Uk
Sales and prices in Canada still rising but market is balanced, says CREA
Home sales in Canada increased by 1.8% month on month in November with the number of new listings also rising, up 3.1% compared with October, the latest index figures shows. Prices also increased, up by 10.2% year on year but this figure is affected by prices in Greater Vancouver and Greater Toronto as when they are excluded the annual price growth is 3.4%. The data from the Canadian Real Estate Association (CREA) also shows that year on year sales were up 10.9% and overall the housing market remains balanced. There was a fairly even split between the number of markets where sales posted a monthly increase and those where sales declined. The national increase was again led by monthly sales gains in the lower mainland of British Columbia and in the Greater Toronto Area. Sales activity was down sharply in the Calgary region compared to what were historically high levels posted prior to the collapse in oil prices while the number of newly listed homes rose 3.1% led by the Lower Mainland, Calgary, Edmonton, Kingston and Ottawa. ‘Recently announced changes to mortgage regulations will likely boost sales activity in the short term, as buyers jump off the fence to beat the changes before they take effect next year,’ said CREA president Pauline Aunger. Meanwhile, CREA chief economist Gregory Klump pointed out that changes to mortgage regulations taking effect in the middle of February next year are aimed at cooling the Greater Vancouver and Greater Toronto housing markets. ‘Minimum down payments will be going up for homes that sell for more than half a million dollars, so larger more expensive housing markets will be affected most. Unfortunately, the regulatory changes will also cause unintended collateral damage to housing markets beyond Toronto and Vancouver, including places that are facing economic headwinds from the collapse in oil prices,’ he explained. The national sales to new listings ratio eased to 57.3% in November compared to 58% in October. A sales to new listings ratio between 40% and 60% is generally consistent with balanced housing market conditions, with readings below and above this range indicating buyers’ and sellers’ markets respectively. The ratio was within this range in slightly fewer than half of all local housing markets in November. Of the remainder, more markets recorded a ratio above 60% than fell below 40%. Markets where demand is tight relative to supply are located almost exclusively in British Columbia and Ontario. The number of months of inventory is another important measure of the balance between housing supply and demand. It represents the number of months it would take to completely liquidate current inventories at the current rate of sales activity. There were 5.4 months of inventory on a national basis at the end of November 2015, down from the 5.5 months recorded in October and the lowest level in nearly six years. The national figure is being pulled lower by increasing market tightness in British Columbia and Ontario, according to the index. A… Continue reading
Survey reveals satisfaction in UK rental sector with more families renting
The private rented sector in the UK has entered a more settled periods with over 80% of tenants satisfied with their landlords and more families renting homes, new research shows. The sector has seen some shifting demographics and overall satisfaction levels remain high, according to the latest survey from Paragon Mortgages, undertaken by BDRC Continental. It found that an increasing proportion of those making a home in the sector are couples with children who now make up 21% and couples at 29%. In addition to this 87% of those surveyed consider the rental sector to be their home and the average length of time spent living in a rented home currently stands at 12 years and 41% of landlords reported an increase in tenant demand in the third quarter of the year. Alongside a shortage of housing stock nationally, one factor driving this change is ever improving standards in the sector and 81% of those surveyed said they were ‘satisfied’ with their landlord while 66% of respondents considered their rented home to be either ‘good’ or ‘very good’ value for money. ‘The message coming through in this survey is that, for many people, the private rented sector is an increasingly attractive option over the long term,’ said John Heron, director of mortgages at Paragon. ‘This in many ways reflects the ongoing issue of affordability in the housing market, simultaneously however, competition and best practice are driving higher standards in the sector, making it a more attractive proposition for both individuals and families,’ he explained. ‘This data underscores the value of the PRS to the UK’s housing market. The UK’s PRS still has some way to go to before it catches up with its counterparts in Europe, but higher tenant satisfaction with both standards and affordability, show that there is room for increased growth in this sector,’ he added. Continue reading
Pilot custom build scheme for new homes announced in UK
A new development of 122 homes has been selected as a national pilot in the UK for large scale custom build, as part of an overall policy to boost this sector of the housing market. The proposed custom build site at Park Prewett, part of a major new housing development in Basingstoke, will be developed by ZeroC. The developer will provide homes under the custom build model, ranging from self-build to custom fit-out. Housing Minister Brandon Lewis said that each of the homes can be customised to the buyer’s specifications with various levels of custom build on offer to buyers. Plans for the site will also include 44 plots which will be allocated for affordable housing, along with a few entirely-self build plots that will be made available. ‘This government is committed to increasing housing supply and helping more people achieve their aspiration of home ownership whether that’s buying on the open market through schemes like Help to Buy, or to build,’ said Lewis. ‘We want to see custom and self-build grow significantly and believe it can play a role as part of a wider package of measures to help deliver the homes people want. The Park Prewett pilot is a fantastic example of our commitment to double the number of custom build and self-build homes by 2020 so anyone who wishes to design their dream house can do so,’ he added. Kim Slowe, managing director of Zero C, believes that it is an outstanding opportunity for the firm to pioneer the delivery of custom build in the country. ‘We plan to take the lessons learned and roll out custom build in all our projects within the UK,’ he said. According to Colin Molton, executive director of the HCA in the South and South West, custom build offers a more accessible route onto the housing ladder. ‘By giving people the option to take on some of the build themselves, we can reduce the cost of owning your own home,’ he explained. ‘We’ve made land available for custom build on pilot schemes across England, and aim to give many more people the opportunity to design their own homes in the future,’ he added. Lewis pointed out the Government will increase initiatives to further support the sector, with £350 million additional funding. A new flexible fund offering £1 billion in loan finance will replace both the Builder’s Finance Fund and the Custom Build Service Plots fund. This is on top of a range of reforms to support small builders, including the measure in the Housing and Planning Bill which will require authorities to allocate suitable plots to prospective custom and self-builders registered in their area. Continue reading
