Uk
Irish property market recovery leads to boost in planning applications granted
In yet another sign that the residential property market in Ireland is recovering, planning permission for new dwellings increased by over 95% in the final quarter of 2015. The data from the Central Statistics Office show 4,017 applications were permitted compared with 2,057 units for the same period in 2014, an increase of 95.3%. A breakdown of the figures shows that the permissions were granted for 2,754 houses in the fourth quarter of 2015 and 1,905 in the fourth quarter of 2014, an increase of 44.6%. In terms of apartments some 1,263 units were granted compared with 152 units for the same period in 2014, an increase of 730.9%. One off houses accounted for 22.7% of all new planning permissions granted in the final quarter of 2015, the data also shows. The total number of planning permissions granted for all developments was 4,470. This compares with 3,504 in the fourth quarter of 2014, an increase of 27.6%. Total floor area planned was 1,468 thousand square metres in the fourth quarter of 2015. Of this some 40.9% was for new dwellings, 46.8% for other new constructions and 12.3% for extensions. The total floor area planned increased by 94.7% in comparison with the same quarter in 2014. Planning Permissions for new buildings for Agriculture increased to 420 on the quarter compared to 165 permissions in the same quarter of 2014. Continue reading
Poll reveals pensioners with buy to let worried about tax change
Almost three quarters of pensioners in the UK who have an investment property said they would struggle to make ends meet if they didn’t have the income from their buy to let, new research shows. Overall 72% would struggle and 81% of those aged over 65 said that their properties provide an important, even vital, boost to their retirement income, according to a poll carried out by Responsible Equity Release. The poll also found that 92% are worried about the changes to mortgage interest tax relief and the impact on the profit they make from their investment property. The buy to let tax changes coming into force have left many pensioner landlords considering whether it’s worth holding onto their property and 41% said although their buy to let property was a valuable income generator, they are now thinking seriously about selling it. ‘For many pensioners, having a buy to let property has been a life saver in this low interest environment. While their savings have languished, earning very little interest, and pension income has been hit hard by falling share prices, property income has remained strong,’ said Steve Wilkie, managing director at Responsible Equity Release. ‘Without the income boost from their buy to let, many would really be struggling to make ends meet. But the Chancellor has yet again ignored UK’s retirees when he announced changes to the way buy to let would be taxed,’ he pointed out. ‘George Osborne was so focused on taxing the rich, he forgot that a new tax on buy to let won’t just hit the wealthy, it will also hit those honest, hardworking people, who may have a single buy to let property and were just hoping it would earn them a little extra income in retirement,’ he added. Continue reading
Latest data suggests slowing in residential markets in UAE
The residential property market in the United Arab Emirates seems to be going through a period of stabilisation with some locations seeing growth and others recording a slowdown. In the first quarter of 2016 sales and rental prices in upcoming, inland neighbourhoods across the UAE are rising while in prime areas they are falling, according to the latest property report from classified website Dubizzle. It records an increase of up to 13% in sales and rental prices in emerging locations such as Al Ghadeer, Al Reef and Al Furjan, when compared to the first quarter of 2015. For example, property sale prices in Abu Dhabi’s Al Ghadeer and Al Reef rose by 3% and 4% respectively when compared to the same quarter in 2015, while rental prices for one and two bed apartments in Al Reef rose by 9% while three bed apartments in Al Reef rose 11% and in Al Furjan in Dubai rents for one bedroom apartments increased by 13%. Meanwhile, prices in more established, central areas have dropped, for example rents dropped by 10% for one and three bedroom apartments in Abu Dhabi’s Corniche when compared to the first quarter of 2015. The same trend was seen in Dubai, where sales prices for properties in mature locations such as Business Bay, Dubai Marina, Downtown Dubai and Jumeirah Lakes Towers fell by between 8% and 10%. Business Bay saw rents for one bedroom apartments fall by 5% and two bedroom apartments were down by 4% while the rental price for three bedroom apartments remained unchanged. Data from property firm Bayut also records falls in some locations in Dubai in the first quarter of 2016. Rents were down by 3% year on year and sale prices down 6%. The firm believes that as more and more households move to the suburbs, investment opportunities in areas like Dubailand and Dubai Sports City could become more enticing. It suggests that the increased popularity of these localities coupled with low property prices has resulted in rental yields as high as 9%. ‘We think Dubai’s suburbs are ideal for both new home buyers who can still benefit from low prices and investors, who can enjoy impressive rental yields thanks to these areas’ rising popularity,’ the report says. Continue reading
