Tag Archives: real estate
Official figures show rent increases in Scotland are largely below inflation
Between 2010 and 2014 most average rents in Scotland increased below the rate of inflation, with some rents falling, the latest data from the Scottish Government shows. In particular, a total of 16 out of the 18 rental market areas across Scotland have seen below inflation changes in average rents for two bedroom properties, the most common size of property in the private rented sector. Some areas of the country have seen higher increases over these years, including Aberdeen and Aberdeenshire where average rents for all property sizes have increased well above inflation. In Lothian increases for one, two and three bedroom properties have been above inflation. A breakdown of the figures show that the city of Aberdeen and Aberdeenshire has seen the highest increase in private rents for two bedroom properties from 2010 to 2014, with average monthly rents rising by 39.8% over four years. Average rents in the Lothian area have risen by a cumulative 17.2% over the last four years, whilst rents in Greater Glasgow have increased by 11.1% and rents in Fife have risen by 9.8% over this time period. For the remaining areas of Scotland, cumulative increases over the last four years have ranged from 5.7% in the Highlands and Islands to 0.6% in the Scottish Borders. In addition, three areas of the country have seen cumulative decreases in average rents from 2010 to 2014 with the Ayrshires seeing an 0.8% fall, Argyll and Bute a 1.5% fall, and West Dunbartonshire a 2.7% fall. These regional trends combine to show an 11.2% cumulative increase in average rents from 2010 to 2014 for 2 bedroom properties at the Scotland level. For the latest year the annual increase has been 3.6%. The data also shows that over the four year period, average rents for two bedroom properties in the Aberdeen, Aberdeenshire and the Lothian areas have risen faster than the consumer price index, whilst changes in average rents for two bedroom properties in other areas of the country have been below the rise in the consumer price index. For the year to the end of September 2014, Aberdeen and Aberdeenshire had the highest average monthly rents for two bedroom properties across Scotland at £898 per month. Other areas with higher rents included Lothian at £779, Greater Glasgow at £626, and East Dunbartonshire at £604. Areas with the lowest average rents for two bedroom properties included North Lanarkshire at £464, the Ayrshires at £461, the Scottish Borders at £444, and Dumfries and Galloway at £442. The data is from the first Private Sector Rent Statistics report is a result of a Scottish Government commitment to publishing more comprehensive statistics on rent levels across the country. ‘These statistics highlight wide variations in the rate of rent increases, with hotspots in the Lothian area and in Aberdeen, but modest rises, or even falls elsewhere. This is clearly good news for those tenants whose rents have risen at or below the rate of inflation, but a real problem for those affected by… Continue reading
UK and US buyers returning to the Italian property market
UK and US buyers are increasingly seeking properties in Italy as the challenging market conditions and currency shifts makes buying a second home even more attractive. According to Rupert Fawcett, a partner in Knight Frank’s Italian team the food, culture, wine and architecture and lifestyle in the country continues to attract overseas buyers. Italy may be still struggling to shake off the Eurozone debt crisis but with the euro significantly weaker against key currencies than a year ago there are deals to be found. ‘Italy continues to face challenging market conditions with Europe again coming under the spotlight recently over its muted economic growth and with some of Italy’s banks faring badly in the latest stress tests,’ said Fawcett. ‘But la dolce vita remains a permanent feature and continues to draw buyers wanting a slice of Italian life. Buying in Italy is primarily a lifestyle choice not driven by short term investment, but longer term enjoyment, and these factors continue to allow the market a certain level of resilience,’ he explained. He has noted increased interest this year in city living with an upturn in enquiries for Rome, Venice, Milan and Florence. ‘Rome has returned positive growth in the last quarter for the first time in several years, Venice is showing increases at the upper end and all cities have seen increased sales activity. We expect prices to remain stable in these locations over the next year, but we do not expect any price increases for at least the next few years,’ he added. In other areas there continues to be pressure on prices due in part to the availability of a large amount of stock which means buyers tend to deliberate for longer when searching for the perfect property. However, Fawcett said correctly priced properties in the best locations are finding good interest and, in some cases, multiple offers. Where vendors remain reluctant to reduce prices buyers are often not even enquiring let alone viewing. There has been a decline in interest from Russian buyers but both British and US buyers are returning to the Italian real estate market. There are fewer Russians at the upper end of the market around the €5 million plus mark and most notably around parts of Sardinia and coastal Tuscany, but there has been an increase in Russian interest at lower price points especially in Liguria. The influence of British and US buyers has also increased as both the pound and dollar strengthen against the euro. British buyers favour properties in Tuscany, Florence and Umbria as well as the Italian Lakes, Rome and Sardinia while US buyers favour properties in the Italian Lakes, Rome and Sardinia. French buyers are number one in Venice and also showing a lot of interest in property in Liguria and Rome. Germany buyers can be found in the Italian Lakes and Umbria while Scandinavian buyers favour Sardinia. For Dutch buyers Liguria, Venice, Tuscany, Florence and Umbria are the most popular. Fawcett pointed out that Milan will host the… Continue reading
New partnership to create 14,000 new homes in London
A new partnership that is expected to create 14,000 new homes across London and the South East has been welcomed by the Mayor of London's Office. National Grid and Berkeley Group have established a joint venture to develop major residential and mixed use development schemes in an initiative known as St William Homes LLP. It brings together access to a significant portfolio of brownfield land owned by National Grid Property in key areas of housing need with Berkeley's ability to design, build and market new developments. ‘London's population is set to rise by 37% to more than 11 million people by 2050 and innovative approaches to house building such as this well help to unlock vast swathes of land and deliver thousands of much needed new homes,’ said Sir Edward Lister, deputy Mayor for Planning. ‘National Grid has numerous sites across the capital that are ripe for regeneration and this partnership will stimulate development and create new jobs. Schemes such as this go hand in hand with the Mayor's work to accelerate the building of thousands more homes for Londoners with a range of pioneering new policies, including the creation of new housing zones and a housing bank,’ he added. In its first phase, St William aims to develop more than 7,000 new homes, including over 2,000 affordable homes. Development at this scale would also deliver 5,500 jobs, 2 new schools and 22 acres of public open space, transforming 84 acres of former industrial land and contributing over £150 million to local infrastructure and amenities. Meanwhile, the Lewisham Gateway development is set to deliver hundreds of new homes, a new riverside park and over 1,000 new jobs on land released by the Mayor of London, the London Borough of Lewisham and Transport for London, as part of a drive to accelerate house building on thousands of sites across the capital. Engineers on the site have rerouted two rivers and begun work on a completely new road layout. Work is also underway on the first two new buildings on the site, which are already beginning to rise from their foundations. When work on the site in Lewisham is complete it will provide up to 800 new homes in a world class development that will include new shops, cafes, park land and hugely improved access to the town centre. It is a plan that was first conceived a decade ago but was only made possible last year when, with strong support from the Mayor of London, the Government approved £20 million of funding to kick start redevelopment of the area. The development is part of a wider drive by the Mayor of London to deliver new homes on surplus land owned by the public sector. Almost 90% of 670 hectares of public land taken on by the Mayor in 2012 is now in the development pipeline, including on the former Catford stadium, and most recently appointing two developers for sites in Newham at Pontoon Dock and Silvertown Way… Continue reading
