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Flats in the UK have seen the biggest average price rise in last decade
The average price of flats in the UK has risen by 60% since 2005, compared with an average of 38% for all properties, according to new research. The report from the Halifax, one of the UK’s leading home lenders, also shows that detached homes have seen the smallest increase at 21% while bungalow prices rose by 28%. The figures show that the increase for flats over the last decade is £87,550 or £730 per month from £145,874 in 2005 to £233,424 today, but a big proportion of this is due to the rapid increase in flat prices in London which are up by 67%. A typical flat currently costs less than £120,000 in the North, East Midlands, Wales and Yorkshire and the Humber, and between £120,000 and £145,000 in the North West, West Midlands, Scotland and East Anglia. At £370,281, a typical London flat is considerably more expensive than flats anywhere else in the UK. While flats have been the best performing property type over the past decade in Greater London, Scotland and the South West, there are regional differences. Semi-detached properties have risen most in value in the South East, East Anglia and the East Midlands, whereas terraced homes have been the best performing property type in five of the 11 regions, the North, North West, Yorkshire and the Humber, West Midlands and Wales. The average price of a terraced home is between £119,000 and £143,000 in all regions outside southern England, the data also shows. Semi-detached and terraced homes have remained the most popular types of property purchased over the past 10 years. Combined, these two types represent 59% of all home sales in 2015, up marginally from 58% in 2005. Semi-detached homes have risen in popularity among first time buyers, accounting for 28% of purchases in 2015 compared with 21% in 2005. However, flat sales have fallen from 20% of all property sales to 17% over the past decade. ‘Flats have recorded larger prices gains over the past ten years than any other property type. The national increase in flat prices has been led by London where flats account for roughly one in two property sales, substantially higher than for the country as a whole,’ said Martin Ellis, housing economist at the Halifax. ‘Overall, semi-detached and terraced homes have remained the most popular types among purchasers. First-time buyers have switched to some extent away from flats, reflecting their large price increases, towards semi-detached homes over the last decade,’ he added. Continue reading
Rental prices in Auckland steady as activity rise, new data shows
Property rental activity is rising across Auckland, New Zealand’s biggest city, while rental values are steady, according to the latest data to be published. The average weekly rent across Auckland in August increased just $4 to $496, up less than 1% on July and just 6% year on year from $467 in August 2014. This compares to a 15% increase in residential property sale prices Auckland wide. ‘This indicates that landlords are not pushing to recover the full current purchase price, presenting Auckland renters with reasonable value for money,’ said Kiri Barfoot, of real estate firm Barfoot & Thompson. Growth in the number of large central city apartments and sizable family homes in the Eastern suburbs were strong drivers behind the overall, albeit minor increase, she pointed out. ‘These large and luxurious apartments in the city and substantial homes to the east are attracting top prices,’ she added. August’s weekly average for a three plus bedroom apartment in the city was $806, while a five plus bedroom home in the Eastern suburbs attracted $1,051 on average. Meanwhile, the more rural areas of Manukau and Franklin were the cheapest areas to rent, offering three bedroom homes for under $400 average, at $395 per week. Auckland rental prices have increased by 6.3% over the last 12 months, from an average of $467 to $496. Compared to August 2014,the average weekly rent for one bedroom properties has risen by 4.2% while two bedroom homes are up by 5.9%, three bedroom by 5.7%, four bedroom by 5.4% and five or more bedroom by 5.3%. Franklin/Manukau Rural remains the cheapest area to rent a property, across all property sizes. The Central City is the most expensive area for one, two and three bedroom properties. The Eastern Suburbs continue to have the highest priced large properties, with four bedroom properties receiving an average of $783, and five plus bedroom properties receiving $1,051. Barfoot also said that the city is seeing a rapid increase in online property rental activity with applications up by 28% in August compared to July. It signals an early start to the traditionally busy spring and summer periods and the August data shows a 61% rise when compared to the early winter month of May. Rental property searches online also increased by 26% between July and August. ‘It’s a typical spring trend, but we are seeing it take hold earlier each year as people try and get in ahead of the crowds. It is likely activity will also peak earlier this year, prior to, rather than after, the Christmas holidays,’ said Barfoot. She said that property managers are reporting that many tenants are thinking ahead to next winter and seeking homes that were warm and dry. ‘Homes with insulation and efficient heating, such as heat pumps, are highly sought after and we encourage our landlords to upgrade their properties in this way,’ she pointed out. To help manage the growing numbers the company has… Continue reading
Debt is not holding back graduates in the US buying a home, new research shows
Having a lot of student debt doesn't greatly reduce young people's chances of home ownership in the United States, as long as they graduate, a new analysis has found. The findings challenge a popular concern that giant student loan payments are holding back people from home ownership. As it turns out, graduates' debt loads don't materially hurt their chances of buying a home, especially if they get at least a four year degree. Overall student debt has only a small negative effect on the odds of home ownership for a person with a bachelor's degree or higher, according to the research from real estate firm Zillow. The chances of a married couple with no student debt owning a home are about 69.8% if at least one of them has a bachelor's degree. If the same couple has $30,000 in student debt, their homeownership chances drop slightly, to 67.7%. ‘The income advantage of getting a degree pays off in terms of being able to buy a home in the long run. Student debt isn't the evil-doer it's made out to be, at least not when it comes to homeownership,’ said Zillow chief economist Svenja Gudell. ‘As long as students stay in school and get a degree, student debt doesn't deter them from homeownership, although it is possible that student debt could delay home ownership. People in their 20s and 30s are renting longer because they're delaying marriage, paying a lot in rent, and struggling to qualify for a mortgage when they finally find an affordable home. Add to that list that they are paying off student debt,’ she explained. The research also found that the least likely to own homes are people who have student debt, but no degree. In fact, a couple who borrowed more than$30,000 for school but never graduated has a less than 40 percent chance of home ownership. Graduates with advanced degrees are the most likely to own a home, even if they racked up a lot of student debt. For example, if a couple owes $50,000 in student loans, but one of them has a master's degree, they have a 75% chance of home ownership. A similar household with just $10,000 in loans and only a bachelor's degree has just a 69% chance of home ownership. Student debt has the greatest impact on the home ownership rate of people with two year associate's degrees. A couple with AA degrees and no debt has a 70% chance of owning their home. That declines significantly as debt grows. If the same couple has $50,000 in student debt, they own their home only 57% of the time. Getting an associate's degree improves chances of home ownership until a person has borrowed $70,000. After that, their chances of home ownership would have been better without a degree and no student loan debt. Getting a bachelor's, master's or doctorate degree, regardless of debt, increases the chances that people will… Continue reading
