Tag Archives: london
Prime central London property market unlikely to see growth until Q3 next year
Potential sellers in central London’s prime property market are staying put and using the money they would have paid in stamp duty on refurbishing their present home, it is suggested. Official statistics show that price growth in this sector of the UK’s property market has slowed with changes to stamp duty announced a year ago blamed. The latest analysis report from Sandfords, a central and North West London agent, confirms that this has been the case. ‘The stamp duty changes that took place towards the end of 2014 have depressed the market across the board in prime central London and forecasts for next year have altered in light of this,’ said Andrew Ellina, the firm’s director. ‘I predict that price increases in the prime central London market in 2016 will be modest with some areas experiencing growth and others seeing prices remaining fairly static,’ he added. He explained that families in particular are choosing to carry out alterations rather than put their home on the market and the firm expects this to continue into the New Year. The biggest price band that has been affected is from £1.5 million to £5 million. For properties below the £1.5 million the stamp duty changes have not been too onerous. For anything above £5 million, purchasers have sufficient funds and are therefore not too bothered about a heavy stamp duty bill. Ellina believes that unless something significant happens that we cannot foresee at the moment, there will not be a crash, but the global economic outlook combined with tax changes in the UK and the perceived high current values will subdue demand and this will take some time to work through. ‘I do not anticipate sustainable growth returning until the third quarter of 2016,’ he said. Regent's Park and Marylebone are still undervalued in comparison to Knightsbridge and Kensington, but are becoming increasingly more fashionable and desirable, the report suggests. Other areas of growth will be in Fitzrovia and Kings Cross which are rapidly changing out of all recognition. ‘The capital is undoubtedly still one of the safest places in the world to live and invest, and will continue to be a top investment location. This year, buyers from all over the world including, the Far East, China, India, Greece and Europe have been heavily spending their money and buying properties in London, and it looks like they will still be big players in 2016,’ Ellina concluded. Continue reading
Scottish residential rent rises have halved in four months
The Scottish residential rental market as seen rents rising at half the speed they were during the summer months, slowing from a 3.1% annual rise in June to 1.6% October. After peaking at record prices in the summer, Scottish rents have been falling in recent months but there are signs that growth is starting to rally again, according to the latest buy to let index from lettings agent network Your Move. They increased by a modest 0.2% between September and October, the first month on month rise since July, and takes the average monthly rent in Scotland to £546, just £1 higher than the previous month in cash terms. Despite widespread recognition that tenant demand is currently outpacing supply of available homes to let, landlords believe that rent rises are likely to continue on a slower trajectory than witnessed earlier this year. Indeed, according to the latest Landlord Survey from Your Move, landlords expect rents to increase by just 1.4% over the next 12 months. Only 32% of landlords are intending to raise their rents next year, with the main motivation being to cover the cost of inflation. ‘There are indications from landlords that this trend will continue until 2016. Ultimately, rents in the private rented sector reflect what people are willing and able to pay, and are delimited by household incomes and monthly earnings,’ said Brian Moran, lettings director at Your Move Scotland. A breakdown of the figures shows that rents are higher year on year in every region of Scotland except Glasgow and Clyde in October. Scotland’s second city has seen a 0.9% drop in rents since October 2014. This means the typical rent in the area now stands at £560, down from a record of £575 in the summer of 2014. Compared to a year ago, the Highlands and Islands has experienced the biggest increase in rents, up 5.7% in 12 months. However this rate of growth is starting to slow after a monthly price drop in October, and rents have come down from their historic peak in September. After this, average rents in the South of Scotland are up 2.6% year on year. Annual rent growth in Edinburgh and the Lothians has increased from 2% in September to 2.5% in October, meaning that rents are now £15 more expensive than a year ago in Scotland’s capital city. Standing at £630 per month, this is a new record for rent prices in the region, and 15% higher than the average rent in Scotland overall. The East of Scotland has experienced a more modest 1% uptick in rent prices in the past 12 months, with monthly rents rising by £5 to £522. Three of the five regions of Scotland have seen rents increase in the past month. The urban centres of Edinburgh and the Lothians and Glasgow and Clyde have seen the strongest month… Continue reading
Miami real estate market goes from strength to strength, latest data shows
The real estate market in Miami, one of the most popular US locations for overseas buyers, is going from strength to strength with properties selling fast and prices increasing. October marked more than four years of consistent monthly median sales price increases for both single family homes and condominiums, according to the latest data from the Miami Association of Realtors. The data also shows that the median sales price for single family homes increased by 10.4% year on year from $240,000 to $265,000. However, single family home and condominium prices remain at 2004 levels despite four years of consistent year on year increases. The median sales price for existing condominiums increased 8.1% in October to $200,000 from $185,000 a year ago. Miami-Dade County condo prices have risen in 52 of the last 53 months, a period stretching nearly four and a half years. ‘Miami real estate continues to attract international buyers from all over the world as well as a growing number of domestic consumers,’ said Christopher Zoller, the association’s residential president. ‘South Florida offers world class amenities, a top-tier arts and cultural epicentre, a diversified economy and more. The strong demand is leading to fewer days on the market for Miami single family homes while buyer offers are near asking price,’ he added. The average percent of original list price received for single family homes was 95.6% in October 2015, an increase of 0.3% from a year earlier. The median number of days on the market for Miami single family homes decreased 7% to 40 days in October 2015 from 43 days in October 2014. The median number of days on the market for condominiums sold in October 2015 was 59 days, a 1.7% increase from 58 days in October 2014. The average percent of original list price received was 93.8%, a 0.1% year on year increase. Total existing Miami-Dade County residential sales, including single family and condominiums, were consistent with historical averages despite experiencing a slight decline of 5.6%, from 2,712 sales in October 2014 to 2,559 last month. Single family home sales decreased by 4.4% year on year in October, from 1,204 to 1,151. Existing condominiums, which are competing with a significant rise in supply of new construction properties east of Interstate-95, had 6.6% fewer sales in October, decreasing from 1,508 to 1,408. The report points out that in addition to increased sales of new construction properties, Miami existing condominiums have been impacted by a lack of access to mortgage loans. Of the 8,523 condominium buildings in Miami-Dade and Broward Counties, only 23 are approved for Federal Housing Administration loans, down from 29 earlier this year, according to statistics released earlier this year from the Florida Department of Business and Professional Regulation and FHA. It adds that a new FHA policy, however, should qualify more South Florida condo buildings. Earlier this month the FHA announced plans to streamline the condominium recertification process, expand its definition of acceptable owner-occupied units to include second homes… Continue reading
