TSI
Year ahead set to see more British buyers in popular European markets
Rising confidence and a resurging pound are set to boost overseas property market as British buyers once again look for homes overseas, it is claimed. According to Clare Nessling, director at overseas mortgage specialist Conti, excellent buying conditions have lured Britons back into the overseas property market this year, with bargain property prices and historically low mortgage rates making it more affordable than ever. She pointed out that the biggest boost to buyers’ budgets, however, has been the steadily increasing value of the pound against the euro, which is effectively shedding tens of thousands of pounds off property prices in the euro zone. And buyers, full of fresh optimism, are returning in their droves. ‘It’s perhaps no surprise, therefore, that our enquiries have increased by 24% this year, compared with 2013. The first half of the year was particularly busy, with enquiries up by 58%, levelling out again in the third quarter, largely due to the uncertainty surrounding the Scottish referendum result. Overall, however, interest is much stronger than last year and there’s definitely more optimism amongst potential buyers,’ she explained. ‘When you compare the cost of a place in the sun with overheated parts of the UK market, there are plenty of British buyers who are more willing to explore overseas opportunities in their search for better investment potential. Confidence is back,’ she added. She also pointed out that with Goldman Sachs predicting that sterling will continue to climb against the euro over the next three years, British buyers will simply have more buying power, making a bolt hole in the sun even more tempting.’ The relaxation of pension rules, which come into effect in April 2015, could also lead to more people releasing pent up funds and investing them in a foreign property purchase,’ she said. The firm believes that Spain is well and truly back on the map. It accounted for 49% of enquiries received at Conti this year, and the volume of Spanish mortgage enquiries has increased by 54% over the last 12 months. After a turbulent few years in the eye of the euro zone storm, the country appears to be making a turnaround at last. Conti’s report says that the economy is showing signs of recovery, tourist numbers are up, and after years of plummeting house prices, experts are predicting increases in 2015, with prices in some areas rising already. ‘I expect Spain to maintain this momentum next year as prices recover but remain very affordable,’ said Nessling. France remains a firm favourite too, accounting for 32% of enquiries this year, and continues to offer a safe haven for British buyers. ‘A slower property market has been pushing prices down, and under current market conditions, people are keener to sell and therefore more likely to be receptive to offers lower than the asking price,’ explained Nessling. ‘With mortgage rates at their lowest in more than 60 years, it’s a buyer’s market. But it could be wise… Continue reading
UK landlords urged to protect their property from fraud
The UK Land Registry is reminding landlords to take steps to protect their property from being fraudulently sold or mortgaged in 2015. It points out that you are more at risk if you rent out your property, you live overseas, the property’s empty, the property isn’t mortgaged and the property isn’t registered with the Land Registry. Properties will be registered if they were bought or mortgaged since 1998 and anyone who is unsure can check the register. A spokesman said that if any information on the register is incorrect, such as a landlord changing contact address, these should be notified and changed. ‘You can track changes to the register or put a restriction on your title if you think you’re at risk. You can also sign up to get property alerts if someone applies to change the register of your property, for example, if they try to use your property for a mortgage,’ said a spokesman. ‘This won’t automatically block any changes to the register but will alert you when something changes so that you can take action. You can get alerts for up to 10 properties and there’s no fee,’ he explained. ‘You can stop Land Registry registering a sale or mortgage on your property unless a conveyancer or solicitor certifies the application was made by you,’ he added. If you don’t live at the property you can fill in a request for a restriction for owners not living at the property if you own the property privately. Business owners must fill in a request for a restriction for business owners of property. Again there is no fee. Continue reading
UK residential market set to see widening gap in demand and supply in 2015
Next year is set to see a widening gap between demand and supply as not enough new homes are being built, according to members of the National Association of Estate Agents (NAEA). Almost half of NAEA members predict a rise in demand for housing in 2015, however demand was down by 4% in November, the association’s latest report shows. It also says that interest rate rises, changes to stamp duty, and the general election, will cause the biggest impact to the residential property market in 2015. Despite recent government announcements to build more new homes, some 46% of NAEA agents think that demand for property will increase next year, while members were split on whether the same could be said for housing supply. The association said it is worrying that 21% think levels of stock will decrease next year and 33% expect them to stay the same, which, combined with a rise in demand, will mean a heightened housing shortage. However, 33% of agents were much more optimistic, stating that housing supply would increase next year, albeit still not enough to meet the rising level of demand. When asked what events in 2015 will have the biggest impact on the housing market, the top three greatest influences were base rate rise at 34%, changes to stamp duty at 32% and the general election at 32%. ‘With agents predicting the housing shortage crisis to potentially worsen in 2015, the general election will be a pivotal event for the housing market next year, with all three main parties pledging to build more homes should they be elected,’ said Mark Hayward, NAEA managing director. ‘We have already seen the current government put policies in place in an attempt to tackle the problem, with the announcement of new garden city developments, as well as the reforms to stamp duty, another change our members believe will influence the market next year,’ he explained. ‘While we do see these changes as a step in the right direction and believe that stamp duty reform will allow for greater supply in the market by encouraging more people to buy and sell, these changes are still not enough. The lack of capacity within the current market means that the gap between supply and demand probably won’t close for some time. We currently don’t have the resources to respond to the problem, and this is another issue that needs addressing,’ he added. The report shows that demand in November 2014 was down 4% on October, from 380 house hunters registered per branch to 364 in November, the lowest levels recorded since March this year. A similar lull in supply also occurred, with the average number of properties available per branch down to 50 compared with 53 in October. Following suit, the number of sales agreed per branch was also down, with agents reporting an average of eight sales per branch, compared to nine in… Continue reading
