Posts with tag: property

Estate agent claims that UK property demand is at five-year high

Published On: August 4, 2017 at 9:02 am

Tags: London property market,prime central london,property,property demand

One of Britain’s largest independent estate agents said it has seen demand for property in the UK rise substantially in recent months.

However, Strutt & Parker also reports that the housing market in prime central London market is remaining static.

Contrasts

The firm’s quarterly residential report for the second quarter of 2017 highlights the contrasting property markets in London and rest of the country. There has certainly been a shift in buyer sentiment in the last three months.

Guy Robinson, Partner and Head of Regional Residential Agency at Strutt & Parker noted: ‘We have some excellent stock on our books and new applicants are up nearly 5% year on year. When we look at the average number of applicants we have per property across the UK, it’s higher than it has been at any point since 2012.’

‘More properties buyers lead to higher viewing numbers, which should generate an increase in sales, which is very encouraging,’[1]

Decreases

On the other hand, the quarterly sales figures show that London in general saw a significant price fall of 2% in the second quarter of the year.

Though the number of homes changing hands in the prime central locations of London rose by 24.3% in comparison to the same period last year, transactions actually slipped by 3.5% compared to Q1. In addition, they were still 22.7% under the five-year average for Q2.

Estate agent claims that UK property demand is at five-year high

Charlie Willis of Strutt & Parker, noted: ‘Transaction levels in prime central London, across all price bands, are up on this time last year and this uptick in volumes is very welcome. However, the values being achieved are lower than they have been – savvy buyers are choosing now to take advantage of current pricing.’

‘Whilst one might have expected more transactions from overseas buyers due to the currency benefits currently at play, domestic buyers are the most prolific. We expect prices to remain flat for the rest of 2017 and into 2018 which we hope could spur further activity.’[1]

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2017/8/demand-for-uk-property-at-a-five-year-high-says-strutt–and–parker

Asking prices in England and Wales virtually unmoved in July

Published On: July 31, 2017 at 11:54 am

Author: Em Morley

Categories: Property News

Tags: asking prices,house price values,landlords,property

Property asking prices in England and Wales were virtually static during July, according to the most recent data released from Rightmove.

Values increased by just 0.1% during the month, with prices flat or falling in seven of the ten regions covered by the Index.

Property Prices

In the North East, prices fell by 1.3% month-on-month. However, they were still up by 1.6% year-on-year. Yorkshire and Humber saw falls of 1% but values here were 4.1% up during the twelve-month period.

Property prices in the North East also fell by 0.7% to hit £186,999. Despite this, values here were still up by 2.4% annually.

In addition, data from the report shows that asking prices in the East and East Midlands fell by 0.7% and 0.4% respectively. Values here however were still up by 3.8% and 4.9% year-on-year.

Greater London saw asking prices rise by 1.1% in July, to hit an average of £641,388. The West Midlands saw monthly rises of 0.7%, while Wales experienced increases of 0.6%.

Sales

What’s more, the investigation shows that sales remained strong in the year to July 2017, with the number of properties sold nearly identical to those seen at the same time in 2016.

Would-be buyers are also seeing the highest proportion of properties on the market at any time during the last seven years. There are 7.6% more sellers coming onto the market in July, in comparison to the same time last year.

Miles Shipside, Director and Housing Market Analyst at Rightmove, feels that limited buyer affordability is acting as a natural price brake.

Asking prices in England and Wales virtually unmoved in July

Shipside observed: ‘Sellers coming to market at this time of year have to price more keenly as the traditionally bubblier spring selling season is over and prospective buyers are distracted by their own summer holiday plans.’

‘A year on from the shock referendum result and subsequent dent in activity levels, the fundamentals remain strong. Low unemployment, low interest rates, strong demand and historic undersupply of homes are mitigating any wobbles in confidence and as a result nearly half the properties on the market, over 45%, have sold. Compared to the period around the referendum a year ago, more sellers have come to market and more buyers are buying. The number of sales agreed is up by 4.6% in June 2017 compared to June 2016, and the number of sellers coming to market is also up on the same period a year ago, with a 7.6% increase in fresh choice,’ he continued.[1]

Comparisons

Mr Shipside went on to point out that, ‘The half way point of 2017 is a useful time to make a comparison with the previous year and the number of sales being agreed by agents is uncannily within fractions of a percent of the number at the same half way point of last year. This year and last year have had their own shocks and distortions, but these statistics show that the distractions have been short-lived and have now evened themselves out.’[1]

‘We can see now that price rises are muted despite high housing demand, indicating we have left the stage of the cycle where price rises exceed the rate of inflation. High demand will continue to underpin prices, but we are seeing stretched affordability limiting the pace of rises, especially in the south of the country,’ he concluded.[1]

[1] http://www.propertywire.com/news/uk/asking-prices-barely-moved-england-wales-june-latest-index-shows/

Landlords’ concerns and positives outlined in new survey

Published On: July 27, 2017 at 1:43 pm

Author: Em Morley

Categories: Landlord News

Tags: Brexit,Buy-to-Let,landlord concerns,landlords,property

Interesting new research has revealed that Brexit is no longer the top concern for British landlords, with taxation and economic uncertainty now more pressing worries.

