Uk
Recovery in property sales in Spain proving sustainable, latest data suggests
Homes sales in Spain are showing strong growth, up by 13.9% in the second quarter of this year following a rise of 4.4% in the first quarter, according to the latest data from the Ministry of Public Works. It is the six quarter in a row when sales have increased year on year, suggesting that the recovery in the Spanish real estate market is being sustained. It is also the second best quarter since 2010. However, the market still has some way to go to its pre-crisis level as sales are 58% lower than the peak of 2006. A breakdown of the figures shows that some 12.5% of sales were for new homes and sales increased in 14 regions, as well as in the autonomous cities of Ceuta and Melilla, and fell in three. The biggest increases were in La Rioja with growth of 44.2%, Ceuta and Melilla at 33.9%, the Balearic Islands at 30.1%, Cantabria at 29.4% and Murcia at 25.7%. Sales fell by 14.7% in Navarra, by 1.5% in Extremadura and by 0.6% in the Basque Country. Overseas buyers living in Spain accounted for 17.2% of sales while sales to non-resident foreigners amounted to 5%. Alicante had the highest number of foreign buyers at 4,141, Málaga 2,517, Barcelona 1,470, Madrid 1,173 and Tenerife 1,099. The sustained recovery is also confirmed in the latest figures from the General Council of Notaires, showing that the property market grew by 11% in July compared to the same month in 2014. The data shows that the Spanish property market has expanded in nine of the last 12 months with only January and February seeing sales fall. According to Mark Stucklin, of Spanish Property Insight one of the main factors behind rising home sales is easier, cheaper mortgage credit. There were 17,450 new mortgages signed in July, up 27% on the same month last year, taking the number of sales involving mortgage financing to 46%, highest level since the boom years in the middle of the previous decade. Prices area also starting to recover. The data from the official house price index published by the National Institute of Statistics shows that they rose by 4% over the 12 months to the second quarter of 2015. The Balearics saw the biggest rise in prices with growth of 7.3%, driven by a 7.8% rise in new build prices and a 7.4% rise in resale prices. Indeed, new and resale house prices have been rising since the second quarter of last year, and the trend appears to be picking up speed for both new and resale properties. But figures from the Notaries suggest that prices are not yet in recovery mode. The data from them shows prices down by 0.3% in the second quarter of the year. But Stucklin believes that there are reasons to be sceptical about the index. Compared to 2007, Spanish house prices are down 33%, according to the index with resale prices down 40% and new build… Continue reading
Survey reveals positive attitude to renting in the UK
The majority of tenants in the UK private rented sector are satisfied with their current landlord with only 5% refused a longer term tenancy, new research shows. Overall 65% of tenants believe their rental payment represents ‘good’ or ‘very good’ value for money and have positive attitudes towards renting, according to the study commissioned by Paragon Mortgages. The quarter two tenant market analysis, carried out by BDRC Continental, reported a rise in tenant satisfaction with 80% satisfied with their current landlord and 87% of tenants now regarding their rented property as their home rather than a short term arrangement. The research also highlighted that the average duration of tenants living in their current rented property in the second quarter of 2015 was seven years, with the typical total stay in the private rented sector being 12 years. When asked about their long term housing plans some 35% of participating tenants intend to remain within the sector and 24% intended to buy a house in the future, with the proportion of respondents citing the unaffordability of housing as the reason for renting privately increasing from 69% to 74%. ‘This research provides a valuable insight into the sector. There are many surveys of landlords and many academic reports on the PRS. There are, however, too few surveys that poll tenants directly on their experience of renting privately,’ said John Heron, managing director of Paragon Mortgages. ‘This survey has identified high levels of tenant satisfaction and an appreciation of the good value that rented accommodation can offer across the country. It is more disappointing though to see that affordability constraints are impacting negatively on future choices in housing with less than a quarter of tenants expecting to buy their own home in due course,’ he added. Continue reading
UK residential property stamp duty revenue hits record high
The UK tax man, HMRC, collected a record £7.5 billion in stamp duty from residential property transactions in 2014/2015, official figures show. This was up from £6.45 million the previous year and from £4.9 billion in 2012/2013 and the total tax collected from home buyers in the UK has grown by 165% over the last six years alone. Transactions in London contributed the most residential stamp duty revenue at just over £3 billion, followed by the South East at £1.6 billion. Together these two regions accounted for 66% of the total tax take. Between 2008/2009 and 2014/2015, stamp duty revenues in London have grown by 248%, compared to around 158% in the East of England and 140% in the South East. Other English regions had between 75% and 120% growth in the same period. The increase in London reflects the growth in house prices in the city over this time compared to the rest of the country, as well as the fact that the higher rates of stamp duty on property transactions worth more than £1 million mostly affect London, according to an analysis of the figures by real estate firm Knight Frank. Grainne Gilmore, head of UK residential research at Knight Frank, pointed out that last December’s cuts in stamp duty for homes worth up to £1.1 million has had little impact on the tax receipts from home buyers in the year to April. ‘Overall, home buyers still paid more in stamp duty than over the previous 12 months. While the increased take from stamp duty reflects the growth in house prices and a pick-up in transactions, another factor has been the increases to stamp duty charges, especially towards the top end of the market,’ she said. She also pointed out that residential stamp duty garnered £7.5 billion for the Treasury in the year to April, more than double the amount raised back in 2002/2003 and the Treasury’s windfalls from home buyers in England has grown by 165% over the last six years alone. ‘The relative burden of stamp duty is also highlighted by the data. Londoners paid 43 times more stamp duty than buyers in the North East over the last year, a reflection of the widening of the North/South divide in terms of activity and prices, but also the higher stamp duty charges for more expensive homes. Buyers in London and the South East accounted for 66% of all stamp duty receipts on residential property in the year to April,’ Gilmore explained. ‘It remains to be seen what the impact of the new stamp duty regime will be for the Treasury in the coming year. Despite hitting a record high for residential receipts in the year to 2015, the total stamp duty tax take at £10.7 billion is £800 million lower than the Treasury forecast when it made the changes to stamp duty back in December,’ she added. According to Tom Bill, head of London residential research at Knight… Continue reading
