Tag Archives: news
Sales fall in key UK cities and prices start to plateau
Sales in 20 key cities across the UK fell by 2% in the last 12 months but prices have continued to rise, up 10.2% from a year ago, the latest price index shows. London has seen a 7% fall in transactions while Cambridge has seen sales fall by 20%, according to the UK cities house price index from Hometrack. Overall city level house price inflation has increased from 8.6% a year ago largely due to constricted supply. The average UK city house price currently stands at £231,700 ranging from £109,000 in Glasgow to £455,000 across London. However, there are signs that the annual rate of growth in high growth cities in southern England is starting to plateau as the level of housing sales slows and affordability pressures on would-be buyers increase. The report suggest that uncertainty around the forthcoming European Union referendum is likely to slow activity further. Questions remain as to the level to which the campaign will influence households’ decision making and overall levels of housing market activity. The Brexit referendum comes at a time when other policy measures such as higher stamp duty for investors and second home owners are expected to impact market activity from investors who accounted for one in five sales in 2015. ‘Slower growth in sales volumes has been a trend seen over the last three years across the high value, high growth cities such as Cambridge, Oxford, Aberdeen and London where house prices have been rising for six consecutive years,’ said Richard Donnell, Insight Director at Hometrack. ‘High housing and moving costs are limiting access to the market for a growing number of households which, in our view, will result in lower turnover and slower house price growth,’ he added. He believes that the EU referendum adds further complexity to an already complex outlook. ‘Our analysis shows that the Scottish referendum, and the 18 month campaign that preceded it, resulted in 10% fewer transactions and slower house price growth over the period relative to England,’ said Donnell. ‘The shorter run up to the EU vote will help but the true impact will depend on how quickly the campaigning focuses on the economic ramifications for UK households and the knock on effect for housing related decisions as Scotland proved. A vote to remain in the EU should see a return to business as usual whereas a vote to leave will create additional uncertainty,’ he explained. ‘After a three year upturn in housing market activity and house prices the outlook for the market appears increasingly tied up with policy impacts and the potential outcome of the referendum rather than the operation of market forces. Businesses operating in housing face risk and uncertainty which will have to be managed and monitored carefully,’ he added. Continue reading
Prime property market in Gibraltar offers value for money on global stage
After several years of strong growth Gibraltar, a British overseas territory on the southern tip of Spain, is seen as offering good value for prime property, according to a new report. Indeed, prime property prices have increased by 15% from 2013 to 2015 with demand driven by Gibraltarian, UK and other international buyers, says the new analysis from international real estate firm Savills. It points out that Gibraltar is among an elite and small club of territories within Europe with special and unique governance, independence and tax status. A self-governing territory with a population of 32,000, bordering a much larger neighbour, it draws parallels with Monaco. Hybrid centres of business and leisure and located in the Mediterranean, both have the characteristics of ‘city’ and ‘resort’ and each has developed an international professional services sector and are centres of commerce in their own right. Prices in these territories appreciated at a time when other national markets in neighbouring countries have been languishing. Comparisons with Monaco only go so far, the report explains. Gibraltar has its own unique characteristics, history, culture, and has developed on its own path. Emerging later on the global stage, Gibraltar’s prime property market still offers value when compared to rival jurisdictions, the report says. It explains that diversification in Gibraltar’s economy has supported economic growth, generated wealth in the local economy and spurred a wave of new development. ‘Entirely new market tiers have opened up to attract the global wealthy. The hybrid nature of Gibraltar as a conurbation, destination and recreation location diversifies risk while maximising the market for property. This comes at a time when the prime markets of many world cities are at a high plateau,’ the report says. It points out that as Monaco and Hong Kong are becoming the preserve of only the super-rich, Gibraltar has the potential to fill a gap in the Mediterranean for high net worth individuals at various levels. ‘While it may not yet have the cachet of Monaco, proposed new developments, the right investment and infrastructure could propel Gibraltar onto the circuit of the global wealthy Gibraltar offers certain tax advantages for those wealthy individuals who make it their primary home. The territory levies no inheritance tax, wealth tax or capital gains tax,’ the report explains. Gibraltar’s prime markets are dominated by two nationalities: those from the UK, and those from Gibraltar, who have accounted for 39% and 34% of buyers in the last three years, respectively. The remaining 26% come from across the European Union and the rest of the world, and include Swiss, Germans, Russians and Australians. It describes Gibraltar as a place to relocate to, not as a second home market. Some 79% of the prime market is for main residences, while there is also an active investment market, accounting for 20% of sales. Investors favour smaller apartments, the average size being 81 square meter with an average price of £436,000, compared to 120 square meters… Continue reading
Property prices in England and Wales up over 7% year on year
Residential property prices in England and Wales increased by 2.5% in January and are not 7.1% higher than a year ago, the latest index shows. This takes the average house price in England and Wales to £191,812 but the average price in London is much higher at £530,409, according to the data from the Land Registry. The house price index also shows that the number of property transactions has decreased over the last year. From August 2014 to November 2014 there was an average of 81,656 sales per month. In the same months a year later the figure was 78,652. The January data for London shows a monthly increase of 2.8% and year on year growth of 13.9% the North East saw the smallest annual price increase of 0.2% while Wales recorded the greatest monthly price rise of 3.7% and the North East also saw the most significant monthly price decrease with a fall of 1.6%. Within London the borough with the highest annual price rise was Hillingdon with a ise of 15.5% and Hillingdon also experienced the highest monthly price increase at 2.4%. Camden saw the smallest annual increase of 3% and Camden and Islington both recorded the only monthly fall, each seeing prices down by 0.4%. The number of properties sold in England and Wales for over £1 million in November 2015 increased by 14% to 1,091 from 953 in November 2014. The number of properties sold in London for over £1 million in November 2015 increased by 9% to 657 from 601 in November 2014. In the months August 2015 to November 2015, repossession volumes averaged 409 per month. This is a fall compared to the same period a year earlier, when volumes averaged 801 per month and the report says that repossession volumes appear to be exhibiting a downward trend. The region with the greatest fall in repossession sales was the South West with a decrease of 78% from November 2014. All regions experienced a decrease in the number of repossession sales in November when compared with the same period a year earlier. Continue reading
