Tag Archives: middle-east
First time buyer valuation activity up by over 30% year on year
First time buyer activity in the UK jumped in November to a rate 31% higher than in the same month last year and up 2% month on month. The data from Connells Survey & Valuation also shows that first time buyer valuations were 2% above the annual increase for the overall housing market and 26% greater than the year on year increase for home mover activity. According to John Bagshaw, corporate services director of Connells Survey & Valuation, many first time buyers may be eager to get on the housing ladder now to avoid any potential rate rise by the Bank of England in the New Year. ‘While any increase to the base rate will likely be slight, it could be enough to persuade cash limited and price sensitive first time buyers to act sooner rather than later,’ he said. He believes that first time buyers are also looking to take advantage of Government backed schemes such as Help to Buy while they last. ‘Although the Government has given no clear indication these packages will end anytime soon, they could be gradually phased out as housing market confidence continues to improve,’ he explained. ‘These two factors are reinforced by an economy that currently boasts a golden combination of growth, low inflation and rising household incomes, an appealing economic environment for typically cautious first time buyers,’ he added. The data also shows that the buy to let market experienced similarly strong, if less pronounced, annual growth, with activity in the sector up 26% between November 2014 and November 2015. The strong performance comes despite the market contracting slightly by 4% on a monthly basis. Valuation activity for all purposes also remains strong, climbing 29% between November 2014 and November 2015, while registering no change compared to last month. ‘The buy to let sector continues to be an attractive proposition for property investors. But while the prospect of high returns is driving some of the activity in this sector, much of the energy is also being fueled by a desire to out manoeuvre the Treasury’s attempts to take more money from buy to let business,’ said Bagshaw. ‘With the Chancellor imposing more fees and regulations on landlords in his most recent Autumn Statement, many would be landlords are hurrying to get into the market before these changes kick in from April next year,’ he explained. He also pointed out that the housing market’s overall performance remains positive. All sectors are reporting healthy yearly growth and he said this is a reflection of a positive combination of economic growth, rising consumer confidence and improving real terms wages. The remortgaging market continues to expand rapidly on an annual basis, with the number of remortgaging valuations carried out in November 2015 representing a 46% increase on November of last year, while also representing a 5% increase on October 2015. However, progress for the home mover market was more gradual. Valuation activity for those seeking to progress further… Continue reading
New funding model announced to bring hundreds of shared ownership homes to London
A pioneering funding model with input from major institutional investors means that 1,000 new homes for shared ownership will be built in London. London Mayor Boris Johnson said that it will make home ownership accessible to many more people and described it as a significant boost to his plans which have already seen 52,000 helped into shared ownership homes through his First Steps programme. He said that he aims to double the number of shared ownership units built in London by 2020 and has also directed the Greater London Authority to begin purchasing land in areas suitable for further shared ownership developments. The latest two investments with Chaco Ltd and the London Borough of Barking and Dagenham working with institutional investors have been allocated £45 million from the Mayor's First Steps Challenge Fund. A further £120 million from long term private sector investment will add to the Mayor's loan funding. The fund is aimed at attracting investment from institutions such as pension funds and insurance companies to build part buy, part rent housing for low and middle income Londoners. It is expected to attract more than double its initial investment, providing strong value for the taxpayer. The Fund adds to successful efforts to encourage institutional investment for the purpose-built private rented sector, building a bigger pool of investors and new providers to support house building. The GLA will explore purchasing land in areas, such as Housing Zones, where the shared ownership model could be expanded. This would ensure vacant plots are put to productive use and preserve the developments for shared ownership properties. The GLA has successfully brought to market all of its surplus sites since the Mayor was elected, providing almost 50,000 new homes, and will now look to make acquisitions where it will accelerate or unlock new homes. ‘This scheme is a brilliant way to open up home ownership to Londoners on modest incomes, making the first step on the property ladder just that little bit easier. We've already helped 52,000 Londoners to buy their first home and realise their dream, and I'm very pleased that the first institutional investors have come on board through my First Steps Challenge Fund,’ said Johnson. ‘This is a great vote of confidence in a housing model which is incredibly popular with consumers, and we need to see more of it in London,’ he added. The first investment under the First Steps Challenge Fund scheme will be delivered in partnership with the London Borough of Barking and Dagenham and part-funded by institutional investors, and result in up to 500 new shared ownership homes by 2020. The Greater London Authority will contribute £22.5 million to the development, which will be more than matched by pension funds and other institutional investors, and repaid within 15 years with interest. The second investment will be delivered in partnership with Chaco Ltd, an organisation that provides institutional non-bank funding for housing associations and registered providers, to build 500… Continue reading
Auckland sees unexpected property price surge
Average residential property prices in Auckland, New Zealand’s most populous city, increased by 4.2% in November month on month, the biggest rise since March 2014. This took the average price of a home to $876,075 and marks a substantial monthly rise compared to the more modest increases seen in the last seven months. The data from real estate agent Barfoot & Thompson also shows that the median home price increased by 1.9% in November compared to October to $795,000. ‘You have to go back 20 months to March 2014 to find a bigger monthly increase in the average price. For the past seven months, monthly increases have been modest, but last month buyers were as committed as ever to meeting vendor expectations,’ said Barfoot & Thompson director Kiri Barfoot. But she pointed out that while prices have ignored Government and Reserve Bank measures designed to cool prices, there has been a measurable decrease in market activity. In October market activity slowed, and that trend continued into November. The number of sales in November fell 7.7% month on month, the firm’s lowest in a month since February. New listings for the month at 1,683 were also down by 7.5% compared with October and the lowest number in the past seven months. ‘It remains to be seen if prices continue to ignore the tighter regulations, or whether November's prices are the last remnants of momentum that built in the lead up to the introduction of the tighter measures,’ said Barfoot. The data also shows that the price segment which experienced the largest decline in sales numbers in November compared to October was the $500,000 to $750,000 category. In November 286 homes were sold in this price category compared to 353 in October. It is a price category popular with investors with portfolios of less than three properties. The number of sales in November between $750,000 and $1 million, and those over $1 million were similar in number to those sold in October, as was the number of homes sold for under $500,000. Continue reading
