall in price was in the Scottish Borders which showed a drop of 5.7% with an average price of £164,448. The City of Edinburgh remains the largest market with sales of just under £759 million for the quarter, an increase of 17.9% compared with the same quarter last year. The data also shows that East Dunbartonshire showed the highest percentage rise with the value of sales increasing by 36.4% compared to the previous year. All property types showed an increase in average house price in this quarter, the biggest increase being in terraced properties at 5.3%. The largest sales volumes came from detached properties, which went up by 11.2% on the previous year. These statistics cover all residential sales, including those that did not involve a mortgage. Continue reading
Some 20% of house seekers in UK would consider moving abroad to find affordable home
A fifth of disillusioned house hunters in the UK would consider leaving the country due to the cost involved in getting on the housing ladder. The United States is the most popular location with 31% saying they would consider moving there, according to research from comparison website Gocompare. Some 29% would consider moving to Australia and 20% to New Zealand with men more likely than women to consider a move overseas while those aged between 18 and 24 years old were most keen to leave the UK. Overall the most popular step to get on the property ladder is the government’s flagship Help to Buy scheme with 30% saying that is their preferred option but 20% willing to move abroad. The poll also shows that 15% would consider buying with friends, 14% would look at buying a micro home, 13.5% a static caravan or park home, 12% with their parents and 12% with other family members such as siblings. ‘A lack of affordable housing has resulted in a property market that is closed off to an increasing number of would-be homeowners. As such, it’s hardly surprising that many people feel like they may have to take some rather drastic steps to own a home,’ said Matt Sanders, spokesperson for Gocompare.com Mortgages. ‘While shared ownership, settling for small or alternative forms of accommodation, and even getting on a plane to another country are being mulled over as options for many, it’s also encouraging to see from our research that people are actively considering making use of the Help to Buy scheme. The majority of people who have applied to the scheme so far are first time buyers, but it’s open to all borrowers,’ he pointed out. ‘If you’re actively looking to buy a home, it’s well worth seeking advice from a qualified, impartial mortgage broker, who can give you an idea of what you can afford and the options available to you,’ he added. Continue reading
Outlook for new home construction in Australia expected to be strong
The new homes market in Australia is expected to be healthy in the coming year with land sales up, especially in regional areas. Quarterly residential land sales held up at reasonably elevated levels throughout 2013/2014, with 10% growth, according to the latest HIA-RP Data Residential Land Report provided by the Housing Industry Association. HIA chief economist Harley Dale explained that the June quarter was particularly with residential land sales up by 8.4%. ‘Both capital city and regional land markets experienced higher turnover during the June 2014 quarter. Growth was stronger in the aggregate regional land markets, up 13% compared to a 5.5% rise for Australia’s six state capitals,’ he said. ‘Consistent with signals from other housing indicators, the geographical recovery in residential land sales is broadening. That is an encouraging sign for detached and semi-detached dwelling construction in 2014/2015,’ he added. However, he pointed out that there is still a wide variation in the trajectory of residential land values around Australia this cycle, within which growth in the weighted median price for capital cities well out-paces that for regional Australia. ‘Over the longer time frame of the past fifteen years there has been a substantial increase in residential land values, which cannot be repeated if the nation is to succeed in adequately housing its growing and ageing population. Land supply remains a policy area that requires much greater focus, and not just at a state level,’ Dale said. In the June 2014 quarter the weighted median price of residential land increased by 1.1% to $205,330, only the third time the value has exceeded the $200,000 threshold. Capital city land prices increased by 1.8% in the quarter to be up by 7.4% compared to the June 2013 quarter. Land prices in regional Australia were essentially flat in the June 2014 quarter, easing by 0.1% but up by 4.1% in annual terms. According to RP Data research director, Tim Lawless, the bounce back after a softer March quarter result suggests there may still be some life left in the residential land sector. ‘This is the strongest result since the June quarter of 2013 which is welcome news. A rise in land sales implies a rise in detached housing construction about six months down the track which in turn provides a substantial multiplier for the Australian economy; more jobs, more building materials, home furnishings, appliances and white good sales,’ said Lawless. ‘Whether this quarterly improvement can develop into a trend is yet to be seen. Despite the June quarter lift, the previous three quarters were showing a slowdown in the number of sales while vacant land prices continued to rise, a trend which may point to ongoing supply shortages of well-located vacant land,’ he added. Continue reading
