Tag Archives: housing
New housing construction in UK rising, but output slowed slightly in March
New housing construction in the UK is rising, although there was a slight slowdown in output in March of this year. The latest figures from the Office of National Statistics show that new housing output fell by 0.3% in March month on month. Overall output in the construction industry was estimated to have decreased by 3.6% compared with February 2016 and in the first quarter of 2016 it was estimated to have decreased by 1.1% compared with the fourth quarter of 2015. And year on year between the first three months of 2016 and the first quarter of 2015 output was estimated to have decreased by 1.9%. However in the first quarter of the year there was an increase of 4.8% in total new housing output compared with the fourth quarter of 2015, the data also shows. Both public and private new housing reported increases of 4.2% and 4.9% respectively and all new housing has shown underlying growth since the second quarter of 2013, with the exception of the third quarter of 2015. When compared with the same period a year ago, there was an increase of 3.4% in total housing, with private housing increasing by 7.5% offset slightly by a fall in public new housing of 14.3%. The level of private new housing is the main contributor to the level of total new housing, with public new housing having a much smaller contribution, the ONS report says. The level of private new housing has been increasing gradually since early 2013 and in the first quarter of 2016 was at its highest since records began in 1997 at £6.3 billion, while the level of total new housing is also at its highest at £7.5 billion. Charles Holland, head of residential development and investment at Marsh & Parsons, pointed out that public and private sector housing are the only sectors to have witnessed an increase in construction output quarter on quarter. He does not believe that the slight fall in March is a major issue because home construction is heading in the right direction. ‘London needs to build more new homes than anywhere else in the country. But they also need to be delivered at the right price,’ he warned. ‘It’s not just enough for the new Mayor of London to pledge an annual quota for house building. While that’s challenging in itself, it needs to be coupled with affordability to truly work for everyday Londoners,’ he explained. ‘House building efforts in London need to cater for the £250,000 to £850,000 price range, as this is where we see the strongest and most urgent buyer demand from first time buyers and growing families,’ he added. The new Mayor Sadiq Khan has revealed that an audit of City Hall's preparedness to tackle the housing crisis has found that the delivery of affordable homes is at a near standstill. Last year saw the lowest number of new affordable homes since current records began in 1991with just 4,880 being built. He has… Continue reading
Indianapolis named as best US market for first time buyers
Indianapolis, Pittsburgh, and Memphis are the best markets for first time buyers in the United right now, according to new research. Cleveland, Chicago, Houston, and Birmingham, Alabama, also made the top 10 first time buyer market ranking list put together by real estate firm Zillow. To determine which markets are best for those looking to buy their first home, Zillow looked for places where it's more affordable to make a monthly mortgage payment than a monthly rental payment. The research also looked at median home values and competition, including how many homes the first time buyer has to choose from and whether they are likely to be up against all-cash offers. It found that San Jose, Seattle and Austin are among the hardest places for first time buyers to get on the housing market, a conundrum for many young people who move to those cities because of their hot job markets, only to find a limited and unaffordable selection of starter homes to choose from. ‘Buying your first home is a big decision that takes a lot of planning. First time buyers across the US are up against high prices and low inventory,’ said Zillow chief economist Svenja Gudell. ‘But these are the places where the availability of affordable, entry level homes and the presence of cash buyers are less of an issue. First time buyers in these markets won't have to deal with as many bidding wars or runaway price as they'll be able to find a first home that fits their needs with less stress. With record low mortgage rates, it's a good time to buy a home and certainly worth considering,’ she pointed out. In Indianapolis, home buyers can expect to spend 11% of their income on a monthly mortgage payment, some 4% less than the US average. Renters, on the other hand, can expect to spend 26% of their income on monthly rent, an incentive for renters in Indianapolis to become home owners. Continue reading
UK property market boosted by buy to let rush in march, official figures show
UK house prices increased by 9% in the year to March 2016, up from 7.6% in the year to February 2016, according to the latest official figures. House price annual inflation was 10.1% in England, 2.1% in Wales, 6.4% in Northern Ireland but fell by 6.1% in Scotland, taking the average price to £292,000, the data from the Office of National Statistics shows. Annual house price increases in England were driven by growth in London of 13%, followed by 12.2% in the South East and 12.1% in the East of England. However, excluding London and the South East, UK house prices increased by 5.9% in the 12 months to March 2016. The data also shows that on a seasonally adjusted basis, average house prices increased by 2.5% between February 2016 and March 2016 and prices paid by first time buyers were 9.7% higher on average than in March 2015. For owner-occupiers prices increased by 8.7% for the same period. This is the final release of the ONS House Price Index (HPI) which will be replaced by the new UK House Price Index from June 2016. Richard Snook, senior economist at PwC, explained that buy to let investors rushing to complete purchases before the 3% stamp duty charge on additional properties came into effect at the beginning of April has affected the figures. ‘This move undoubtedly drove up demand and prices in March and we would expect demand to soften over the next few months as a result. There are no signs of any Brexit related slowdown in this month’s figures, although the underlying trends are masked by the effects of the stamp duty change,’ he said. According to Rob Weaver, director of Investments at property crowdfunding platform Property Partner, the figures also show that the divide between north and south is widening while in London and the south east first time buyers are finding it harder to get on the housing ladder. ‘But with niggling doubts over the imminent EU referendum, we’re likely to see a short term dip in prices until the end of June. Then the fundamentals of strong demand and scant supply, rock bottom interest rates and healthy jobs market should reassert themselves,’ he added. Randeesh Sandhu, chief executive officer of Urban Exposure, the residential development finance provider, also believes that activity is likely to slow down in the coming months following these changes and also in the run up the EU referendum with consumers remaining cautious against the backdrop of a potential Brexit. ‘However, it is clear that demand for housing remains strong and any impact of a Brexit is likely to be a short term trend with activity returning to normal soon after any decision. Therefore a real focus needs to be given to the housing shortages the UK faces,’ he said. ‘In London, the new Mayor, Sadiq Khan, has the opportunity to inject some fresh policies to the London housing market where house prices are particularly steep. However, Sadiq’s plan… Continue reading
