Tag Archives: australia
Property prices in key UK cities up by 0.4% in December
House prices in key UK cities increased by 0.4% in December to an annual rate of 8.3% but the rate of growth plateaued and is set to slow further in 2015, according to the latest national index report. While the recovery in UK house prices is spreading, the gap between the best and worst performing cities has narrowed to its lowest level for 15 years, the index from Hometrack shows. There are now two distinct groups, cities that are accelerating off a low base after years of either static or falling prices and those that have enjoyed strong house price recovery over the last two years and where house prices are starting to slow on cooling demand and affordability constraints. Overall 11 cities registered growth in house price inflation over the second half of 2014, led by Edinburgh, Aberdeen and Glasgow where demand for housing has increased after the September independence vote. Newcastle, Leicester and Liverpool have also saw growth continue to rise off a low base in the second half of 2014 with house prices in these cities 9%, 2% and 15% below their 2007 levels. Oxford, London, Cambridge and Bristol have all registered a slowdown in the rate of growth over the second half of 2014 off a high, double digit base. Other cities registering a slowdown in the rate of growth include Bournemouth, Belfast and Leeds showing that slower house Slower growth in housing demand, tougher mortgage checks and affordability factors are behind the slowdown in these cities where house prices have bounced by as much as 55% from their 2009 lows in recent years, the report says. According to Richard Donnell, Hometrack director of research, house price growth at a city level looks set to converge further in the first half of 2015 as high growth markets continue to slow and lower growth markets start to see growth plateau. ‘Pent-up demand has fed back into the market in the last two years, supported by record low mortgage rates, but mortgage approvals have weakened in the last five months with a knock on impact on house price growth,’ he said. ‘Low mortgage rates are making housing look affordable but it is the willingness and ability of households to borrow, against the background of greater mortgage regulation, which will most influence the housing market in 2015,’ he added. Continue reading
Research reveals the downsize windfall possible in UK property market
In the UK an average of £121,686 can be potentially raised by downsizing to a semi-detached home with London the most lucrative place to do so, new research suggests. Downsizing to a bungalow is the most common option, with those moving from a detached house releasing an average of £103,715 and those moving to a semi-detached house standing to raise up to £121,686. The latest report from Lloyds Bank also shows that 52% of those looking to move in the next three years considering downsizing, and it continues to be the main reason to sell a home and downsizing in 2014 is nearly 10% more profitable than in 2004. For those trading down, the potential amount that can be raised by downsizing from a detached property to a bungalow has risen by 8% or £8,081 over the past decade. A downsizer today would receive an average of £103,715 compared with £95,634 in 2004. The potential amount of cash home owners could raise by downsizing their property from a detached home to a semi-detached stood at an average of £121,686 in 2014, an increase of 6% or £6,943 since 2004 Three in four expect to make money when they downsize. Of those, 43% will reinvest this money in a new property, 26% will invest in other financial products and 13% will invest in their pension or give to their family members. Some 26% are planning to move to a more affordable area, 5% less than in 2013. Some 63% said one of the main reasons for downsizing is to find a smaller property that better suits their current circumstances. After this, 40% are looking to downsize to help reduce bills and outgoings. Some 28% of downsizers are also looking to release equity from their property, and 25% are looking to help support their retirement plans. The research also found that 25% of downsizers are trading down earlier than expected and there are a variety reasons for this including health, change in relationship status and proximity to amenities. The average downsizer is 56 years old, with the greatest proportion having lived in their current property between 11 and 20 years, and having moved in to that property at the age of 39. ‘Downsizing is clearly still a major part of the housing market with over half of potential home movers considering a smaller property. The volume of downsizers is therefore helping to keep the market moving, freeing up larger properties for those making their way up the ladder,’ said Andy Hulme, mortgages director at Lloyds Bank. ‘Once people do look to trade down, the benefits are clear. Downsizing can generate significant amounts of money, on average over £100,000 in 2014. It also helps to lower the cost of household bills and frees up funds so that people can enjoy their retirement or invest their money for the future,’ he added. A breakdown of the figures show that downsizers in London stand to make the most in monetary… Continue reading
New home starts in Australia hit all-time high, latest data shows
More new homes in Australia were started in the September quarter of 2014 than in any quarter since records began in the mid-1980s, the latest figures shows. Building activity figures from the Australian Bureau of Statistics shows that detached dwelling commencements increased by 0.8% in the quarter while ‘other dwelling’, predominantly multi-unit dwellings, rebounded by 30.2%. In aggregate, the total number of dwellings commenced increased by 12.5% in the quarter to reach 52,380, a new record. With New South Wales, Victoria, Queensland and Western Australia, the four largest states, all recording their strongest quarters on record for multi-unit dwelling commencements at the same time, there is little surprise that activity reached a new record, according to the Housing Industry Association. ‘Furthermore, another incremental increase in detached dwelling starts sees this part of the market record the strongest quarterly result since 2010. This result confirms that residential building activity was tracking along at a very strong level during 2014,’ said HIA senior economist Shane Garrett. ‘However, part of the particularly strong September quarter result can be attributed to a catch up after the rather disappointing result in the June quarter when the number of starts fell well short of expectations,’ he pointed out. ‘Following the surge in residential buildings approved in late 2013 and early 2014, there was a substantial accumulation of multi-unit residential building projects that had obtained approval but did not commence construction in the first half of the year. The figures confirm that much of the activity in the pipeline entered the construction phase in the September quarter,’ he added. A breakdown of the figures show that new home starts increased in all states with the exception of South Australia where activity fell by 5.7%. Activity in New South Wales increased by 30.7%, in Victoria by 0.9%, in Queensland by 18.1%, in Western Australia by 5.1%, in Tasmania by 2.9%, in the Northern Territory by 9.6% and by 22.8% in the ACT. Continue reading
