Tag Archives: housing
Number of sales to first time buyers in UK edges up
Just over a quarter, 26%, of house sales in the UK were made to first time buyers in April but estate agents are warning that with prices increasing it could be harder for them in the next few years. Sales to first time buyers are up from 22% in March, according to the National Association of Estate Agents (NAEA) April Housing Market Report. However when looking further ahead, 93% of NAEA agents do not see first time buyers having substantial cut through in the market over the next five years. Further, 55% of member agents think that house prices will increase over the next five years, continuing to push first time buyers out of the market. The report also found that in the build up to the General Election, demand in April remained similar to the previous month with 344 house hunters registered per branch compared to 343 in March, whilst supply decreased from last month, with just 43 houses available per member branch compared to 48 in March. In addition to this, 74% of NAEA member agents do not see supply and demand levelling out over the next five years, meaning that more buyers will be squeezed out of the market. ‘The market is notoriously tough for first time buyers. House prices continue to increase and lenders have tight and restrictive lending criteria,’ said Mark Hayward, NAEA managing director. ‘Whilst this month’s figures are positive and a step in the right direction, I’d like to think that with the help of 200,000 new starter homes and the Help to Buy ISA, first time buyers will be given even more help to get their foot on the ladder, however these things may take time to come to fruition,’ he explained. Following the result of the General Election, 92% of NAEA agents think the majority Conservative government is great news for the housing market and out of all the Conservatives’ pledges, 60% of agents believe their plan to build 200,000 new starter homes will benefit consumers the most. Also, some 41% of estate agents believe that the Help to Buy ISA will be the most beneficial, allowing first time buyers to save more successfully for their first home. Continue reading
Flagship UK Help to Buy scheme reaches 100,000
Help to Buy, the UK government’s flagship housing scheme, has helped almost 100,000 people buy a new home since it was introduced, the latest data shows. Since the launch of the Help to Buy equity loan and mortgage guarantee schemes some 80% of scheme completions have been made by first time buyers, with more expected when the government’s Help to Buy ISA launches this autumn. The data also shows that the average house price was £184,000, significantly below the national average, almost 94,000 people have bought a home through the scheme, 95% of Help to Buy completions took place outside of London and over half of Help to Buy completions have been for new build homes. The Help to Buy equity loan scheme and the Help to Buy mortgage guarantee were launched in 2013 to support buyers who could pay a mortgage, but couldn’t afford the high deposits demanded by lenders in the wake of the financial crisis. Together with the government’s Help to Buy NewBuy scheme, which offered 95% mortgages for those buying new build properties, the number of new home owners has reached 99,601. The scheme also continues to benefit first time buyers overwhelmingly, with the vast majority of sales outside of London and at prices well below the national average, officials said, adding that Help to Buy is also ensuring the long term health of the housing market by increasing housing supply, stimulating home building. Over half of the homes bought through Help to Buy are new build properties, helping to contribute to the 41% rise in private house building in England since the launch of Help to Buy. With almost all completions outside London, the highest number of homes have been through the mortgage guarantee scheme in the North West region. The equity loan scheme for new build properties is particularly high in the South East region. Figures for the mortgage guarantee scheme also show completions have been least concentrated in regions where house price growth is highest. In London the scheme makes up just 1% of all mortgage lending compared to an average of 3% across the country. ‘The government’s Help to Buy scheme has now helped nearly 100,000 people across the UK achieve their aspiration of buying a new or bigger home and I’m looking forward to these numbers growing even more with the launch of the new Help to Buy ISA this autumn, which will ensure that first time buyers saving for a deposit get an additional boost from the government,’ said Chancellor of the Exchequer George Osborne. ‘Key to our long term plan is providing economic security for people at every stage in life. The security of owning your own home is a big part of this, which is where Help to Buy comes in. It’s also boosting the economy more widely by driving an increase in house building in Britain, ensuring long-term housing supply and creating jobs,’ he added. Housing Minister Brandon Lewis said that anyone who… Continue reading
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
