Property Solutions

UK house prices up 0.5% last month, latest index shows

Posted on May 30, 2014 at 4:51 pm

Image House prices within the UK increased 0.5% in November mostly because of rising demand and contracting supply, in accordance with the newest index.

Demand for housing grew by 3% while the availability of houses on the market declined by 3.5%, the information from Hometrack shows.
The firm’s report points out that during the last six months demand has grown by 10.2% yet supply has declined by 0.6% although the availability and insist balance does vary by region.

For example, the best imbalance and highest price increases are in London and the South East where prices are up by 4.8% and three.2% in six months. Compared the balance is smaller in northern regions where price growth was below 0.5% over the identical period.

The major change inside the last year was a shift from falling house prices in regions outside London to prices rising steadily off a low base as demand picks up. Much of the home price growth outside London remains muted and much from what can be described as a housing bubble, the report says.

The index also shows that the common time available on the market nationally is 8.4 weeks. Seven out of ten regions have an above average time out there of over 10 weeks. London has the bottom at 3.6 followed by the South East at five weeks.

The percentage of the asking price achieved was down slightly from a contemporary high of 95.2% to 95%. The softening was seen in regions outside London and suggests early signs of accelerating price sensitivity.

The report says that Help to purchase has delivered a confidence boost to the market. However, the impact of the brand new build element of the scheme on general house prices is proscribed because it supports not up to 3% of all sales.

It means that the impact of the mortgage indemnity component to the scheme could well fall in need of expectations given the better cost of those mortgages.

‘While Help to shop for has boosted sentiment and increased activity, low mortgage rates have provided homeowners more buying power than at any time previously. The change to Funding for Lending is probably going to set off mortgage rates drifting higher. This may occasionally reduce the capability buying power of households that is important to maintain price rises in check,’ the report says.

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Posted in Property Solutions

Vienna increasingly popular among wealthy second home buyers

Posted on May 28, 2014 at 7:36 am

Image Vienna is rising up the most well liked list of second home locations for buyers seeking to combine culture with privacy and security, in response to a brand new report.

But property seriously is not of the discount variety because the global financial crisis largely passed Vienna’s housing market, says the analysis from Knight Frank. The report points out that because the collapse of Lehman Brothers which signalled the beginning of the worldwide credit crunch mainstream prices in Austria have risen 34.7%, the top level of price growth in all of Europe.
 
Indeed, prices in Vienna went one step further and outperformed the national average, increasing by 55.1% over the identical period, according data from the Austrian National Bank.

In Vienna prices increased by 8.3% within the twelve months to June 2013. Luxury prices range between €15,000 and €18,000 per square meter however the most prestigious properties in Vienna’s old town can command upwards of €20,000 per square meter. However, despite expectations the record sale price of €30,000 per square meter has yet to be reached.

‘Austria’s property market, when it comes to its structure and up to date performance, is more closely aligned with its German speaking neighbours than it’s with its more volatile southern Eurozone partners,’ said Kate Everett-Allen of Knight Frank’s international residential research team.

‘Furthermore, owner occupiers represent only 56% of households and the rustic fortuitously avoided a housing boom pre 2008 which kept supply tight and mortgage lending still only accounts for around 35% of GDP, making it certainly one of Europe’s least indebted nations,’ she explained.

Vienna’s luxury apartment market is basically confined to the city’s 1st district, the world which encompasses the Imperial Palace, which was the unique home of the Habsburgs. Districts 2 to 9, which encircle the first district, and the 13th, 18th and 19th districts also are targeted by international buyers, particularly those seeking family homes.

The report says that development within the ‘Innere Stadt’ or old town is severely restricted given its preservation rights as a UNESCO world heritage site. However, one of the most largest inner city developments in decades is the restoration and redevelopment of the Goldenes Quartier, a mixed use scheme to be able to add 12 luxury apartments to the old town’s housing stock.

Most purchasers are lifestyle buyers seeking a second home but those investors which are active within the city centre are usually focussed on capital appreciation in place of rental return given the rent regulation that applies to pre-war buildings.

