Tag Archives: real-estate
CML reaffirms what needs to be done for UK home lending markets after election
The Council of Mortgage Lenders has reissued its election manifesto aimed at political parties ahead of the forthcoming vote in the UK in May. It highlights many of the issues for people in different tenures in today's housing market and sets out the challenges to be addressed in delivering effective housing solutions for the future. ‘The mortgage market is a £1.2 trillion industry, and housing a key electoral issue. This is our combination to the political debate. Whoever is in power after the election will have to show they can create a joined up and cohesive housing strategy for all housing tenures,’ said Paul Smee, director general of the CML. ‘The UK housing market is really a set of local markets, so there are especial challenges in delivering a focused long-term plan, but it is crucial for the wellbeing of citizens, and the growth of the economy and lenders are keen to play a positive role,’ he added. The manifesto gives a lender's perspective on what actions need to be taken to tackle the most important problems facing the market, Focusing on the needs of the old, the young, and the in-betweeners, it recommends creating a comprehensive house building plan to increase the supply of housing in all tenures. It also suggests the promotion of shared equity/shared ownership as a permanent tenure and addressing the regulatory stumbling blocks that relate to lending into retirement as well as promoting better pathways between the mainstream mortgage market, lifetime mortgages, and downsizing. The manifesto suggests work needs to be done to ensure new housing supply fully reflects the needs and aspirations of an ageing population and the need to identify any unintended consequences of regulation on credit worthy mortgage holders. It wants whoever wins the general election to work with the industry to develop a more effective safety net against the risk of change in household circumstances and make sure that policies affecting all tenures, such as welfare reform, are holistic and align with private sector markets. Continue reading
Abu Dhabi office market set to weather lower oil prices
Lower oil prices could lead to possible implications for the Abu Dhabi real estate market but commercial property should be able to shrug off such concerns, according to a new analysis. The region’s medium to long term prospects remain strong and there is a limited office supply pipeline which has led to vacancy rates dropping for Prime and Grade A offices in the to 26%. Overall the commercial sector saw a marginal slowdown in the number of enquiries in the second half of 2014, according to the latest Abu Dhabi office research report from international real estate firm Knight Frank. The fall may be due to companies reviewing the impact in falling oil prices and nearly 80% of enquiries were between 100 and 500 square meters, data in the report shows. The overall effect on market rents over 2014 was minimal, but the firm suggests there could be further improvements in headline rents, as little prime or Grade A supply enters the market. Take up during 2014 was still dominated by the oil and gas sector at 16% and government at 15%, which positively impacted the absorption of new accommodation in Abu Dhabi. The leisure and hospitality sector witnessed an increase in the number of enquires, which reflects the government’s efforts in diversifying the economy and growing this sector. Prime office rents edged up in Abu Dhabi in the second half of 2014 to AED1,800 per square meter whilst rental values for Grade A shell and core office space remained steady at AED 1,200 per square meter. Market sentiment through the diversification of the economy continues to improve with mega projects such as Khalifa Port, registering a growth rate of 24% from January to September 2014, compared to the corresponding period in 2013, the report points out. With the Midfield terminal due to be completed in July 2017, this will be expected to positively impact the economy further, in both trade and tourism and the Abu Dhabi Global Market (ADGM), the newly formed international financial centre in Abu Dhabi, announced that it has signed a 50 year lease for the Financial Building, Al Maryah Island which is owned by a Mubadala subsidiary. The report explains that ADGM will be responsible for establishing a legal jurisdiction, registering entities within the freezone and regulating all financial services activity on the island in line with international standards and under English Common Law. ‘The market dynamics continue to change in Abu Dhabi as the city expands further from the main island,’ said Matthew Dadd, head of Abu Dhabi commercial leasing at Knight Frank. ‘Regardless of economic trends, Abu Dhabi real estate continues to offer a good depth and breadth of opportunities for occupiers, although there is a limited pipeline of new office accommodation which will impact the market in the coming years,’ he added. Continue reading
Confidence in property market reaches three year high in UK
Confidence in the UK property market has reached a three year high, according to new research from Clydesdale and Yorkshire Banks. Almost a quarter of people plan to change their current property either by extending or carrying out home improvements, the research found. A further 14% said they want to sell their house in the coming year. Finances are also high on the agenda with 11% planning to either pay off their mortgage, make overpayments or re-mortgage in the coming 12 months. The results, which show a consistently improving picture in the three years since homeowners were first asked about confidence levels, were revealed in the latest Annual Housebuyers Survey by the Banks. The survey supports the latest findings from the Council of Mortgage Lenders which reported that 2014 lending levels were the highest since 2007. Among those surveyed by the Banks in 2013, 62% of people said they planned to simply stay in their current home. The figure dropped to 58% a year later and dipped by a further 17% to 41% in 2015. Of those planning a move in the next 12 months, Londoners are most likely to move with 22% putting up a For Sale sign. Within that group, some 8% of Londoners plan to move up the property ladder, a further 8% have aspirations to relocate and 6% hope to downsize. In contrast only 10% in Scotland and 8% of those in Yorkshire plan to move in 2015. The optimism can also be seen with 44% expecting the value of their home to increase, while 54% think it will remain the same. Men are more optimistic about an increase with half of those surveyed anticipating an increase in value compared to 38% of women. Of those who believe the value of their home will increase the main reason is the increase in property prices in their local area, as well as an upturn in demand. Confidence is at its highest in London where 64% believe their property will increase in value in 2015 in sharp contrast to Wales where just less than a quarter, 24%, share a similar view. ‘We have seen optimism returning to the property market over the last few years and this seems to be growing with more people planning house changes whether it is to move, make home improvements, pay off their mortgage or even help a family member to get onto the property ladder,’ said Steve Fletcher, head of Clydesdale and Yorkshire Banks Retail Network. ‘Whatever the circumstances Clydesdale and Yorkshire Banks have a range of products to suit different needs and budgets and to help make the UK's property aspirations for 2015 a reality,’ he added. Continue reading
