Tag Archives: investment
Home building starts in England up 6% in 2015, but planning system sluggish
More than 143,500 new homes were started in England last year, up 6% year on year, nearly double the low point of 2008 and the highest level since 2008, but concerns remain over slowness of planning system. The figures from the Department for Communities and Local Government also show that in the final quarter of 2015 some 37,080 homes were started, a rise of 23% on the same quarter a year earlier and up 91% when compared to June 2009. Completions for the fourth quarter of 2015 are estimated at 37,230, some 6% higher than the previous quarter and up 22% on the same quarter in 2014. Annual housing completions totalled 142,890 in the 12 months to December 2015, an increase of 21% compared with the previous 12 months. Seasonally adjusted starts are now 116% above the trough in the first quarter of 2009 but 24% below the peak in the first quarter of 2007. Completions are 23% below their peak also in the first quarter of 2007. It means both starts and completions for new build homes are at their highest level since 2008 with more than 700,000 new build homes started since April 2010. Meanwhile, the latest figures from the Home Builders Federation show planning permission for 59,875 homes was granted in England during the third quarter of last year, up from 53,409 in the same quarter in 2014, a 12% rise. The data also shows that 242,819 permissions were granted in the 12 months to October, the highest moving annual total since early 2008. However, many of the homes identified in the report still have a significant part of the planning system to navigate before any construction work can start, a process that could still take two or three years. ‘Our reforms to the planning system are delivering the permissions needed and schemes like Help to Buy have given builders the confidence to invest and build, with starts and completions now at their highest since 2008,’ said Communities Secretary Greg Clark. A breakdown of the figures show strong regional growth with Cambridgeshire, Northamptonshire and Leicestershire experiencing high levels of starts along with areas in North Oxfordshire and the Thames estuary. The current projection is to deliver a million new homes by 2020/2021 and Housing Minister Brandon Lewis pointed out that proposals published last week will speed up the planning process. They include dedicated fast track application services. However, the industry remains concerned that the lag of turning permissions into homes is becoming lengthier and the HBF hopes that the planning proposals will have an effect as it says that efficient planning is the best way to ensure that local people have an early say in the future shape of their communities and are able to benefit from the wealth of social and economic benefits that house building brings with it. ‘The house building industry has delivered an unprecedented increase in build rates over the past two years. The largest companies have… Continue reading
Buy to let investors put off by UK government tax changes
Around one in four of people in the UK who were considering investing in a buy to let property have been put off by the Government’s plan to introduce a 3% additional stamp duty and cut tax relief on their finance costs, according to new research. Overall some 9% have given up on aspirations to own a buy to let property and 14% of existing landlords say they will sell one or more of the properties in their current portfolio because of the changes. The research by online investment platform rplan also found that 30% say they are planning to invest their buy to let deposit in an ISA instead. Under the changes, the stamp duty on buying a £250,000 buy to let property will rise from £2,500 to £10,000 from April, while that for a £400,000 property will more than double from £10,000 to £22,000. Also, from 2017, the tax relief currently allowed on finance costs such as interest payments on mortgages and loans to buy furnishings will be gradually reduced over four years. Those planning to invest in buy to let were going to use savings and investments worth an average of £43,592 to buy a property. Instead, 39% of these adults will use the money to save in a cash account, 30% will invest in an ISA, 20% will put it into their pension and 13% will put it in other stock market investments. Latest figures in the Bank of England’s Credit Conditions Survey have revealed a rush for buy to let properties before the new tax is introduced. Lenders reported that demand for secured lending for house purchase increased slightly in the fourth quarter of 2015 and is expected to increase in the first quarter of 2016. But within this, demand for buy to let lending increased significantly in the last three months of 2015. ‘The British have strong faith in property as an investment and many see it as a means of providing a pension income. But the government clearly has a policy to dis-incentivise BTL and the sharp increase in landlord mortgages revealed by the Bank of England credit survey will probably be a last rush before the gate slams shut,’ said Stuart Dyer. ‘Having a buy to let property can also mean an over exposure to one asset class for many investors, who should strongly consider the alternative of investing in a diversified portfolio for the long term, especially if this can be achieved through a tax free ISA wrapper,’ he added. Continue reading
Prime property sales rise in Italy with prices up in areas popular with overseas buyers
The prime residential property market in Italy has turned a corner with viewings and sales increasing in 2015, new research shows. The weak euro and a growing realisation that prices are at, or close to, their floor has boosted buyer confidence, according to a new analysis from international real estate firm Knight Frank. Across key second home destinations price performance has converged with annual growth ranging from 2.1% in Venice) to a fall of 3% in Sardinia in 2015. The report says that market confidence is strengthening and residential sales increased by 7% in 2015 and the outlook is helped by the fact that Italy’s consumer confidence index is up 39% since its low in 2012. In 2015 the number of enquiries from buyers looking for an Italian property jumped 57% year on year and Tuscany continues to generate the most interest but Liguria and the Italian Lakes from Como to Maggiore are increasingly on buyers’ radar. The report also points out that in the last two years, the Euro has slipped from 0.83 to 0.73 against the pound and from 1.38 to 1.09 against the dollar providing British and US buyers with a strong buying incentive in Italy. A breakdown of the figures shows that in Venice prime property prices increased by 2.1% in 2015 and Dutch, Italian and French buyers are most numerous there, preferring waterside apartments. In Florence, another popular destination for overseas buyers, prices increased by 2% last year and the bulk of buyers are from the UK, Belgium and Canada while prices are also up, by 1.5%, in Liguria which is popular with buyers from Italy, Switzerland and Sweden. Prices increased by 0.2% in the Italian Lakes where all types of properties are sought after by buyers from Italy, the UK and Russia. Prices also increased by 0.3% in Rome with buyers from Italy, Germany and Russia. Elsewhere in places popular with overseas buyers prices fell in 2015, led by a decline of 3% in Sardinia with most buyers coming from Germany, Italy and the UK. They fell by 2% in Umbria which is popular with buyers from the United States, Germany and the UK. Prices fell by 1.9% in Milan where buyers from Italy, China and Egypt opt for apartments. Prices also fell by 1% in Tuscany with buyers from the UK, Germany and the Netherlands also looking for rustic renovations projects as well as apartments and houses. Looking ahead the firm expects prices to stay level. ‘We don’t see immediate rises or substantial drops on the horizon. What we are seeing is a return to the long term trusted locations,’ said Rupert Fawcett, head of Knight Frank’s Italian Department. He explained that at the market’s peak, buyers looked to regions such as Le Marche, and Abruzzo for greater value for money. With prices having dropped across the board since 2009 and now resting at about 30% below their peak, Chianti is back in favour, along with Lucca and… Continue reading