International buyers in Vienna are typically from Eastern Europe, Russia, america, Germany or Switzerland however the city is likewise increasingly at the radar of Asian buyers given it really is widely considered the ‘world capital’ of classical music and culture.

Knight Frank has found that the selection of searches for Viennese homes conducted by web users based in Asia increased 11% within the first nine months of 2013 when compared with an identical period in 2012.

A key attraction for buyers is Vienna’s secure and personal environment. Here’s underlined by the presence of international organisations corresponding to OPEC, the OSCE and the United Nations.

‘Anecdotal evidence means that celebrities and wealthy individuals can retain their anonymity here in some way few other cities permit. Indeed, in 2013 Vienna topped the rankings for quality of life for the fourth consecutive year in a survey conducted by HR consultants Mercer,’ added Everett-Allen.

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Posted in Property Solutions

Residential building trends in Australia looking strong going into 2014

Posted on May 26, 2014 at 8:16 pm

Image Residential building approvals in Australia only eased slightly in October after hitting their highest level in three and a half years in September, in step with the newest figures from the Australian Bureau of Statistics.

Overall, looking beyond only one month’s figures, the upward momentum within the building approvals sector is impressive and means the industry is poised for more growth in 2014, in accordance with the Housing Industry Association, the voice of Australia’s residential building industry.

In October 2013, growth in total seasonally adjusted building approvals was strongest in Victoria with growth of 23.4%, followed by Tasmania up 19.7%, Queensland up 10.5% and South Australia up 1.2%.

But approvals dropped by 33.5% in New South Wales and fell by 6% in Western Australia. In trend terms, building approvals rose by 13.4% within the Northern Territory but fell by 4.7%  inside the Australian Capital Territory.

‘All things considered, this can be a healthy update for this key leading indicator of latest home building activity. After a modest decline of one.8% in October, total residential building approvals are still at their second highest level since March 2010,’ said HIA chief economist Harley Dale.

He said that there have been wide variances within the October approvals results, including strong growth in Victoria and Queensland helping to offset a dip in New South Wales.

But looking beyond only one month, the fastest growth in approvals is happening for brand new South Wales, Victoria and Queensland, while growth in ‘other dwelling’ approvals, at 43% of total approvals in 2013, is much outpacing that for detached houses.

‘The upward momentum to building approvals is impressive and augers well for brand spanking new home building activity heading right into a new year. Evidence of faster growth across a much broader selection of geographical jurisdictions and building approval types might be a tremendous additional element to monitor in coming months,’ explained Dale.

He also identified that during the decades ahead Australia might want to build a considerably higher variety of homes every year than it has averaged over the past two decades.

‘Current momentum suggests we’re taking a major first step on this regard. But we won’t make the overall destination with no concerted consider reducing the structural barriers to a sustainable lift in new housing supply. With a primary round new home building recovery underway, now’s the time to embark on that programme of policy reform,’ he added. 

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Posted in Property Solutions

Demands shared property ownership within the UK to be expanded

Posted on May 24, 2014 at 12:44 pm

Image an enormous expansion of newly built shared ownership could help low and modest income working families around the UK onto the valuables ladder, while keeping their housing costs affordable, in response to a brand new analysis from an independent think tank.

The report, from the Resolution Foundation, shows that shared ownership, where buyers purchase as a minimum 25% of the equity in a house and pay a low rent at the remaining share owned by a Housing Association, is cheap for a pair with one child on £22,000 in 87% of local authorities in Britain, assuming they spend not more than 35% in their net income on housing costs.

The report also show that the newest phase of Help to purchase, which gives a central authority guarantee on 95% mortgages, is actually geared towards households on middle and better incomes whose main barrier to home ownership is raising a sizable deposit instead of meeting high monthly mortgage costs.

For low and modest income working families, while it’s the case that Help to purchase greatly reduces the time it takes to save lots of for a deposit in most local authorities, the policy still leaves monthly mortgage costs unaffordable around the great majority of the rustic, the report says.

For example, a pair with one child with net income of £22,000, that’s the just over a 3rd of ways up the income distribution, living in a two bed home in Cambridge would need to spend 85% of net income or £1,557 per thirty days on meeting monthly the charges of a 95% in comparison to 42% of net income or £772 monthly for shared ownership.

