Tag Archives: housing
Tracker report confirms UK property sales soared in first quarter of 2016
Property sales in the UK were 10% higher in the first quarter of 2016, boosted by a rush in demand for buy to let and second homes due to a stamp duty surcharge, new figures show. Some 275,002 transactions were registered between January and March, up 10% from the previous first quarter record from 2014, when 251,042 transactions were logged, according to the latest Conveyancing Market Tracker report from Search Acumen. The report points out that the 2014 rush was due to a surge of activity ahead of the Mortgage Market Review (MMR) rule changes in April 2014, as consumers moved to secure mortgage finance and complete deals before affordability checks were tightened. The latest tracker, which uses Land Registry data, also shows that sales volumes in the first three months of 2016 were also up 15% year on year, as conveyancers pushed second home buyers and landlords to completion before the introduction of the new 3% stamp duty surcharge which was introduced on 01 April 2016. The report points out that the potential for a time lag due to extended timelines for Land Registry applications being completed means the higher volume of conveyancing transactions may also continue into the second quarter of 2016. Year on year, those firms ranked 11 to 20 in terms of transactions completed experienced the biggest growth from the first quarter of 2015 to the first quarter of 2016, with their transaction volumes rising 24% from 801 to 994 on average. Firms ranked from 21 to 50 experienced the second best year on year growth rate, with average sales in the first quarter up from 551 to 665, a rise of 21%. Overall, the top 1,000 firms in the market experienced 16% annual growth, compared with 11% outside the top 1,000. It means that the aggregate market share for the top five firms has now been 6% or less for each of the last five quarters since the fourth quarter of 2014 as competition has heated up further down the ranks. ‘Conveyancers’ services have been in high demand so far this year as buyers of second homes and buy to let properties have created a stampede to beat the April 2016 stamp duty deadline,’ said Mark Riddick, chairman of Search Acumen. He pointed out that the artificial stimulus of government intervention has put major pressure on workloads, more than the firm has seen in the opening exchanges of any year since the recession and topping the pre-MMR rush of 2014. ‘Our analysis points to another interesting trend in the market, where challenger firms have enjoyed the biggest benefits of the year on year rise in transactions. As conveyancers pause for breath after the stamp duty frenzy, there may be some who are left licking their wounds or feeling their business performance could have been better,’ explained Riddick. ‘Periods like this, when services come under pressure from extra demand, can be testing all round, and it’s important for conveyancers to ensure their… Continue reading
Residential rents falling across much of Scotland, latest index shows
Scottish rents increased just 0.6% year on year and were down 0.4% month on month in April, marking the smallest annual rise seen since the start of 2013, the latest index shows. Across Scotland the average rent now stands at £542, but Edinburgh and the Lothians shun the wider slowdown with a record 10.5% jump in rents since last year. The data from the Your Move index also shows that tenant arrears are escalating as the level of late rent climbed for the second consecutive month, up to 11.6%. The annual rise represents a significant downturn in rates of year on year growth from 1.1% recorded in March, and 2.1% in February and average rents are at their lowest since April 2015. Brian Moran, lettings director at Your Move Scotland, pointed out that overall rents haven’t risen at such a leisurely place for three years but the market is seeing many price fluctuations and also isn’t uniform across the country. ‘The lettings market is always at the mercy of local supply and demand, and in Edinburgh and the surrounding areas we’re seeing extraordinarily fast rent rises, as tenant competition shines brightest around the glow of the jobs market. Supply and demand need to strike a lasting equilibrium to prevent rent growth taking off and leaving tenants by the wayside and that’s a tall order in today’s regulatory environment,’ he explained. He also pointed out that landlords are up against a considerable number of hurdles, including a higher rate of stamp duty on property purchases, reductions in tax relief, and the Private Tenancies Bill. ‘While levied at landlords, these measures could soon hurt thousands of tenants too if buy to let investment retreats as a result and there are less houses and flats to rent,’ he added. On a monthly basis, rents were cheaper in all but one region of Scotland in April. The Highlands and Islands had the fastest drop in average rents in April, falling 1.7% on March, reducing typical rents in the region to £537 per month, the lowest level seen since December 2014. Rents in Glasgow and Clyde fell on a monthly basis for the fourth consecutive month, down by 1% in April to £538 while in the East of Scotland rents were 0.6% lower in April than in March, while the South experienced the smallest month on month reduction, down by 0.1%. Edinburgh and the Lothians is the only region to experience an increase in rents since March, up a solid 0.8% month on month following on from rises of 0.2% in March and 0.3% in February. In the longer term, rents also fell across the majority of Scotland year on year in April. Of the three regions to see rents decrease on an annual basis, Glasgow and the Clyde had the steepest drop with average rents 3.9% lower than in April 2015. Rents… Continue reading
US home sales maintain recent momentum, up 6% from April 2015
Despite ongoing inventory shortages and faster price growth, existing home sales in the United States have sustained their recent momentum and moved higher for the second consecutive month. The latest data from the National Association of Realtors shows a surge in sales in the Midwest and a decent increase in the Northeast which offset smaller declines in the South and West. Total existing home sales, which are completed transactions that include single family homes, town homes, condominiums and co-ops, rose 1.7% to a seasonally adjusted annual rate of 5.45 million in April from an upwardly revised 5.36 million in March. After last month's gain, sales are now up 6% from April 2015. According to Lawrence Yun, NAR chief economist, April's sales increase signals slowly building momentum for the housing market this spring. ‘Primarily driven by a convincing jump in the Midwest, where home prices are most affordable, sales activity overall was at a healthy pace last month as very low mortgage rates and modest seasonal inventory gains encouraged more households to search for and close on a home,’ he said. ‘Except for in the West, where supply shortages and stark price growth are hampering buyers the most, sales are meaningfully higher than a year ago in much of the country,’ he added. The NAR data also shows that the median existing home price for all housing types in April was $232,500, up 6.3% from April 2015 and this is the 50th consecutive month of year on year gains. Total housing inventory at the end of April increased 9.2% to 2.14 million existing homes available for sale, but is still 3.6% lower than a year ago. Unsold inventory is at a 4.7 month supply at the current sales pace, up from 4.4 months in March. ‘The temporary relief from mortgage rates currently near three-year lows has helped preserve housing affordability this spring, but there's growing concern a number of buyers will be unable to find homes at affordable prices if wages don't rise and price growth doesn't slow,’ Yun explained. Properties typically stayed on the market for 39 days in April compared to 47 days in March, which is unchanged from a year ago but the shortest duration since June 2015 when it was 34 days. Short sales were on the market the longest at a median of 120 days in April, while foreclosures sold in 51 days and non-distressed homes took 37 days. Some 45% of homes sold in April were on the market for less than a month, the highest since June 2015 when it was 47%. ‘Looking ahead, with demand holding steady and supply levels still far from sufficient, the market for entry level and mid-priced homes will likely continue to be the most competitive heading into the summer months,’ Yun explained. The index show that the share of first time buyers was 32% in April, up from 30% both in March and a year ago…. Continue reading