Other features causing investors sleepless nights include regulation and increased competition, according to new data released by Direct Line for Business.

Landlord Concerns

Taxation and economic uncertainty came out on top in the list of top landlord worries, both accounting for 41% of responses.

Investors concerned about unwittingly breaking legislation and ending up on the wrong side of the law made up 40%. In addition, landlords concerned about the rate of inflation accounted for the same percentage.

The top 5 concerns highlighted by landlords in the report were:

Factor	% Negative impact
Taxation	41 %
Economic uncertainty	41 %
Inflation	40 %
Regulation	40 %
Competition bringing rental process down	38 %

Landlords’ concerns and positives outlined in new survey

Positives

On the other hand, landlords were found to be most positive about the prospect of increasing house prices. In addition, demand for rental accommodation, interest rates and surprisingly, the triggering of article 50 were also found to be positive for landlords.

The table below indicates the top 5 short-term positives for landlords:

Factor	% Positive impact
House prices	31 %
Interest rates	29 %
Domestic demand for rental properties	28 %
Brexit / Triggering Article 50	28 %
Foreign demand for UK rental properties	27 %

Christina Dimitrov, Business Manager at Direct Line for Business, observed: ‘It’s great to see landlord’s being resilient towards the ever-changing property marketplace and it’s really positive to hear they don’t appear to be worried about Brexit and the impact on demand.’

‘The continued low interest rate environment can only benefit landlords and tenants. However, experts are predicting an interest rate rise in the future and the Prudential Regulation Authority’s tougher underwriting rules for buy-to-let mortgage lenders may bring some challenges for landlords wanting to expand their portfolios.’[1]

[1] http://www.propertyreporter.co.uk/landlords/landlords-reveal-their-biggest-fears-in-new-survey.html

Councillor believes licensed homes reduce risk of anti-social behaviour

Published On: July 25, 2017 at 8:51 am

Author: Em Morley

Categories: Property News

Tags: HMO's,landlords,licensing scheme,property

A councillor based in London has indicated that there is a direct relationship between licensed rental accommodation and a reduction in anti-social behaviour.

Harbi Farah, cabinet member for housing and welfare at Brent Council, also believes that selective licensing schemes also assist in improving safety levels, leading to sustainable tenancies.

Prosecutions

101 criminal prosecutions have been brought against landlords since Brent Council started its crackdown. Mr Farah feels this reflects the council’s no nonsense policy towards rogue investors.

Farah observed: ‘We hope that more than 100 prosecutions against rogue landlords in Brent send a clear message that rented properties in the borough need the correct licence.’

‘There is a link between licensed properties and a reduction in anti-social behaviour as well as a rise in sustainable tenancies and an increase in safety.’[1]

The latest prosecution from the council involved a fraudulent letting of a HMO.

Councillor believes licensed homes reduce risk of anti-social behaviour

HMOs

Mr Arthur Zurvskij was found guilty of subletting a property to seven tenants. Instead of obtaining a HMO licence, Mr Zurvskij rented out the property through Ludlow Thompson letting agency.

The owner of the property lived in the United States and legally gave control of the dwelling to the letting agency – believing it was to be rented out by a single family.

In the trial, the court heard that Mr Zurvskij had not got written consent from the landlord to rent out the property to more than one household. As a result, he was handed a £2,250 fine, while his company received a fine of £8,000.

An enforcement officer for Brent council said: ‘Breaching the law on HMO is very serious. If found guilty, the landlord or person in charge of the property is left with a criminal record. The potential fines are now unlimited’.

“This case should send out a warning to all landlords or companies subletting properties without the correct licence. If you are renting out a property to three or more people who are not all related, you need a HMO licence. It doesn’t matter if the property is in good condition, you still need a licence.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/7/licensed-homes-reduces-anti-social-behaviour-claims-councillor

Property price confidence rises in June

Published On: July 24, 2017 at 9:42 am

Author: Em Morley

Categories: Property News

Tags: buy-to-let landlords,house price confidence,property

The most recent House Price Sentiment Index (HPSI) from Knight Frank and IHS Markit shows that house price confidence in the UK rose during June.

Confidence in the market is measured by home many households believe that the value of their home rose over the previous month.

