Tag Archives: news
Estate agent figures confirm rush of buy to let buyers
Figures from estate agents confirm that there has been a rush from buy to let investors ahead of the new stamp duty deadline for additional homes in the UK. In February some 85% of estate agents reported an increase in the number of buy to let investors flooding the market to beat the stamp duty changes which come into effect on 01 April, according to the latest housing report from the National Association of Estate Agents (NAEA). The Chancellor’s announcement around stamp duty for additional homes made in last year’s Autumn Statement meant that in January and February this year 72% and 85% of agents respectively, saw an increase in interest from those hoping to purchase second homes. This meant that with added pressure from buy to let investors on the market, demand for housing was the highest level for 12 years in February. Indeed, the data shows that there were an average 463 house hunters registered per member branch, the highest since August 2004 when 582 were registered per branch. This is following an increase in January when estate agents reported 453 per branch, the highest since July 2015. The number of properties available per branch increased marginally from 33 in January to 35 in February, as the number of sales agreed per branch in February increased too. There were an average nine sales completed in February, back to the level seen in October 2015 and a rise from eight sales agreed per branch in January. The report also shows that 24% of total sales made in February were to first time buyers, a decrease of 5% points from January, as mounting pressure from buy to let investors increased competition. ‘It is evident from February’s report findings that we’ve seen a real sense of urgency from landlords trying to complete on sales ahead of the stamp duty reforms,’ said Mark Hayward, NAEA managing director. ‘However, the mounting pressure and increased demand for housing has meant that first time buyers have had to compete with landlords for property and as a result they have lost out,’ he pointed out. ‘We would like to say that come April things will look better for first time buyers. Schemes like the Help to Buy ISA, Help-to-Buy scheme and the new Lifetime ISA all sound great on paper, and there’s no doubt that some young people will definitely benefit from them,’ he explained. ‘But the crux of the problem though is that there is still a huge issue with supply and until we build more homes, and crucially the right sort of homes, we cannot fool ourselves into thinking we are doing enough to help people buy their own home,’ he added. Continue reading
Property near London’s Crossrail could see price growth of up to 16% by 2020
The Crossrail train system in London, now due to open in less than three years, is likely to result in a 7% rise in average house prices at many locations along its route by 2020, according to new research. Many locations are already benefitting from higher property values, as well as new development and regeneration, and activity is expected to step up another gear in the run up to the line’s opening, the report from real estate services firm JLL says. The research shows that some Crossrail locations are expected to see house price growth of 16% above the Greater London average by the end of 2020 while on average, residential prices around Crossrail stations are forecast to see 7% greater uplift compared to non-Crossrail stations. Woolwich, West Drayton, Whitechapel and Ealing Broadway are the most advantageous locations to develop apartments for sale, the research also says. Woolwich is forecast to experience the highest house price growth along the Crossrail route, with prices expected to rise by 39%, while West Drayton, Whitechapel, Slough, Abbey Wood and Iver are all set to see prices rise by more than 33% over the next five years. ‘Crossrail continues to drive value growth right across its length. In the current market, what is becoming clear is the additional benefit it brings to some of the lower value locations along the route,’ said Neil Chegwidden, residential research director at JLL. ‘It is supporting regeneration through improved accessibility and, as a result, offers a longer-term capital growth potential that may be harder to identify in central zones,’ he added. Continue reading
Demand for single family homes in the US rising
Over three quarters of households in the US would purchase a single family home if they were to buy in the next six months, and 79% of renters would choose to buy outside of an urban area, new research shows. The latest quarterly consumer survey from the National Association of Realtors also shows that confidence about now being a good time to buy is waning amongst renters, particularly in the West where prices have solidly risen. Some 85% of current home owners and 75% of renters said they would purchase a single family home, while only 15% of home owners and 21% of renters said that would buy in an urban area. Lawrence Yun, NAR chief economist, said that the survey findings call attention to the glaring need for more supply of single family homes. ‘The American Dream for most consumers is not a cramped, 500 square foot condo in the middle of the city, but instead a larger home within close proximity to the jobs and entertainment an urban area provides,’ he explained. ‘While this is not a new discovery, supply and demand imbalances and unhealthy levels of price growth in several metro areas have made buying an affordable home an onerous task for far too many first time buyers and middle class families,’ he added. According to Yun, it’s time for home builders to double their focus on constructing single family homes. With millennials increasingly buying in the suburbs tight inventory and affordability concerns will likely worsen without significant headways made in housing starts in relation to job creation. The survey found that 82% of home owners believe now is a good time to buy, no change from the previous survey in December 2015 but the number of renters thinking the same fell from 68% to 62%. ‘A high number of home owners are expressing that it’s a good time to buy and this sentiment is no doubt being fuelled by the $4.4 trillion in housing equity accumulation in the past three years,’ said Yun. ‘On the other hand, accelerating home prices and the perceived difficulty in obtaining a mortgage appears to be tugging at the confidence of renters,’ he pointed out. Overall, respondents over the age of 65, those living in the Midwest and those with incomes over $100,000 were the most optimistic about buying now. Among current home owners 56% thought it is a good time to sell compared to 61% in the fourth quarter of 2015. Amidst steep price increases and tight supply, respondents in the West were the most likely to think now is a good time to sell, while also being the least likely to think now is a good time to buy. Among all households in the survey, less than half believe the economy is improving at 48%, down from 50% in last quarter’s survey. Renters, those living in urban areas and respondents with lower incomes were the most optimistic. Across all age groups, when asked… Continue reading
