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Prices and sales in Scotland expected to keep rising in first quarter of 2016
House prices and sales in Scotland are likely to keep rising in the first quarter of this year following an unusually buoyant December, according to a new report. The latest monthly survey from the Royal Institution of Chartered Surveyors (RICS) in Scotland said rising demand from would be buyers and a slight increase in the number of properties coming onto the market led to a rise in newly agreed sales last month. Throughout 2015, surveyors reported almost continual growth in prices and this went on into December, with a net balance of 29 per cent more respondents reporting a rise in house prices. A net balance of 35% of Scottish respondents forecast a rise in transactions in the January to March period, with 24% of surveyors also expecting average prices to increase in this quarter. ‘The Scottish housing market has experienced an unusually buoyant December, with growth in transactions, demand and a small increase in properties coming onto the market,’ said Sarah Speirs, director of RICS Scotland . ‘Despite this growth in new instructions, the chronic shortage of housing supply in Scotland continues to result in rising house prices and rents across the country. To remedy the shortage, Scottish Government policy is, and for a considerable amount of time has been, aimed at supporting demand and, more crucially, the new build market and home ownership,’ she added. RICS has launched its manifesto Shaping Scotland’s Housing Future which aims to inform political parties of the role property plays in driving Scotland’s economic growth ahead of the parliamentary elections in May. It calls on policy makers to recognise the scale of the housing crisis, and elevate housing to the top of their political priorities as well as increasing the supply of housing and taking action to maintain and renew Scotland’s existing housing stock. The report also recommends ta review of tax and incentives around all properties and the creation of a Housing Land Agency, which would work with local authorities and developers identifying land, primarily in areas of market failure, and installing any necessary infrastructure for sites. ‘Adequate housing supply is vital to economic growth and the much coveted stabilising of house prices and rents. It is estimated that between 25,000 and 35,000 homes need to be built, per year, to meet demand adequately. This target covers all tenures, not just affordable housing,’ the report says. ‘An independent agency would work with local authorities and developers by identifying new development sites and installing any necessary infrastructure for sites, primarily in areas of market failure,’ it adds. RICS envisages that land acquired by the agency, through reformed Compulsory Purchase Order (CPO) powers, could be sold to less established participants, such as small and medium enterprises (SMEs), private rented sector (PRS) investors, self-build and co-ownership and thus widening participation and assisting a vibrant SME sector and the wider economy. It also points out that the PRS market in Scotland has been dominated by small scale investments from individual landlords who… Continue reading
People staying in their first home longer due to costs of moving up the housing ladder
Some 37% of first time buyers in the UK are staying in their first property for longer than planned despite improvements in wages in real terms, according to new research. The situation is most acute in London where 49% had not bought a second property within the timescales they had initially intended, the survey from Clydesdale and Yorkshire Banks shows. This is in contrast to the East of England where only 23% of first time home owners had stayed in their property longer than they had expected. The research also found that first time buyers plan to stay in their first home for an average of seven years and nine months although a quarter plan to stay for more than 10 years. Those in the North East plan to stay in their first property for the longest length of time at almost 11 years whilst first time buyers in London have hopes of moving up the property ladder after six years and three months. ‘The step between the first and second property remains a challenge for some and increasing moving costs are also adding to the difficulty of raising a sufficient deposit to afford a larger home,’ said Steve Fletcher, director of retail banking. Clydesdale and Yorkshire Banks have launched a new mortgage to help these kind of borrowers who are struggling to take the next step up the property ladder. The Home Mover Mortgage allows borrowing between 90% and 95% LTV. It comes with a three year fixed rate of 4.49% and is designed to support those who can afford larger mortgage payments but are struggling to save the required deposit. The Clydesdale and Yorkshire Banks Home Mover Mortgage comes with no arrangement fee and one free standard valuation. Continue reading
Property prices in New Zealand outside of Auckland reach new record
Property prices and sales in New Zealand increased in December with median home values, excluding Auckland, reaching a new record. Sales were up 3.5% year on year but fell 9.1% compared with November, according to the latest index from the Real Estate Institute of New Zealand. The median prices of a home nationwide increased by 1.2% month on month and 3.3% year on year to $465,000, a rise of $15,000. Excluding Auckland the rise was 8%, taking the median to $379,000. It is the fourth consecutive record median in 2015 and there was also a new record median prices also Waikato/Bay of Plenty, Hawke’s Bay, Wellington, Nelson/Marlborough and Otago. In Auckland median prices increased by 13.6% year on year to $770,000, and increased by 0.7% month on month. REINZ chief executive Colleen Milne pointed out that regional markets, particularly Northland, Waikato/Bay of Plenty, Hawkes Bay and Central Otago Lakes, are now setting the pace for the New Zealand real estate market, with Auckland, in a relative sense, now in the middle of the pack. ‘The decline in sales volume in Auckland, while noticeable, is likely transitory as the region gets to grips with the new LVR rules for investors, although the median price continues to firm,’ she said. ‘Over the past six months regional markets have demonstrated large declines in the levels of inventory, a significant decline in the number of days to sell, and noticeable increases in the median price, with a number of regions setting new median price records more than once over 2015,’ she added. In addition, Wellington, Manawatu /Wanganui and Otago are also seeing positive movements in days to sell and median prices. ‘This breadth of the improvement across New Zealand suggests that there is more is at play than just an Auckland halo effect, although that has contributed in the northern regions,’ Milne explained. Sales volumes excluding Auckland were down 8.1% from November but up 17.5% on December 2014. On a seasonally adjusted basis, Auckland’s sales volumes were up 8.3% compared to November, indicating that while the headline number showed a sharp drop in sales compared to November, after taking into account seasonal effects, sales were in fact stronger than would have been expected. Northland, Waikato/Bay of Plenty and Hawke’s Bay continued to see the most robust sales growth. Aside from Auckland, Hawke’s Bay was the only region to record increased sales volumes compared to November, with volumes growing 0.4%. Year on year nine regions recorded increases in sales volume, with Northland recording the largest increase of 39%, followed by Waikato/Bay of Plenty with 30% and Taranaki with 27%. Continue reading
