Tag Archives: housing
Majority of IFAs expect UK house prices to rise in next three years
Nine out of ten Independent Financial Advisers expect UK house prices to increase during the next three years. Some 40% of IFAs would increase their own personal exposure to residential if it were easier to do so in a tax efficient way and 42% of IFA clients also more interested in residential property, according to new research. The survey from Castle Trust, which offers investment products that track or beat the Halifax House Price Index, shows that between now and 2019, 86% of advisers expect house prices to rise with one in 20 anticipating a dramatic increase. Also, when looking at the next 10 years, only 6% expect prices to fall and one in 14 think they will rise by over 50%. By 2024, financial advisers on average think that house prices will increase by around 21%, which would add £37,773 to the value of a typical home. According to the survey, the most common barrier to investing in a buy to let property is concerns about tenants or lack of tenants with 51% mentioning this followed by 49% saying it is the deposit and 41% thinking it is a hassle. ‘It is clear that confidence in the entire UK housing market is finally taking hold and is no longer just confined to London and the South East. This is starkly apparent from our own results as we have witnessed record flows into our Housa products, presumably because their returns are tightly pegged to the Halifax House Price Index,’ said Sean Oldfield, chief executive of Castle Trust. He explained that the firm’s Housa products provide a simple alternative to buy to let which has never before existed which opens up the chance for more people to invest in residential property who previously weren’t able to do so. Investors across Castle Trust’s range of Housas have seen growth since they were first launched in October 2012 and its unique Protected Housa investment product which both protects the capital invested and tracks the Halifax House Price Index (HHPI), has delivered capital growth of 3.1% in its first month alone. Oldfield described Housas as a low cost and tax efficient way to get exposure to the housing market. ‘Unlike property funds, there are no upfront or ongoing management fees. Housas typically qualify for inclusion as an ISA, Junior ISA or SIPP with a minimum investment of just £1,000. Investors are eligible for protection by the Financial Services Compensation Scheme of up to £50,000 per individual,’ he pointed out. UK residential property is one of the most stable asset classes. Analysis by Castle Trust reveals that over the last 30 years, it has historically delivered annual returns of about 6% per annum, which is comparable with equities, and superior to commercial property, but with much less volatility than both. Continue reading
Over half wanting to move home in the UK can’t see it happening this year
Over 50% of people in Britain ay they are considering a house move but most can’t see themselves being in a position to do so in the next 12 months, according to new research The survey by home insurance company Gocompare also found that those hoping to move have been waiting 3.6 years on average and 21% are worried that they may never afford to buy a house or move. It is the costs associated with buying and moving home, together with high house prices, which are cited as the main barriers to moving. Overall, the biggest obstacles to the nation’s housing hopes are the cost of buying and moving with 16% concerned, followed by 16% concerned about high house prices in the area they want to buy and 15% worried about the cost of running a house. Also, 14% raised concerns about saving a deposit, 10% about job security or income and 9% said they perceive there is a lack of availability of the type of house they want to buy and this is putting them off. Of those considering a move or buying a house some 15% think that they are unlikely to get moving with their house plans within the next five years. Most, 77%, are aged 25 to 34 years. Just under a quarter, 24%, of this age group say that getting a deposit together is the main thing holding them back. The research shows that 28% of 18 to 24 year olds and 28% of 25 to 34 are the most worried that they will never be able to afford to buy a house or move. A quarter of 35 to 44 year olds also fear that they will never be able to buy or move home. Some 39% of 55 to 64 year olds and a quarter of those aged 65 or over are considering moving. In addition to the costs involved with buying and selling a house, a key factor preventing these people from moving is a lack of availability of the type of housing they want to buy. Of the regions, London has the most residents considering a house move at 62%, followed by the South East at 57% and the North West at 51%. People living in the North East have been waiting, thinking about, or wanting to move the longest, with an average waiting period of 4.3 years, closely followed by those living in the North West it is 4.2 years and in the South West it is four years. Londoners top the list of those who say they are likely to get moving in the next 12 months at 44%, followed by people living in Yorkshire and The Humber at 42% and Scotland at 40%. ‘Low interest rates and improved confidence in the economy are creating potentially ideal conditions for the housing market,’ said Ben Wilson from Gocompare. ‘However, our survey suggests the high costs associated with buying and moving home, together with the requirement to put down… Continue reading
US home prices expected to rise 3% in next 12 months, says latest forecast report
US property prices are expected to rise 3% in the next 12 months but growth will depend on location, according to the latest real estate market report from Zillow. The Zillow Home Value Index rose to $169,200 in February, up 5.6% year on year and the number of homes listed for sale on Zillow was up 5.5% annually. However, the firm says that as the spring home buying season heats up, buyers and sellers nationwide can expect very different experiences when it comes to negotiating power. According to the latest Zillow analysis of national buyers' and sellers' markets, sellers in the West will likely have the upper hand in negotiations when selling their home, while buyers in Midwestern and East Coast metros will likely face less competition and have more room for bargaining on prices. The Bay Area, San Antonio and Los Angeles are the top prospects for sellers and Cleveland, Philadelphia and Tampa the top of the list for buyers, according to Zillow. In this analysis, a sellers' market is not necessarily one where home values are rising, but rather one in which homes are on the market for a shorter time, price cuts occur less frequently and homes are sold at prices very close to, or greater than, their last listing price. In buyers' markets, homes for sale stay on the market longer, price cuts occur more frequently and homes are sold for less relative to their listing price. The real estate data in markets on both coasts are telling markedly different stories, the report says. ‘Relatively strong job markets in the West are helping spur robust demand, which is being met with limited supply, causing rapid home value appreciation and giving sellers an edge. In the East, housing markets are appreciating a bit more slowly, and homes are staying on the market longer, which helps give buyers the upper hand,’ said Zillow chief economist Stan Humphries. ‘In general, buyers in sellers' markets this spring can expect tight inventory, increased competition and a greater sense of urgency. Sellers in buyers' markets may need to be prepared to lower their asking price, or to wait longer for the perfect buyer to come along,’ he explained. ‘As we put the housing recession further in the rear view mirror, the broad based dynamics that applied during those days, when all markets were reacting similarly to nationwide economic conditions, are fading. Real estate has always been local, and as the spring market gains momentum, this old adage will only become more pronounced,’ he added. He also pointed out that but both monthly and annual US home value appreciation slowed to their lowest paces in months. National home values were almost flat in February from January, and were up 5.6% from February 2013. The pace of home value growth has slowed in recent months as more inventory of for sale homes has helped meet demand. Nationwide, while inventory remains tight, the number of homes listed for sale on Zillow was up 5.5% annually… Continue reading
