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UK asking prices reach new high, latest index shows
Asking prices in the UK have reached a new record of £286,133, pushed up by demand which has been exacerbated by a lack of sellers putting their homes on the market. The figures from the latest Rightmove monthly index also show that asking prices are up 1.6% month on month in April although the annual rate of growth has fallen to 4.7% compared to 5.4% in March. It also reveals that the property shortage experienced in many parts of the country has been exacerbated by a 2015 slump in the number of properties being put up for sale and by increased demand, with record spring search activity on Rightmove. Indeed, the number of new sellers is down 4% so far in 2015 compared to 2014 and March was the busiest ever month on Rightmove, up almost 20% year on year to 115 million. The supply issue is at its most extreme in the south of the country, with the price of property coming to market up by an average of nearly £85,000 or 27.5% since the last election in May 2010. ‘Record high housing demand and an under supply of homes have delivered a new all-time high in the price of property coming to market in the month before the election,’ said Miles Shipside, Rightmove director and housing market analyst. He believes that as the high cost of housing is a big concern for many home hunters, so the contents of the respective party manifestos and well thought out sustainable solutions to the lack of affordable housing supply will be high on many voters’ agendas too. ‘While the annual rate of price increases may be dropping back, down from 5.4% last month to 4.7% this month, it’s of little comfort to buyers as even more modest increases stretch buyers’ finances into new territory with prices at record average highs. Furthermore, the rapid fall in general inflation means that the inflation-adjusted rate of house price growth remains high,’ he explained. While the recovering housing market saw an 11% increase in new seller numbers from January to April 2014 compared to the same period in 2013, so far this year’s newly marketed property numbers have slumped and are down by 4% compared with 2014. Conversely, housing demand continues to burgeon, with Rightmove recording its busiest ever month in March. Website visits were up almost 20% year on year, to over 115 million. ‘Failure to meet house building targets since the eighties, nineties and noughties to match forecast housing demand has been a major factor in upwards price pressure both in the property sales and private rented sectors,’ said Shipside. ‘In spite of the distractions and uncertainty surrounding the upcoming election, demand for the right roof over your head seems unchecked. If you’re setting up home, moving jobs or your kids need to be in a new school, your personal housing agenda is perhaps higher than the bigger-picture political one,’ he added. ‘However, while demand is at record… Continue reading
General election garden city manifesto pledges welcomed
The Town and Country Planning Association (TCPA) has welcomed the manifesto pledges for a new generation of Garden Cities from the major political parties but raised questions about their commitment to delivering genuinely sustainable new homes. The TCPA has campaigned for a new generation of Garden Cities for over a century and believes they can provide a powerful and unique model of development, and are much more than just homes with gardens. ‘We need brave political leadership in order to bring forward new Garden Cities, and the TCPA is keen to work with the new government to ensure that the socially just, high quality Garden Cities that the nation deserves become a reality,’ said Kate Henderson, TCPA chief executive. She pointed out that while the manifestos all pledge support for Garden Cities, none of them set out how these Garden Cities will be delivered, or how a new government will ensure that the new communities adhere to the Garden City principles. The Labour manifesto states that the party wants to boost housing if it is in power after the May general election and pledged to build a new generation of garden cities but Henderson says it fails to include any commitment to ensuring if and how new Garden Cities will meet the Garden City principles. ‘The Lyons Review sets out a clear mandate for the delivery of Garden Cities, and referenced the need to make their delivery mechanism fit for purpose with the recommendation to update the New Towns Act,’ she explained. ‘The Review also recognised the need to consider the quality of new homes, particularly in regards to of the need for space standards, high quality design and zero carbon standards. To deliver genuine Garden Cities we should act on these recommendations,’ she added. The Conservative manifesto states the party will support locally led garden cities and towns in places where communities want them, such as Ebbsfleet and Bicester but Henderson says that another of its proposals to extend the Right to Buy scheme risks undermining the achievements of genuine mixed communities. The Liberal Democrat manifesto is the most detailed and sets out plans for at least 10 new Garden Cities in England, in areas where there is local support, providing tens of thousands of high quality new homes, with gardens and shared green space, jobs, schools and public transport. It has also pledged to encourage rural Local Authorities to follow these principles on a smaller scale, too, developing new garden villages or suburbs as part of their plans for growth along with the creation of up to five major new settlements along a Garden Cities Railway between Oxford and Cambridge. Henderson said the TCPA would have liked to have seen references as to how these Garden Cities or development will be brought forward. Continue reading
Hong Kong property sales fall amid call for help for young buyers
Residential property sales in Hong Kong decreased by 28.2% in March due to the introduction of a seventh round of market tightening measures, according to the latest analysis report. The move by the Hong Kong Monetary Authority is supressing the housing market amid calls for more housing to be built to measures put in place to help young first time buyers, says the report from international real estate firm Knight Frank. It also shows that mass residential sales below HK£10 million dropped almost 30% but prime residential sales above this price level saw a lower fall at 16.2%. The report points out that the tightening is being felt the most at HK$7 million and below. Despite the fall in sales, prices in the mass residential market increased by another 2.6% in March while luxury property prices remained stable. ‘To tackle the housing problem in Hong Kong, Knight Frank believes that the government should not focus on supressing housing demand, but effectively increase housing supply and provide assistance to first time home buyers,’ the report says. ‘The government should ease restrictions on mortgage lending for first time and young home buyers, perhaps by following the example of Singapore which has applied age conditions on housing mortgage loans,’ it explains. The report also shows that the office sales market was more active in March compared to February. Decentralised areas in particular saw some large transactions. It says that the latest initiatives launched by the Chinese government, including the establishment of the Asia Infrastructure Investment Bank and the proposed Shenzhen to Hong Kong through train will inevitably increase capital flow in the region. ‘Hong Kong being a global financial hub situated at the cross roads of Asia is set to benefit from this. We expect this to translate into increased commercial activity which will stimulate demand for office space from related industries taking the opportunity to expand their business in the city,’ the report points out. ‘As a result we remain optimistic about the office market in Hong Kong. Given the limited supply of office space and sustained demand from Chinese firms and certain industries, we expect Grade A office rents to rise by up to 5% during the year,’ it adds. Continue reading
