TSI
Residential property prices in England and Wales up 1.3% in January
Home prices in England and Wales increased by 6.7% year on year in January and were up 1.3% month on month, according to the latest land registry figures. This takes the average property value in England and Wales to £179,492 compared with the peak of £181,101 in November 2007. A breakdown of the figures shows that London experienced the greatest increase in its average property value over the last 12 months with a rise of 12% while the North West experienced the greatest monthly rise of 2.6%. The North East saw the lowest annual price growth with a rise of just 0.1% and Yorkshire and the Humber saw the largest monthly price fall of 1.5%. The data also shows that the most up to date figures available reveal that the number of completed house sales in England and Wales decreased by 19% to 68,107 compared with 83,726 in November 2013. The number of properties sold in England and Wales for over £1 million decreased by 18% to 869 from 1,060 a year earlier and repossession volumes in England and Wales decreased by 47% to 687 compared with 1,286 in November 2013. London was the region with the greatest fall in repossession sales. Peter Rollings, chief executive officer of Marsh & Parsons, explained the figures confirm that house price growth regrouped in January after an underwhelming end to 2014. ‘All the fundamentals are in place to help the market get back into its stride, and stamp duty savings and competitive mortgages rates are already enticing buyers and sellers to the market and upping demand,’ he said. ‘This is good news for the wider housing recovery, which at the moment is still largely restricted to the South East as many other regions have a long way to go before they are within sights of the towering annual growth witnessed in the capital. In these places, access to Help to Buy and more affordable properties are the key stimulants invigorating demand at the entry level,’ he pointed out. He also pointed out that on a monthly basis, the London market is back to more reasonable conditions after the whirlwind of last year, allowing buyers some valuable let up from cut throat market conditions. ‘A greater supply of properties on the market is music to the ears of London home buyers, and this optimism is feeding into a healthy demand. A feel good factor at the culmination of the general election should get the top tiers of the property market moving again as the uncertainty clears, and this is likely to mitigate any shortfall in the meantime,’ he added. According to Nick Leeming, chairman of Jackson Stops & Staff, the statistics reflect market sentiment from two to three months ago, when the London market was cooling but the country market relatively stable. ‘It is not surprising therefore that, while London showed an annual increase of 12%, January’s figures showed a small decrease and this… Continue reading
New starter home initiative launched in the UK
A new website has been launched in the UK for first time buyers where they can register in buying a new starter home under a new government initiative. The starter-home.co.uk website comes as new rules have cut planning requirements for the new starter homes, allowing house builders to slash 20% off the usual price and building on the first properties is expected to start within months. It is the latest major push from the government to boost home ownerships and build more homes and it is claimed that there is the potential for discounts of around £100,000 per house. With average house prices for first time buyers in England standing at around £218,000, a new starter home could save young first time buyers across the country an average of £43,000 while helping to get them onto the housing ladder. The plans will allow young first time buyers the opportunity to secure a new starter home at a 20% discount to the market price and thanks to changes in planning policy, builders that develop commercial and industrial land that is either unusable or surplus for the new starter homes will be able to save on costs by freeing them from the requirement to provide affordable housing. In return, developers will have to offer the homes at a minimum 20% discount on the market price to first time buyers who must be aged under 40. Leading home builders and councils have already have said they would consider bringing forward land to develop the new homes from this year, and from today will be able to start submitting their plans to get work started and pass the savings onto home buyers as soon as possible. As well as reducing the prices of properties for young buyers, a design panel, including world class architects Sir Terry Farrell and Sir Quinlan Terry have drawn on housing designs from across the country for home builders to consider for starter homes developments. Aimed at making sure the new homes are attractive properties that can meet the demands of modern life, the panel’s draft report highlights at a range of exemplar new build styles, which in time it is hoped will become the default approach for starter home developments. They aim to be well proportioned homes, homes that fit in with existing local housing styles, and homes that get the details right with good parking and community spaces. ‘A 20% discount off the price could be a real game-changer for many aspiring home owners. My message is clear: we are on your side and we will help you fulfil your dream of buying your first home,’ said Prime Minister David Cameron. Communities Secretary Eric Pickles said that the number of first time buyers is already at a seven year high and these starter homes will help even more people realise their dream of home ownership. Sir Terry Farrell, founding partner at Farrells, said he believes that the templates developed by the government’s Housing… Continue reading
2015 set to see strong growth in demand for prime properties in Spain
The international financial markets are expected to be a key driver in the uptake of Spanish prime residential property during 2015, according to a new analysis. The latest market reports from Lucas Fox International Properties, suggest there has been an increase in demand from UK, US and Swiss buyers thanks to the rise of the dollar, pound and Swiss franc against the Euro. Conversely, the number of Russian investors is expected to dwindle as the rouble goes further into free fall in 2015. ‘With unemployment falling, the economy growing faster than predicted and property reaching the bottom, 2015 is set to be a pivotal year for Spain's property market. Prices are on average 40% below what they were since the start of the crisis in 2007 and we predict a slow and steady recovery. This is an opportune time to invest,’ said Lucas Fox co-founder Alexander Vaughan. The report says that prices in Barcelona have stabilised in the past 12 months and new international interest is impacting on demand for prime residential property. 2015 is expected to be the most significant year of recovery for the prime market in Barcelona since 2007. Lucas Fox sales data shows that Middle Eastern buyers accounted for 12.5% of all purchases during 2014, followed by the Spanish and French both at 11%, the Germans at 8% and the British at 7%. The bulk of prime market property purchases in Barcelona during 2014 was for investment use with two out of five buying for that reason, whereas in2013, the main reason for buying was for use as a primary or secondary residence. The number of transactions in 2014 increased over 2013, with more properties above €1 million selling than in the previous year. ‘We see 2015 as the recovery year for the Spanish prime residential property market, driven mainly by increasing numbers of overseas buyers. We expect that those who were deterred by falling prices during the past seven years or so, will enter the market, enticed by some real opportunities,’ explained Vaughan. ‘Prices have fallen by up to 40% in some areas of the city but, in the last 12 months, these prices have stabilised. Some recent figures suggest that, in some of the most desirable areas of the city such as Eixample and the beachfront, prices for the best properties are starting to creep up again. The key change in the Barcelona Residential market during 2015 will be the return of quality new build residential developments which have not been seen on the market for several years and where demand currently outstrips supply,’ he added. In the Costa Brava, foreign investment in residential property has grown significantly. In 2010, foreign investment in new housing properties accounted for 9% of the market. In 2014, foreign investment represented 26% of the market. Price movement in the prime residential property market for the Costa Brava region is not expected in 2015. However, sales volume is predicted to increase particularly… Continue reading
