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Estate agents under more pressure to sell in some parts of the UK, it is claimed
Estate agents in some parts of the country are facing increased pressure from vendors over the length of time it is taking to sell property, according to new research. According to Part Exchange Register, agents are under increased pressure in areas were the sales process is much slower and are at a higher risk of losing their vendors to another agent. The research points out that there are enormous regional variations in the country’s housing market. It can take up to three months longer to sell a home in some parts of the UK than others, with certain areas taking ‘more than a year’ to find a buyer. In fact, Wales and the North West dominate Rightmove’s list of the most difficult places to sell a home. Of the bottom 10, three are in Wales, namely Powys, Gwynedd and Conwy, and four are in the North West, Sefton, Fylde, Rochdale and Allerdale, as well as Workington in Cumbria. Properties sell the quickest in the university town of Cambridge than they do anywhere else in the country, typically taking just 27 days to find a buyer, compared to a national average of 65 days. ‘The recent housing boom has not reached many parts of the UK and the good times experienced by agents in the South East is certainly not reflected in Wales and the North West,’ said Joanne McClarence, operations director of Part Exchange Register. ‘In some parts if the UK, it can be very challenging for agents to find buyers and at the same time, assure vendors that everything possible is being done to sell their property. Agents often face aggressive marketing from their competitors, who target their vendors who have not sold in a given period,’ she explained. The firm has developed a new ‘matching’ service, which enables agents to generate additional property sales, by bringing vendors and buyers together, in a more targeted and effective way. ‘Part Exchange Register creates property matches between an agent’s vendors and those of other Agents, as well as matching vendors to new homes from a national network of property developers. The fact is that many vendors are really keen to move, but can’t do so until they find a buyer for their property. The problem is that many home movers wait around until their property is sold before they start to view other houses,’ McClarence pointed out. The aim is to give agents the opportunity to offer a unique, added value service to vendors and provides another sales channel and is described at ideal for agents who are looking to secure new sales opportunities. Continue reading
Residential property prices in Dubai likely to remain steady or fall in 2015
Dubai's residential property bubble is deflating and average prices will remain the same or fall by up to 10% during 2015, a new study suggests. According to international real estate firm JLL, prices and rental rates have grown to an unsustainable rate over the last two years. JLL head of research for the Middle East and North Africa (MENA), Craig Plumb, said that a period of stability will be good for the market. There have been concerns voiced that lower oil prices could have an impact on the emirate’s property markets but JLL points out that Dubai is less vulnerable to lower oil revenue than other Gulf Cooperation Council (GCC) oil exporters, due to its diverse economy and growth in non-oil sectors. Overall, the second half of 2014 saw Dubai’s residential market stabilise as average rents and sale prices remained relatively flat, with marginal declines over the last quarter. On an annual basis, the REIDIN rental index shows growth levels dropping from 18% in 2013 to 15% in 2014. Similarly, the sales market saw some cooling down as the REIDIN sales index points to a decline in growth levels from 23% in 2013 to 20% in 2014. This comes as the number and value of transactions dropped 30% & 14% respectively in 2014, according to data from the Land Department. JLL predicts that the residential sector is likely to remain subdued over the next 12 months as the market is expected to absorb 25,000 additional units in 2015. ‘In reality, we remain cautious of the delivery of some of these projects within the timeframe,’ the firm says. It also points out that as Dubai’s economy continues to expand and job creation grows, demand for affordable housing is expected to increase over the next 12 months. This comes as a proposal to ensure the availability of affordable housing for the middle-income segment of the market is currently under review. ‘These efforts aim to create a balance between the supply of luxury and affordable housing units that cater to all residents in the Emirate, as many were previously priced out of the market during the 2013/2014 price rally,’ the JLL market overview report says. It also shows that in 2014 the supply of units in Dubai increased to 377,000, up from 342,000 in 2011 and the firm predicts that 25,000 residential units will be added in 2015, some 13,000 in 2016 and 12,000 in 2017. ‘While lower oil prices are likely to dampen investment sentiment in the short term, Dubai’s success at diversifying its economy and expanding its global reach makes it less vulnerable to oil price fluctuations,’ the report explains. ‘The next 12 months are expected to see a boost in business activity, highlighted by the government’s 2015 budget announcement which saw planned spending and revenues increase 9% and 11% respectively. However as government charges increase further in 2015, we remain wary of pressures on the cost of living as inflation registered 4% at the… Continue reading
UK house prices up 2% in first month of 2015, latest index sho
House prices in the UK increased by 2% between December and January, the biggest rise for January since 2009, according to the latest property index figures. The data from the Halifax also shows that in the three months from November to January prices were 1.9% higher than in the previous three months and the quarterly rate of change increased for the first time since July 2014. But it remains below the rates recorded between June and September last year and overall the Halifax expects a moderation in house price growth during 2015. It predicts that house prices nationally will increase by 3% to 5% compared with 8% in 2014. Prices in the three months to January were 8.5% higher than in the same three months a year earlier. This was an increase from 7.8% in December. This measure of annual house price growth was at its highest since October 2014 when it was 8.8%, but remains significantly below the peak of 10.2% in July 2014. It points out that sales increased by 15% in 2014 but despite this annual rise, sales peaked in the first quarter before steadily declining during the course of the year with sales in the final quarter 5% lower than in the first quarter and 1% lower than in the third quarter. ‘This bounce-back in house price growth in January coincides with reports of the first rise in mortgage approvals for six months in December. These improvements may indicate that the recent declines in mortgage rates, the reform of stamp duty and the first increases in real earnings for several years are providing a modest boost to the market,’ said Martin Ellis, Halifax housing economist. ‘It is, however, too early to draw any firm conclusions. The monthly figures in January can be particularly volatile due to the lower volumes of activity at this time of year and there have been unusually large rises on occasion in the past, such as in 2007 when it was 2.3% and 2.4% in 2009,’ he explained. ‘Housing demand should continue to be supported by an expanding economy, continuing low mortgage rates and a boost to households’ spending power resulting from lower consumer price inflation and reduced fuel bills. Nonetheless, we expect the overall downward trend in house price growth seen since last summer to continue over the coming months. Nationally, house prices are predicted to increase in a range of 3 to 5% in 2015 compared with 8% last year,’ he added. According to Rob Weaver, director of investments at property crowdfunding platform Property Partner, the figures confirm that the property has still got some punch. ‘A strong January and the first quarterly rise for six months could suggest another buoyant year but I suspect we are more likely to see a period of gentle and sustained growth,’ he said. ‘It's hard to see how the property market could under-perform in 2015. Undershoot 2014, yes, but under-perform, no. Economic conditions at home… Continue reading
