Tag Archives: css
Scottish property prices bounce back after dip due to referendum vote
After a cooling in the market due to the referendum vote on independence, house prices in Scotland have now recovered, according to the latest index figures. Scottish property prices increased by 0.7% in October, taking the average house price to £164,798, just £717 below the pre-recession peak in May 2008. The LSL Property Services/Acadata house price index also shows that on an annual basis prices are up 5.7% and sales of million pound properties in particular have increased since the referendum. The biggest annual rise was in East Renfrewshire with price growth of 13.4%. But growth is not universal with annual price growth down 9.4% in the Scottish Borders and down 6.7% in South Ayrshire. On a month on month basis prices increased by 5.8% in East Dunbartonshire and by 3.4% in Fife but fell by 1.7% in East Lothian and by 1.8% in South Ayrshire. Even in Aberdeen, which has seen some of the highest price growth in Scotland, prices dipped by 0.5% in October. ‘After a run of monthly house price stumbles on the way to the landmark referendum, the Scottish property market has recuperated. Growth regained ground during October, and property values bounced back,’ said Christine Campbell, regional managing director of Your Move. She pointed out that this has returned overall annual growth in Scottish house prices to 5.7%, typically amounting to £8,850, over the past year, and property values in Scotland are making faster progress than across the North of England and Wales. ‘Since the independence question evaporated, a new ray of confidence and certainty is radiating through the market, as normality is resumed. The feel good factor is especially pronounced at the highest tiers of the property market, where political uncertainty froze activity most acutely,’ she explained. Indeed, sales of properties worth £1 million or above have more than doubled from September to October as high end homes began to change hands again. In fact, October 2014 saw the biggest number of million pound properties sold in a single month since September 2008. Campbell also pointed out that only three quarters of the country has seen price growth in the past 12 months and in the remaining areas, property values are below 2013 levels. ‘In these places, activity is vital to keep price growth sailing along, but house sales have slipped back 1% since September,’ she said. While overall, Scottish property sales in 2014 up to October are 14% higher than the same 10 months in 2013, this still only represents 65% of the average volume reached in the pre-recession period of 2004 to 2007. ‘The Chancellor’s revamp of stamp duty should go some way to shore up demand in the short-term, and set off more movement at the lower end of the property chain. But first time buyers have been the guiding light of the Scottish housing recovery, accounting for 46% of current sales in the property market,’ said Campbell. ‘For the bulk of… Continue reading
UK buy to let sector confident going into 2015, new research suggests
Confidence in the buy to let market will encourage significant investment in the sector by UK property investors in 2015, according to new research. This is despite the fact that 52% of buy to let property investors believe interest rates will rise next year, the report from specialist buy to let business Platinum Property Partners also shows. While the majority expect an increase, overall 42% believe interest rates will rise by less than 2% and only 10% expect to see interest rates rise by 2% or more. However, 29% cited a rise in interest rates as their biggest concern for 2015. An interest rate rise of any size would make buy to let borrowing more expensive, this hasn’t slowed down landlords’ ambitions as 43% of existing landlords intend to grow their portfolio of rental properties next year. Some 23% intend to expand their portfolio by one and 14% say they will purchase two more rental properties in the next 12 months. Landlords owning Houses in Multiple Occupation (HMOs) for young professionals and key workers have some of the biggest ambitions for 2015 with 52% planning to add to their portfolio during 2015, 29% planning to add two properties and 14% will add three. The survey also found that landlords still feel confident about capital growth despite recent reports that the housing market is slowing. While the Council of Mortgage Lenders (CML) point to a dip in mortgage lending as evidence that there has been a ‘plateau’ in housing market activity, landlords are confident that house price growth will continue during the course of the next five years. Just under half, 49%, expect UK property values to climb by up to 10% over this period, while a further 28% of investors predict an increase of 10% or more. HMO landlords have an even more positive outlook for capital growth with 43% saying property prices will increase by 10% or more, some 15% more than the overall average. None of the HMO landlords surveyed expect house prices to decrease in the next five years. However, UK buy to let investors have some concerns about what 2015 may bring. When asked for their number one concern, an increase in interest rates topped the poll at 29%, closely followed by future changes in laws and legislations for landlords at 26%. A further 9% are most concerned about the impact of a change of government ahead of the general election and 20% have absolutely no current concerns. ‘A rise in interest rates is one of landlords’ main concerns for 2015, yet the majority don’t anticipate that these rises will be dramatic or unaffordable. As a result, our research reveals that the sector will continue to grow next year, with two in five planning to add to their portfolio despite a likely interest rate rise,’ said Steve Bolton, PPP chairman. ‘Investors in HMOs show the greatest intention to increase their portfolios, which reflects the fact that HMOs… Continue reading
Consumer confidence in UK property price growth falling
Consumer confidence in the outlook for UK house prices has continued to fall from its peak in July 2014, according to the latest Halifax Housing Market Confidence Tracker. While the overall picture for house prices over the next 12 months is still robust, it has dropped to its lowest level since June 2013. With Halifax forecasting an easing of house price growth to 3% to 5% for 2015, the report shows there has been a reversal of recent momentum, with a higher proportion of consumers now believing the next 12 months will be a better time to buy than to sell and the proportion thinking the next year will be a good time to sell falling to its lowest level since the fourth quarter of 2013. Despite recent forecasts indicating economic growth is expected to reach 3% in 2015, the recent fall in house price expectations mirrors a relative fall in consumer confidence for the economic outlook in the next year having peaked in the second quarter of 2014. Of those surveyed, a net balance of +25 now believe the next 12 months will be a good time to buy, an increase of 14 points since September 2014. Sentiment towards buying is stronger among those who already own their own home, with 62% of owner occupiers stating 2015 will be a good time to buy, compared to 29% who think it will be a bad time, a net balance of +33. In contrast, selling sentiment has fallen to a net balance of +14, a drop of five points since September 2014. And positive selling sentiment fell by six points among owner occupiers between September and November 2014 to +25. ‘The strengthening in the UK economy over the past couple of years has seen a steady convergence between the proportions of people who believe it is a good time to buy and a good time to sell,’ said Craig McKinlay, mortgages director at the Halifax. ‘The outlook for house prices in 2015 is for growth to moderate but continue to increase, which perhaps explains why the proportion thinking it will be a good time to buy is again greater than the proportion thinking it will be a good time to sell,’ he explained. ‘With an interest rate rise expected late 2015, possibly into early 2016 it will be interesting to see what impact the slight reduction in affordability has here,’ he added. The survey also shows that people in Scotland are significantly more likely than those in other regions overall to say 2015 will be a good time to buy at 65% compared to 56%, respectively. Conversely, almost half of those surveyed in the Midlands, 48%, think next year will be a good time to buy, significantly lower than the 56% who say this across Britain. People in Scotland and North England are significantly less likely to say it will be a good time to sell at 38% and 42% compared to 51%, respectively. And people… Continue reading
