Uk
Home building starts in England up 6% in 2015, but planning system sluggish
More than 143,500 new homes were started in England last year, up 6% year on year, nearly double the low point of 2008 and the highest level since 2008, but concerns remain over slowness of planning system. The figures from the Department for Communities and Local Government also show that in the final quarter of 2015 some 37,080 homes were started, a rise of 23% on the same quarter a year earlier and up 91% when compared to June 2009. Completions for the fourth quarter of 2015 are estimated at 37,230, some 6% higher than the previous quarter and up 22% on the same quarter in 2014. Annual housing completions totalled 142,890 in the 12 months to December 2015, an increase of 21% compared with the previous 12 months. Seasonally adjusted starts are now 116% above the trough in the first quarter of 2009 but 24% below the peak in the first quarter of 2007. Completions are 23% below their peak also in the first quarter of 2007. It means both starts and completions for new build homes are at their highest level since 2008 with more than 700,000 new build homes started since April 2010. Meanwhile, the latest figures from the Home Builders Federation show planning permission for 59,875 homes was granted in England during the third quarter of last year, up from 53,409 in the same quarter in 2014, a 12% rise. The data also shows that 242,819 permissions were granted in the 12 months to October, the highest moving annual total since early 2008. However, many of the homes identified in the report still have a significant part of the planning system to navigate before any construction work can start, a process that could still take two or three years. ‘Our reforms to the planning system are delivering the permissions needed and schemes like Help to Buy have given builders the confidence to invest and build, with starts and completions now at their highest since 2008,’ said Communities Secretary Greg Clark. A breakdown of the figures show strong regional growth with Cambridgeshire, Northamptonshire and Leicestershire experiencing high levels of starts along with areas in North Oxfordshire and the Thames estuary. The current projection is to deliver a million new homes by 2020/2021 and Housing Minister Brandon Lewis pointed out that proposals published last week will speed up the planning process. They include dedicated fast track application services. However, the industry remains concerned that the lag of turning permissions into homes is becoming lengthier and the HBF hopes that the planning proposals will have an effect as it says that efficient planning is the best way to ensure that local people have an early say in the future shape of their communities and are able to benefit from the wealth of social and economic benefits that house building brings with it. ‘The house building industry has delivered an unprecedented increase in build rates over the past two years. The largest companies have… Continue reading
Existing home sales in the United States are 11% higher than a year ago
Existing home sales in the United States crept up in January to the highest annual rate in six months, and sales are now 11% higher than a year ago. The data from the National Association of Realtors shows that the West was the only region to see a decline in sales in January after a nationwide rise of 0.4% compared to December. The median existing home price for all housing types in January was $213,800, up 8.2% from January 2015, the largest rise since April 2015 and the 47th consecutive month of year on year gains. Lawrence Yun, NAR chief economist, said it was the largest year on year gain since July 2013. ‘The housing market has shown promising resilience in recent months, but home prices are still rising too fast because of ongoing supply constraints,’ he pointed out. ‘Despite the global economic slowdown, the housing sector continues to recover and will likely help the US economy avoid a recession,’ he added. Total housing inventory at the end of January increased 3.4% to 1.82 million existing homes available for sale, but is still 2.2% lower than a year ago. Unsold inventory is at a four month supply at the current sales pace, up slightly from 3.9 months in December 2015. ‘The spring buying season is right around the corner and current supply levels aren't even close to what's needed to accommodate the subsequent growth in housing demand. Home prices ascending near or above double digit appreciation aren't healthy, especially considering the fact that household income and wages are barely rising,’ Yun explained. The share of first time buyers remained at 32% in January for the second consecutive month and is up from 28% a year ago. First time buyers in all of 2015 represented an average of 30%, up from 29% in both 2014 and 2013. All cash sales were 26% of transactions in January, up from 24% in December 2015 but down from 27% a year ago. Individual investors, who account for many cash sales, purchased 17% of homes in January compared to 15% in December 2015, matching the highest share since last January. Some 67% of investors paid cash in January. Properties typically stayed on the market for 64 days in January, an increase from 58 days in December but below the 69 days in January 2015. Short sales were on the market the longest at a median of 77 days in January, while foreclosures sold in 57 days and non-distressed homes took 61 days and 32% of homes sold in January were on the market for less than a month. Distressed sales, that is foreclosures and short sales, rose slightly to 9% in January, up from 8% in December but down from 11 a year ago. Some 7% of January sales were foreclosures and 2% were short sales. Foreclosures sold for an average discount of 13% below market value in January compared to 16% in December, while short… Continue reading
Home lending in Scotland up in 2015, but tailed off at end of year
More first time buyers took out a loan for a home in Scotland in 2015 than in any year since 2008, the latest data shows. Home owner house purchase lending in the fourth quarter of 2015 totalled 17,200 loans, down 4% on the third quarter but up 14% in the fourth quarter 2014, according to the figures from the Council of Mortgage Lenders. A breakdown of the figures shows that first time buyers took out 8,000 loans, 2% down on the previous quarter but up 14% on the last quarter of 2014. They borrowed £870 million, down 2% on the previous quarter but up 14% on the fourth quarter 2014. Home mover lending totalled £1.4 billion, down 4% on the previous quarter but up 18% on the fourth quarter 2014. The number of loans in the period was 9,200, down 5% quarter on quarter but up 14% on year on year while remortgage lending went up by volume quarter on quarter and year on year. Annual home owner house purchase lending in Scotland totalled 64,800 loans, up 9% on 2014. This came to £8.5 billion, up 14% on 2014. First time buyers took out 30,000 loans worth £3.3 billion, up 8% by volume and 12% by value, on the previous year. Meanwhile, home movers took out 34,800 loans worth £5.2 billion, up 9% by volume and 15% by value, compared to 2014 while remortgage lending came to £3.1 billion, up 18% on 2014. This totalled 26,200 loans, up 12% on the previous year. ‘The sustained year on year growth in house purchase lending seen since 2012 continued in Scotland this quarter,’ said Linda Docherty, CML chair for Scotland. ‘This meant more first time buyers and home movers in 2015 took out a loan to purchase a home than in any year since 2008. With an economic climate of low interest rates and competitive mortgage deals, we would expect this growth in the Scottish market to continue into 2016,’ she added. Continue reading
