Uk
Property prices in England and Wales up for second month in row to new record
The price of UK properties being put up for sale has increased for the second month in a row by 0.1% taking the average price to a new record high of £294,542, the latest index figures show. But there has been a sharp drop in the number of new sellers, adding to an already diminishing supply of homes for sales and a shortage of people trading up, according to the July market report from Rightmove. Year on year prices are up 5.1% but the headline figures hide considerable regional variations. In Wales prices are down 1.7% year on year but up 1.5% month on month, taking the average price to £177,280. Annual growth is small in the North East at 0.9% but monthly growth is 2.1%, taking the average price to £147,251. In the West Midlands annual price growth is 3.2%, taking the average price of a home to £200,129 but the region saw a 0.5% fall month on month. In neighbouring East Midlands average prices have climbed 7.4% year on year and 1.2% month on month, to an average of £313,255. The South West has also seen prices fall month on month, down 0.6% but prices are still up 2.9% year on year to an average of £286,155. Elsewhere in the south growth has been largely positive. In the South East prices are up 5.8% year on year and 0.4% month on month to £386,988 and in Greater London they are up 7.8% year on year but down slightly by 0.2% month on month to £615,115. The East Midlands, the North West and Yorkshire and Humber, areas where price growth has struggled to keep up with other parts of the country, have seen positive growth. In the East Midlands prices are up 4.2% year on year and 0.7% month on month to £190,192 and in the North West they are up 2.7% year on year and 0.1% month on month to £176,277. Meanwhile in Yorkshire and the Humber average prices have increased by 2% year on year and by 0.8% month on month to an average of £172,412. Indeed, the number of new sellers is down 10.6% compared to 2014 and this comes at a time when demand is high. Rightmove reports that visits and enquiries to agents are both up 22% on last year. The shortage is most acute for smaller homes with two bedrooms or fewer, where Rightmove sees the biggest demand in excess of supply. According to Miles Shipside, director and housing market analyst at Rightmove, the drop in new homes for sale could be due to the onset of the seasonal summer slowdown, and buyers’ constraints in affording record prices. He said that the latter underlines the need for more new build homes that are affordable, of the right type and in the right locations and emphasises the importance of the recent government announcement on speeding up residential planning permissions aimed at boosting supply. ‘Another month, and… Continue reading
Australian office leasing market growth led by New South Wales
The New South Wales office leasing market is leading the way in the Australian commercial market in the first half of 2015, with almost twice as much office space leased year on year. There has been a 13% increase in the number of leasing deals done nationally in 2015, compared to the first half of 2014, according to figures from Colliers International. The amount of space leased is up 22% from 198,360 square meters last year to 241,551 square meter this year, led by New South Wales with 112, 937 square meters leased year to date, compared to 64,629 in the first half of 2014. Cameron Williams, Colliers International National Director of Office Leasing, said there was increased traction nationally at the larger end of the market. ‘This is in contrast to 2014 enquiry data, which is a reflection of what we are seeing on the ground. Larger firms are driving demand for office accommodation in 2015 compared to 2014, when we saw smaller space in strong demand,’ he said. ‘Our enquiry data for the second quarter of 2015 also shows a significant shift in the industries searching for office space,’ he added. The research also reveals that in 2014 the government sector dominated as they put large requirements into the market. However, moving into the second half of 2015 it is business services, communications and finance that are catching up and dominating both in enquiry levels and leasing deals being negotiated. Businesses searching for substantial office accommodation were driving demand across key office CBD markets, with the business services, communications and finance sectors accounting for the lion’s share of enquiries. Overall, enquiries for office space nationally increased by 31% from the second quarter of 2014 compared to the second quarter of 2015 for office space in the 1,000 square meters to the 3,000 square meters category. Sydney in particular saw an increase in this category, with a 25% rise in demand from the first quarter of 2015 with 51,003 square meters to 63,650 square meters in the second quarter. Williams said activity was increasing in the Sydney CBD office market, particularly in the last quarter. ‘The big change has been growth. The tenants that are in the market at the moment are predominantly growth driven,’ he explained. ‘The growth in the market is mostly being driven by technology companies and finance. At the smaller end of the market there has been a lot of activity from Asian investment companies that have a preference to be located in Sydney’s midtown,’ he said. ‘This growth is naturally having a positive impact on net absorption and lessors are becoming more confident,’ he added. Continue reading
Almost half of UK renters will never get on the property ladder, poll suggests
Some 44% of renters in the UK believe they will never own their own home with not being able to afford a deposit the most common reason for not getting on the property ladder. Just 2% of renters plan on getting on the property ladder this year, according to an independent survey for construction and regeneration company Keepmoat. The average house price in England and Wales now stands at £178,000, according to the latest Land Registry figures, although significant regional variations exist. The average price of property in the capital is currently £462,799. Despite houses in the North generally being more affordable, non-homeowners in Liverpool at 62% were the most likely to say they never expect to purchase a property. This was followed by 60% in both Newcastle and Glasgow and 41% in London. Not being able to afford a deposit was by far the most common reason for not getting on the property ladder, cited by 56% of respondents. The pressure of saving a deposit was also the top concern for those hoping to buy a home at 58%, with 61% of this group saying they will be saving their own deposit. Some 38% of home owners polled said it took between two and five years to save for a deposit although it took 13% of those polled up to 10 years to save their deposit. The research also suggests low awareness of the government’s Help to Buy scheme, an initiative that helps people take their first steps on the property ladder. Less than one in three prospective buyers polled said they will be using the scheme, with 38% claiming they don’t know what the scheme is. ‘It’s clear that the amount of money first time buyers need to raise for a deposit continues to stop many from getting on the property ladder. However, we were surprised that the results show Londoners are more confident about owning a home than those in other cities, particularly in the North,’ said Dave Sheridan, chief executive of Keepmoat. ‘There is plenty of assistance available for buyers in the form of the Help to Buy scheme and help is available when saving for a deposit with the Help to Buy ISA,’ he added. Continue reading
