Tag Archives: housing
Call for new housing to match demand for homes in Wales
The Building Societies Association (BSA) has called on all parts of the Welsh housing market to work together to ensure the supply of new housing in Wales keeps up with rising demand. The trade body, which represents all 44 building societies in the UK including the Principality, Swansea and Monmouthshire, made the call as part of its Housing for All conference in Cardiff. Delegates to the conference included local authority representatives, estate agents, developers, housing associations and building societies to discuss the problems and opportunities facing the Welsh housing market. The opening speech at the conference was given by Paul Broadhead, head of mortgage policy at the BSA, who called on the different parts of the market to identify the barriers and opportunities to ensure sufficient housing was provided for future generations within Wales. ‘In Wales there are encouraging signs but the ultimate goal has to be a significant increase in the number of new homes completed each year,’ he said. ‘As mortgage lenders, building societies play their part in fulfilling borrowers’ housing aspirations and as the Help to Buy Wales scheme shows can have a positive effect. But we need action to be taken now to ensure we have sufficient homes for the population of tomorrow,’ he added. The headline speech of the event was made by Lesley Griffiths, Minister for Communities and Tackling Poverty, who pointed out that the government is committed to increasing the supply of homes of all tenures across Wales. ‘We are on track to meet our target of providing 10,000 additional affordable homes, while good progress is also being made on our ambition of supporting the construction and sale of 5,000 homes through Help to Buy Wales,’ Griffiths explained. ‘The sector plays a key role in helping us fulfil our vision for housing in Wales. Through continued partnership working between private, public and third sectors organisations, I am confident we can meet the challenges we face and deliver the additional,’ added Griffiths. Continue reading
Second steppers in UK housing market get boost, new research shows
Most second steppers in the UK housing market are no longer trapped in negative equity as their position is boosted by rising house prices and an influx of first time buyers, new research has found. This is despite the fact that many face a £128,000 price gap to jump up the housing latter, according to a study published by Lloyds Bank. The research also shows that 33% of second steppers think it will be easier to sell this year, almost treble that of 2012 and 37% are keen to make the move now to take advantage of the more buoyant housing market. Overall first time sellers are in a much better position than they were five years ago which is good news for the housing market as they are the link between first time buyers and the rest of the housing ladder. They are living in the homes that the first time buyers need to buy to keep the market moving. Without movement from Second Steppers, movement on the ladder comes to a standstill on the second rung. Many had previously found themselves stuck in their starter home with little or no equity as the economic downturn took hold. Higher house prices have increased the equity of those still living in their first homes, with 71% feeling that their equity position has improved over the last year. The current crop of second steppers typically would have bought at the bottom of the market in 2009 when prices were at their lowest, with the average price of a typical first time buyer home in 2015 now 31% higher than in 2009. This has led to second steppers now having an average equity level of £87,096, equivalent to 29% of the average price of a typical second stepper home price of £304,963. The estimated average equity level has risen by over £36,000 in the past year from £50,655 due to an increase in the prices paid for first time buyer homes. The research also says that the price paid for a home by a typical second stepper is more affordable now than it was a year ago, when compared with earnings. Their housing affordability has improved significantly in the past year from 7.1 times UK gross annual average earnings in 2014 compared with 6.4 in 2015. Despite increasing house prices boosting equity levels for second steppers, the findings show people living in their first home still have to find an extra £128,390 to plug the gap between the sale price of their current property and the cost of the house they would ideally move to which is typically a detached property. This gap reduces to £17,864 if the second stepper moves to a semi-detached home. Continue reading
Modest price growth predicted for UK residential post general election
Continuity and stability has returned to the UK residential property market following a period of uncertainty where the threat of mansion tax amongst other measures caused a pause in activity. According to the latest market analysis from JLL the prime London market in particular breathed a sigh of relief as the prospect of mansion tax evaporated when the Conservative party won the general election last month and modest price growth is predicted in the short term. ‘Whilst in the six month run-up to the election the number of transactions recorded in some areas of the prime market cooled by a third. The question now is how strong the demand bounce will be and if we will return to the heady unsustainable rates of growth that fed the market in the 2009,’ said Adam Challis, head of residential research at JLL. The real estate advisory firm believes that whilst there will be a renewed level of demand in the prime central London market, underpinned by a more balanced supply backdrop, this will take some time to have an impact. ‘We have seen strength in activity resume in the prime central London market but we predict this to stabilise as the industry settles down and the new Government beds in,’ Challis explained. The report says that in central London new build activity, off-plan sales remained robust in the first half of 2015, with some sensitivity for high value property. Development activity has been shifting towards outer areas over the past 12 months, with annual starts up by 59.3% in contrast with central London, which is down by 43.2% over the year. Looking forward the firm believes that the focus needs to be on supply solutions that will tackle the real issue facing the UK housing market. ‘Policies to date have been about the demand-side solutions but Government needs to concentrate on policies that can drive a step change in supply solutions. Whilst these will take some time to bed-in and manifest themselves, they will be the solutions that ultimately provide the help where is it needed most,’ said Challis. JLL predicts that with five years’ worth of clear runway to aim at, it expects to see a continued rate of growth in housing market transactions that have been slowly gathering momentum since the Conservative majority victory on 08 May. The firm predicts that pricing is likely to remain under upward pressure, in line with a healthy, stable economic backdrop, real income growth, near term political risks subsiding and a sclerotic housing supply response will all play out. ‘Political risks are always present in residential markets. The UK needs a Government that actively seeks to provide certainty so that markets can behave efficiently for the benefit of the economy,’ Challis explained. However, the firm points out that with certainty and stability resuming, there are, however, three political changes that may create renewed tensions in the housing market; the European Union referendum, regional devolution driven by Scotland… Continue reading
