Tag Archives: stumbleupon
UK real estate markets set to continue to expand in 2015 says CBRE
Year on year, UK real estate markets will continue to expand, but the overall trend will be a slowing of growth to more sustainable levels, according to the latest forecast. Prime London commercial markets will continue to grow in 2015, but confidence and investor interest will encourage growth in prime regional markets, says the report from commercial real estate advisor CBRE. It reveals that in 2014, total returns to property averaged nearly 20% but predicts that in 2015, there will be a slowing of growth rates with average returns just under 13%. It also points out that the general election will bring some uncertainty in property decision making and adds that year on year there will be significant rental growth for most sectors but a further improvement in yields as investment inflows continue into the UK market. Prospects for retail properties remain among the most uncertain, with few sure signs just yet that stable growth is returning to consumer spending, and cost pressures and distractions across the sector, particularly in grocery retailing, although in 2015 as in 2014, prime retail destinations will remain a safe bet. Industrial property will continue to be attractive for investors due to a dearth of quality supply and price growth in the housing market will ease in 2015 to around 6% with transaction levels having peaked for the time being. ‘This has been a year of extraordinary expansion across the property sector and while this will continue into 2015, overall there will be a return to more sustainable levels of growth,’ said Miles Gibson, head of UK research at CBRE. ‘Rental growth will continue in all sectors and we expect investment yields to continue to improve as levels of capital flows into the UK market remain high. In terms of where growth, we forecast a ripple effect next year as property investors shift from London out to the regions,’ he explained. He also pointed out that global economic factors, most notably the falling price of crude oil, in 2015 will benefit the UK. ‘The likely effects of pushing down inflation and boosting consumer spending, means we should expect to see a knock on benefit for retailers which in turn could stimulate growth in the retail property sector,’ said Gibson. ‘Although there positive signals for the property market, we recognise that there will be uncertainty caused by the imminent general election. The combination of these trends makes 2015 an intriguing prospect for the sector,’ he added. Continue reading
US home sales fall to lowest annual pace for six months, latest data shows
Home sales in the United States have fallen to their lowest annual pace for six months, down 6.1% in November, according to the latest data from the National Association of Realtors. Total sales, excluding new build, reached a seasonally adjusted annual rate of 4.93 million in November from a downwardly revised 5.25 million in October but they are still up 2.1% compared to a year ago. Lawrence Yun, NAR chief economist, says sales activity was choppy throughout the country in November and housing inventory began its seasonal decline. ‘Fewer people bought homes last month despite interest rates being at their lowest levels of the year,’ he pointed out. ‘The stock market swings in October may have impacted some consumers’ psyches and therefore led to fewer November closings. Furthermore, rising home values are causing more investors to retreat from the market,’ he added. But prices are still strong. The median existing home price for all housing types in November was $205,300, 5% above November 2013 and the 33rd consecutive month of year on year price gains. The NAR data also shows that total housing inventory at the end of November fell 6.7% to 2.09 million existing homes available for sale, which represents a 5.1 month supply at the current sales pace, unchanged from last month. Despite the tightening in supply, unsold inventory remains 2% higher than a year ago, when there were 2.05 million existing homes available for sale. ‘Lagging home building activity continues to hamstring overall housing supply and is still too low in relation to this year’s promising job growth. Much faster price and rent appreciation, easily exceeding wage growth, will occur next year unless new construction picks up measurably,’ said Yun. All cash sales were 25% of transactions in November, down from 27% in October and below the 32% recorded in November of last year. Individual investors, who account for many cash sales, purchased 15% of homes in November, unchanged from last month and below November 2013 when it was 19% while 61% of investors paid cash in November. The percent share of first time buyers in November climbed to 31% from 29% in October, the highest share since October 2012 when it was also 31%. First time buyers have represented an average of 29% this year. Distressed sales, that is foreclosures and short sales, were unchanged in November from 9% in October and remained in the single digits for the fourth month this year, well below the 14% of a year ago. Overall 6% of November sales were foreclosures and 3% were short sales. The data shows that foreclosures sold for an average discount of 17% below market value in November compared with 15% in October, while short sales were discounted 13% compared to 10% in October. Properties typically stayed on the market in November for 65 days, slightly longer than the 63 days recorded in October and above the 56 days of… Continue reading
Empty home scheme in Scotland has funding doubled
A scheme to tackle Scotland’s empty homes has had its funding doubled, the nation’s Housing Minister Margaret Burgess has announced. The Scottish Empty Homes Partnership (SEHP) will receive a three year extension backed by an additional £616,500 from the Scottish Government. SEHP, which is run by the housing charity, Shelter Scotland helps councils and their partners pursue work to bring private sector empty homes back into use. Overall, the number of unoccupied properties is falling. Currently, 31,457 homes are recorded as being empty for six months or more. Shelter Scotland will use the extra funding to recruit additional staff to support the Partnership and allow up to an additional 12 councils to participate in the Shared Empty Homes Officer programme. By the end of year three, up to 28 councils in Scotland could have had access to an empty homes officer and approximately 1,200 empty homes per year could be returned to use. ‘Empty homes are a blight on both urban and rural communities across Scotland. Bringing empty homes back into use is a cost effective way of increasing the supply of housing available to families across Scotland and it also aids community regeneration,’ said Burgess. ‘That is why the Scottish Government is not only providing a three year extension to the Empty Homes Partnership, but is also doubling its funding. Empty Homes Officers will report over 500 homes being brought back into use in 2014/2015, this compares with the 278 being brought back into use in 2013/2014,’ she explained. ‘There is still a long way to go but increasingly, local authorities across the country are embracing the work of the partnership. Clearly, the network of Empty Homes Officers is having a positive effect,’ she added. Graeme Brown, director of Shelter Scotland, described the move as great news. ‘The progress we have made supporting councils and their partners over the last four years to bring hundreds of empty homes back into use is testament to the hard work and commitment of everyone involved,’ he said. ‘Expanding the partnership and putting it on a longer term footing will allow us to do even more to bring private empty homes back into use. Our goal is to see a fully effective empty homes service in each local authority and to bring back as many of Scotland’s long-term empty homes as we can,’ he added. Continue reading
