Posts with tag: property sales

Chinese Buyers to Bring in the New Year with a Property Purchase

Published On: January 31, 2017 at 9:58 am

Tags: Chinese buyers,Chinese New Year,property investors,property sales

Almost a third of UK estate agents are expecting to see an increase in enquiries from Chinese buyers as the Year of the Rooster kicks off, according to a new study.

Chinese New Year, which began last weekend, is a common time for civilians to travel overseas.

Chinese Buyers to Bring in the New Year with a Property Purchase

A poll by property portal Juwai, which caters for Chinese buyers looking for purchases outside of China, found that 31% of UK agents expect to be approached at this time of year.

So how much competition will Chinese buyers be putting against UK investors?

Almost half (43%) of Chinese citizens travelling for the New Year said they intend to meet with agents they have already spoken to about purchasing a property in the countries they’re visiting, while 32% said they would meet with estate agents they haven’t spoken to yet.

Of 184 UK-based estate agents polled, 12% reported that Chinese buyers have contacted them, while 54% expected a busy period during the celebrations.

The Chief Executive of Juwai, Charles Pittar, explains the increase: “During Chinese New Year, some estate agents see no Chinese buyers and others see an abundance of them. It depends on the type of product they’re selling and the location.

“Generally, we find that the wealthier buyers are more likely to combine property hunting with tourism during Chinese New Year. Overall, a majority of estate agents expect this year to be a busier holiday season than in 2016.”

He continues: “Looking beyond just the holiday to all of 2017, almost half of Chinese consumers say they will engage in property hunting during their trips abroad.

“It’s not always the case, but often we see a strong correlation between the countries they visit as tourists and the countries where they purchase property. 57% plan to purchase property in the country to which they are travelling. An additional 26% say they would consider doing so. When it comes to immigration, 58% are considering immigrating to the country they are visiting.”

The findings arrive following research by Knight Frank, which found that the Year of the Dog has been the strongest for house price growth in the UK in recent years, with an average increase of 9.26% between 2006-07.

The Year of the Rat, which fell just after the financial crisis of 2008, was the worst performing zodiac sign, with prices across the UK down by 16.55%.

Agents, have you witnessed an increase in Chinese buyers since the start of the New Year celebrations?

Mortgage Values Reached Highest Level Since 2008 Last Year

Published On: January 27, 2017 at 10:17 am

Author: Em Morley

Categories: Finance News

Tags: homeowners,mortgages,property market,property sales

Although house purchase mortgage approvals dropped in 2016, mortgage values rose to the highest level since 2008, figures suggest.

Data from the British Bankers’ Association (BBA) for December show that banks approved 43,228 mortgages last month, up from 41,003 in November, but down by 4.1% on an annual basis.

Mortgage Values Reached Highest Level Since 2008 Last Year

Meanwhile, estimates on mortgage values from the Council of Mortgage Lenders (CML) claim that gross mortgage borrowing reached £20.4 billion in December. Although this is 4% lower than November’s figure, it takes the total mortgage values of 2016 to a post-2008 high of £246 billion.

An Economist at the CML, Mohammad Jamei, says: “The UK housing market, much like the wider UK economy, ended 2016 on a generally positive note.

“Approvals for house purchase have recovered strongly of late, and this should feed through to lending figures in the early months of 2017.”

He continues: “The current availability of mortgage credit is benign, and the real issue continues to be a dearth of properties on the market, which adds to the challenges facing would-be buyers.

“Uncertainty associated with political factors and prospective changes to the tax treatment of landlords will weigh on prospects for the year ahead.”

The Chief Executive of haart estate agent, Paul Smith, also comments: “The surge of housing purchase approvals seen in December suggests the New Year should be off to a flying start, so long as the industry does not get run off track by being bogged down with the ins and outs of Brexit negotiations.

“The upcoming Housing White Paper has the potential to uplift this, however, the bungling over its release date does not inspire much confidence that we’re on the cusp of a homeownership revolution.”

He insists: “The Government needs to start listening to the voices within the property industry if we are to avoid leaving a generation of aspiring homeowners behind by inaction and policy failures.

“It is crucial that we see greater Government incentives for housebuilders to build the right type of housing, and for older people to downsize their family homes. Only then will we see the level of fluidity in the market needed to combat a growing population and a lack of supply.”

Smith’s pleas arrive as construction experts insist that the sector is experiencing a severe shortage of skilled workers, which will naturally impact housebuilding levels across the country.

Property Transactions in 2016 Almost Unchanged on an Annual Basis

Published On: January 25, 2017 at 9:34 am

Author: Em Morley

Categories: Property News

Tags: homebuyers,property market,property sales,property transactions

The number of property transactions over the whole of 2016 was almost unchanged on an annual basis, rising by just 0.45%, according to the latest figures from HM Revenue & Customs (HMRC).

