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Average house prices in Scotland reach new peak with 1% monthly rise
Average house prices in Scotland increased by 1% or £1,600 in January, surpassing the May 2008 peak, according to the latest index data. Year on year prices are up 4.5%, taking the average home price to £166,771, a new record, but sales were down 44% compared to December, double the typical seasonal downturn. It means that the average home in Scotland is now worth £1,238 more than at the peak of the housing boom in May 2008, following the most significant monthly upswing for seven months, says the report from Your Move. Dundee saw the biggest prices jump with property prices increasing 6.7% or £8,161, while Fife and West Lothian set new peak house prices with growth of 9.5% and 10.9% respectively. North Ayrshire has experienced the biggest rise in house prices on the mainland over the last year, up 11.6% with the typical price of a detached home growing from £180,000 to £210,000 in the past 12 months. However, average prices have fallen in seven local authorities of Scotland during the past year. West Dunbartonshire has seen the steepest drop in values in the last 12 months, with prices falling 7.2% on average, and flats in the area are now worth £20,000 less than a year ago. In addition, completed house sales in January 2015 were down 44% on December levels, double the usual seasonal downturn, and a 14% fall on a year ago, as home sales drop to the lowest level for 23 months. ‘This shouldn’t be viewed as a bad omen though, as the start of the year is always the slowest time for house purchases in Scotland, and it will only get busier, as the sustained flow of front-end demand flooding into the market starts to translate into end results,’ said Christine Campbell, regional managing director of Your Move. The Scottish housing market is benefitting from the economy moving in the right direction, and employment on the up, while mortgage rates are at rock bottom, according to Campbell. She pointed out that next month’s Land and Buildings Transaction Tax will offer some extra relief to those clambering onto the bottom rungs of the ladder, lowering the stamp duty paid on purchases even further. ‘Greater policy clarity that will emerge after the general election will unleash a new wave of confidence that will outweigh any hesitancy in the market at the moment,’ she added. Continue reading
Planning permission for new UK homes up 12% but only half what is needed
Planning permissions were granted in principle for close to 200,000 new homes a year in the UK in 2014, an increase of 12% compared to 2013 and up 39% on 2012, according to new data. However, local Authorities now need to ensure departments are able to process applications if more homes are to be built, says the latest report from the Home Builders Federation and Glenigan, adding that the pace is only half what is needed. The homes identified in the report will, once they have navigated the remainder of the planning process, in the main be completed over the next two to three years and the research also shows that the number of new homes started in 2014 was up 36% on 2012. It says that as demand for new homes continues to increase, due to improved consumer confidence and the Help to Buy equity loan scheme, existing sites are getting built on quicker and so builders are looking to get on to more new sites more quickly than before. But it points out that whilst the increases are positive, they can only be translated into desperately needed new homes if local authorities ensure their planning departments have the capacity to process these permissions to the stage that they can actually be built. Too many sites are ‘stuck’ in the planning system, with an estimated 150,000 plots at ‘outline permission’ stage awaiting full sign off by local authorities. New government initiatives to introduce deemed discharge of conditions will greatly assist in making sure the planning system will not be a constraint on increased housing provision but the overall resourcing of planning departments is still a concern, the report explains. It add that central and local government must prioritise proper resourcing of planning departments if authorities are to be able to efficiently process more applications, as recommended by the HBF. It believes that speeding up the rate at which permissions are granted is one of the keys to a significant, sustainable increase in housing supply. Local Authorities must be resourced sufficiently to be able to sustain this increase in the rate of planning permissions being granted in order that the industry can increase housing output. Figures in the latest report show that more permissions were granted in 2014 that in any year since 2008. It also shows that the number of sites getting permission continues to trend upwards. Getting more sites operational is absolutely key to a sustained increase in actual build numbers as more sites, means more construction work and sales outlets. ‘Over the past 18 months, demand for new homes, largely driven by the Help to Buy equity loan scheme has increased markedly. House builders have responded by significantly increasing house building activity,’ said Stewart Baseley, executive chairman of the HBF. ‘We are still only building around half the number of new homes the country needs. Getting the required number of permissions, in a timely manner, is absolutely key… Continue reading
Most UK regions see a rise in residential rents
UK new tenancy rents have increased by 1.7% in the last year taking the average monthly amount to £876, according to the latest data to be published. However, month on month rents saw a slight decrease of 0.8%, down from £883 per calendar month in January, the analysis from Countrywide shows. The majority of regions saw an increase in rent in February, with Greater London seeing the largest increase, up 8.4% year on year. Two and three bedroom newly let properties see the largest growth in rent, up 4.5% and 3% respectively year on year and two bedroom properties were the only property type to see a month in month increase in rent, up 0.7% to £816. One and four plus bedroom properties saw a 2.9% decrease month on month, followed by three bedroom properties down 0.4%. It is only the four plus bedroom properties that did not see an increase in rent year on year as rent decreased 6.9% from £1,345 to £1,306 in February. In the regions, the majority of the UK saw an increase in rent month on month, with central London seeing the greatest increase, up 2.5% to £2,629, followed by the Midlands up 1.7% to £652. Wales saw the greatest decrease in rent, down 7.5% to £616, followed by the South East, down 4.3% to £991. Year on year, Greater London saw the largest increase in rent, up 8.4% to £1,251pcm and the South East the greatest decrease, down 8.1%. The firm said this is due to a fall in demand for rental properties in the region, as more tenants move out of the private rented sector and into the owner occupier sector. The average UK rent for renewed tenancies in February is £841 per calendar month, an increase of 0.7% month on month and 1.9% year on year. One and three bedroom properties saw a decrease in rent, down 1% and 0.1% to £674 and £874 respectively, when compared to January 2015. Two and four plus bedroom properties saw an increase of 0.9% and 3% to £770 and £1,390 respectively. One bedroom properties were the only type to see a decrease in rent year on year, down 1%. Two bedroom properties saw a 2.4% increase, three bedroom properties a 2.6% increase and four plus bedroom properties an increase of 3%. Central London and the South East saw the greatest increase, up 3.2% and 2.6% to £2,543 and £1,036 respectively when compared to January 2015. The Midlands see rent stay flat for the month on January and the East of England, Wales and Scotland saw decreases of 2.2%, 2.2% and 1.1% respectively. The majority of regions have seen a slight increase in rent in February when compared to January. The greatest increase is in Scotland where rent increase 0.5% to £629 followed by Greater London up 0.4% to £1,142. Wales and Central London both saw a decrease in rent of 0.5% to £638 and £2,435 respectively. The data also… Continue reading
