Tag Archives: news
Lending for new home investors in Australia reached all-time high
Lending to investors buying new homes reached an all-time high in Australia July but lending to owner occupiers remained below the peak that occurred nearly a year ago. The total number of loans to owner occupiers purchasing or constructing new homes remained largely unchanged in July 2015 compared with the level in June, but was 9.4% lower than the peak level of lending that occurred in September of last year, the data from the Australian Bureau of Statistics shows. In contrast, lending to investors constructing new homes increased strongly in July. The value of lending in this category jumped by 11.7% in the month alone to reach a new all-time high. Investors have played a major role in the current new home building cycle, contributing a larger share of new housing supply than has historically been the case, according to the Housing Industry Association, the voice of the residential building industry. ‘New home building has been a key element to the broader domestic economy’s continual growth in recent years, but critically, it has also made meaningful headway in satisfying the housing needs of Australia’s growing population,’ said HIA economist, Diwa Hopkins. A breakdown of the figures show that compared with 12 months ago, the number of owner occupier loans for the construction or purchase of new dwellings declined across most states. New South Wales and the Australian Capital Territory were the only areas to record increases at 0.7% and 4.8% respectively. The number of loans declined in the Northern Territory by 29.7%, in Tasmania by 29.4%, in Western Australia by 17.4%, in Queensland by 8.9%, in Victoria by 7.8% and in South Australia by 6.6%. Continue reading
UK property prices continue upward as sales fall, latest index shows
Property prices increased by 0.4% overall in England and Wales in August and 0.3% in Scotland but sales fell to a new record low for the month, according to the latest real estate index. Property prices increased by 0.4% overall in England and Wales in August and 0.3% in Scotland but sales fell to a new record low for the month, according to the latest real estate index. The data from Home.co.uk show that the South East remains the UK’s fastest moving regional market and prices outdo Greater London with a six month rise of 6.1%. Overall year on year prices were up 6.5% but this rise to 12.8% of £60,000 in Greater London. Asking prices rose in all English regions, Scotland and Wales month on month with the biggest rises in the East of England and the South East at 0.9% and 1% respectively. The index report says that buyer demand and short supply in London and the southern regions continues to drive the national average higher, but at a lesser rate than last year. The supply crisis is worsening and August recorded the lowest number of properties entering the market for that month since the onset of the financial crisis. It suggests that the key driver for demand is the availability of mortgage finance, which remains abundant. Talk of interest rate rises at the Bank of England has not dented buyers’ appetite. Competition between investors remains fierce in London and surrounding regions where the lack of supply is felt most keenly. Indeed, the data shows that in London and the East of England, the volumes of properties entering the market are down 15% and 18% respectively year on year and down 75% and 73% compared with August 2008. ‘These and other southern regions are clearly sellers’ markets and prices remain firmly on an upward trajectory. Marketing times in the South East region have been the lowest in the country since February. Across much of the nation, marketing times are currently around the lowest we have witnessed since 2008,’ said Doug Shephard, the firm’s director. But he pointed out that in the North marketing times are considerably higher than in the South and prices are not rising appreciably and he predicts further upward pressure on prices over the coming months although the North-South divide remains one of the most daunting imbalances in the UK economy. ‘Whilst the stimulus enabled property boom rages in London and the southern regions, the northern markets continue to stagnate. Price appreciation over the last 12 months in the northern regions lay in the range -0.2% to 1.4%,’ said Shephard. ‘Wales too shows little or no sign of market recovery, with a rise of just 1.4% since September 2014. Looking back across the last five years, we can see clearly the dramatic polarisation that has taken place in the UK property market. Only three regions surpassed the average growth for England and Wales, namely London, the South… Continue reading
Poll suggests UK first time buyers see peer to peer lending as way to fund deposit
Over half of first time buyers in the UK expect to reduce the wait to own their home by at least six months by using peer to peer lending, it is claimed. A poll of customers by peer to peer lending service Zopa, found that two thirds aged 18 to 40 who don't own a home are using it to help raise a deposit and over half expect it to reduce the time it will take to reach buy a home. Some 34% of those surveyed said it will shave more than a year off the time until they can buy and a further 21% say it will reduce their waiting time by six months. The poll also found that 22% are hoping to buy in less than a year, whereas 47% hope to purchase a home between one and three years’ time. Of those looking to buy, over half are cutting back on clothes and other purchases and more than two out of three people are eating out less, going on fewer or cheaper holidays and choosing cheaper options for household essentials to boost their savings. In contrast, one in four people are making no lifestyle changes at all. Of those who weren’t saving for a deposit, 33.8% said it was because house prices are too high and almost a quarter said they have other savings priorities at present. The firm said it is alarmingly that over 40% of people are aiming to save a deposit of over £40,000, but this rises to 55% of people in London who are waiting to buy. This stands in stark contrast to those who brought 10 years ago, when only 2% of savers aimed for a deposit of £40,000 or above. The survey also found that 18% are receiving help from government schemes, such as Help to Buy but 55% expect to receive no financial assistance from their families in reaching their deposit target. For those first time buyers that have had financial assistance, the size of parental contributions is actually getting larger as deposit amounts increase. For those who brought their houses more than 10 years ago, only 8% of parental contributions were over £45,000. This percentage rises to 28% for people who brought less than a year ago. ‘Buying a home is a major milestone in many people’s lives and saving a deposit is getting harder each year as prices and the amount required increases,’ said Zopa’s executive chairman Giles Andrews. Continue reading
