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Two tier house prices growth continues in Australia led by Sydney and Melbourne
The two tiered growth evident across Australia’s housing markets continued in July with Sydney and Melbourne driving home values higher, the latest monthly index shows. The CoreLogic RP Data Home Value Index increased by 2.8% month on month and 11.1% year on year and the total aggregated value of Australian housing increased by just over half a trillion dollars over the past 12 months to $6 trillion. Melbourne has traded places with Sydney to record the highest rate of capital gain, with values in the city up 6.1% over the three months ending in July, the highest rolling quarterly rate of growth since the three months ending August last year when values grew 6.4%. Growth in Sydney wasn’t quite as strong over the rolling quarter, up 5.4% but still the highest rate of growth since the March quarter this year when it was 5.8%. ‘To date, the capital cities have seen remarkable differences over the growth cycle which broadly commenced at the end of May 2012 and since that time dwelling values across our combined capitals index have increased by 30.4%,’ said Tim Lawless, CoreLogic RP Data’s head of research. Sydney values are 47.9% higher over the current cycle and Melbourne values are 32.1% higher while every other capital city has seen growth of less than 13% over the same period. Lawless explained that this highlights the extent to which the Sydney and Melbourne markets have outperformed other markets over the past three years. He pointed out that over the last year several cities have seen price corrections. Darwin has seen values falling the most, down by 5.3% while in Perth values also drifted lower over the year, down 0.3%. At the same time, the annual rate of capital gain in Sydney reached a new cyclical high with home values moving 18.4% higher over the year to the highest annual rate of growth for Sydney since the 12 months ending in December 2002. The strongest growth conditions outside of Sydney and Melbourne have been in Brisbane where dwelling values were 3.9% higher over the year. Based on the median dwelling price, Sydney prices are now 72% higher than Brisbane’s and Melbourne’s are 24% higher. Detached housing continued to outperform the unit sector, with house values substantially outperforming unit values over the past year apart from Hobart and Darwin. Detached home values are up 11.6% compared with a 7.2% increase in unit values over the past year. The differential is most pronounced in Melbourne where house values have surged 12.3% higher over the year compared with a 4.8% rise in unit values. ‘The higher growth rates for houses compared with units is likely to be supply related, with the underlying land component driving detached housing values higher at a time when new apartment supply has seen a substantial boost from new construction,’ Lawless said. While dwelling values continue to rise across most cities, the pace of rental growth has slipped to a new record low, which has… Continue reading
English landlords who don’t follow new immigration checks face jail
Landlords in England who repeatedly fail to check a new tenant’s immigration status before agreeing a lease could face up to five years in jail, it has been confirmed. As part of a wider crackdown on immigration, new rules for landlords mean that they will also be expected to evict tenants who lose the right to live in England. They will be able to end tenancies, sometimes without a court order, when asylum requests fail, according to Communities Secretary Greg Clark as he announced that the government will not tolerate rogue landlords who make money out of illegal immigration. The changes which hare part of the new Immigration Bill and follow a pilot in the West Midlands come as the British and French governments struggle to deal with a migrant crisis in Calais where large numbers of people are making nightly bids to cross the Channel to reach the UK. Clark explained that under the proposals for landlords in England, the Home Office would issue a notice when an asylum application fails that confirms the tenant no longer has the right to rent property. He also said that a blacklist of rogue landlords and letting agents will be created to allow councils to keep track of those who have been convicted of housing offences and ban them from renting out properties if they are repeat offenders. Richard Lambert, chief executive of the National Landlords Association, described the proposals as a welcome step forward, although he said he is ‘slightly concerned’ that the 40 year old principle that it has to be a court that ends a tenancy is changing. He suggests that there is a danger that those being evicted end up doing something desperate such as barricading themselves inside a property. ‘I think that we need to think through the consequences of the kind of systems we are putting into place,’ he added. David Cox, managing director, Association of Residential Letting Agents, welcomed the proposals in principle. ‘The plans will help to weed out the minority of rogue landlords who exploit vulnerable immigrants for their own financial gain and, with the introduction of a new five year imprisonment penalty, will help to deter other such unscrupulous individuals from entering the private rented sector,’ he said. ‘The proposals also build upon the Right to Rent checks as imposed by the Immigration Act 2014, which we expect to be rolled out nationally following a pilot scheme in the West Midlands. We will be organising training sessions for our members to ensure they are fully prepared and understand the new rules and we urge all letting agents to ensure they are ready for the impending roll out,’ he added. Continue reading
Research shows most people who move home find it stressful and costly
The majority of people who moved home in the UK recently found it a stressful experience and two fifth paid out £5,000 more than they expected, new research has found. Some 86% were stressed and 46% felt they were not in control while 39% said the cost was more than anticipated, according to the study by finance comparison website MoneySuperMarket. It also found that 19% said that moving home has forced led them to compromise their career and 20% found it had caused arguments with their partner. Those who bought their home paid over £6,000 more than expected, while renters overpaid more than £3,000 each. To foot the extra cost, 63% dipped into savings, a further 16% put it on credit Cards and 11% had to rely on their parents. Some 71% said that packing up belongings in their old home was the most stressful part of moving, 62% said it was finding a property within the right price range while 57% said it was getting the location right. The research also found that 56% found dealing with estate agents was the most stressful part of the process while 57% said it was setting up new utilities contracts and 56% said it was unpacking in their new home. Some 20% said that they unable to concentrate on their job and 19% had to take annual leave just to get things sorted. In addition, 17% had to use work time to complete their paperwork. ‘Whether for the first time, or stepping up the ladder, moving home is a momentous life choice for people to make. There is so much to consider, both before, and after keys are handed over, and as it takes an average of six months just to find a property, it’s understandably stressful and has a knock on effect in all aspects of people’s lives,’ said Dan Plant, consumer expert at MoneySuperMarket. ‘It should be a really exciting time, but unfortunately the most common words people associate with moving are tiring, draining and frustrating. But moving house doesn’t have to be a completely arduous process. Being as prepared as possible will help ease the angst,’ he explained. ‘It’s important to consider all costs involved so you aren’t hit with an unexpected bill at any point from the mortgage, surveys and stamp duty, to removal hire and any other necessary additions to the new house. Simple steps such as creating a checklist and timeline will also alleviate the extra pressure on your relationships, job and health,’ he added. Although moving house is an upheaval, recent movers did feel supported by others during the process. Some 69% said partners offered support, 67% got support from friends and 57% from family. Furthermore, despite the introduction of more stringent lending rules last year, only 34% found dealing with mortgage lenders stressful. Ultimately, almost all, 92% of those who have moved house in the last two years said it was worth the hassle and just 8% said it… Continue reading
