Tag Archives: stumbleupon
Flat prices have risen the most in the UK in last 10 years, new research shows
Flats prices in the UK have risen by more than twice the average for all properties in the last decade but most of the growth is down to increases in London, new research shows. The average price of a flat in the UK has risen by nearly £51,000 or £425 per month, from £157,172 in 2004 to £208,169 today, according to the research from the Halifax building society. The 32% increase in the average price of a flat is more than double the 15% rise for all residential properties over the same period. Detached homes at 12% and bungalows at 13% have recorded the smallest rises over the past 10 years. Whilst flats have increased most in price nationally since 2004, much of this rise is due to the performance of flat prices in London, where flats represent a relatively high proportion of the property market. Terraced homes have been the best performing property type in the greatest number of regions. These five are the North West, Yorkshire and the Humber, West Midlands, East Midlands and East Anglia. Semi-detached and terraced homes have remained the most popular types of property purchased over the past ten years. These two types represent 60% of all home sales in 2014; up from 56% in 2004. For first-time buyers, semi-detached homes have risen in popularity, accounting for 29% of purchases in 2014 compared with 25% in 2004. Detached sales have fallen from 21% of all property sales to 16% over the past decade. In the last five years prices have improved across all property types with flats recording the largest increase between 2009 and 2014 at 43%. Terraced properties at 31% growth experienced the next biggest rise. Bungalows have seen the smallest gain of 15%. The increase in flat prices nationally has been led by London with growth of 44% with a more subdued performance elsewhere in the country. All property types recorded substantial price falls during the housing market downturn between 2007 and 2009. Terraced houses fell 33% and flats were down 32% while bungalows fell by 21% and detached homes were down 26%. The report says that the tightening in credit criteria and the reduction in mortgage availability following the onset of the financial crisis made it more difficult for first time buyers in particular to enter the market. This helps to explain why terraced houses and flats, which are very popular with first time buyers, recorded the largest price falls during 2007 to 2009. ‘There has been a significant increase in the number of first time buyers since 2010 compared with a modest decline in the number of those moving home. This difference is reflected in a bigger rise in prices over the past five years for those property types that are most popular with first time buyers,’ said Martin Ellis, housing economist at the Halifax. ‘Since 2009, larger property types such as detached homes, semis and bungalows have underperformed flats and terraces. The demand for such properties has… Continue reading
UK govt announces new deals for private rented sector
Tenants renting privately in the UK will get a better, fairer deal under measures announced by Housing Minister Brandon Lewis. He said that people looking to rent a home will be better informed, have greater choice and more confidence they will be treated fairly thanks to a range of ambitious initiatives. But Lewis said this will not strangle the industry in red tape and regulation, which would destroy investment in new housing, push up prices, and make it far harder for people to find a flat or house to rent. Instead, the new measures will both provide the help tenants need, without jeopardising the millions of pounds in investment already lined up to build new homes specifically for private rent. ‘The private rented sector plays a vital role in our housing market, providing a flexible option for millions of people across the country. The last thing we want to do is strangle it in red tape but tenants and landlords should have confidence that they will be treated fairly,’ said Lewis. ‘This package of measures is designed to do just that, putting power in the hands of people to get the deal they serve, without punishing the vast majority of good landlords while still encouraging more investment in the sector,’ he explained. ‘I would urge all landlords to take account of the new code of practice and look to offer our model tenancy agreement while the Build to Rent deals demonstrate how committed we are to getting homes built specifically for this market,’ he added. In the package is a new model tenancy agreement which Lewis said will empower tenants to agree longer deals with their landlord and has the added benefit of avoiding the need for landlords to leave properties empty and pay fees to letting agents for finding new tenants. The new code of practice, produced by the Royal Institution of Chartered Surveyors, makes clear the legal requirements of landlords and letting agents alike, leaving both in no doubt about their responsibilities to their tenants. This is on top of a new requirement for letting agents to belong to one of three approved redress schemes, to ensure that any landlord or tenant who gets a raw deal has somewhere to go with their complaint and could even claim compensation. The minister also argued that the key to creating a bigger, better private rented sector is to secure more investment and encourage more professional landlords to enter the market and offer their homes to tenants. He announced three new deals to deliver homes specifically for private rent under the government’s Build to Rent scheme. He announced £17.7 million to Notting Hill Housing Trust to build 181 homes in Newham and Southwark, £4.8 million to Carpenter Investments to build 101 homes in Liverpool and £4.8 million to Derwentside Homes to build 114 homes for private rent in Durham. In total the Build to Rent scheme is well on track to deliver up to 10,000 new homes for private rent by 2015. The new… Continue reading
US house price growth cooling but likely to still rise over 3% in next year
Some housing markets in the United States are starting to cool but overall home values are expected to rise another 3.1% between now and August 2015. The latest Home Value Index from real estate firm Zillow rose 6.6% to $175,600 in August, the slowest annual pace in the last 12 months. The cooling market offers a clear view of local markets that favour either buyers or sellers and the hottest markets are on the West Coast with quick sales and high asking prices. Top are San Jose, San Francisco and Seattle. But some still recovering markets remain a bargain for buyers as more homes went up for sale. These include Cleveland, Philadelphia and Providence. Overall the index shows that home values increased by 0.1% in August compared with the previous month and are up 6.6% from August 2013. According to the latest Zillow analysis of buyers' and sellers' markets, sellers in the Bay Area, Seattle and Dallas have the most negotiating power, with final sale prices largely at or above asking. For those looking to buy a home, the Northeast and Midwest offer the most favourable conditions, as buyers are less likely to be faced with the fierce bidding wars seen across the West Coast and in larger cities across the country. In this analysis, a sellers' market is not necessarily one where home values are rising, but rather one in which homes are on the market for a shorter time, price cuts occur less frequently and homes are sold at prices very close to, or greater than their last listing price. In buyers' markets, homes for sale stay on the market longer, price cuts occur more frequently and homes are sold for less relative to their listing price. ‘Real estate has always been local, but as we continue to put the housing recession further in the rear view mirror, the largely uniform performance of local markets is also fading,’ said Zillow chief economist Stan Humphries. ‘We now have several different types of markets emerging, including markets that are still muddling along the bottom. Markets that shot up immediately after the recession ended and are now cooling quickly,’ he explained. ‘And markets that are still very hot. Each of these environments presents unique challenges and opportunities for buyers and sellers, and what works in one area won't necessarily work in another,’ he added. National home values have risen month on month for more than two years, though the pace of monthly home value appreciation has slowed as a result of increased numbers of properties for sale entering the market. The number of homes listed for sale on Zillow in August was up 20.6% year on year and 2.1% month on month. Meanwhile, the Zillow Rent Index shows that national rents rose in August by 0.7% compared with July to a Zillow Rent Index (ZRI) of $1,328. Year on year, national rents were up 3.3% in August. Continue reading
