Tag Archives: london
Property prices in Cyprus continue falling, latest RICS index shows
Residential property prices in Cyprus continued to fall in the final quarter of 2014 but some local agents are reporting an increase in sales. Average price of houses fell by 1.1% and apartments by 0.7%, according to the latest index from the Royal Institute of Chartered Surveyors (RICS). The country’s property market was particularly badly hit during the global economic downturn of 2007 and since the RICS index was first published in 2010 house prices have fallen by an average of 30% and apartment prices by 40%. The largest quarterly falls were in Famagusta where house prices fell by 3.6% and in Nicosia where apartment prices were down 1.1. Compared to the fourth quarter of 2013, the average price of an apartment has fallen 5% and the average price of a three bed home is down 5.4%. RICS said that sales have rebounded but prices are expected to continue falling in 2015. The situation is not helped by a strict lending regime following the island’s banking crisis and high interest rates. ‘The market is affected by increased property taxes and the issue of foreclosures on mortgaged properties, preventing the market from stabilising,’ said a spokesman. Rental values are also still on a downward trend, with house rents down 0.2% and apartment rents down 1.3%. ‘During the fourth quarter of 2014 the Cyprus economy showed some signs of stability, with the economy’s performance being better than expected and tourism mildly outperforming forecasts. Unemployment remained at a historical high level, stabilised at around 17%, and discussions were ongoing regarding privatisations of state owned enterprises and the foreclosure bill,’ the RICS report says. ‘Given prevailing economic conditions and the turbulence in Cyprus’ banking system, there were few transactions during the quarter although volume was higher on a year on year basis. Local buyers in particular were the most discerning as the increase in unemployment and the prospects of the local economy maintained the lack of interest,’ it explains. ‘Furthermore, those interested were unable to access bank finance. The Property Price Index has recorded falls in almost all cities and asset classes, with significant falls being recorded in Nicosia. Nicosia is clearly feeling the impact on the government and banking sector, the two sectors who dominate the local employment market, whilst other cities are progressively bottoming out,’ it adds. According to local property firm Fitzgerald Marketing, sales increased by 20% in 2014 compared with the previous year, but it is local people who are buying again as the international market has not really picked up since the global economic downturn. The firm believes that as property prices have reduced significantly, up to 40% in popular areas such as Paphos, buyers could be keen to grab themselves a bargain in 2015. It is thought that with the discovery of oil and gas fields in Cypriot waters, as oil companies set up their offices thousands of workers will arrive in two to three years, all in need of homes. There have been tales… Continue reading
Call for land reform in Scotland to be transparent and workable
Scottish Government proposals for land reform need to be coherent, clear and workable, according to the Law Society of Scotland. Submitting its response to the consultation on the future of land reform in Scotland, the society said that careful consideration should be given to ensure that pre-existing legislation it taken into account. While the Scottish Government has laid out proposals for a potential Land Reform Bill and the setting up of a Land Reform Commission, it is unclear at this stage what the remit or structure of such a Commission would be. ‘A new Scottish Land Reform Commission seems an appropriate way forward for progressing land reform in Scotland,’ said Paul Connolly, convener of the society’s property and land law committee. ‘We would suggest that if this proposal were to move forward, that there should be further engagement with stakeholders. Any such Commission must also ensure that it remains independent from executive influence and represents the interest of all stakeholders, such as agricultural tenants, crofters and charities,’ he added. The consultation also considers improving the transparency and accountability of land ownership in Scotland by limiting those who can own or take a long lease over land to legal entities registered in a European Union Member State. ‘We are concerned about this proposal. Restrictions such as these could be easily by-passed by non-EU companies setting up shell companies in the EU, for example a non-EU company could set up a UK registered company,’ said Connolly. ‘This would not necessarily fulfil the Scottish Government’s policy objectives of achieving greater transparency regarding the real land owner. It could also affect not only commercial land, but residential and agricultural land as well, thus having a potentially serious impact on business, and reducing investment,’ he explained. The consultation also proposes to impose further obligations on charities that own land, such as imposing a duty to consult with the local community before taking a decision on the management, use or transfer of land under their control. Stephen Phillips, convener of the society’s charity law committee, pointed out that there are already a number of regulatory obligations that are imposed on charities. ‘We see no reason why further obligations should be imposed on them,’ he added. ‘Under the proposals, a high street charity shop, for example, may be under an obligation to consult with the local community before it undertakes everyday repairs, such a roof repairs. This just seems wholly unnecessary and cumbersome in practice, and potentially expensive for charities without proportionate benefit to local communities,’ he concluded. Continue reading
UK farm land reaches record price per acre for eleven months in a row
Farm land in the UK continued to outpace supply in the final six months of 2014, with land prices rising by 8.3% over the year, the latest data shows. That took the average price per acre to over £10,067, a record high for 11 months in a row, according to the latest RICS/RAU Rural Land Market Survey. During the same period in 2013 an acre cost, on average, £9,294. Despite anecdotal evidence that the recent fall in commodity prices is starting to temper the pace of demand, particularly for smaller areas of land in all parts of the country, prices are expected to continue to rise over the next 12 months. The increase in demand from lifestyle buyers that began in the second half of 2013 continued throughout the whole of 2014 with this trend being noticed across most parts of the UK. RICS said that this is adding to price pressures and keeping price expectations in positive territory in all areas. Anecdotal evidence also seems to suggest the continued presence in the market of investor purchasers seeing land as a safe haven. Across the UK the supply of commercial farmland has remained flat or decreased in nine of the ten areas, while demand has continued to grow in all but one part of the UK. According to surveyors, average annual arable land rents decreased in the second half of 2014 for the first time in six years but remain 0.8% higher over the year. Pasture lands rents, on the other hand, rose by 3.4% in the first half and by 7.8% over the year to reach £107 per acre. The highest annual price growth in the UK was seen in Scotland, despite uncertainty driven by the referendum and CAP review. Prices in Scotland rose almost 17% over the year, although at just £4,375 per acre, prices in Scotland are still 47% below the national average with the price of pasture land at least 40% cheaper than any other part of the UK. RICS said that it remains to be seen whether the recent announcement on plans to overhaul tenant farming will have any effect on land prices. ‘Although there are a number of potential issues on the horizon which may have an impact on confidence, including land reform and the implementation of CAP review, surveyors remain optimistic that prices across Scotland will continue to rise over the next 12 months,’ said Sarah Speirs, director of RICS Scotland. According to surveyors, average arable land rents in Scotland remained relatively flat in the second half of 2014 at £85 per acre, behind the national average of £158 per acre. ‘Decrease in supply and steady demand has kept prices static. We have seen a very buoyant market for good arable farm land but much slower market for pasture land. There is strong demand for land to rent but very limited supply without grazing licences,’ explained Rod Christie of CKD Galbraith in Elgin. Yorkshire and Humber… Continue reading
