Tag Archives: london
Planning consent for new homes in New Zealand up 24% annually
The new build property sector in New Zealand is growing with planning consents up 24% in July compared with a year ago, the latest data shows. Overall there were 2,824 new dwellings consented nationally, the highest number since march 2005, according to the figures from Statistics New Zealand. It was boosted by apartments and town houses, flats, and units and Waikato led the growth with consents up 40% while Auckland saw growth of 31%, well above the national average. The total value of consents for all buildings in July 2015 was $1.4 billion, with some $976 million for residential buildings and $455 million for non-residential buildings. The data also shows that over $4 billion worth of building work was put in place in the June 2015 quarter, up nearly 8% on the June 2014 quarter, the highest quarterly value recorded in the 50 years since the series began, and represents almost $900 worth of building work per person. 'The value of both residential and non-residential building work increased overall. In Auckland, residential work grew, while in Canterbury most of the growth was in non-residential work,' said Statistics New Zealand business indicators manager Neil Kelly. After removing price changes and seasonal variations, the overall volume of building activity increased 1.6% following a 1.8% increase in the March 2015 quarter. Within this, the volume of non-residential work increased 5.2% while residential work fell 1%. The volume trend for non-residential building activity reached a new high in the June 2015 quarter, exceeding levels last seen in the March 2006 quarter. Meanwhile, the residential building activity volume trend is still 8% lower than the June 2004 quarter peak. The overall building activity volume trend grew to a level last seen 10 years ago in the June 2005 quarter, the previous series peak. Continue reading
UK sees strong month on month price growth, latest index shows
Residential property prices in the UK increased by 2.7% between July and August and are up 9% compared with a year ago, according to the latest index figures from the Halifax. The data from the lender also shows that on a quarterly basis, from June to August, prices were 3% higher than in the previous three month period. It is the biggest monthly price rise since May 2014 when it was 3.8% but the index report points out that monthly movements can be volatile and the quarter on quarter change is a more reliable indicator of the underlying trend. The index report also shows that buying still cheaper than renting. The average monthly costs associated with buying a three bedroom house in the UK for a first time buyer was £666 in June 2015, some 8% or £56 lower than the typical monthly rent paid on the same property type at £722 a month. With the price of a typical first time buyer home rising by 8% over the past year, the difference between the cost of owning and the cost of renting has narrowed from £85 to £56 over the past year. 'The underlying pace of house price growth is strong. The shortage of second hand properties for sale on the market is resulting in upward pressure on house prices,' said Martin Ellis, Halifax housing economist. 'At the same time, economic recovery, real earnings growth and very low mortgage rates are supporting housing demand. Strengthening demand and highly constrained supply are likely to mean that house price growth continues to be robust in the short term,' he added. However, according to Rob Weaver, director of property at residential investment platform Property Partner, for many people, weak supply and the resultant price growth have become an almost insurmountable barrier to getting on the property ladder. 'With supply so low, consumer confidence healthy and mortgage rates still at record lows, strong price growth is a trend that can only continue in the months ahead. If prices carrying on rising at this rate, even many haves will become property have nots,' he said. 'House price growth in August hit its highest level in 16 months, as the number of homes being marketed fell to record low levels. Sellers are just not coming to the market and no-one really has an answer to how to tempt them back,' he explained. 'We are in danger of seeing the days of free wheeling price growth, and we know where that ended up. There needs to be a focus on creating more supply, because without properties coming to the market, prices will continue to grow and the market will continue to become more and more volatile,' he added. Jonathan Hopper, managing director of the buying agents Garrington Property Finders, believes that price growth is being driven by a curious mixture of strength and starvation. 'Britain's economic strengths of wage growth, low inflation and bullish sentiment, are… Continue reading
House prices in England and Wales see biggest monthly boost for 12 months
Average house prices in England and Wales increased by almost £2,000 in august, the biggest monthly boost for a year, the latest index data to be published shows. They increased by £1,900 or 0.7% compared with July which takes the average prices of a home to its eighth peak this year at £282,816, according to the LSL index. Year on year average prices rose 4.1%, the data also shows and East Anglia has seen the highest regional rise due to a shortage of properties coming onto the market. However, sales are down, recording a monthly drop of 14% in August and are now behind 2013 levels. The north of England recorded the strongest sales activity with transactions up 3% year on year. Richard Sexton, director of e.surv chartered surveyors, pointed out that so far in 2015, monthly price rises have struggled to break above the 0.5%, so this latest rise marks a step up in pace. He believes that a shortfall of summer sellers puts buyers in hot contention for properties. He also pointed out that compared to last year, average property prices have climbed £11,225 and all 10 regions of England and Wales are showing annual increases in house prices. Indeed, the last region to experience a year on year fall in property values was Wales in July 2013. He is not too worried about the dip in sales.'Home sales across England and Wales reached 76,700 in August, down 14% on July levels. This should be taken with a pinch a salt as July was an exceptionally strong month for transactions, and activity in August can be seen as balancing this out,' said Sexton. 'But August is also the first time in 2015 to date that property sales have fallen below their equivalent month in 2013. In the three months to July 2015, property sales have dropped 3% year on year. Across all of England and Wales, the North is the only region where activity has increased over the period, with home sales up 3% during May to July 2015 compared to the same three months in 2014,' he explained. The largest fall in activity has been in East Anglia, with total property sales down 9%, and sales of flats 15% lower year on year from May to July. At the same time, this region has experienced the highest house price growth of any region, at 5.9% in July 2015. 'This suggests it’s not demand that is the problem, but supply. The lack of properties coming onto the market here is intensifying competition and heating up price rises, above temperatures we’re seeing elsewhere, said Sexton. 'The nationwide mismatch between sellers putting homes up for sale and buyer demand should warm up measures of growth for the autumn. August represented the twelfth month in succession that the annual rate of growth declined, down steadily from 11.1% in August 2014, to 4.1% last… Continue reading
