Sports
Demand from overseas buyers in the Alps rising, says latest index report
Demand for Alpine property is rising, spurred on by a more resilient Eurozone, greater clarity over tax and the second home cap in Switzerland, as well as a weaker euro, the latest index report says. Val d’Isere and Meribel in France have seen the biggest annual growth in property prices with a rise of 5.8% and 4.5% respectively, according to the 2015 Ski Property Index from international real estate firm Knight Frank. The index, which tracks the price performance of prime ski chalets across 15 key resorts in the French and Swiss Alps, indicates that prime sales activity in the French Alps is focussed between €1.5 and €2.5 million with resorts such as Chamonix and Courchevel 1550 increasingly popular. It also shows that the number of sales completed in Megeve in the first half of 2015 was double the number of sales agreed during the whole of 2014 and adds that previous uncertainty in the Swiss market is giving way to renewed optimism as clarity emerges surrounding taxation and the second home cap. Overall it says that the market is broadly stable with only 13% percentage points separating the strongest and weakest performer and currency movements have played a pivotal role in determining demand across the region. French resorts occupy the top five rankings this year as uncertainty surrounding Lex Weber in Switzerland dampened sales, and as a result price growth. In the past year ski homes in Europe’s top resorts have continued on the same trajectory that they have been following since 2008; no radical acceleration or deceleration just small single digit shifts year on year. Overall, the index proved largely static with only a marginal 1% fall recorded in the year to June 2015 and explains that in the case of a resort like Val d’Isere, for example, the length of its ski season explains its long standing appeal, particularly with British buyers. Few other Alpine resorts can guarantee sufficient snow to ski during both the Christmas and Easter holiday periods, it continues and in Meribel’s case, a combination of its location in the heart of The Three Valleys and its pricing explains its annual growth. Meribel provides better value than Courchevel 1850, but can compete with 1550 and 1650 in terms of facilities. Investment in the form of new residential developments such as Olympe in Les Allues and Point de Vue in Meribel Village has also helped to build confidence amongst buyers. In real price terms, the exclusive resorts of Courchevel 1850 and Gstaad come out on top, with prime prices typically around €25,000 and CHF30,000 per square meter respectively. A prime ski chalet in Gstaad is, on this basis, four times the price of an equivalent property in the French resort of St Gervais. The report also shows that in the French Alps, the focus of sales activity in the last 12 months has been within the €1.5 million and €2.5 million price bracket. The super prime market at… Continue reading
UK report reveals the economic benefits of new home building
House builders in the UK are providing more than just homes with a new report revealing the extent of the benefits. The report from the Home Builders Federation, says that for example, in the South East of England where there is a shortage of new homes, last year some 22,470 homes were started by private house builders, the public sector and housing associations in the sector. But this is just the tip of the iceberg. Based on the findings of the report, the economic footprint of this house building meant that 96,621 jobs were supported, 899 graduates and apprentices positions were created, and 966,210 new trees or shrubs were planted. It also shows that £36,109,290 was contributed towards education in the area, £28,896,420 in extra council tax revenue was generated plus £224,700,000 in other tax contributions, and some £21,031,920 went towards new open spaces, community spaces or sports facilities, or enhancing existing resources through Local Authorities. On top of this 5,168 new affordable homes were built and payments of £497,553,210 were made to local authorities for further provision of new affordable homes. While house building is increasingly being recognised as a key driver of economic growth, there are still not enough new homes being built in the region, the report points out. In the South East, this manifests itself as a shortfall of 12,011 homes every year. If the region was to meet this need, the knock-on economic benefits would be 51,648 jobs created, 480 graduates and apprentices positions created, 516,482 trees and shrubs planted, and £19,301,998 going towards education in the area. There would be £15,446,403 in extra council tax revenue, £120,112,000 in extra tax contributions, £11,242,483 contributed to open spaces, community, sport and leisure facilities, 2,763 affordable homes built and payments of £265,964,002 to local authorities for further provision of new affordable homes. 'House building makes a huge, but largely hidden, social and economic contribution to the South East. And whilst housing output in the region has increased, we are still not delivering anywhere near what is needed' said Stewart Baseley, executive chairman at HBF. 'As well as delivering desperately needed new homes, increasing housing supply would deliver significant additional benefits for everyone living in the region. As well as providing desperately needed new homes, increasing house building would deliver massive additional benefits to communities across the land,' he explained. 'People often don't realise that the new community centre or school or football pitch has been paid for as a direct results of new homes. Ultimately, providing new homes for people also means better facilities for the wider community. These are the very things that turn a collection of houses into communities; brand new places where people want to live,' he added. Neal Hudson, associate director at real estate firm Savills, pointed out that house prices in the South East have risen by 17.3% over the last two years. 'However, the performance of markets within a region can vary substantially. These variations are determined by the economic, demographic and affordability profile of demand… Continue reading
Average UK prices up 1.4% in May, latest data shows
Average UK house price increased 5.6% annually and 1.4% on a monthly basis in May, taking the average home price to £212,495, according to the latest data to be released. In London the market is seeing significant growth again following reservations around the general election with prices up 16.7% year on year and 3.4% month on month to an average of £536,286. Sales in London have recorded their biggest monthly uplift since August 2014 and the monthly data report from haart estate agents also shows that in May there were 11 buyers chasing each available property across the country but this rises to 20 in London. Overall data from the firm has now shown a steady upward trajectory for UK property prices since November 2014, which has been driven by high levels of demand in relation to supply. Average first time buyer property prices across the UK are also on the increase, up 4.3% annually and 1.7% on the month. The number of new buyers registering has increased marginally on the month in May, up by 0.3% since April. However, the number of new buyer registrations is down 12.7% annually. But the firm says that given the particularly high levels of buyer activity in 2014, a fall in the number of new buyers is to be expected. The volume of new property instructions coming to the market has increased 2.6% on the month and haart says that this emphasises that sellers are feeling confident when it comes to putting their home on the market. There are now 11 buyers chasing each property for sale across the UK, which is a slight fall in activity levels on an annual and monthly basis but still shows that the market is busy, with consumer confidence high. The average loan advanced to a first-time buyer has increased 4.2% annually to just shy of £130,000 which the report says reflects strong institutional confidence in lending. As with the number of new buyer registrations, first time buyer registrations have fallen annually, which is a reflection of the strength of last year’s market. The data also shows that the North of London is the most expensive postcode area in which to buy with prices up 36% annually to an average £667,944. The North West is the only postcode area where the average property price is still less than £400,000. Paul Smith, chief executive officer of haart pointed out that with all this positivity in the air and continued low mortgage rates more people will aspire to buy, and without accompanying fresh supply property will become more unaffordable. ‘First time buyer activity in London is down significantly with 30% fewer first time buyer registrations in May 2015 compared to May 2014. The result will be that young professionals are driven from key areas as they can’t afford to live there,’ he said. ‘This is bad news for local economies and the UK as a whole and we need at least… Continue reading
