TSI
UK property supply down almost 5% in May
Residential property supply in the UK increased by 4.8% in May but a breakdown of the figures show that the number of homes for sale fell in half of the towns covered by the index. In total month on month supply was down in 50.4% of towns with the biggest falls coming in the towns of Southport and Loughborough at 28% and 24.1% respectively. The data from the index from online estate agent HouseSimple also shows that towns in the Midlands saw the biggest increase in supply with Lichfield up 56% and Chesterfield up 36%. The index, which tracks the number of new properties marketed every month in more than 100 major towns and cities across the UK and all London boroughs, also shows that of the areas that saw the biggest falls in supply some 47% were in the North of England. In London supply was also down by 2.4% overall in May with the City of Westminster seeing the biggest drop at 33%. The overall fall follows a decline of just 0.8% in April. The borough of Bexley also saw a significant fall following a huge peak in April, when new property listings were up 58.9%. However, despite the overall fall in London dome 53% of its 32 boroughs saw an increase in supply last month. Waltham Forest saw property supply rise 31% month on month following an 8% increase in April and Merton saw supply increase 30% in May following a 15% increase in April. ‘Although property supply was up in May, in large swathes of the country, the number of new properties listed fell,’ said the firm’s chief executive officer Alex Gosling. He believes that the confidence of buyers could be affected by the forthcoming referendum on the future of the UK in the European Union and predicts that in the run up to the poll on 23 June there could be a significant drop off in activity at a time when historically there is a lot of activity in the property market. ‘On the flip side, this could actually provide an opportunity for prospective buyers, who have their finance in place and can move fast, as they may be able to negotiate a good deal with motivated sellers keen to tie up a sale before 23 June,’ he added. Continue reading
House price growth slowing in Spain, but headline figures mask regional differences
Although generally the housing market in Spain is perceived as recovering well there are signs of growth slowing, according to some of the latest figures to be published. Residential prices grew by 1.3% in May and by 1.5% in the first five months of the year, but this is lower than the 1.9% registered up until the end of April. The data from the latest index property appraisers, Tinsa, also shows that the average price of a property in Spain is still down 41.4% since 2007. However, the national figures hide signs of real growth in some sectors and locations. For example, prices in capitals and large cities as well as in the Balearic and Canary Islands were up 3.5% year on year in May. On the Mediterranean Coast prices increased by 1.6% and metropolitan areas saw smaller annual growth at 0.7%. But in the rest of the municipalities category prices have been falling, down 2.5%. But even the breakdown of the figures shows there are signs of slowing growth. Since the beginning of 2016 average prices on the Mediterranean Coast remained at the same level as the beginning of the year but were up 1.3% in the capitals and large cities and the metropolitan areas. In the first five months of the year the rest of the municipalities category saw growth of 1.5%, and the Balearic and Canary Islands have seen the strongest price growth at 4.2%. Meanwhile, the latest asking price index from property portal Fotocasa shows that sellers reduced their price expectations by an average of 0.7% in April compared to a year ago. The average asking price in April was €1,624 per square meter, down by 0.2% month on month but overall the index has been stable for 12 months now with prices never varying more than 1% either up or down. Beatriz Toribio, head of research at Fotocasa, believes that house prices will continue to go in different directions during 2016. ‘Whilst in some areas of the country prices are stabilising or even rising, in others they continue to fall hard. This is a consequence of the crisis the sector has lived through, which has left a market of two or more speeds,’ she explained. Official figures released by the Government also suggest a slowing in recent months. It says that year on year prices have increased by 2.4% but by only 0.2% in the first quarter of 2016. A breakdown of the figures show that house prices rose the most in the Balearics with growth of 9.6%, followed by Catalonia up 4.9%, Madrid up 4.2%, Extremadura up 3.7%, Galicia up 2.6%, the Valencian region up 2.4%, and the Canaries also up 2.4%. Continue reading
EU vote contributing to slow down in home lending in the UK
A further slowdown in home lending in May ahead of the referendum on the future of the UK in the European Union means house purchase lending activity has fallen to a 12 month low. There were 65,113 house purchase approvals, down 1.7% from 66,250 the previous month, according to the latest Mortgage Monitor from residential chartered surveyor e.surv. This marks a 12 month low in lending levels and is the lowest monthly figure for home purchase loans since the 64,626 granted in May 2015. It follows monthly declines of 5.8% in April and 3% in March meaning volumes have fallen 10.5% over the last three months and the report says that the political uncertainty ahead of the EU Referendum may be causing caution amongst lenders and borrowers alike. The recent falls represent a marked turnaround from the peak in lending seen at the start of the year. January and February both saw strong numbers of house purchase approvals granted at 73,060 and 72,512 per month respectively as buy to let landlords and second home buyers pushed through purchases ahead of the stamp duty changes in April. Now, by comparison, the lending market is settling back into its usual rhythm. On an annual basis however, house purchase lending rose marginally in May by 0.8%. The proportion of small deposit lending also dropped slightly in May comprising 18.4% of total home lending, down from 19.1% the previous month. Meanwhile, lending to large deposit buyers, those with a deposit of 60% or more, picked up significantly and now makes up 30.7% of all borrowing. Richard Sexton, director of e.surv chartered surveyors, said that despite the uncertainty the mortgage market remains on an even keel and home buyers have more options than ever as lenders work to expand their range of mortgage options further. He pointed out that new mortgages with longer repayment terms and innovative inter-generational mortgages are offering financial buoyancy aids for buyers but there can be little doubt that the referendum is causing some nervousness within financial circles and bringing new unknowns with it. ‘This political milestone could impact the UK’s economic outlook and slowing growth could pose problems of its own for both lenders and borrowers. Juggling these challenges will be key to maintaining the current health of the mortgage market and lenders should brace themselves for possible surprises,’ he explained. ‘Faced with this uncertainty, it’s perhaps no surprise that home lending levels are falling slightly. The result is a slight tail off in the middle of the year as home buyers pause for thought and lenders are gifted more time to investigate the potential of offering additional mortgage choices. A lull in buy to let lending following April’s stamp duty changes has also added to this calming in the market,’ he added. The report also shows that small deposit loans(to buyers with a deposit worth 15% or less of their properties’ total value totalled 11,981 in absolute terms in May,… Continue reading
