TSI
Overseas buyer confidence strengthening in Italy
With the euro at a seven year low against the pound and prime prices in some parts of Italy at their lowest level since the financial crisis, buyer confidence is strengthening, it is claimed. According to Rupert Fawcett, Knight Frank’s head of Italian sales, stock levels remain high. ‘As we move into the traditional spring selling season, more good quality homes are coming onto the market. Not only are vendors being more realistic on price but in some cases prices are 30% below their 2009 peak, with even larger margins being observed in areas such as Umbria and Lombardy,’ he said. ‘There is a growing sense that prices have reached the bottom of the curve and that whilst we are unlikely to see price growth in the short term, we are also unlikely to see significant falls. Sterling and the dollar are now at record highs against the euro making a second home purchase in Italy even more attractive to buyers from the UK, the US and increasingly amongst expats who have relocated to Asia,’ he explained. He also pointed out that the European Central Bank’s decision to introduce quantitative easing at the end of January may ultimately lead to a stronger Euro but it has, for the moment, strengthened confidence amongst Eurozone purchasers. The Greek election result by comparison has had little impact on enquiry levels. All of these contributing factors have led to a visible increase in enquiries and viewing numbers. The number of viewings generated by Italian properties on Knight Frank’s website jumped 31% between December and January. ‘This is an indication that recent currency fluctuations and the ECB’s shift in policy is impacting on buyers’ minds,’ added Fawcett. In terms of the focus of demand, the firm has found that Tuscany continues to generate the highest number of viewings and sales, but Liguria, Venice and Rome are also attracting strong interest. ‘The latter two underline the increased interest in city living, with Florence joining this triumvirate. Whilst an improved lifestyle remains the key motivation amongst buyers in Italy, the potential investment opportunity is increasingly a consideration for those looking at a city purchase,’ Fawcett said. He added that apartments provide an easier ownership route without the need for a large capital outlay and minimal ongoing maintenance. Continue reading
UK house prices up almost 10% in year to December 2014
UK house prices increased by 9.8% in the year to December 2014, down from 9.9% in the year to November 2014, according to the latest official figures. House price annual inflation was 10.2% in England, 4% in Wales, 5.5% in Scotland and 4.9% in Northern Ireland, the figures from the Office of National Statistics show. The index report says that house prices continue to increase strongly across the majority of the UK, with prices in London again showing the highest growth. Annual house price increases in England were driven by an annual increase in London of 13.3% and to a lesser extent increases in the South East of 11.5% and the East at 11.4%. However, excluding London and the South East, UK house prices increased by 7.4% in the 12 months to December 2014. On a seasonally adjusted basis, average house prices increased by 0.7% between November and December 2014, the data also shows. In December 2014, prices paid by first time buyers were 9.5% higher on average than in December 2013. For existing owners, prices increased by 9.8% for the same period. According to Graham Davidson, managing director of Sequre Property Investment, the annual increase in 2014 in London is not sustainable and prices simply cannot continue to grow at this rate throughout 2015. But Adrian Gill, director of Your Move and Reeds Rains estate agents, pointed out that house price growth has wavered recently and quietened down from a thunderous charge earlier in 2014. ‘But property values ended the year on a stronger note, with a sturdy monthly upswing in December. Rankings of annual growth across the country still read in neat geographical order with price inflation flowing out from the London and the South East, and northern regions bringing up the rear,’ he explained. ‘Schemes like Help to Buy have jump started growth in these regions, where homes are cheaper and prices still to break free of the long shadow of the recession. While the London market is adjusting to more sustainable conditions and taking a breather, other parts of the UK now have their moment to shine,’ he added. He also said that it is encouraging to see new price records being set in Wales and the West Midlands in December. ‘Lower stamp duty and record low mortgage rates should act as further injections of support to make sure the housing recovery drives further forward across the country,’ he added. Continue reading
Home purchase lending up just 1% in final month of 2014, CML data shows
House purchase lending to home buyers increased slightly by 1% month on month in December but compared to December 2013, the number of loans fell by 5%, according to the latest CML data. However, the figures from the Council of Mortgage Lenders also show that first time buyers saw a month on month lending increase, up 3% on November, but still 3% down on December 2013. By value, £3.8 billion was advanced to first time buyers in December, 6% up on November but unchanged compared to December 2013 while the number of loans advanced to home movers was 29,500, the same as November but down 8% on December 2013. By value, lending to movers totalled £5.5 billion, up 2% on November but 2% down on December 2013. Remortgage lending activity also saw a decline with the number of remortgage loans 7% down on November and 13% down on December 2013. The value of these loans at £3.4 billion was down 6% on the previous month and down 11% on December the previous year. Buy to let loans totalled 17,300 in December, unchanged from November but up 18% compared to December 2013. The total value of these loans at £2.5 billion was up 4% month on month and up 32% compared to December 2013. On a quarterly basis home owner house purchase lending fell 5% and was down 3% compared to the fourth quarter of 2013. The value of these loans at £28.8 billion declined compared to the third quarter by 8% but was up 2% compared to the same period in 2013. First time buyers in the fourth quarter of 2014 saw minimal change compared to the previous quarter and the same quarter in 2013. There were 80,100 loans advanced to first time buyers in this period, down 2% on the third quarter and unchanged compared to the fourth quarter of 2013. The value of these loans totalled £11.6 billion, which was down 5% on the third quarter but 5% up on the fourth quarter of 2013. Home movers were advanced 93,100 loans in the fourth quarter, a decline of 8% compared to the third quarter and 5% down year on year. These loans totalled £17.2 billion in value, 10% down on the previous quarter, but unchanged compared to the fourth quarter of 2013. Remortgage lending declined this quarter with 73,100 loans advanced, down 3% on the third quarter and 13% down on the fourth quarter 2013. The value of these loans at £11.1 billion declined 4% quarter on quarter and 10% year on year compared to the fourth quarter 2013. Buy to let loans totalled 54,000 in the fourth quarter of 2014, up 4% on the previous quarter and up 16% on the same period in 2013. This totalled in value £7.7 billion, an increase of 5% on the third quarter and up 26% on the fourth quarter 2013. Overall for 2014, home owner house purchase totalled 676,900 loans, up 11% on… Continue reading