Provisional non-seasonally adjusted data from the Government department show that there were 1,235,129 property transactions in 2016, up slightly from 1,229,580 in 2015.

In comparison, the number of property transactions increased by 0.88% between 2014-2015.

Property Transactions in 2016 Almost Unchanged on an Annual Basis

On a monthly basis, 109,100 property transactions were recorded in December, up by 5.1% on November, but down by 4% on December 2015.

The Chief Executive of estate agent Marsh & Parsons, David Brown, comments on the figures: “Despite a number of obstacles in 2016, the total number of transactions rose slightly compared to 2015, to the highest since the financial crash.

“The resilience demonstrated in the face of a vote to leave the EU and marked changes to Stamp Duty, which significant impacted sales of second homes and the buy-to-let market, is not to be scoffed at.

“We’ve already witnessed an encouraging stream of interest from buyers across London during the start of 2017, particularly international buyers who have been buoyed by the falling value of the pound and continue to view London property as a solid investment.”

Shaun Church, the Director of mortgage broker Private Finance, also says: “Reflecting on the second half of the year, the property market ended 2016 on more of a whimper than a bang, with transactions remaining largely flat and falling year-on-year.

“However, 2016 has been a very unusual stage in the life of the UK housing market, with Stamp Duty changes resetting the dial for investors and wider uncertainty caused by the EU referendum.

“Given these challenges, the market has proven to be remarkably resilient, and end-of-year sales meant December brought the largest monthly transaction total of the new Stamp Duty era.”

He continues: “Although we have seen a degree of recovery since April’s reform, overall activity levels do not paint the full picture of pressures facing would-be homebuyers. Low supply continues to pose an affordability challenge to buyers at the lower end of the market, and there has been a continued slowdown in sales of higher value properties.

“The Stamp Duty change was originally designed to boost tax revenues, but with fewer high value transactions taking place, this could ultimately prove to be counter-productive.

“However, the good news for potential buyers is that Stamp Duty changes have suppressed house price growth at the upper end of the market, which has the potential to offset some of the additional costs they would otherwise face from a higher tax burden.”

Finally, Doug Crawford, the Chief Executive of conveyancing firm My Home Move, believes: “In the long-term, demand for both rented and owner-occupied accommodation will support prices and sales volumes.

“There will undoubtedly be challenges to the market over the next 12 months, with the triggering of Article 50 and changes to landlords’ tax relief looming on the horizon.

“However, the property market has shown it is more than strong enough to overcome these obstacles.”

Recent research from the National Association of Estate Agents supports the view that December proved resilient to market changes, reporting that the number of homebuyers last month was the highest for 13 years.

Number of Homebuyers at Highest Level for 13 Years in December

Published On: January 24, 2017 at 9:25 am

Author: Em Morley

Categories: Property News

Tags: first time buyers,homebuyers,homeowners,property market,property sales

The average number of prospective homebuyers registered per estate agency branch was at the highest level for 13 years in December, according to the latest Housing Market Report from the National Association of Estate Agents (NAEA).

The group’s December study also found that the highest number of sales to first time buyers since 2001 was recorded last month.

Number of Homebuyers at Highest Level for 13 Years in December

The NAEA’s data shows that although the amount of homes available to buy rose marginally in December, the number of sales agreed fell by a quarter on a monthly basis.

Homebuyer demand

Last month, the amount of house hunters increased to the highest level seen since 2003 for the month of December.

The average number of prospective homebuyers registered per NAEA member branch stood at 386 in December, up by 12% on November’s figure of 344.

First time buyer sales

In December, a third (32%) of sales were made to first time buyers – the highest number for the month of December since 2001, when it was also 32%.

This is up by 10% on November last year, when 29% of sales were made to these buyers.

Property supply and sales agreed

The amount of properties available to buy on estate agents’ books in December stood at an average of 41 – up marginally from November, when there were 39.

Despite an increase in supply and demand, the number of sales agreed fell by a quarter (25%) on November, from an average of eight per branch to six.

The Managing Director of the NAEA, Mark Hayward, comments on the report: “In November, we saw a seasonal slowdown; typically it’s uncommon for people to buy and move close to Christmas. Yet, our December findings have completely bucked this seasonal trend. With demand at an all-time December high and sales to first time buyers at their highest on record, 2016 closed on a positive note following several months of uncertainty.

“However, despite an encouraging December, there remains a clear shortage of homes. We await the Government’s Housing White Paper to see how it intends to tackle this, and hope the market continues to improve for both buyers and sellers.”

While property market experts insist that the Government must do more to tackle the housing crisis, one investor and lender believes that small-scale developers are critical in supplying much-needed homes.

