Tag Archives: real estate
UK landlords report lowest void periods in 2014
The average void period experienced by UK landlords fell in 2014 with the lowest recorded in the fourth quarter of the year, down to 2.6 weeks, the latest sector survey shows. This was down from 2.8 weeks in the fourth quarter of 2013 and void periods have now not risen beyond 3.5 weeks over the past 13 years, according to the quarterly survey from specialist buy to let lender Paragon Mortgages. The first quarter of the year saw the average void period remain at 2.8 weeks then it dropped slightly to 2.7 weeks in the second quarter and returned to 2.8 weeks in the third quarter before falling again in the final three months of the year. Void periods have remained low over the period of the survey, averaging between 2.6 and 3 weeks since 2001. The lowest recorded void period was 2.5 weeks in the fourth quarter of 2002, and the highest at 3.5 weeks in the second quarter of 2010, which was during the peak of the financial crisis. ‘Although void periods have fluctuated slightly over the past year they have continued to remain low, peaking at 2.8 weeks,’ said John Heron, managing director of Paragon Mortgages. ‘It is encouraging to see that in the fourth quarter of 2014 void periods reduced to the lowest point recorded since 2012, only slightly above the lowest average void period reported by our research at 2.5 weeks,’ he pointed out. ‘The low average void periods we have seen over the past year, and in previous years, reflects the strong and growing demand we have seen for private rented property together with effective property management by landlords and letting agents in renting out properties,’ he added. ‘This is positive news for landlords and, as tenant demand continues to rise, it is possible that void periods may decrease even further in 2015,’ he concluded. Continue reading
UK govt Help to Buy schemes continue to be a success, latest data shows
The number of people joining the housing ladder in the UK using government support schemes continues to grow as new figures show more than 77,000 homes have been bought under the flagship Help to Buy schemes. Overall the figures show more people are getting a home of their own through the scheme and as a result house building levels continue to climb. Some 41,533 households were helped into new build homes under the Help to Buy equity loan scheme up to December 2014 and of these 83% are first time buyers. Also, 94% of total sales were outside London. The figures also show that 30,269 households were buying new and existing homes through the Help to Buy mortgage guarantee scheme and 5,588 households were supported into a new build home through the Help to Buy: NewBuy scheme. It means that in total more than 77,000 households have been supported under Help to Buy up to December 2014. Sales through the Help to Buy have been strong across the country, with Wiltshire at 748 seeing the highest number. The top five other areas that have a strong number of Help to Buy sales include Leeds at 669, Central Bedfordshire at 650, Milton Keynes at 567, Peterborough at 564 and Birmingham at 527. ‘The figures show clearly that Help to Buy supports aspiring homeowners and is a key part of our drive to help hardworking people who want a home of their own. To date, Help to Buy has helped over 77,000 households to purchase a home with just a fraction of the deposit they would normally require,’ said Housing Minister Brandon Lewis. ‘The scheme has also helped get the country building again, with private house building up 20% over the last year, and it’s highest since 2007. Industry figures showing 100,000 new house building jobs have been created in just the last 18 months, show clearly that Help to Buy is a success,’ he explained. The recent steep increase in house building activity has seen builders across the country recruiting heavily, according to Home Builders Federation executive chairman Stewart Baseley. ‘The industry needs skilled and ambitious people in a range of areas including bricklayers, site managers, engineers and finance professionals and offers an exciting and rewarding career for anyone who wants to help build the communities of the future,’ he said. Continue reading
Recovering European real estate markets set to be magnet for investors in 2015
Berlin is expected to be the top European real estate investment market in 2015, followed by Dublin, Madrid, Hamburg and Athens. Recovering markets like Dublin, Madrid and Athens which were hit by the economic downturn are regarded as being fertile grounds for property investors, according to the latest annual emerging trends report from the Urban Land Institute and PwC. The report points out that competition for prime assets in Europe’s major real estate markets is leading property investors to continue their move into secondary assets and recovering markets. It highlights a surge in popularity for real estate investment opportunities in a number of cities that were hit particularly hard during the last market downturn, with dramatic rises in this year’s city rankings for Madrid, up 16 position, Athens up 23 positions, Birmingham up 14 positions, Amsterdam up 17 positions and Lisbon up 17 positions. Berlin has moved up the rankings from last year, knocking Munich off the top spot for investment prospects in 2015. Historically dominated by domestic buyers, Berlin’s investment climate has now changed as international investors pour capital into the city, the report says. The city is described as a hotspot for media and technology and its young population has helped boost the investment appeal of its residential sector. Ranked again in second place, Dublin has had another strong year in which investors have jostled for opportunities. There was strong rental growth based on low supply, employment growth and an improving economy. Office rents and values are recovering strongly but still have some way to go before they reach their pre-crisis peak. Madrid has shot up the rankings for investment prospects and many overseas investors are targeting the city. But whether Spain offers solid, long term business prospects is hotly debated among opportunistic investors, the report points out. Hamburg has slipped by one place this year, but this is mainly due to investors looking to smaller, less established markets rather than any real decline in the city’s fundamentals, the report explains. International investors are flooding into Hamburg, accounting for half of the €2.4 billion of deals in the first three quarters of 2014. Its growing population means the residential sector is thriving. Athens is the biggest mover on the list this year, up 23 places to number five. In recent Emerging Trends surveys, investors have indicated a willingness to enter other distressed markets such as Spain, Ireland and Italy, but Greece is starting to gain attention, the report says. Although Europe’s hardest hit economy remains fragile, a few trail blazing investors are moving in to take advantage of pre-rebound opportunities. The report finds that in spite of economic uncertainties in Europe, property remains fertile ground for investors. Some 70% of investors expect more equity and debt will flow into their markets this year in a quest for the best real estate. The biggest problem investors are anticipating is a shortage of assets, ahead… Continue reading
