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Survey suggests UK property owners carry out work to create their dream home
British home owners renovate their property for living in for the long term with the majority not doing so to increase the price, new research suggests. Some 67% are planning to stay in their home for over five years and carry out work with the aim of creating their dream home, according to the research by Zopa with kitchens the top target for change. The survey, of over 1,200 people who had taken a Zopa home improvement loan, found that 27% either have had or plan to get their home revalued after renovations, and only 9% said they would need to move to be in their ideal home. So far in 2016, Zopa customers have borrowed over £50 million to improve their homes, a 54% increase on home improvement loans compared to the same period last year. Some 34% used their home improvement loan to revamp their kitchens and, of those who said their homes are not yet perfect, 19% cited a bigger kitchen as top of their wish list. After renovations two out of five people say they are now in their perfect home. Of those who still don’t think their property is perfect, 22% said they would need to move. The most commonly cited areas for improvement were better decoration at 31%, bigger kitchens at 19% and more bedrooms also at 19%. The research also found that the majority, 73%, used professionals to complete their home improvements, with 45% using skilled professionals for the entire job while 13% undertook all the renovations themselves and the same number sourced help from family and friends. Some 77% said they’d be happy to do painting, with 51% ready to take on wallpapering and 32% happy to complete tiling but people were least confident when it came to masonry work at just 6%, bricklaying at 7% and plastering at 10%. The survey also found that 4.2% were considering moving to unlock the increased property value with 98% agreeing that their renovations have added value to their home. Some 27% believed the increase to be worth between £11,416 and £19,027, adding between 6% and 10% to the price while 19.4% said it would be an increase of between £20,930 and £28,541, a 11% to 15% rise in value and 11.4% expected to see an increase in value of over 21%. Continue reading
Residential property price growth in Australian capital cities slowing
The pace of growth in residential property prices across Australia’s eight capital cities is slowing amid signs that sales momentum is waning, the latest data shows. In the March quarter of 2016 prices were 6.8% than 12 months previously, according to the figures from the Australian Bureau of Statistics (ABS). But this was slower than throughout 2015 when growth averaged 9% per annum. ‘This deceleration is largely being driven by developments in the Sydney residential property market, where annual price growth eased back into single figure territory in March this year. Sydney prices grew at an annual rate of 9.7%, beating the national average, but are also the city’s slowest pace of growth in almost three years,’ said Diwa Hopkins, Housing Industry Association economist. ‘This deceleration in price growth has occurred against a backdrop of waning momentum in property transfers, particularly amongst non-detached housing. The volume of attached dwelling transfers across Australia grew strongly in 2013 and 2014. The volume of transfers was virtually unchanged in 2015 and signs of a pullback in 2016 are now emerging,’ she explained. A breakdown of the figures shows that price growth remained strongest in Melbourne with an increase of 9.8%, followed by Sydney up 9.7%, then Canberra up 4.6, Hobart up 4.2%, Brisbane up 4.1% and Adelaide up 3.1%. In other capital cities prices growth has fallen, led by Darwin with a fall of 4.9% and in Perth prices fell by 4.5% in the year to the March 2016 quarter. Meanwhile, the HIA’s latest bi-annual Housing Scorecard shows that there were over 220,000 dwellings commenced in Australia during 2015, a new annual record. However, there were significant divergences in conditions for residential building around the country. The eastern seaboard states have been the strongest performers, the mining states are sliding down the order, while South Australia and Tasmania are facing the most challenging conditions, according to said HIA economist Geordan Murray. The report shows that there is little to separate the top two ranked states, but it is Victoria that has edged out New South Wales to take the top spot. With nearly 70,000 dwellings commenced in 2015, it is not all that surprising that Victoria was number one, but Victoria also ranked as the strongest market for renovations. Western Australia is off the pace of the top two states, but still ranks third. But Murray pointed out that the high ranking for Western Australia belies the challenging conditions emerging for residential building, as evidenced by nearly 18 months of falling home prices. ‘The state’s overall ranking is propped up by strong performances in indicators of residential building that is already underway. The leading indicators highlight the recent deterioration in conditions and the prospect of weaker conditions ahead, which the HIA has been warning of for a considerable time,’ he explained. He also explained that Queensland is not performing as strongly as Victoria and New South Wales, but the housing recovery is being tempered by the… Continue reading
UK sees highest gross home lending for May since 2008
Gross mortgage lending in the UK reached £18.2 billion in May, some 4% higher than April’s £17.6 billion and 14% higher than May 2015, the latest data shows. The figure from the Council of Mortgage Lenders, which represents the vast majority of home lenders in the UK, was the highest May figure since 2008 when gross lending reached £23.7 billion. CML senior economist Mohammad Jamei pointed out that, as expected, lending continued to be somewhat dampened in May, reflecting the earlier rush in the first quarter to beat the stamp duty change on second properties. ‘Looking ahead, there is likely to be considerable uncertainty as a result of the European Union referendum decision. We expect this to affect sentiment and reduce activity below levels that would otherwise be expected in the near term, as both buyers and sellers adopt a wait and see attitude until the dust begins to settle,’ he explained. ‘Market fundamentals underpinning house prices still look sound, and we do not expect significant house price falls, especially given the current supply demand imbalance,’ he added. According to Adam Tyler, chief executive officer of the National Association of Commercial Finance Brokers (NACFB), a wait and see attitude and increased caution is likely among buyers and sellers alike due to the referendum result. ‘Our own view mirrors that of the Council of Mortgage Lenders in that market fundamentals still look sound and the sharp imbalance between supply and demand will prevent a material decline in prices,’ he said. ‘Sentiment may have shifted dramatically over the past few days but the structural imbalance between supply and demand is as strong as ever. Demand naturally tapered off in the buy to let sector following the stamp duty surcharge but it may experience a bounce after Friday's referendum result,’ he explained. He also pointed out that current market, political and economic volatility could benefit buy to let as investors once again look to bricks and mortar as a safe investment and the fact that Bank Rate is now more likely to go down than up in the near term will provide further support to the property market. ‘Understandably, there's a lot of hysteria surrounding the trajectory of the property market but our own view is that the reality will prove to be relatively benign,’ he added. Continue reading
