Tag Archives: australia
September real estate market moves on from election in New Zealand
There has been a notable increase in activity in the New Zealand residential real estate market with buyers and sellers putting the general election behind them. Sales in September increased by 7.8% compared with the previous month but are still 12% down on a year ago, according to the latest index from the Real Estate Institute of New Zealand (REINZ). The national median price was $420,000 for the month of September, an increase of $20,000 or 5% compared to September 2013, and steady from August 2014. The index also shows that days to sell improved by three days to 35 days compared to August, and eased four days compared to September 2013 ‘The real estate market appears to have moved on from the election, with a noticeable increase in activity over the last 10 days of the month,’ said REINZ chief executive Helen O’Sullivan. But she pointed out that despite stronger activity in the latter part of the month, sales volumes were again well down on the same time last year, meaning that sales volumes compared to last year have now fallen for 11 months in a row. Also, the pace of price increases has eased significantly, with the annual rate of price increase now only 5% compared to more than 10% in April. ‘A key theme reported by agents across the entire country is a lack of new listings. Unusually, listing levels are low even in Auckland where prices are at historically high levels, with the increased prices not tempting vendors into the market,’ said O’Sullivan. ‘There has been some pick up in listings in line with the start of spring, albeit not at the usual levels for this time of year. This may in part be a lag effect from the election. As with sales activity, listing interest is reported as having picked up in the last week of the September. We will be closely watching listing levels in October as a continued lack of choice is frustrating would be buyers,’ she added. Sales Volumes A breakdown of the figures shows that 10 regions recorded an increase in sales volume compared to August with Otago recording the largest percentage increase of 25.4%, followed by Northland with 19.1% and Hawkes Bay with 14.6%. Compared to September 2013 all 12 regions recorded a decrease in sales volume with Taranaki recording the largest fall of 31.5%, followed by Auckland and Nelson/Marlborough with a fall of 17.1%. While the total number of sales was down 12% compared to September 2013, the number of sales below $400,000 fell by 18.2%. This follows a fall in sales below $400,000 of 24.8% between August 2013 and August 2014. Nine regions recorded an increase in the median price and 68% of the increase in the national median price compared to September last year occurred in Auckland, with Canterbury/Westland contributing 20% of the increase and Waikato/Bay of Plenty contributing 5%. Together these three regions accounted for 92% of the increase in the… Continue reading
UK asking price growth cooling but there is still momentum in some locations
Recent data is showing house price growth in the UK has been cooling but the latest index report suggests there is considerable momentum, especially in the South where demand remains high. However, prices are not rising as quickly as they were, according to Home.co.uk's latest Asking Price Index, and supply is rising. Asking prices increased in September by 0.6%, the ninth consecutive monthly rise, taking the average annual appreciation in England and Wales to 8.5%. But overall the market is cooling and vendors' expectations are being moderated outside of the current hotspots of London and the South East. The total number of properties on the market that have been reduced in price has risen in recent months to a two year high and now represents 13% of the total stock of property for sale. Moreover supply is growing across the UK as vendors are being encouraged by rising prices. Last month, 10% more properties entered the market than in September 2013. The rise in supply in London is much more extreme, up 49% by the same measure. A breakdown of the figures show that home prices rose across most of mainland UK over the last month but slipped in the North East, North West and Wales by 0.1%, 0.1% and 0.4% respectively. However the firm says that this is consistent with the normal seasonal price variations. Asking prices increased significantly in the more vigorous southern regions. Asking prices in East Anglia, where supply remains very tight, jumped 1.1% over the last month, and prices look set to keep rising as long as the shortage of property for sale continues as in this region the monthly rate of new instructions has fallen 70% over the last seven years. London prices also rose by 1.1% following the previous month’s dip and, for the time being, supply is historically low, down 67% compared with September 2007. However, the report points out that this situation is changing rapidly. The number of properties being put up for sale in the London region has soared by 49% over the last 12 months. Looking back further, the data shows that only five of England’s nine regions have prices that are nominally higher than they were in October 2007, whilst home prices in Scotland and Wales remain below those levels. If the effects of inflation are taken into account then only Greater London has shown any real price gains since October 2007. The data also shows that the average mix-adjusted 12 month change in asking prices for England and Wales reached a maximum in June of 9.6% and is steadily falling back. The year on year price trend confirms that average price increases are moderating overall. ‘We expect this trend to continue in 2015 as rising supply will tend to stifle further price rises, as already seen in Greater London,’ said Doug Shephard, Home.co.uk director. ‘Whilst much coverage is given to the best performing property locations, currently Stratford, Stepney, Mill Hill and Canning Town, it is equally important to… Continue reading
NLA reminds UK landlords about upcoming immigration checks
The National Landlords Association is reminding UK landlords about the importance of conducting tenant checks shortly before new legislation will require them to check the immigration status of every new tenant. As of the 01 December 2014 landlords in the West Midlands where a pilot scheme is being introduced, will be responsible for carrying out ‘right to rent’ checks in order to identify if a potential tenant has the right to reside in the UK, before they grant a tenancy. If the checks are not carried out landlords could face a fine of up to £3,000. The new rules, set out in the Immigration Act, will be rolled out around the rest of the UK in 2015. The NLA recommends that landlords always check potential tenants thoroughly in order to reduce the risk of letting to unreliable tenants and minimise the risk of rent arrears. Services such as the NLA Tenant Check give landlords the ability to vet their tenants and be confident it has been done to a professional standard. ‘In some areas as early as this December, the Immigration Act will place a legal responsibility on landlords to help prevent illegal immigrants from accessing private rented accommodation,’ said NLA chairman Carolyn Uphill. ‘It has always been best practice to conduct a thorough check on prospective tenants, but if landlords don’t do their due diligence on tenants they could be in line for a hefty penalty,’ she explained. ‘The NLA exists to support all landlords to make a success of their lettings business and to ensure they comply with the law,’ she pointed out and added that to see how the NLA can help with this forthcoming requirement landlords can go online to the NLA Tenant Check website. Meanwhile, Harrison Murray Lettings (HM Lettings), the lettings arm of the Nottingham Building Society, said it aims to lead the way in ensuring all potential tenants are eligible to live in the UK. ‘We want to safeguard and support the rights of both landlord and tenant whilst ensuring we are operating in line with the latest legislation,’ said Group Lettings controller Paul Offley. The Home Office has not yet issued specific instructions but it is likely that British passport holders will only need to show their current passport and those without passports will have to produce alternative documents including birth or adoption certificate in combination with a National Insurance number, driving licence, naturalisation certificate or a right of abode certificate. Citizens of the 27 member countries of the European Union plus Iceland, Lichtenstein, Norway and Switzerland, are expected to show as evidence a passport and national identity card or evidence of receipt of UK benefits. People from other countries should have a Biometric Residence Permit which clearly states the time limit on their stay but foreign visitors staying for less than six months cannot obtain a Biometric Residence Permit and would need to show a passport containing a UK immigration stamp with a time limit that is still valid. Continue reading
