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Valuation activity in UK property market increased in first month of 2016
The UK housing market has started 2016 on a positive note as overall valuation activity in January increased by more than half on an annual basis, according to the latest research. In total, the number of housing valuations carried out in January climbed 52% compared to January 2015, the fastest annual uptick in total valuation activity since July 2015 when volumes rose by 57% on July 2014. The data from Connells Survey & Valuation also shows that on a monthly basis, valuation activity across all housing sectors grew by 13% between December 2015 and January 2016. John Bagshaw, corporate services director of Connells Survey & Valuation, believes that the recent announcement from the Bank of England that interest rates will be kept at rock bottom levels for the foreseeable future will boost the market further. The firm’s report show that the buy to let and remortgaging sectors were the key drivers behind the strong growth of overall housing activity in January. The number of valuations for buy-to-let purposes grew by 51% between January 2015 and January 2016, while the remortgaging sector soared by 97% over the same twelve-month period. Both sectors experienced steadier performances on a monthly basis, with the number of valuations carried out for buy to let investors in January up 11% on the previous month. Meanwhile, January’s remortgaging activity represented a 12% dip on December 2015. ‘Buy to let investors and remortgagors have enjoyed a busy start to the New Year. It might come as a surprise that there are still so many home owners who are paying higher rates, and so are opting to remortgage, when rates have been so low for so long. But ultimately it’s a shrewd move and one that is likely to remain popular with home owners so long as the Bank of England keeps rates at or anywhere near 0.5%,’ said Bagshaw. He explained that while many buy to let investors are hurrying to expand their portfolios before the Stamp Duty changes in April, others are newcomers to the sector, who simply see buy to let as a good investment opportunity regardless of the tax hikes. ‘We can expect the buy to let sector to reach a height of activity over the coming months, as some concerned landlords look to counter the effects of any measure that could hit their profit margins,’ he added. Annual valuation activity among home owners looking to move grew by 27% in January, while between December 2015 and January 2016 there was a 15% uptick in the number of valuations for home movers. Meanwhile, first time buyers saw slightly more modest progress. Valuation volumes among those taking their first step onto the ladder in January grew 22% on an annual basis and 5% on a monthly basis. ‘First time buyers are also getting ever more confident. The volume of affordable homes being built is gradually increasing. This means the hunt for that ideal first home has become less daunting… Continue reading
UK self-builders set to benefit from new register for plots of land
Self-builders in the UK should find it much easier to kick start their dreams of building a home with the launch of new registers to support eager builders find plots. From 01 April councils will have to keep a register of aspiring self and custom house builders when planning for future housing and land use, it was announced by Housing and Planning Minister Brandon Lewis. He explained that as part of government plans to provide more homes, new measures and guidance have been put in place to clearly set out the procedure local authorities will have to take when people wish to register their interest for a plot of land. The aim is that as more and more people want to build their own home this move will help unlock the massive potential the custom build industry has to expand and help meet the country’s future housing needs. ‘Many other countries have a track record of delivering large numbers of local homes through self-build and we’re determined to ensure self and custom housebuilding grows significantly,’ said Lewis. ‘The new registers are a fantastic example of our commitment to double the number of custom and self-build homes by 2020 so anyone who wishes to design their dream house can do so,’ he pointed out. ‘This government is committed to increasing housing supply and helping more people achieve their aspiration of home ownership whether that’s buying on the open market through schemes like Help to Buy, or by building or commissioning their own home,’ he added. The registers are in addition to the measure in the Housing and Planning Bill which will require authorities to ensure they have sufficient shovel ready plots to match the local demand on their register. The Self-build and Custom Housebuilding Bill has placed a duty on local authorities to keep a register of those seeking an interest in bringing forward self and custom build projects. The Housing Development Fund has been set up to provide access to £1 billion of loan finance for up to five years supporting the provision of over 25,000 homes through to 2024 to 2025. It is for custom build, small and medium builders and innovative new building methods. Continue reading
Spanish property prices up and down according to location, latest index suggests
While most experts agree that the Spanish residential property market is well into recovery, there is unlikely to be much of an increase in prices. Indeed the latest house price index from property portal Fotocasa suggests that prices are on an up and down trajectory but with no big surprise. Asking prices fell 0.8% in 2015, down from an average of €1,632 per square meter in 2014 to €1,619 per square meter as of December 2015, according to the Fotocasa index. However, Marc Stucklin, of Spanish Property Insight pointed out that last year’s house price decline was the smallest since the crisis began and this provides more evidence that the Spanish house price crash has come to an end. For example, a year ago prices were still falling by 5.7%, and by 10.% in 2012 and property prices while not rising overall, are increasing in certain locations. Beatriz Toribio, head of research as Fotocasa, an increase in mortgage lending is helping to boost the market at a time when prices are still relatively cheap compared to before the meltdown after the global economic crisis of 2007. The data shows prices rose the most last year in the Balearics with growth of 3.3%, followed by La Rioja up 2.4%, Madrid up 1.4% and Andalusia and Galicia both up 0.7%. ‘We are witnessing a two speed market. Whilst there are parts of Catalonia, Madrid, and the Balearics, where prices have bottomed out, in places like Castile-La Mancha and Extremadura, there is still plenty of room to fall,’ explained Toribio. There are also variations within cities. ‘In Madrid and Barcelona prices are consolidating their recovery, but on the outskirts of those cities the evolution is more unequal,’ added Toribio. Since the peak of the market in 2007 prices have fallen 45.2% overall. The biggest decline has been in La Rioja where prices are down 55.1% from peak, Castile-La Mancha down 52.6%, Navarre down 52.5%, Aragon down 52%, Murcia down 49.9%, and Valencia down 48.3%. Prices have fallen the least in Galicia with a decline of 31.5%, down 33.1% in the Balearics, down 36.3% in Castile and Leon and down 37.3% in the Basque Country, according to the Fotocasa data. ‘Prices look to be more or less stable, but still slightly negative at the end of 2015, with little sign of upward pressure on the horizon,’ said Stucklin, who added that big regional variations exist. Continue reading
