Tag Archives: real estate
UK govt announces new deals for private rented sector
Tenants renting privately in the UK will get a better, fairer deal under measures announced by Housing Minister Brandon Lewis. He said that people looking to rent a home will be better informed, have greater choice and more confidence they will be treated fairly thanks to a range of ambitious initiatives. But Lewis said this will not strangle the industry in red tape and regulation, which would destroy investment in new housing, push up prices, and make it far harder for people to find a flat or house to rent. Instead, the new measures will both provide the help tenants need, without jeopardising the millions of pounds in investment already lined up to build new homes specifically for private rent. ‘The private rented sector plays a vital role in our housing market, providing a flexible option for millions of people across the country. The last thing we want to do is strangle it in red tape but tenants and landlords should have confidence that they will be treated fairly,’ said Lewis. ‘This package of measures is designed to do just that, putting power in the hands of people to get the deal they serve, without punishing the vast majority of good landlords while still encouraging more investment in the sector,’ he explained. ‘I would urge all landlords to take account of the new code of practice and look to offer our model tenancy agreement while the Build to Rent deals demonstrate how committed we are to getting homes built specifically for this market,’ he added. In the package is a new model tenancy agreement which Lewis said will empower tenants to agree longer deals with their landlord and has the added benefit of avoiding the need for landlords to leave properties empty and pay fees to letting agents for finding new tenants. The new code of practice, produced by the Royal Institution of Chartered Surveyors, makes clear the legal requirements of landlords and letting agents alike, leaving both in no doubt about their responsibilities to their tenants. This is on top of a new requirement for letting agents to belong to one of three approved redress schemes, to ensure that any landlord or tenant who gets a raw deal has somewhere to go with their complaint and could even claim compensation. The minister also argued that the key to creating a bigger, better private rented sector is to secure more investment and encourage more professional landlords to enter the market and offer their homes to tenants. He announced three new deals to deliver homes specifically for private rent under the government’s Build to Rent scheme. He announced £17.7 million to Notting Hill Housing Trust to build 181 homes in Newham and Southwark, £4.8 million to Carpenter Investments to build 101 homes in Liverpool and £4.8 million to Derwentside Homes to build 114 homes for private rent in Durham. In total the Build to Rent scheme is well on track to deliver up to 10,000 new homes for private rent by 2015. The new… Continue reading
US house price growth cooling but likely to still rise over 3% in next year
Some housing markets in the United States are starting to cool but overall home values are expected to rise another 3.1% between now and August 2015. The latest Home Value Index from real estate firm Zillow rose 6.6% to $175,600 in August, the slowest annual pace in the last 12 months. The cooling market offers a clear view of local markets that favour either buyers or sellers and the hottest markets are on the West Coast with quick sales and high asking prices. Top are San Jose, San Francisco and Seattle. But some still recovering markets remain a bargain for buyers as more homes went up for sale. These include Cleveland, Philadelphia and Providence. Overall the index shows that home values increased by 0.1% in August compared with the previous month and are up 6.6% from August 2013. According to the latest Zillow analysis of buyers' and sellers' markets, sellers in the Bay Area, Seattle and Dallas have the most negotiating power, with final sale prices largely at or above asking. For those looking to buy a home, the Northeast and Midwest offer the most favourable conditions, as buyers are less likely to be faced with the fierce bidding wars seen across the West Coast and in larger cities across the country. In this analysis, a sellers' market is not necessarily one where home values are rising, but rather one in which homes are on the market for a shorter time, price cuts occur less frequently and homes are sold at prices very close to, or greater than their last listing price. In buyers' markets, homes for sale stay on the market longer, price cuts occur more frequently and homes are sold for less relative to their listing price. ‘Real estate has always been local, but as we continue to put the housing recession further in the rear view mirror, the largely uniform performance of local markets is also fading,’ said Zillow chief economist Stan Humphries. ‘We now have several different types of markets emerging, including markets that are still muddling along the bottom. Markets that shot up immediately after the recession ended and are now cooling quickly,’ he explained. ‘And markets that are still very hot. Each of these environments presents unique challenges and opportunities for buyers and sellers, and what works in one area won't necessarily work in another,’ he added. National home values have risen month on month for more than two years, though the pace of monthly home value appreciation has slowed as a result of increased numbers of properties for sale entering the market. The number of homes listed for sale on Zillow in August was up 20.6% year on year and 2.1% month on month. Meanwhile, the Zillow Rent Index shows that national rents rose in August by 0.7% compared with July to a Zillow Rent Index (ZRI) of $1,328. Year on year, national rents were up 3.3% in August. Continue reading
UK continues to see average property prices grow, but biggest rise still in London
Average UK property price growth remains strong across the country, up 8.9% annually to £206,578, according to the latest monthly index. House price growth in London continues to storm ahead, up 23.6% on August 2013 and 2.4% on last month, the data from independent estate agent haart also shows. The number of new buyer registrations has fallen by 5.5% annually across the UK but there are 9.5 buyers on average chasing every property. Overall the report says that the UK market remains buoyant with sales transactions also up 8.9% on last year although in London the supply of homes is up by much more, with the city seeing growth of 26.6% annually and 15.7 buyers registering for every new property for sale. ‘The property market is currently recalibrating. Our data shows an easing of demand as new buyer registrations across the UK decrease 5.5% annually, in contrast to the uplift in homeowners looking to sell which is up 4.1%,’ said Paul Smith, chief executive officer of haart which has a network of over 200 branches. ‘Despite this influx of stock the market remains competitive with an average 9.5 buyers registering interest in every new home that comes to market, which is the driver behind property price growth. This gradual return to normality should now dispel fears about property bubbles which we have always dismissed as hype,’ he explained. ‘People now see the reality that interest rates will rise early next year but are keen to take advantage of current market conditions. Our message to people thinking about selling is that autumn is crunch time,’ he pointed out. ‘Good mortgage deals are still plentiful but won’t last forever. Buyers do have increased choice right now but the strong competition that remains in the market will ensure that those selling now have the best chance at the best price,’ he added. The index also shows that the average first time buyer property price dipped marginally by 1.1% on the month to £153,967 but increased 6.7% annually. First time-buyers now make up 45.9% of all mortgages written which is up from 42.2% in August last year. The average mortgage extended to a first time buyer is now £120,933 which represents an increase of 9.5% on last year and the average loan to value is now 80.2%, which is up from 78.6% last year. The average property price in London is now £494,026, an increase of 23.6% annually and 2.4% on the month. The firm says that the reason behind this growth is the high ratio of demand to the supply of homes with an average 15.7 prospective buyers registering for every available property. The west London postcode is the most expensive area in which to buy with the average price now at £551,711, an increase of 13.3% annually. The east of the city remains the cheapest postcode with the average property price currently at £421,166. The number of properties for sale in London is… Continue reading
