TSI
Return of foreign buyers to Italian property market set to continue in 2015
The last year has been a good one for the Italian real estate market and going into 2015 there are still good buys to be found in many areas, it is claimed. ‘If the first quarter of 2015 is as busy as the first quarter of 2014 then this will be a very positive sign indeed and I can see no reason why not. The Euro is weaker against the Pound which is a great advantage and of course encourages clients to purchase more readily,’ said Linda Travella, who has been working in the country’s real estate industry for over 20 years. She has picked Puglia, Lake Como and Tuscany as the most popular areas for overseas buyers in 2014 and is certain this will continue into 2015 and pricing at the right level will still be the key to getting a sale. ‘The Tuscan market was hit the worst in the 2008 crash and that means that the possibility of finding a good buy in Tuscany is still excellent. If clients put their property on the market at an inflated value it will not sell as there are too many sellers prepared to negotiate to obtain a sale from a buyer who has the cash,’ she explained. She points out that it is possible, for example, to buy a fully renovated two bedroom apartment close to Volterra furnished or unfurnished with shared pool, starting from as little as €260,000. She predicts that British buyers will return to Lake Como in 2015 while Russian buyers have decreased. But Swiss and German buyers are still strong. Overall she expects the €500,000 plus market to be more buoyant in 2015. Sales at the lower end of the market are expected to be strong. ‘The market at €150,000 and under returned in 2014 and I see this trend continuing. Why leave your money in the bank or building society and receive hardly any interest, shares also lost value between April and October 2014 so an investment in property seems a much better option,’ said Travella. ‘I think the first quarter of 2015 will show a great deal of interest with clients viewing in February, March and April. We are seeing more interest from the UK market than in the past five years with the Europeans still also very interested buyers,’ she explained. ‘The US market seems to be also showing some interest compared to the past years with some clients already talking of viewing in the first and second quarters,’ she added. Her firm Casa Travella has also seen a huge surge of interest in 2014 in property in Puglia but many buyers were ‘just looking’. However, she expects these buyers returning to purchase in 2015. She also believes that The Dolomites could be an up and coming area in 2015 as property is hard to find but a great investment and not just for skiing. Her other top tip is Southern Le Marche where property by the… Continue reading
UK buy to let sector confident going into 2015, new research suggests
Confidence in the buy to let market will encourage significant investment in the sector by UK property investors in 2015, according to new research. This is despite the fact that 52% of buy to let property investors believe interest rates will rise next year, the report from specialist buy to let business Platinum Property Partners also shows. While the majority expect an increase, overall 42% believe interest rates will rise by less than 2% and only 10% expect to see interest rates rise by 2% or more. However, 29% cited a rise in interest rates as their biggest concern for 2015. An interest rate rise of any size would make buy to let borrowing more expensive, this hasn’t slowed down landlords’ ambitions as 43% of existing landlords intend to grow their portfolio of rental properties next year. Some 23% intend to expand their portfolio by one and 14% say they will purchase two more rental properties in the next 12 months. Landlords owning Houses in Multiple Occupation (HMOs) for young professionals and key workers have some of the biggest ambitions for 2015 with 52% planning to add to their portfolio during 2015, 29% planning to add two properties and 14% will add three. The survey also found that landlords still feel confident about capital growth despite recent reports that the housing market is slowing. While the Council of Mortgage Lenders (CML) point to a dip in mortgage lending as evidence that there has been a ‘plateau’ in housing market activity, landlords are confident that house price growth will continue during the course of the next five years. Just under half, 49%, expect UK property values to climb by up to 10% over this period, while a further 28% of investors predict an increase of 10% or more. HMO landlords have an even more positive outlook for capital growth with 43% saying property prices will increase by 10% or more, some 15% more than the overall average. None of the HMO landlords surveyed expect house prices to decrease in the next five years. However, UK buy to let investors have some concerns about what 2015 may bring. When asked for their number one concern, an increase in interest rates topped the poll at 29%, closely followed by future changes in laws and legislations for landlords at 26%. A further 9% are most concerned about the impact of a change of government ahead of the general election and 20% have absolutely no current concerns. ‘A rise in interest rates is one of landlords’ main concerns for 2015, yet the majority don’t anticipate that these rises will be dramatic or unaffordable. As a result, our research reveals that the sector will continue to grow next year, with two in five planning to add to their portfolio despite a likely interest rate rise,’ said Steve Bolton, PPP chairman. ‘Investors in HMOs show the greatest intention to increase their portfolios, which reflects the fact that HMOs… Continue reading
UK house prices up 10.4% annually, but inflated considerably by growth in London
UK house prices increased by 10.4% in the year to October 2014, down from 12.1% in the year to September 2014, the latest index from the Office of National Statistics shows. England saw the steepest price rises with an annual increase of 10.8% in England, while in Wales it was 5.7% and Scotland and Northern Ireland both saw year on year gains of 4.9%. But a closer look at the figures show that annual house price increases in England were driven by an annual increase in London of 17.2% and to a lesser extent increases in the South East of 11.9% and the East at 9.6%. So, excluding London and the South East, UK house prices increased by 6.7% in the 12 months to October 2014. And on a seasonally adjusted basis, average house prices increased by 0.1% between September and October 2014. The ONS data also shows that in October 2014 prices paid by first time buyers were 12% higher on average than in October 2013. For existing owners, prices increased by 9.7% for the same period. David Newnes, director of Reeds Rains and Your Move estate agents, pointed out that it is good news that annual house price growth across England and Wales has more than doubled over the last 12. ‘The considerable uplift in values over the year to November 2014 has pushed the average price of a home in England and Wales above £280,000 for the first time. These figures are spurred on by London and the South East, where the housing recovery has been fast tracked,’ he said. ‘When these regions are removed from the calculations, a calmer annual rise in house prices materialises. After a temporary hiatus at the highest tiers of the property market, growth has rallied again in the capital with values in prime spots such as Kensington and Chelsea, and Hammersmith and Fulham surging 5.3% over the course of the month, hitting new price records along the way,’ he explained. ‘Yet after a solid advance in activity throughout 2014 to date, completed house sales withdrew last month, from a particularly busy October. This doesn’t undermine the strength and stability of the growth in activity experienced over the year as a whole in some locations,’ he added. He believes that the changes to the Stamp Duty system should also allow activity to build further at the bottom rungs of the ladder, facilitating hefty savings. ‘This should help erode the upfront barriers of purchasing a home for the significant majority of buyers and sellers may feel the benefit of weightier demand, as well as being able to price their homes more realistically, without having to tactically negotiate threshold barriers,’ said Newnes. ‘In the year to September 2014, 69% of completed house sales on properties worth £1,125,000 or more were in London, and a further 19% took place in the South East. These more expensive regions will bear the brunt of stronger Stamp Duty tax at the highest levels,’… Continue reading
