Tag Archives: housing
Less prominent locations in Scotland seeing home sales grow
Secondary Scottish locations have come to the forefront of the property market in the year to June with saes in Glasgow, Dunbartonshire and Argyll and Bute increasing, the latest research shows. Sales in these areas were higher than in Scotland as a whole, with buyers now looking beyond primary locations in search of more affordable and attainable property, according to a new report from Savills. These secondary locations have benefitted from the UK government’s Help to Buy mortgage guarantee scheme and the Scottish government’s new build scheme, with its £250,000 price limit applicable to greater numbers of properties than in more expensive core areas, the report suggests. Both Glasgow City and West Dunbartonshire have enjoyed a significant increase in supply, with private sector house building completions up by 44% and 75% respectively, driving up transaction levels. In contrast, traditional primary locations such as East Renfrewshire, and Aberdeen City have suffered from a lack of supply and are subsequently lagging in terms of activity, although prices have remained stable. In Argyll and Bute, for example, Helensburgh has seen a resurgence of interest following the referendum, with interest in holiday destinations regaining momentum, according to Faisal Choudhry of Savills. However, across the board, sales above £500,000 have fallen slightly in Scotland due to short term uncertainty following the introduction of Land and Building Transaction Tax (LBTT) in April. ‘We’re confident sales will pick up as the market adjusts to the new system. Below this threshold, the property market is strong and there is still a great deal of activity up to £500,000,’ explained Choudhry. ‘The Help to Buy mortgage guarantee scheme has assisted more first time buyers in Scotland and across the UK to get on the housing ladder with 78% of users purchasing their first home,’ he added. Looking ahead, the scaling back of government initiatives and continued lending constraints could prevent significant growth in Scottish sales levels, according to Savills. ‘The discontinuation of the Help to Buy new build scheme combined with the stricter lending criteria introduced by the Mortgage Market Review (MMR) will limit the number of buyers who can access sufficient lending to purchase property,’ said Choudhry. ‘Anticipated rises in mortgage rates could also dampen activity among those with lower deposits. Consequently, transaction levels are not likely to show double digit growth in the year to June 2016, but we would expect to see a small rise, he added. Continue reading
Lending for homes in Australia down almost 10% compared to a year ago
The total number of new home loans approved in Australia declined again during June which has led to concerns being voiced about a tightening in the mortgage market. Data from the Australian Bureau of Statistics shows that the total number of new housing loans to owner occupiers fell by 0.5% on seasonally adjusted terms was 9.1% lower than 12 months earlier. During June, the number of owner occupier loans for new home construction fell by 0.4% and the volume of loans for new home purchase declined a little more sharply during the month with a fall of 0.8%. A breakdown of the figures show that compared with 12 months ago, the number of owner occupier loans for the construction or purchase of new dwellings increased in New South Wales by 12.9%, in South Australia by 9% and in the ACT by 0.5%. But they fell elsewhere with the largest fall in Western Australia with a decline of 21.4%, followed by a fall of 20.8% in Tasmania and a 20.8% fall as well in the Northern Territory. Other states also saw loan approvals go down but at a less steep rate. They fell by 7.8% in Queensland and by 4.8% in Victoria. ‘This is the second consecutive monthly decline in new home lending. An adequate flow of housing finance is vital to ensure that the pipeline of new housing supply meets Australia’s long term needs,’ said Housing Industry Association senior economist Shane Garrett. ‘We’re concerned by the apparent tightening of home lending conditions in both the owner occupier and investor markets as a result of APRA intervention,’ he added. ‘Safeguarding the integrity of Australia’s financial system is obviously of paramount importance, but recent regulatory intervention risks obstructing new home building and damaging the economy’s long term growth capacity,’ he warned. Continue reading
£26 million fund announced to boost UK starter home programme
A £26 million fund for house builders in the UK has been launched to pave the way for the first wave of new starter homes aimed at first time buyers. Communities Secretary Greg Clark said high quality homes will be available for first time buyers and the fund will make sure that a range of different types of properties can be accessed. The fund will support architects, developers, councils, housing associations and small builders to build properties that will increase the quality of design as the government delivers on its pledge to build 200,000 starter homes by 2020. It will be used to acquire brownfield sites to provide land for starter homes. Money from the sales of these sites will go back to the government, securing good value for the taxpayer. In a further move to support aspiring home owners the government has also made available up to £10 million for local authorities to prepare more brownfield land for development of starter homes. ‘We are committed to delivering 200,000 starter homes by the end of this Parliament, providing a real boost to aspiring young first time buyers. This competitive fund will build homes that will clearly show the wide range of new properties that will be available for first-time buyers as they take their first step on the housing ladder,’ said Clark. ‘We are also helping bring back into use more brownfield land for development, keeping the country building and delivering the homes our communities need,’ he added. Helping young people achieve their dream of home ownership is a priority for the government, according to Housing Minister Brandon Lewis who added that already more than 100,000 households have been helped to buy a home through the flagship Help to Buy scheme and starter homes should be another game changer. ‘This fund will help kick start that change and show young people across the country the quality they can expect when they buy a starter home. It’s further proof that this government’s long term economic plan is on track,’ he added. The Homes and Communities Agency (HCA), said it will support the starter home initiative by offering its land and development expertise and this will help even more first time buyers into affordable home ownership. ‘We look forward to working with our key delivery partners including councils, developers, housing associations, small builders and architects in taking this forward, through the identification and purchase of land suitable for exemplar starter home sites,’ said HCA chief executive Andy Rose. According to Stephen Stone, chief executive of construction firm Crest Nicholson, the announcement will not only help first time buyers get onto the property ladder, but it will also accelerate further output across the industry at a time when housing need is at an all time high. The government’s new Housing Bill and proposed national planning policy changes will introduce a series of planning reforms that will ensure hundreds of thousands of starter homes will be built. These include requiring local… Continue reading
