Tag Archives: shows
New home building in Australia reaches new high
New home building starts reached a new high in Australia in the third quarter of last year which is being hailed as good news for the country’s economy. The data from the Australian Bureau of Statistics (ABS) shows that they hit a quarterly record of 55,432. The high if 215,329 for the 12 months to September 2015 is some 15% up on the previous peak in 1994. ‘It is a stellar result not only for the residential construction industry, but for the wider economy. New home construction has posted one of its longest upcycles in history, providing substantial support to Australia’s economic output and levels of employment,’ said Harley Dale, chief economist of the Housing Industry Association (HIA). ‘We need a visionary outlook regarding the homes Australia has to build over the coming decades to house its growing and ageing population, while not forgetting to celebrate the fact that new home construction and its massive spinoff benefits has propped up the Australian economy at a time when no other sector has come to the party,’ he added. But there are considerable regional variations. A breakdown of the figures shows that new starts increased by 17.4% in the Northern Territory but only 2.4% in New South Wales, 1.7% in Western Australia, 1.2% in South Australia and 0.4% in ACT. At the other end of the scale new building starts fell by 20.7% in Tasmania, by 3.8% in Victoria and by 1% in Queensland, the ABS data also shows. Meanwhile, the latest housing finance figures for November 2015 show that total lending activity increased during the month, but still remains below the high point reached in August of last year. The value of investor lending increased by 0.7% in November, but was 7.7% lower than a year earlier. The value of owner occupier lending, net of refinancing was up by 1.7% and is some 22.8% higher than a year earlier. ‘This is a positive update for Australia’s housing sector, showing that lending activity remained healthy toward the end of last year. Lending activity among investors is still below what appears to be the cyclical peak back in April last year. More strength is evident in the owner occupier segment of the market, with the latest level of lending activity on par with recent highs,’ said HIA economist, Diwa Hopkins. She pointed out that the ABS figures also highlight that owner occupiers remain active in the new housing market, with the value of lending to those purchasing or constructing a new dwelling up by 0.7% during the month to 8.8% higher than a year previously. ‘These signals from housing finance are consistent with other indicators pointing to very healthy levels of activity in the residential construction sector in early 2016,’ added Hopkins. A breakdown of the figures show that new home lending to owner occupiers varied widely. It was up 96.6% in the Northern Territory, up 9.7% in… Continue reading
A third of people in UK renting a home have put buying plans on hold
One in three people in the UK renting have put their plans to buy a home on hold and remained in rented accommodation longer than planned, according to new research. It suggests that 1.66 million tenants in the private rented sector are actually frustrated first time buyers and the research from credit check firm Experian also gives an insight into why. Some 18% don’t believe they would be accepted for a mortgage so feel renting is their only option, while 10% have struggled to raise a deposit and consequently been forced to delay their plans to buy. A further 5% have had to prolong their time renting as they’ve been held up in securing a mortgage. Despite making regular payments for their housing, private renters don’t see this reflected on their credit report in the same way mortgage payers do, the firm explains. ‘Many would be first time buyers face the challenge of saving for a deposit on a home while paying rent each month,’ said Jonathan Westley of Experian. He pointed out that the research also shows that a significant amount of people are happy to rent in the long term, whether it’s because they enjoy a good relationship with their landlord or the flexibility of rented accommodation. Indeed, a third are content to rent and have no plans to buy a home of their own in the next five years. Some 25% of those surveyed intend to buy a place of their own sooner rather than later and the results show that 9% are currently saving for a deposit and believe they will be able to buy within the next 18 months, while 16% reckon they will need between two and five years to build up the required deposit. Would be first time buyers who have been frustrated in their attempts to get onto the housing ladder are more likely to be single parents or couples with children. These tenants either doubt they would get a mortgage or have had difficulty securing one, or have struggled to get a deposit together. The research also found that 74% would like to see rental payments contribute to their credit report. The greatest appetite for including rental payment data on credit reports is among people who are looking to buy in the next five years with 91% in this group recognising the importance of a good credit report and 83% would like to see rental payment data added to it. People who are happy to rent tend to live alone or only with other adults and are less likely to see rent as ‘dead money’ than private tenants as a whole and 26% of satisfied renters disagree when asked if renting is a waste of money compared to 16% of all private renters. Continue reading
Half of landlords in England unaware of start date for right to rent rules change
Half of UK landlords are not prepared for the Right to Rent legislation set to come into force on 01 February with some thinking they had another two years to wait. Indeed some 20% believed that they had until April 2017 to prepare for the changes, while 3% believed they had until 2018 to get ready, the research from online estate agent Urban shows. The new legislation, already implemented in the West Midlands, will soon require all landlords and agents in England to check a tenant’s immigration status or ‘right to rent’ in the UK. A failure to prepare could leave landlords at serious financial risk, with potential fines of £3,000 if they do not comply. The survey report also found that only 10% of landlords provide the correct information to tenants at the start of a lease and 90% were unable to identify the characteristics of a House in Multiple Occupancy (HMO). Some 16% were putting themselves at serious financial risk by failing to provide a valid contact address on tenancy agreements; an action which could see contracts being deemed as null and void. One reason to explain the lack of industry knowledge could be due to the rise in accidental landlords who rent property due to circumstance beyond their control such as having inherited property, according to the firm. ‘There has been an influx of new legislation relating to the rental market made in recent years and we know that UK landlords are struggling to keep on top of these changes. Despite knowing many of the basics, many find it difficult to navigate the minefield of changing renting rights and wrongs and this is particularly so for accidental landlords,’ said Adam Male, Urban cofounder. However, despite a lack of understanding in some areas, reassuringly, the majority of landlords were abreast of most other rental fundamentals. For instance, 77% were aware of the need for an up to date Energy Performance Certificate (EPC) and 95% of landlords correctly identified their gas safety responsibilities, 76% also knew the need for a smoke alarm on every floor and 7% even put one in every room. The Landlord Knowledge League Table, a map which ranks the most knowledgeable regions in the UK according to the survey results, found that the most knowledgeable landlords let property in Southampton, while those in Newcastle-under-Lyme were unaware of many key landlord responsibilities. ‘It is great to hear that knowledge about things such as gas safety is a widely understood and implemented landlord legislation, however, there is still a long way to go in educating landlords about the varying aspects of renting,’ said Male. ‘New regulations such as the Right to Rent have the potential to stop back door lettings and create a better environment for all, however, this will only happen if the scheme is communicated to landlords properly. We as an organisation want to do our bit to clean up the industry and help landlords protect… Continue reading
