Tag Archives: real-estate
Number of rural estates sold in Scotland doubled in 2015
Despite challenges facing the rural property sector in Scotland, including political and economic uncertainty, more than double the number of rural estates sold this year compared with 2014. Research from real estate firm Savills reveals quality and diversity of field sport and conservation were the main drivers for purchase in 2015, with viewers coming from the length and breadth of the UK, the Middle East, the US, Belgium, Sweden and the Netherlands. ‘The estate market has shown a significant increase in activity this year, despite the publication of the draft Land Reform Bill in June,’ said Evelyn Channing, a Director in Savills Edinburgh office specialising in the sale of rural estates. The figures show that so far this year, some 20 estates totalling 118,000 acres have sold or are under offer at an accumulative asking price of £63 million, more than double the number sold in 2014 but equivalent to 2013. ‘Almost a third of the estates sold this year were launched prior to 2015. Last year’s referendum resulted in a quieter market in 2014 and deterred many potential sellers from coming to the market,’ explained Channing. ‘Savills has handled over a third of the estates sold on the open market this year. Around 50% of our buyers have been British, in contrast to the past few years when the majority of purchasers were from overseas,’ she added. The research also suggests that in the current climate, buyers appear to be taking comfort in being in competition with others on the open market. Savills estimates that only 15% of sales in 2015 were conducted privately, considerably less than in previous years. ‘No market thrives on uncertainty, and there was a sense of trepidation from buyers, sellers and indeed selling agents at the start of the year, with minds being focused on the ‘what if’s’ of Land Reform,’ Channing pointed out. ‘However, the way ahead has become significantly clearer in recent months and we are anticipating the return of confidence in the estate market in Scotland will lead to further increased activity in 2016,’ she concluded. Continue reading
Spanish home prices up 4.5% year on year in third quarter of 2015, rents also up
Residential property prices increased by 4.5% in the third quarter of 2015 compared to the same period in 2014, according to the latest data from the National Statistics Institute. The details from the housing price index means that prices have now increased for six quarters annually in a row following six years of decline and it is the highest quarterly rise since the last quarter of 2007 when growth was 5.7%, just before the global economic downturn. House prices then started falling in the second quarter of 2008 with a decline of 0.3% and continued to fall until the second quarter of 2014. A breakdown of the figures show that the price of new homes fell by 4.3% and other homes were up by 4.5% while quarter on quarter prices overall increased 0.7% which followed a strong rise of 4.1% in the second quarter of the year. In what is a sign of the universal nature of the recovery in the Spanish property market the figures show a rise in prices in almost every region in the country. Asturias and Extremadura recorded the greatest annual rates of increase, up by 2.6% and 2.4%, to 3.5% and 3.3%, respectively, while the greatest annual fall was in the Basque Country and Valencia, down by 0.9% and 0.6% to 1% and 2.1%, respectively. Quarter on quarter nine regions saw prices rise, seven recorded declines and prices remained stable in the Basque Country. The largest quarterly increase was in the Balearic Islands with growth of 3.1% and Asturias up 1.8%, while the biggest fall was in Navarra with a decline of 1.1% and Aragón down 1%. Residential rents are also rising and increased year on year in all regions in November, the first time this has happened for eight years. The data from property porta Fotocasa shows this was led by Catalonia with an annual rise of 10.6%, followed by the Balearic Islands up 7.8%, Madrid up 6.3% and La Rioja up 6%. In Castilla-La Mancha average rents increased by 0.7%, Cantabria was up 1%, the Basque Country up 1.1% and Navarra up 1.3%. Month on month rents increased by 0.5% to €7.02 per square meter per month with 11 regions seeing rises. The Balearic Islands saw a monthly rise of 1.9% and Catalonia up 1.3% while La Rioja, the Canary Islands and Cantabria all saw growth of 0.6%. But average rental prices fell by 1.2% month on month in Galicia, fell by 0.9% in the Basque Country and by 0.8% in Murcia. The data also shows that since the peak of the market in May 2007 when rents were €10.12 per square meter per month rental values have fallen by 30.7% and five regions have seen accumulated declines over 30%. The steepest decline since peak has been in Aragón where rental prices have fallen by 41.6%, followed by Cantabria down 36.1%, Castilla-La Mancha down 35.2%, Valencia down 34.5% and Murcia down 32.3%. The smallest declines from peak are in Castilla… Continue reading
Prices in key UK cities up over 10% year on year
Property prices in the UK’s key cities have increased by 10.1% year on year, driven by a chronic shortage of homes being put up for sale, and are set to rise by around 7% in 2016, the latest index shows. With demand high, the shortage of supply has been particularly felt in the latter stages of the year and this is reflected in a 5% drop in sales, the data from the Hometrack UK cities house price index also shows. London has seen the highest growth with prices up 13.3%, following on from 14.7% in 2014 and the average price of a home in the capital city has leaped by £52,900 year on year. The weakest rate of growth was in Aberdeen where average house prices fell by 2% compared to a 12% rise in 2014, the data also shows. The city with the strongest turnaround over the last 12 months has been Glasgow where growth has jumped from 1.8% a year ago to 8% today as prices recover off a low base in one of the most affordable cities covered by the index. The index report suggests that scarcity and low turnover of stock will remain features of market supporting price growth but at expense of greater risk of localised price volatility, especially in cities with stretched affordability. Richard Donnell, director of research at Hometrack, pointed out that moving amongst existing mortgage home owners accounted for the lowest share of housing sales in a decade at 33% compared to 50% in 2007. ‘This group are a vital source of new supply alongside new homes which account for 10% of sales a year. Strong demand from investors, most of whom are not sellers, has also exacerbated the erosion of available supply,’ he said. He believes that the real engine for house price growth in 2016 looks set to come from regional cities which have recorded much lower levels of house price growth in the last few years and affordability levels are far less stretched. The index also shows that house price to earnings ratios are well ahead of the long run average in London, Oxford and Cambridge yet across all other cities affordability on this measure is in line with the average over the last 12 years. Across the 20 cities covered by the index the average income to afford a home with an average 76% mortgage at a 3.5 times income mortgage is £49,700, up from £45,200 a year ago. Donnell also pointed out that while the average mortgage rate is at an all-time low of 2.6% the reality is that existing mortgaged home owners outside the south east seem reluctant to take on debt to bid up the cost of housing. ‘Debt servicing costs continue to fall with the average mortgage rate on outstanding mortgage debt down to just 3.1%. UK households have seen interest payments fall by a further £1.1 billion over 2015,’ he said. He also… Continue reading