Surveyors Report a Subdued Property Market for Lettings and Sales

Published On: January 19, 2017 at 11:50 am

Author: Em Morley

Categories: Property News

Tags: house prices,lettings sector,property market,property sales

Surveyors reported that the property market, for both lettings and sales, was subdued at the end of last year.

The Royal Institution of Chartered Surveyors (RICS) has released its latest UK Residential Market Survey, covering December 2016, looking into activity in the lettings and sales markets.

Surveyors Report a Subdued Property Market for Lettings and Sales

Surveyors saw a slight drop in sales activity at the end of last year, while many are predicting a decline in volumes over the next three months.

The report shows that 1% more chartered surveyors saw a fall rather than a rise in sales in December, with just 4% more respondents anticipating an increase in sales over the next three months, down from 18% previously.

However, in the longer term, the 12-month sales outlook is much more positive, with 32% more surveyors expecting sales to rise rather than fall this year, compared with 31% in the November survey.

More surveyors are also expecting house price declines in the next three months, but, over the year, 49% more forecast growth, up from 40% in November and the strongest level seen since May 2016.

The latest official statistics, for the end of last year, show that house prices remain resilient across the UK.

In the lettings sector, surveyors said new landlord instructions were more or less flat, projecting rental growth to average around 5% per year over the next five years. However, recent reports warn that rents are close to hitting an affordability ceiling.

The Chief Economist at the RICS, Simon Rubinsohn, comments on the lettings and sales markets report: “A familiar story relating to supply continues to drive both the sales and lettings market, impacting on activity, prices and rents.

“The eagerly awaited Housing White Paper should help to create a more positive framework for new build delivery, but, with the best will in the world, it is going to take time before the resulting uplift in the development pipeline begins to impact on the opportunities for either homebuyers or tenants.”

He adds: “Meanwhile, the latest RICS survey provides further evidence that both price and rent pressures are continuing to spread from the more highly valued to more modestly valued parts of the market for good or ill.”

How do you think the lettings and sales markets will fare over the coming 12 months?

House Prices Almost Recovered to March Peak at End of 2016

Published On: January 16, 2017 at 11:12 am

Author: Em Morley

Categories: Property News

Tags: average house price,house price growth,house prices,property sales

House prices almost recovered to the March peak seen last year at the end of 2016, but transactions dropped by 3.9%, according to Your Move’s latest House Price Index.

The agent found that prices rose by 0.4% in December and by 3.1% on an annual basis, to an average of £297,678. This figure is close to Rightmove’s average asking price for January of £300,245.

The Your Move figure takes the average house price almost back to the £297,725 March peak reached amid the rush to beat last year’s Stamp Duty deadline.

House Prices Almost Recovered to March Peak at End of 2016

However, the annual rate of growth was down from 3.5% in November, while transaction figures for the final six months of the year show just how great the impact of the Stamp Duty reforms were, as sales dropped by 14.7%.

There was much variation across the country at the end of last year, with annual price growth as high as 16.2% in Hull and as low as -11.5% in the London Borough of Hammersmith & Fulham.

Overall, London has trailed the other regions of England and Wales, with house price growth of just 0.2% year-on-year.

The East of England recorded the highest annual increase of 2016, at 7.9%.

The Managing Director of agents Your Move and Reeds Rains, Oliver Blake, says: “It was a strong finish to an uncertain year. Despite the doubts over Brexit, prices have continued to grow, powered by good value commuter properties.

“As the lower transaction figures since April show, the market faces challenges ahead, but it has entered 2017 a lot stronger than many would have expected.”

In terms of properties coming onto the market, Rightmove claims there is now an opportunity for first time buyers to get onto the ladder, as there is less competition from buy-to-let landlords.

Rightmove attributes the 13.2% decline in sales of smaller properties – those with two bedrooms or fewer – in December to less buy-to-let interest. As a result, the portal reports that available stock for sale in this sector is up by 1.9% on last year. This contrasts to January 2016, when availability of these properties fell by 18%.

Across the whole market, Rightmove puts the current average asking price at £300,245 – up by 0.4% on December and 3.2% annually.

The average time taken to sell a property rose to 72 days in December, up from 67 in November, while the average stock per member agent dropped from 56 to 51 over the same period.

Miles Shipside, the Director and Housing Market Analyst at Rightmove, comments: “The 0.4% monthly and 3.2% year-on-year price increases are indicators of the continued market momentum from the autumn.

“Demand for a suitable home is such that visits to the Rightmove website are still up by 5% year-on-year, despite being compared to a period that was boosted by high demand from buy-to-let investors rushing to beat the Stamp Duty deadline.

“Year-on-year comparisons for transactions in the first quarter of 2017 should also allow for the distortion of last April’s additional Stamp Duty tax deadline, as transactions were up 40% in the first quarter last year.”