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Property prices in New Zealand outside of Auckland reach new record
Property prices and sales in New Zealand increased in December with median home values, excluding Auckland, reaching a new record. Sales were up 3.5% year on year but fell 9.1% compared with November, according to the latest index from the Real Estate Institute of New Zealand. The median prices of a home nationwide increased by 1.2% month on month and 3.3% year on year to $465,000, a rise of $15,000. Excluding Auckland the rise was 8%, taking the median to $379,000. It is the fourth consecutive record median in 2015 and there was also a new record median prices also Waikato/Bay of Plenty, Hawke’s Bay, Wellington, Nelson/Marlborough and Otago. In Auckland median prices increased by 13.6% year on year to $770,000, and increased by 0.7% month on month. REINZ chief executive Colleen Milne pointed out that regional markets, particularly Northland, Waikato/Bay of Plenty, Hawkes Bay and Central Otago Lakes, are now setting the pace for the New Zealand real estate market, with Auckland, in a relative sense, now in the middle of the pack. ‘The decline in sales volume in Auckland, while noticeable, is likely transitory as the region gets to grips with the new LVR rules for investors, although the median price continues to firm,’ she said. ‘Over the past six months regional markets have demonstrated large declines in the levels of inventory, a significant decline in the number of days to sell, and noticeable increases in the median price, with a number of regions setting new median price records more than once over 2015,’ she added. In addition, Wellington, Manawatu /Wanganui and Otago are also seeing positive movements in days to sell and median prices. ‘This breadth of the improvement across New Zealand suggests that there is more is at play than just an Auckland halo effect, although that has contributed in the northern regions,’ Milne explained. Sales volumes excluding Auckland were down 8.1% from November but up 17.5% on December 2014. On a seasonally adjusted basis, Auckland’s sales volumes were up 8.3% compared to November, indicating that while the headline number showed a sharp drop in sales compared to November, after taking into account seasonal effects, sales were in fact stronger than would have been expected. Northland, Waikato/Bay of Plenty and Hawke’s Bay continued to see the most robust sales growth. Aside from Auckland, Hawke’s Bay was the only region to record increased sales volumes compared to November, with volumes growing 0.4%. Year on year nine regions recorded increases in sales volume, with Northland recording the largest increase of 39%, followed by Waikato/Bay of Plenty with 30% and Taranaki with 27%. Continue reading
Half of landlords in England unaware of start date for right to rent rules change
Half of UK landlords are not prepared for the Right to Rent legislation set to come into force on 01 February with some thinking they had another two years to wait. Indeed some 20% believed that they had until April 2017 to prepare for the changes, while 3% believed they had until 2018 to get ready, the research from online estate agent Urban shows. The new legislation, already implemented in the West Midlands, will soon require all landlords and agents in England to check a tenant’s immigration status or ‘right to rent’ in the UK. A failure to prepare could leave landlords at serious financial risk, with potential fines of £3,000 if they do not comply. The survey report also found that only 10% of landlords provide the correct information to tenants at the start of a lease and 90% were unable to identify the characteristics of a House in Multiple Occupancy (HMO). Some 16% were putting themselves at serious financial risk by failing to provide a valid contact address on tenancy agreements; an action which could see contracts being deemed as null and void. One reason to explain the lack of industry knowledge could be due to the rise in accidental landlords who rent property due to circumstance beyond their control such as having inherited property, according to the firm. ‘There has been an influx of new legislation relating to the rental market made in recent years and we know that UK landlords are struggling to keep on top of these changes. Despite knowing many of the basics, many find it difficult to navigate the minefield of changing renting rights and wrongs and this is particularly so for accidental landlords,’ said Adam Male, Urban cofounder. However, despite a lack of understanding in some areas, reassuringly, the majority of landlords were abreast of most other rental fundamentals. For instance, 77% were aware of the need for an up to date Energy Performance Certificate (EPC) and 95% of landlords correctly identified their gas safety responsibilities, 76% also knew the need for a smoke alarm on every floor and 7% even put one in every room. The Landlord Knowledge League Table, a map which ranks the most knowledgeable regions in the UK according to the survey results, found that the most knowledgeable landlords let property in Southampton, while those in Newcastle-under-Lyme were unaware of many key landlord responsibilities. ‘It is great to hear that knowledge about things such as gas safety is a widely understood and implemented landlord legislation, however, there is still a long way to go in educating landlords about the varying aspects of renting,’ said Male. ‘New regulations such as the Right to Rent have the potential to stop back door lettings and create a better environment for all, however, this will only happen if the scheme is communicated to landlords properly. We as an organisation want to do our bit to clean up the industry and help landlords protect… Continue reading
Quarter of UK buyers would consider a home on a flood plain despite recent floods
With the UK again being hit by bad floods this winter new research has found that a quarter of buyers would consider properties on known flood plains. The research from HouseSimple also found that of those who would buy on a flood plain some 65% would want a price discount of at least 21%. The poll asked respondents whether they would buy a home next to one of 17 undesirable locations including a prison, rubbish tip, busy school and electricity pylons. Just 16% said they would buy near or next to a rubbish tip. And of those who would 37% said they would seek a discount of at least 31% on the typical asking price of a property in that area. Some 48% of buyers would consider a property on a busy flight path and 36% would consider a property near a cliff susceptible to erosion. Of those who would, half would expect at least a 31% reduction in the asking price. Blights that buyers were less concerned about included, wind turbines or solar panels, next to or near a school and above a restaurant or take away. ‘We have all seen in vivid detail just how devastating the floods have been over the past month. Flooding seems to becoming a more regular occurrence, and prospective buyers are likely to be more aware of the risks associated with buying a property on a flood plain than maybe they have been in the past,’ said Alex Gosling, the firm’s chief executive officer. ‘Home owners looking to sell a property on a known flood plain may well need to be willing to discount hard if they want to secure a quick sale and it is no surprise that living next to a rubbish tip came out at the bottom of the heap,’ he pointed out. ‘No-one necessarily wants to live next door to a rubbish tip or under a busy flight path, but sometimes budget constraints mean that might be the only option, particularly if you want to buy your dream property or you’re a first time buyer,’ he explained. ‘If you are buying a property that is in an undesirable location, make sure you do your research. The last thing you want to do is buy something that you regret buying soon after and then struggle to sell. Saying that, at the right price, you could get far more for your money than you would a few streets away, if you’re willing to compromise on the undesirability of the location,’ he added. Continue reading
