Tag Archives: housing
Average house prices in Scotland reach new peak with 1% monthly rise
Average house prices in Scotland increased by 1% or £1,600 in January, surpassing the May 2008 peak, according to the latest index data. Year on year prices are up 4.5%, taking the average home price to £166,771, a new record, but sales were down 44% compared to December, double the typical seasonal downturn. It means that the average home in Scotland is now worth £1,238 more than at the peak of the housing boom in May 2008, following the most significant monthly upswing for seven months, says the report from Your Move. Dundee saw the biggest prices jump with property prices increasing 6.7% or £8,161, while Fife and West Lothian set new peak house prices with growth of 9.5% and 10.9% respectively. North Ayrshire has experienced the biggest rise in house prices on the mainland over the last year, up 11.6% with the typical price of a detached home growing from £180,000 to £210,000 in the past 12 months. However, average prices have fallen in seven local authorities of Scotland during the past year. West Dunbartonshire has seen the steepest drop in values in the last 12 months, with prices falling 7.2% on average, and flats in the area are now worth £20,000 less than a year ago. In addition, completed house sales in January 2015 were down 44% on December levels, double the usual seasonal downturn, and a 14% fall on a year ago, as home sales drop to the lowest level for 23 months. ‘This shouldn’t be viewed as a bad omen though, as the start of the year is always the slowest time for house purchases in Scotland, and it will only get busier, as the sustained flow of front-end demand flooding into the market starts to translate into end results,’ said Christine Campbell, regional managing director of Your Move. The Scottish housing market is benefitting from the economy moving in the right direction, and employment on the up, while mortgage rates are at rock bottom, according to Campbell. She pointed out that next month’s Land and Buildings Transaction Tax will offer some extra relief to those clambering onto the bottom rungs of the ladder, lowering the stamp duty paid on purchases even further. ‘Greater policy clarity that will emerge after the general election will unleash a new wave of confidence that will outweigh any hesitancy in the market at the moment,’ she added. Continue reading
Planning permission for new UK homes up 12% but only half what is needed
Planning permissions were granted in principle for close to 200,000 new homes a year in the UK in 2014, an increase of 12% compared to 2013 and up 39% on 2012, according to new data. However, local Authorities now need to ensure departments are able to process applications if more homes are to be built, says the latest report from the Home Builders Federation and Glenigan, adding that the pace is only half what is needed. The homes identified in the report will, once they have navigated the remainder of the planning process, in the main be completed over the next two to three years and the research also shows that the number of new homes started in 2014 was up 36% on 2012. It says that as demand for new homes continues to increase, due to improved consumer confidence and the Help to Buy equity loan scheme, existing sites are getting built on quicker and so builders are looking to get on to more new sites more quickly than before. But it points out that whilst the increases are positive, they can only be translated into desperately needed new homes if local authorities ensure their planning departments have the capacity to process these permissions to the stage that they can actually be built. Too many sites are ‘stuck’ in the planning system, with an estimated 150,000 plots at ‘outline permission’ stage awaiting full sign off by local authorities. New government initiatives to introduce deemed discharge of conditions will greatly assist in making sure the planning system will not be a constraint on increased housing provision but the overall resourcing of planning departments is still a concern, the report explains. It add that central and local government must prioritise proper resourcing of planning departments if authorities are to be able to efficiently process more applications, as recommended by the HBF. It believes that speeding up the rate at which permissions are granted is one of the keys to a significant, sustainable increase in housing supply. Local Authorities must be resourced sufficiently to be able to sustain this increase in the rate of planning permissions being granted in order that the industry can increase housing output. Figures in the latest report show that more permissions were granted in 2014 that in any year since 2008. It also shows that the number of sites getting permission continues to trend upwards. Getting more sites operational is absolutely key to a sustained increase in actual build numbers as more sites, means more construction work and sales outlets. ‘Over the past 18 months, demand for new homes, largely driven by the Help to Buy equity loan scheme has increased markedly. House builders have responded by significantly increasing house building activity,’ said Stewart Baseley, executive chairman of the HBF. ‘We are still only building around half the number of new homes the country needs. Getting the required number of permissions, in a timely manner, is absolutely key… Continue reading
UK govt announces new measures for residential lettings sector
New measures are being introduced in the UK that will create a bigger, better private rented sector for tenants and landlords aimed at getting rid of rogue operators. There are more than 4.4 million households renting privately in the UK and Housing Minister Brandon Lewis said the measures that will ensure tenants know their rights and where to go if they have a problem in their home. He explained that these changes aim to root out the small minority of rogue operators who shirk their responsibilities and make people’s lives a misery without hampering the efforts of the vast majority of landlords who are diligent and responsible. But they also aim to avoid strangling the industry in red tape which would deter much needed investment, increase rent and reduce choice for tenants. ‘We’re determined to create a bigger, better private rented sector that meets the needs of tenants and landlords well into the future, and encourages investment along the way. The measures we’ve taken give tenants the information and confidence they need to rent, allows the vast majority of landlords to provide a good service to continue doing so and are enabling developers to build specifically for private rent,’ said Lewis. ‘But they also mean we’re also rooting out the minority of rogue landlords who blight the lives of their tenants, providing peace of mind for people seeking a place to call home,’ he added. A new guide for tenants has been published so they know what to look out for when renting a home. The guide makes clear the standards people should expect and the signs of a poorly managed property. This includes testing that windows and doors can lock properly, how to recognise potential health hazards like damp and mould, and to check the temperature of the property and what heating is available. This comes on top of new measures announced a few days ago in which landlords will be required by law to install working smoke and carbon monoxide alarms in their properties. From October, anyone renting out a property will be required to install smoke alarms on every floor, and carbon monoxide alarms in high risk rooms. Councils can also benefit from revised guidance on dealing with rogue landlords in their area. In particular, the new guidance gives advice on building up an effective case in court, demonstrating how a rogue landlord has caused misery for their tenants, to ensure the full effect of their poor practices can be revealed. The guidance also covers new rules which require letting agents to belong to one of three approved redress schemes so people have somewhere to go if they have a complaint, and how to successfully prosecute a bad letting agent. New laws currently before parliament will also end so-called ‘retaliatory evictions’, giving tenants greater security, and will require letting agents to publish full details of the fees they charge tenants so people can know what to expect to pay. Continue reading
