Uk
UK home owners less optimistic about property prices, poll suggests
Optimism in the UK property market has slowed down, with fewer home owners anticipating an increase in the value of their home over the next 12 months, a new survey shows. Just under half, 49%, believe their home will increase in value over the next year compared to 54% in January and 55% a year ago. A further 49% anticipate that the value will stay the same whilst 2% believe it will decrease. The survey from Clydesdale and Yorkshire Banks also shows that Londoners are the most optimistic with 73% anticipating an increase in the value of their home, followed by 62% of those in the South East and 56% of those in the East. In sharp contrast 11% of those surveyed in the North East expect the value of their home to decrease, a view shared by 6% in the North West and Scotland. Those living in the South East and London are the most upbeat about rising property prices with 67% in the South East and 64% in London citing this as the main reason for anticipating an increase in the value of their home. In contrast only 37% of those in the North West share this view. The report suggests that the key factor for those who think their home will increase in price is rising property prices as well as the positive impact of the economic recovery. ‘It has been positive to see confidence returning to the property market however our latest research has shown that this is levelling out with a drop in the number of people who believe their home will increase in value over the next year,’ said Steve Fletcher, director of retail banking. ‘There are still a number of property hot spots, such as London and the South East, where property prices are rising and we anticipate that this will continue however this is not mirrored across the UK as a whole,’ he pointed out. He added that the Banks have a range of competitive mortgages including a two year fixed, fee offer product up to 75% LTV at 2.09% and a five year fixed, fee offer product up to 75% LTV at 2.89%, both for re-mortgage applications above £75,000. Continue reading
Prime country house values in UK fall in second quarter of year
Average prime country house values in the UK increased by just 0.9% between April and June and annual growth is down to 2.3%, the lowest for two years, according to a new analysis report. It is an indication that any expectations of a post-election price jump in the prime market were unfounded, says the report from real estate firm Knight Frank. The report points out that one of the key reasons price growth remains subdued, despite the election of a majority government and the removal of the threat of a mansion tax, is the fact that the prime market is still absorbing the recent changes to stamp duty. The change, which came into effect in December, has resulted in higher purchase costs for properties worth more than £1.1 million. Knight Frank says there is anecdotal evidence to suggest that some buyers are factoring the increased cost into offers, resulting in some price adjustments. ‘Additionally, while there was a release of pent-up demand in the weeks immediately following the vote as buyers who had adopted a wait and see approach prior to the election returned to the market, rising stock levels, which peaked to their highest level all year in May, helped to mitigate any significant jump in property values,’ said Oliver Knight of the firm’s residential research team. He also pointed out that the greater political certainty afforded by the election result means there is a more positive outlook for the residential property market as a whole. ‘Interest rates remain at record low levels, economic growth is steady and mortgage rates are competitive,’ he added. Meanwhile, during the second quarter of the year prime city markets continued to outperform more rural locations, with notable price growth in Bath, Bristol and Winchester among others. Prime urban property markets are now, on average, 2% above their 2007 peak, while neighbouring village and rural locations remain 13.2% below peak levels. Continue reading
Average property prices still falling in Spain, but sales are up
Although the recovering in housing sales in Spain continues with transactions up by 1.9% in April, prices are still falling, the latest figures show. The data from the General Council of Notaires shows sales up almost 2% in April but prices down by 3.9% year on year nationally. Overall a total of 30,758 transactions were completed which the council says ‘reflects the stabilisation in monthly sales’. The average price of homes bought in April was €1,188 per square meter with new homes, the data also shows and the number of mortgages available is rising, up 12.3% year on year. Buyers are also able to get higher loans with the average mortgage sixe up 9.2% to €122,119. Meanwhile, the average Spanish home costs €200,000, according to the annual Spanish housing market report from appraisal firm Euroval. But there are considerable regional variations in values. In Barcelona, for example some 54% of homes for sale are offered at less than €254,000, whilst in Madrid 61% of homes for sale cost less than €247,000. While in cities like Alicante, on the Costa Blanca, 58% of homes have a price below €143,000. The Euroval report also looks at what has been happening in the Spanish property market in the last couple of years and shows that sales increased by 21.63% between 2013 and 2014. It also shows a decrease in the number of new homes being sold and the largest numbers of transactions are still taking place in Andalusia, which represents 19.2% of the total volume. When it comes to valuation activity, the firm reports an 11.5% increase in 2014 over the previous year, after eight consecutive years of declines. But this is just 30% of the volume of appraisals which were carried out in 2005. Continue reading
