Tag Archives: housing
Property prices in Ireland up almost 15% in last year
Residential property prices in Ireland have increased by almost 15% in the last 12 months, according to the latest data from the Office of National Statistics. In the year to August, residential property prices at a national level, increased by 14.9%, up from 13.4% in July and an increase of 2.8% recorded in the 12 months to August 2013. Residential property prices rose by 2.3% in the month of August. This compares with an increase of 2% recorded in July and an increase of 0.9% recorded in August of last year. A breakdown of the figures shows that in Dublin residential property prices grew by 3.5% in August and were 25.1% higher than a year ago. Dublin house prices rose by 3.5% in the month and were 24.7% higher compared to a year earlier while apartment prices were 32.6% higher when compared with the same month of 2013. However, and ONS spokesman said that it should be noted that the sub-indices for apartments are based on low volumes of observed transactions and consequently suffer from greater volatility than other series. The price of residential properties in the rest of Ireland rose by 0.8% in August compared with an increase of 0.1% in August of last year. Prices were 5.6% higher than in August 2013. House prices in Dublin are now 39.2% lower than at their highest level in early 2007 and apartments in Dublin are 45.8% lower than they were in February 2007. A separate report by Myhome.ie says the average asking price for a home increased by 1.4% nationwide over the last quarter while in Dublin it rose 3%, taking the average asking price to €193,000. It is the sixth quarter in a row that Dublin has recorded an increase and puts the mix adjusted average asking price in the capital at €263,000, up €8,000 in three months. The annual percentage change for Dublin is 9.6%. Caroline Kelleher from DKM Economic Consultants and author of the report said that a supply problem in Dublin is continuing to drive price increases. ‘There were only 500 completions in the capital in the first quarter and given that the Housing Agency has forecast a requirement of 5,700 units in Dublin alone this year it is clear the current rate of completions falls significantly short. As a result our expectation is that prices will continue to rise over the coming months,’ she explained. The report also highlights a growing value gap between Dublin and elsewhere in the country with a semi-detached house in Cork some 66% cheaper than in Dublin. Continue reading
Low cost rental property programme launched in the UK
A new pioneering £400 million programme has been launched in the UK to boost the building of new affordable rental homes available at below market rates. Current schemes like Help to Buy have boosted house building and allowed 53,000 households buy a home with a fraction of the deposit they would normally require and now the government wants to do the same for the rental market. Communities Secretary Eric Pickles said that the new Rent to Buy provides more flexibility for people who want to rent affordably now, save for a deposit, and then either buy the new home or a different home later. Under the scheme, housing associations and other providers can bid for a share of £400 million in low cost loans to build up to 10,000 new homes across the country from 2015 to 2018. They will mainly consist of one and two bedroom apartments. Landlords must make the homes available for rent at below market rates for a minimum of seven years. Pickles said that this fixed period will give tenants the opportunity to save up for a deposit and get ready to buy their own home. At the end of the period, the tenant will have first refusal to buy the property or alternatively they may choose to move out and buy a different property, or rent another property either privately or with the housing association. If the home is sold, the housing association will then have the option to use any returns on their investment to build even more affordable homes in the area. Alternatively, they will still have a home, which they can look to rent at an affordable rate to another tenant who needs help to buy. This programme is part of a broader £23 billion affordable homes programme for 2015 to 2018, as well as other schemes like Help to Buy providing low deposit mortgages and Right to Buy which provides home ownership for council tenants. Pickles pointed out that these schemes are being arranged now, so construction works starts from 2015. ‘This government is standing by people who work hard and do the right thing, and helping them move on and up in life,’ he said. ‘Both house building and the number of first time buyers are now at their highest rate since 2007. But there is more to do. As part of our wider housing programme, this new scheme will help increase the provision of low cost rented accommodation and provide a springboard for young people to upgrade to home ownership down the line,’ he added. Under the deal housing associations will have up to 16 years to pay back the low cost loans. Until the loans are repaid, the homes must be made available for affordable rent. Only once the loans are paid can the housing association sell or rent it out at a market rate. Of the £400 million of government loan funding for this scheme, half of this will be available in London. London based housing associations… Continue reading
Latest Help Buy figures show over 50,000 have bought new homes in England
Almost 53,000 households have bought a home in England through the government’s flagship Help to Buy scheme, according to the latest figures to be released. The figures show how the scheme is getting more homes built in England, with over 37,600 households buying new build homes through the equity loan and NewBuy options, and a further 15,000 though the mortgage guarantee. A further 3,500 new home owners have also been created in Scotland, Wales and Northern Ireland through the Help to Buy mortgage guarantee scheme, said Housing and Planning Minister Brandon Lewis. Almost 80% of sales have gone to first time buyers, with nearly 70% being for new build homes. The direct result is a new generation of homeowners and the sharpest increase in private house building starts for 40 years. Lewis said the figures were further evidence that hard working families were voting with their feet, and Help to Buy was expanding and accelerating the supply of new homes. House building has climbed to the highest level since 2007, the construction sector has grown for 16 consecutive months, and companies are now taking on new workers at the fastest rate since 1997. He pointed out that the government has also expanded the range of available data about Help to Buy. Sales are now broken down by postcode and constituency so communities, builders and businesses can see exactly how the scheme is benefiting their local area. ‘Almost 53,000 households have now benefited through Help to Buy in England. Hard working families are getting the right support to step onto the housing ladder, and house building has climbed to its highest level since 2007,’ said Lewis. ‘Postcode data for each constituency is now available, so local communities can see exactly how this vital part of our long-term economic plan is fixing the broken housing market we inherited in 2010, and supporting their area,’ he added. Overall, sales of new build homes have been strong across the country. The highest number of equity loan sales were in Wiltshire with 557, Leeds with 539 and Central Bedfordshire with 504. Peterborough, Milton Keynes, Bedford, County Durham, Birmingham, Bradford, Manchester, Kingston-upon-Hull, Aylesb Continue reading
