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Property industry says Scotland No vote will bring renewed enthusiasm
Scotland’s property market is likely to see renewed enthusiasm and a rise in prices in sales after the historic referendum vote which saw independence rejected. The residential real estate industry welcomed the No vote and said that the market, which has been stalled to a certain extent, can now not only return to normality but is also likely to see growth as those who put buying or selling on hold are now reassured. ‘With the outcome now certain and Scotland voting to remain part of the United Kingdom, we can expect to see some positive movement in the Scottish housing market. It is good news for Scottish estate agents and their customers who can now look forward to a less frenetic housing discussion and market,’ said Mark Hayward, managing director of the National a Association of Estate Agents (NAEA). ‘Although the outcome does not necessarily guarantee clarity for the market, the mist of ambiguity will clear much earlier than if the outcome to Scottish independence was Yes. Therefore, there is likely to be a substantial increase in market activity in the coming months, with an increase seen in the volume of sales and investments,’ he explained. But he warned that this could disrupt house prices in the short term, although not significantly. ‘The existing concerns around increases in interest rates and a significant hike in stamp duty will undoubtedly have a bigger impact over the next 12 months,’ added Hayward. According to Ran Morgan, head of Knight Frank Scotland, the certainty provided by the No vote will allow the property market to return to more normal trading conditions. ‘The fundamentals are in place to ensure a full recovery, led by the key cities of Edinburgh, Aberdeen, Glasgow and rural counties within commuting distance of large employment hubs. Improving economic activity levels in the UK, better consumer sentiment and higher bank lending will all help to kick-start the market,’ he said. ‘We expect we will be very busy in the coming months as vendors and buyers, many of whom have put off making a decision to buy or sell a property in Scotland due to the referendum, return to the market. This will lead to an increase in the number of transactions at all levels of the market,’ he pointed out. ‘We believe that the outlook for the prime property market in Scotland is positive. Our forecast is that prime values will rise by 3% by the end of this year and by a further 3% to 6% in 2015,’ he added. Andrew Rettie, head of agency for Strutt & Parker in Scotland, also believes that the No vote will inject confidence, optimism and stability into the market which will experience a renewed vigour in the latter months of 2014. ‘We all hope this will be a shot in the arm for the Scottish housing market and that the momentum seen earlier in the year returns to the sector. Buyers and sellers who have stalled in… Continue reading
English landlords enjoying a booming rental market, says new research
Landlords in England are witnessing a booming rental market, with earnings from rental payments in excess of £32 billion per year or almost £2.7 billion per month, according to new research. London landlords collect the largest proportion of private rental income in England at £14 billion per year, more than the North East, East Midlands, West Midlands, Yorkshire and East Anglia combined, says the report from Direct Line for Business. In total, 44% of the entire country's rent is paid in London. Outside the capital, Leeds pays the greatest amount of any city, with annual private rent totalling £565 million, followed by Birmingham at £521 million and Manchester at £401 million. The research also reveals that London and the Home Counties dominate rental incomes, with the highest average rents in Inner London at £19,596 per year or £1,633 per month. Elmbridge in Surrey, has the highest rents outside London, worth £18,948 per year or £1,579 per month, followed by South Buckinghamshire where monthly rental costs are £1,530 in the private sector. Despite this dominance, landlords outside of these regions can also make a healthy rental income. Many areas outside the London commuter belt can command high rental costs, for example Bath and North Somerset, and the Cotswolds both command annual rental incomes of more than £11,000 per year. Outside of London, Bournemouth leads the line in terms of private rentals with 30% of households there privately rented. The isles of Scilly at 29.7% and Brighton and Hove at 29.6% follow in second and third place respectively. Across the country, Inner London has the highest proportion of private renters, at 30.7%. ‘Buy to let is becoming an increasingly attractive option for people as property prices continue to soar. Landlords and potential landlords looking to take advantage of this should also appreciate the risks involved,’ said Jazz Gakhal head of Direct Line for Business. ‘Bad payers and potential damage to property are but just a few of the costs that can lead to landlords paying out 25% of the revenues they receive in rental payments annually. Taking the necessary precautions such as letting through an agency and taking out landlord insurance can help to alleviate concerns and ease the rental process,’ he added. To help landlords keep track of charges paid, ongoing expenses and to assist in calculating the yield on their portfolio Direct Line for Business has launched a new landlord app, Mobile Landlord that enables landlords to manage up to five properties on the go through a single online, mobile portal. Mobile Landlord is free to download and available on both iOS and Android. Continue reading
Property prices in Ireland up 13.4% year on year
National residential property prices in Ireland increased by 13.4% in the year to July, according to the latest figures from the Office of National Statistics. This compares with an increase of 12.5% in June and an increase of 2.3% recorded in the 12 months to July 2013. On a month on month basis property prices increased by 2% in July compared with June. This compares with an increase of 2.9% recorded in June and an increase of 1.2% recorded in July of last year. In Dublin residential property prices grew by 2.7% in July and were 23.2% higher than a year ago. Dublin house prices rose by 2.5% in the month and were 23.1% higher compared to a year earlier while apartment prices were 26.3% higher when compared with the same month of 2013. However, it should be noted that the sub-indices for apartments are based on low volumes of observed transactions and consequently suffer from greater volatility than other series. The price of residential properties in the rest of Ireland rose by 1.3% in July compared with a decrease of 0.1% in July of last year. Prices were 4.9% higher than in July 2013. Despite the gains house prices in Dublin are still 41.2% lower than at their highest level in early 2007. Apartments in Dublin are 48.4% lower than they were in February 2007. Property prices in Dublin are 43% lower than at their highest level in February 2007 while in the rest of Ireland prices are 45.1% lower than their highest level in September 2007. Overall, the national index is 42.3% lower than its highest level in 2007. Continue reading
