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Scotland’s rural property continues to tempt buyers from south of the border
Rural property in Scotland is attracting buyers from all over the globe, but especially from south of the border in the UK due to exceptional value for money, says a new report. There is a total pool of approximately £300 million in farms and estates in Scotland but political and legislative uncertainty slowed last year’s market, according to the analysis from international real estate firm Savills. Indeed last year only nine estates sold compared to more than twice that amount in a typical year but the firm expects that number to bounce back in 2015 now that the general election is over and the new land and transaction tax has been introduced. ‘There are a number of low ground and sporting properties new on the market and we anticipate a greater number of sales being completed in 2015, compared with last year, with a number having already been agreed. This is proof that the appetite for Scottish estates remains unabated, particularly from foreign climes,’ said Faisal Choudhry head of research in Scotland. ‘Shrewd buyers may consider 2015 as an opportune time to secure their properties ahead of the stronger competition that may arise. Scotland is offering terrific value for money and will need to continue to do so in the current climate to overcome any potential concerns that buyers may have. A better understanding of the Land Reform changes is helping to allay concerns from those who had been holding back,’ he added. He also explained that uncertainty posed by Common Agricultural Policy (CAP) reform and poor weather restricted the volume of farmland coming on to the market in the first half of 2015, with low supply upholding values. Current values are closely linked to location, land quality and the residential weighting of the farm and there is a widening value gap between the most and least sought after land, the report points out. Prime arable land is likely to sell for between £7,500 and £9,000 an acre, while secondary land might reach between £5,000 and £7,500 and there is a shift in buyer profile with the farmland market now being driven by farmers rather than investors. English buyers are continuing their close interest in Scottish farmland, spurred on by the record value gap and Savills Research projects that average UK farmland values are set to grow by around 4% per annum over the next five years. Continue reading
Recovery in property sales in Spain proving sustainable, latest data suggests
Homes sales in Spain are showing strong growth, up by 13.9% in the second quarter of this year following a rise of 4.4% in the first quarter, according to the latest data from the Ministry of Public Works. It is the six quarter in a row when sales have increased year on year, suggesting that the recovery in the Spanish real estate market is being sustained. It is also the second best quarter since 2010. However, the market still has some way to go to its pre-crisis level as sales are 58% lower than the peak of 2006. A breakdown of the figures shows that some 12.5% of sales were for new homes and sales increased in 14 regions, as well as in the autonomous cities of Ceuta and Melilla, and fell in three. The biggest increases were in La Rioja with growth of 44.2%, Ceuta and Melilla at 33.9%, the Balearic Islands at 30.1%, Cantabria at 29.4% and Murcia at 25.7%. Sales fell by 14.7% in Navarra, by 1.5% in Extremadura and by 0.6% in the Basque Country. Overseas buyers living in Spain accounted for 17.2% of sales while sales to non-resident foreigners amounted to 5%. Alicante had the highest number of foreign buyers at 4,141, Málaga 2,517, Barcelona 1,470, Madrid 1,173 and Tenerife 1,099. The sustained recovery is also confirmed in the latest figures from the General Council of Notaires, showing that the property market grew by 11% in July compared to the same month in 2014. The data shows that the Spanish property market has expanded in nine of the last 12 months with only January and February seeing sales fall. According to Mark Stucklin, of Spanish Property Insight one of the main factors behind rising home sales is easier, cheaper mortgage credit. There were 17,450 new mortgages signed in July, up 27% on the same month last year, taking the number of sales involving mortgage financing to 46%, highest level since the boom years in the middle of the previous decade. Prices area also starting to recover. The data from the official house price index published by the National Institute of Statistics shows that they rose by 4% over the 12 months to the second quarter of 2015. The Balearics saw the biggest rise in prices with growth of 7.3%, driven by a 7.8% rise in new build prices and a 7.4% rise in resale prices. Indeed, new and resale house prices have been rising since the second quarter of last year, and the trend appears to be picking up speed for both new and resale properties. But figures from the Notaries suggest that prices are not yet in recovery mode. The data from them shows prices down by 0.3% in the second quarter of the year. But Stucklin believes that there are reasons to be sceptical about the index. Compared to 2007, Spanish house prices are down 33%, according to the index with resale prices down 40% and new build… Continue reading
Concerns voiced over new deregulation act effect on private landlords in England
A range of changes come into force today in England which affect private sector residential landlords amid concern that many are not aware of them. Under the Deregulation Act 2015 there are changes which affect whether or not a landlord can serve a Section 21 notice on an assured shorthold tenancy as well as changes to the form itself. However, following lengthy consultation, tenant eviction firm Landlord Action has concerns that not enough has been done to inform landlords of the changes and questions whether the Government has enough resources in place to properly enforce measures against so-called ‘retaliation eviction’. Just some of the key changes which come into effect for new tenancies entered into from 01 October, include the use of the new prescribed Section 21 notice which combines fixed term and periodic. A section 21 notice can no longer be served in the first four months of a tenancy and a section 21 notice will now have a six month life span. Despite recognising that the changes are in response to the ever growing private rental sector and a need for best practice, Paul Shamplina, founder of Landlord Action has expressed several concerns over the changes. ‘There have been a lot of significant changes in a short amount of time and I would like to have seen the Government proportion a greater budget to educating landlords, particularly those that don’t use agents to manage their properties, to ensure they are up to speed with new legislation,’ he said. ‘We still receive calls to our advice line on a weekly basis from landlords who don’t know about the deposit scheme which came into effect eight years ago,’ he pointed out. Less than 12 months ago Shamplina told The All Party Parliamentary Group for the Private Rented Sector at the Houses of Parliament that a law on retaliation eviction could result in tenants abusing the system and use it to remain in properties rent free for longer. As part of the new Act tenants will now have the first four months of a tenancy to file a complaint to a landlord with regards to issues of disrepair. ‘Good landlords will deal with complaints within the given 14 days, but my concern is the level of resource the local authorities have in place to action environmental health officers to carry out inspections when staffing levels have been cut to the bone,’ said Shamplina. ‘Landlords’ circumstances can change and if they need to end their tenancy, but can’t because they are waiting for an inspection or to gain access from the tenant, landlords are going to lose valuable time,’ he pointed out. If a property is considered in disrepair, landlords are now unable to serve a section 21 notice for six months from the date an improvement notice is served by the council and Shamplina believes this could lead to a huge spike in complaints from tenants. ‘I am a bit fed up… Continue reading
