Tag Archives: shows
UK property valuations up 50% month on month
Valuations in the UK property market last month increased across all sectors with the total number 50% higher than in January, according to the latest research. There was a strong surge in activity across the housing market but home movers led the way with a 59% rise in activity on a monthly basis, the data from Connells Survey and Valuation shows. However, despite the strength of this upsurge, this leaves home mover valuations in February 8% lower than 12 months before. ‘After an extended period of fairly subdued activity it is encouraging to see the market rebound. It is especially positive that all the sectors posted big gains. The first quarter is normally a strong one so after a relatively weak January it is reassuring to see February come back so strongly,’ said John Bagshaw, the firm’s corporate services director. ‘Previously activity among home movers was sluggish, reporting weak growth throughout the final quarter of 2014 and at the beginning of this year. However, supported by a sunny economic outlook and record low mortgage rates we are beginning to see a shift in consumer behaviour,’ he added. The data also shows that first time buyer activity reached an eight month high in February with the sector posting the second highest monthly growth after home movers. The number of valuations rose by 52% compared to the previous month, while on an annual basis it saw the smallest fall of just 3%. Bagshaw pointed out that the last time the sector saw such a boost in activity was in the rush before the Funding for Lending Scheme (FLS) stopped mortgage funding at the end of January 2014 and he added that the recently announced Starter Homes project should provide more additional support to the sector. ‘Although the scheme is fairly moderate in size the 20% discount being offered to first time buyers under the age of 40 provides a welcome sign that the government is keen not to be seen to turn its back on first time buyers,’ he said. The number of buy to let valuations followed up on January’s climb of 37% with a further monthly rise of 41% in February. Spurred by these monthly increases the sector posted an 8% year on year gain making it the only sector to post an annual increase. Bagshaw explained that continued weak inflation has further dampened fears of an upcoming hike in interest rates. ‘As a result we’re seeing increasing confidence among both lenders and borrowers alike as low mortgage rates carry on posing attractive deals. Whilst inflation remains low we expect the sector to continue to thrive,’ he pointed out. Remortgage activity followed the overall positive market trend with growth of just under 50% but year on year it was the weakest sector with a 10% drop in the number of valuations. Bagshaw said that remortgaging has… Continue reading
Supply of Help to Buy homes falls by over 7% in a year
The supply of homes available under the UK’s flagship Help to Buy scheme has declined by 7.4% in a year and the average prices has risen by 5.5%. The worst affected area is Stockport where the number of available homes has fallen by 24.3%, according to new research from property firm Zoopla. The analysis of properties for sale in England and Wales up to a value of £600,000 also shows that on a regional basis the biggest fall in properties eligible for Help to Buy has been in the East of England, with a 12.3% reduction in suitable stock on the market, while average prices have climbed 6.1% over the same period. Also, compared to March 2014, there are now 16.9% fewer properties on the market in Rochdale that meet the scheme’s criteria, and 15.6% less in Huddersfield. Further south, the number of properties for sale in Worcester, Cheltenham and Exeter that qualify for Help to Buy support has increased by 5.4%, 3.3%, and 3.2% respectively in the past 12 months. In London, the typical value of a property qualifying for Help to Buy has risen by 11.7% since March 2014 and of all London boroughs, Southwark, Lambeth, Waltham Forest and Newham have seen the greatest annual rise in supply of homes with a rise of over 15%. ‘The Help to Buy scheme was intended as a leg up for first time buyers, but in some areas that footrest has since been pulled from under their feet,’ said Lawrence Hall of Zoopla. ‘Greater demand hasn’t been met by greater supply of homes on the market, and instead the soaring price growth of the past year appears to have airlifted many properties out of the starter home sector,’ he explained. ‘The pool of homes on the market within reach of Help to Buy assistance needs to expand, or this pinch on supply will continue to inflate prices at the bottom rungs of the ladder,’ he added. Continue reading
Outer London prime property becoming attractive to buy to let investors
UK buy to let buyers are taking advantage of attractive mortgage rates and a thriving prime property market in outer London, especially new build schemes, it is claimed. Properties in this sector offer greater returns than the prime central London real estate market, according to London estate agent Fraser & Co. An example is Mrs Busby, 43, who bought a two bedroom property with her husband as a buy to let investment in the Aqua new build development in Finsbury Park. ‘The area is currently undergoing a 20 year regeneration plan, which makes for a promising long term investment,’ she said. ‘We looked at other developments in the area, but Aqua proved best value for money when considering the quality and its position overlooking the West Reservoir which meant it can’t be obstructed by any new buildings,’ she explained. She added that another attraction was that the property was part of a smaller development of just 82 apartments. ‘Being part of a smaller development creates healthy competition that will only benefit our property by increasing the re-sale profitability,’ she pointed out. The couple are establishing a property portfolio as part of their pension scheme and are taking note of the investment potential outside of prime central London. They felt that the area offers good transport links and new builds tend to be the safer option as most come with warrantees and require little maintenance. Robert Fraser, managing director of Fraser & Co, said that for years the buy to let market was dominated by Asian buyers but now more domestic buyers are showing interest in capitalising on the greater return on investment of property available in outer zones. ‘Where there is redevelopment and good transport links to central London, there is significant growth potential. While Aqua is benefitting from the regeneration going on in Finsbury Park town centre and at Woodberry Down, Rotherhithe is experiencing a double ripple effect from Canada Water and London Bridge, making Anchor Point equally attractive,’ he explained. He pointed out that last month, Southwark and Hackney experienced asking price growths of 5.6% and 4.1% respectively compared to Kensington and Chelsea and Camden which experienced either zero or negative growth. ‘As buy to let mortgages become more appealing, we expect to see domestic investors nipping at the heels of their international counterparts, allowing areas in zone 2 to continue to thrive and extend out towards zone 3,’ he added. Continue reading
