TSI
Sales of property in prime central London record first rise of 2016
Transaction volumes in central London’s prime property market rose in March compared to last year, the first increase in 2016, new data shows. Sales were driven by buyers trying to beat the 3% stamp duty surcharge but year on year growth slowed to 0.8%, the lowest figure for more than six years, according to the latest report from real estate firm Knight Frank. The incentive to act before the April introduction of the new stamp duty rate on additional homes was one of the reasons Knight Frank sales volumes in March exceeded last year’s figure. This bucked the trend of the first quarter of 2016, where volumes were flat in January and marginally down in February. However, the other factor at play is a marked slowdown in the rate of annual growth over the last 18 months. ‘It is the result of a series of tax changes and a preceding period of exceptional growth, which is also a topic that is increasingly covered by the media. As a result, there is a growing recognition on the part of vendors that the prime central London property market is no longer on the upwards trajectory it was in the years following the financial crisis,’ said Tom Bill, head of London residential research. ‘As vendors become more attuned to current market conditions and adjust asking prices, the effect is to drive demand. Asking prices are typically declining by in excess of 10% to attract price sensitive buyers,’ he explained. Despite the bounce back Knight Frank forecasts a 2% decline in western markets but it predicts a 5% growth in markets east of Mayfair and south of the River Thames in 2016. But growth is increasingly polarised. In higher value western areas around Hyde Park, recent tax changes have had more of a dampening impact. Meanwhile, the opposite is true in traditionally lower value markets including Islington and the City and Fringe. A breakdown of the figures show that prices increased by 8.2% in Islington and by 8.1% in City and Fringe. Price also increased by 3% in Southbank, by 2.9% in Riverside, by 2.6% in Mayfair, by 1.8% in Kensington and by 1.2% in Marylebone. Prices were unchanged in St Johns Wood but fell by 6.8% in Knightsbridge, by 4.9% in South Kensington, by 3.5% in Hyde Park, by 2.5% in Chelsea, by 0.8% in Notting Hill and by 0.2% in Belgravia. Continue reading
Irish property prices up 8% year on year but start of 2016 sees growth slowing
Residential property prices in Ireland increased by 8% in the year to February 2016, up from 7.6% in January and an increase of 14.9% recorded in the 12 months to February 2015. The data from the Central Statistics Office also shows, however, that month on month ere was no change in prices compared with a decrease of 0.5% recorded in January and a decrease of 0.4% recorded in February of last year. A breakdown of the figures show that in Dublin prices decreased by 0.1% in February and were 4% higher than a year ago. House prices decreased by 0.3% in the month and were 4% higher compared to a year earlier while apartment prices were 4.3% higher when compared with the same month of 2015. Property prices in the Rest of Ireland rose by 0.1% in February compared with no change in February of last year and were 11.5% higher than in February 2015. It means that house prices in Dublin are 35.1% lower than at their highest level in early 2007 and apartment prices are 40.9% lower than they were in February 2007. Prices in the rest of Ireland are 35.2% lower than their highest level in September 2007 and overall the national index is 33.8% lower than its highest level in 2007. Meanwhile, the latest data from Myhome.ie shows that house prices continued to rise in the first quarter of 2016 but the rate of increase has moderated. The national mix adjusted asking price measure rose by 2.2%, in the first three months, up 5.7% year on year while in Dublin asking prices were up 2.5% and 12.7% respectively. According to the survey the mix adjusted asking price for a house nationally is €198,000 while in Dublin it is €276,000. For new instructions the median price in Dublin has risen 1.4% in the first quarter to €299,000 while outside Dublin the figure has risen 6.3% to €169,000. The author of the report, economist Conall MacCoille from Davy, said the moderation in house price inflation was a positive development and did not mark a period of sustained declines. ‘A mix of factors probably explains the recent moderation in house price growth. First of all affordability was becoming stretched in Dublin. Secondly the Central Bank’s new lending rules may have reined in exuberant price expectations. Thirdly the end of capital gains tax exemptions may have inflated demand mid-year, leading to price falls towards the end of last year,’ he explained. The affordability index shows that house price to income ratio is highest in Dublin and Mid Leinster at 5.9 and 4.9 respectively while the midlands at 2.8 and the mid-west at 3.4 looks most affordable. MacCoille explained that the figure for the country as a whole is five and although Irish property prices are still well below 2007 peak levels, they no longer look cheap relative to incomes he said and he believes that population increases and supply constraints will… Continue reading
Heating and double glazing top list of UK home buyers must haves
Central heating and double glazing top UK homebuyers’ list of must have property features followed by a garden and secure doors and windows, according to new research. House hunters opt for a good, reliable broadband signal over highly rated schools, off road parking over a garage and a living room big enough for a large flat screen telly over period features. Indeed, the research from comparison website Gocompare, found that only 15% rated access to good local schools an essential factor in buying a new home and buyers are looking for homes with a bath, separate shower, multiple toilets and en-suite bathrooms. However, it is warmth and energy efficiency that are key priorities for house hunters. Some 79% said that central heating is their top must have feature and 74% said it was double glazing. A good energy efficiency rating and cavity wall insulation are also highly rated features, mentioned by 53%. Some 71% said a garden, 70% secure windows and doors, 58% off road parking and 57% a bath. Local shops and amenities were important to 55% and 54% said friendly neighbours was their top priority. A good reliable broadband connection was mentioned by 53%, while 50% said a landline telephone and 49% a good TV connection while 47% want a second shower and 45% at least two toilets. However, only 16% thought an open fireplace or wood burner were a home essential and just 7% favoured period features. Only 15% of those surveyed said access to good local schools was an essential factor in buying a new home. ‘From our research it’s clear that today’s potential homebuyers are putting practical concerns ahead of aesthetics. They are looking for warm, cosy properties, which are energy efficient and well connected to modern amenities rather than ones that are full of character,’ said Gocompare’s mortgages spokesperson Matt Sanders. He pointed out that as the on-going costs of running a home including paying the mortgage, utility bills and council tax are a real concern, it is perhaps unsurprising then well insulated homes and efficient central heating systems are key priorities. ‘The survey also highlights the important role technology and in-home entertainment plays in our day to day lives, from streaming live TV and films to our reliance on mobile phones. For many people, access to both a strong internet connection and a reliable mobile phone service have become modern home essentials,’ he added. Continue reading
