Tag Archives: real-estate
Average house prices static in England and Wales
Average house prices in England and Wales remained static in May but were 4.6% higher than a year ago, according to the latest Land Registry figures. This takes the average property value to £179,696, just under what it was at the peak of the housing market in November 2007. The data also shows that London and the South East experienced the greatest increase in their average property value over the last 12 months, both with a rise of 9.1% while the East and North East experienced the greatest monthly rise at 1.6%. Wales saw the only annual price fall with a decrease of 0.6% and also saw the largest monthly price decrease with a fall of 1.7%. The number of completed house sales in England and Wales decreased by 12% to 59,311 compared with 67,321 in March 2014. The number of properties sold in England and Wales for over £1 million decreased by 6% to 842 from 893 a year earlier. Peter Rollings, chief executive officer of Marsh & Parsons, said that while the monthly house price change was static, it is positive that annual improvements across the UK means prices are almost back to the November 2007 peak. ‘The post-election feel good factor will soon serve up higher prices or transaction levels, and the market is set for future growth given the improved buyer confidence and increased supply of properties we’ve seen throughout June. High end buyers continue to court prestigious London properties and, as a result, prices will continue to rise sustainably in central areas,’ he pointed out. According to John Goodall, chief executive of lender Landbay, it is good news that repossessions are retreating, household earnings are gathering pace, house price growth is positive yet sustainable and behind the scenes, mortgage lending is responding to all these factors with a growing sense of confidence. 'To keep this progress rolling, confidence must be backed by caution. Mortgage underwriting matters in the good times as much as the bad and risks need to be properly controlled. Strong fundamentals combined with high quality underwriting will bring new investment into the mortgage market from traditional sources of funding to retail investment through new peer to peer models,' he said. 'With time, a steady expansion of mortgage lending will be good for everyone. Rather than an unsustainable charge, the supply of new homes will feed on this solidity of demand from first time buyers and landlords. In short, there are no easy answers but the tide is turning for the better,' he added. However, Steve Bolton, chairman of Platinum Property Partners (PPP), said there should be concern that prices for many people are racing ahead of wages for most people. ‘This has stretched affordability, pushing a home purchase further out of reach for many,’ he added. He pointed out that the rental sector is likely to come under increased pressure as growing numbers of people look to it for longer term solutions… Continue reading
More new residential lets in the UK being agreed before tenants move out
An increasing number of landlords in the UK are able to re-let their property before their existing tenant moves out with the average property being let in 32 days, the lowest figure on record. So far in 2015 some 33% of all new lets were agreed while the property is still occupied, up from 27% last year, according to new research from Countrywide. The average let agreed while tenants are in place is equal to 105% of the asking rent, or an average of £35 a month more than the asking rent. With landlords still receiving rent from the vacating tenant, they are under less pressure to negotiate. In comparison tenants moving into an empty property have more room to negotiate on the rent, knocking an average of £21 a month off what the landlord was looking for. The research also shows that in London 51% of new lets are agreed while there is still a sitting tenant in the property, up from 41% in 2014. The level of demand from tenants in markets where the level of demand is highest and the time to find a tenant is shortest, means landlords are able to reduce the time a home is empty. Where a deal is agreed before the existing tenant leaves the property, there is an average of just six days between the existing tenant moving out and a new one moving in. 10% of the time a new tenant moves in on the same day that the existing tenant moves out. Where a property hasn’t been let prior to a tenant leaving the property, the first week of marketing is when landlords are most likely to achieve the highest rent. During the first seven days, the average let is agreed at full asking price, a figure which falls the longer a rental property is on the market. The first weekend after coming onto the market is when the majority of the most motivated would-be tenants view the property. In London’s fast paced rental market, fewer landlords need to wait until the weekend to find a tenant. Twice as many lets are agreed on a weekday in London than in any other part of the country. Every day a rental property is on the market without a tenant, the landlord is losing rent. If a deal is not agreed during the first week of marketing, landlords become increasingly receptive to offers. 98% of the cases where a landlord accepts an offer below the asking rent are after the property has been on the market for more than a week. In slower rental markets, generally outside of cities, the average landlord has to wait an extra 15 days to find a tenant willing to pay the full asking price compared to those letting a property in the city centre. ‘In larger rental markets, more new lets are being agreed well… Continue reading
US sales to foreigners down but they are buying higher value real estate
Total property sales in the United States to international home buyers have decreased from last year, but in terms of price the sales dollar volume increased 13%, the latest data from estate agents shows. From April 2014 through March 2015 total international sales were estimated at $104 billion, compared to the previous year's estimate of $92.2 billion, according to the figures from the National Association of Realtors. In 2014 sales transaction to buyers outside of the US dropped 10%, possibly due to the strengthening of the US dollar in relation to international currencies and weakening foreign economies, according to NAR chief economist Lawrence Yun. ‘However, the amount of money spent has increased; this means international purchasers in the US have become an upscale group of buyers, spending more money on fewer homes,’ he explained. In 2014 five countries accounted for 51% of all purchases by international buyers. These were led by China, followed by Canada, Mexico, India and the United Kingdom, the data also shows. For the first time, buyers from China exceeded all other countries in terms of units purchased and dollar volume, purchasing an estimated $28.6 billion worth of property. Buyers from Canada followed with $11.2 billion in purchases, followed by India with $7.9 billion, Mexico with $4.9 billion and the UK with $3.8 billion. International buyers tend to purchase more expensive properties with the average purchase price being $499,600, compared to the overall US average house price of $255,600. Chinese buyers typically purchased the most expensive properties, at an average price of $831,800. Some 35% of real estate agents reported working with an international client in 2014, up from 28% in 2013 and 46% said international buyers were seeking main homes, 20% wanted buy to let and 26% was for investment rentals. Global buyers also purchased properties for commercial rentals and as residences for children studying in US educational institutions. Indian buyers were the most likely to purchase a primary residence with 79% doing so, while Canadian buyers were most likely to purchase property as a vacation home with 47% doing so. While international buyer clients purchased property across the nation, four states accounted for half of all international sales: Florida, California, Texas and Arizona. Florida remains the top destination for international buyers with 21% of all foreign purchases, followed by California at 16%, Texas at 8% and Arizona 5%. Chinese buyers tended to gravitate towards the West Coast, which provides ample education, business and trade opportunities, while Canadians seeking winter vacation opportunities focused on the Southwest and Florida. The majority of international purchases, some 55%, were all-cash, compared to about 25% of all purchases made by domestic buyers. Mortgage financing tends to be an issue for non-resident international clients because of a lack of a US based credit history or Social Security number, difficulties in documenting mortgage requirements, and financial profiles that can be different from those normally submitted to financial institutions by domestic residents. Continue reading