In the London borough of Hounslow, they’d ought to spend 76% of net income or £1,395 per 30 days on meeting the monthly costs of a 95% mortgage in comparison to 38% of net income or £692 monthly for shared ownership. And in Exeter, they’d ought to spend 53% of net income or £970 per 30 days on meeting the monthly costs of a 95% mortgage in comparison with 26% of net income or £481 per thirty days for shared ownership.

The report points out that shared ownership is cheaper for low income families because they initially take out a mortgage on just a share of a house not the whole property and pay an annual rent of not more than 3% at the remaining share, with annual rent rises according to RPI plus 0.5%. While they own less equity, their payments are more predictable and they’re less in peril from changes inside the mortgage market. Shared owners can claim Housing Benefit at the rent but this can be rare.

However shared ownership currently accounts for just a very small choice of homes, some 174,000 in England. Related innovations reminiscent of rent to purchase and residential purchase plans have also up to now didn’t achieve scale.

The Resolution Foundation report says that with growing numbers of families stuck within the private rental sector, shared ownership must become the mainstream fourth tenure to aid meet their aspiration to possess, generate much needed new housing supply and help address Britain’s growing wealth gap, while also reducing volatility within the housing market.

The report calls on government to make this a reality by making a new shared ownership equity fund to encourage a rise within the selection of homes built for shared ownership, building at the current Build to hire fund that was announced in last year’s Autumn Statement to kick start purpose built private rented accommodation.

The report also proposes that lots of the regulations and restrictions that currently limit the ability of shared ownership has to be stripped away. As an instance restrictions on marketing properties through estate agents, sub letting properties and more onerous valuations than for conventional house sales, need to be scrapped and replaced by an easy, transparent set of standards which are easy for buyers to grasp.

Other recommendations include bringing private capital from pension funds and other institutional investors into shared ownership by opening up the prevailing £10 billion private rented sector debt guarantee to cost effective home ownership products similar to home purchase plans and rent to shop schemes not only pure private rental schemes.

Also local authorities using their land to enable the construction of shared ownership in areas of high demand in place of shared ownership being delivered predominantly through affordable housing requirements put on house builders building on the market need to be encouraged, it says.

It also points out that reinvigorating Do It Yourself Shared Ownership to offer buyers greater number of properties alongside greater supply of recent shared ownership homes, would even be beneficial. The present stock of shared ownership is predominantly newer, smaller properties that are less just right to families. Do It Yourself Shared Ownership allows buyers to buy shares of existing properties and is an efficient way of to bringing larger, family homes into shared ownership.

‘The aspiration to possess a house remains strong among millions of families however the growing gap between renting and conventional home ownership is simply too great for a lot of. Shared ownership must enter the mainstream, becoming the fourth tenure within the UK alongside traditional ownership, private and social renting because it breaks down the barriers between renting and owning for low and modest income families,’ said Vidhya Alakeson, deputy chief executive on the Resolution Foundation.

‘As well a tremendous expansion of recent homes for shared ownership, we have to strip away many of the current restrictions and regulations to make the product more consumer friendly and more attractive to potential shared owners,’ added Alakeson.

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Posted in Property Solutions

Zoopla Floatation On London Stock Exchange

Posted on May 22, 2014 at 1:41 pm

The property giant website Zoopla that boasts an average of 40 million users per month has announced that it plans to float the company on the London Stock Exchange (LSE). As well as the Zoopla site, the Zoopla group also includes the other websites PrimeLocation, SmartNewHomes and HomesOverseas too.

This decision comes at a time where a number of large retailers have floated their companies and have achieved lower than expected market value. Zoopla believe themselves as an exception to this as they are up 26% in revenue this year with an operating profit of over £16 million.

Being the UK’s second largest property website after the property giants Rightmove, they seem keen to pursue this move especially as they advertise 90% of all properly listings. With this in mind the 52.6% shareholders Daily Mail and General Trust are keep to reduce the size of its stake in the firm but are looking to still keep the largest portion of any shareholder.

Posted in Home Improvements

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