Readings

According to the research, a score of 50 equates to no change, with readings above this number showing increases and below indicating falls. Of course, the higher the figure, the greater the increase.

17% of the 1,500 households surveyed across Britain said that the value of their home has actually increased during the last month, in comparison to 8.9% who experienced falls. This has resulted in a house price sentiment index reading of 54.1.

This represented the twelfth straight month of positive growth for the Index, following the post-Brexit low recorded in July 2016. In addition, it shows the reversal of three months of falling sentiment.

Despite this however, the Index is still below the previous peak of 63.2, seen in May 2014.

Regional Sentiment

Of the 11 regions covered by the Index, 10 perceived that the value of their property increased in the last month. The North West was the only exception.

The largest rise over the course of June was seen in London and the East of England, with a reading of 57.7. Next come the South East (56.9) and South West (55.1).

In addition, the future HPSI, which looks at what households feel will happen to the value of their home in the next year, also increased, from 61.3 to 62.

Again, there was regional variation. Households in London were most confident about future price increases (68.7), followed by the South East (67.2) and West Midlands (64.8).

Property price confidence rises in June

By tenure, mortgage borrowers were most confident that prices would rise, followed by renters and property owners.

Since its inception, the Index has been a good indicator for house price trends. This seems to confirm the advantage of an opinion-based survey, as opposed to historic transactions or mortgage market evidence.

Modest

Oliver Knight, an Associate in Knight Frank’s Residential Research, observed: ‘While UK house price sentiment ticked up slightly in July it remains subdued in comparison to longer term trends. Households still report that values are increasing, but at a more modest pace than before the EU Referendum, which remains consistent with wider housing market indicators.’[1]

‘Rising sentiment in July suggests that any uncertainty surrounding the recent General Election result, and the start of Brexit negotiations in June which could have weighed on pricing, has been offset by a lack of supply of housing for sale and the low interest rate, low mortgage rate environment which continues to underpin pricing across much of the UK,’ he added.[1]

Tim Moore, Senior Economist at IHS Markit, also said: ‘UK households continue to anticipate property price gains over the coming 12 months, especially those living in London and the South East. The latest survey signals a rebound in confidence for the first time in three months, but looking at the overall picture reveals that house price sentiment has shifted down a gear this summer.’

‘Household expectations for property price rises have eased to levels last seen in mid-2013, against a backdrop of weak pay growth, affordability constraints and squeezed consumer budgets. There are also signs that Brexit-related uncertainty and the fiscal squeeze on buy-to-let continue to weigh on sentiment.’

‘While households are expecting the soft patch to persist in the near-term, overall levels of confidence are slightly above the trend seen since the survey began in 2009. The resilient picture relative to longer-term patterns is likely helped by the ultra-low mortgage rate environment, improved credit availability and an entrenched shortage of supply across large parts of the country.’[1]

[1] http://www.propertyreporter.co.uk/property/house-price-confidence-rebounds-in-june.html

Election result preventing traditional house price surge

Published On: July 21, 2017 at 9:52 am

Author: Em Morley

Categories: Property News

Tags: general election,landlords,prime property market,property

The most recent analysis from buying agents Garrington Property Finders suggests that the General Election in June has so far failed to give the prime property market a boost.

This has gone against the trend seen in the last five General Elections.

Paralysis

According to the data, the post-election paralysis has been seen most prominently in London. The annual change in prime property prices per square foot here slipped by 7.1% in the last month, dropping from a 3.3% increase in May to a 3.8% decrease in June.

In addition, the number of transactions is also down, with the number of prime properties sold in London during June falling by 15.8% in comparison to May.

Data from June for the rest of England and Wales has yet to be published, although the capital’s Prime market is seen as a good indication of the results to follow. Should these trends be seen elsewhere, we will see a dramatic reversal of the more traditional post-election bounce seen in the UK’s prime property market.

Sales

Analysis of official Land Registry data shows that across England and Wales, sales of prime property increased by an average of 26% in the two months directly after the last five Elections.

In fact, the prime market has outpaced the non-prime market stretching back to Tony Blair’s victory in 1997.

The prime market is defined as the most expensive 10% of properties sold in a region in any one year. During the first six months of 2017, the prime market began strongly, with prices rising by 4% on average.

Election result preventing traditional house price surge

Uncertainty

Jonathan Hopper, Managing Director of Garrington Property Finders, observed: ‘This early snapshot of the post-election market confirms what many had feared – there has been no sudden relief rally. The Prime market tends to be the most sensitive to political and economic uncertainty, and the current dose of both is clearly having a cooling effect, especially in London. Britain hasn’t had a minority government since 1974, so the fragility of the new government’s mandate and ongoing concerns over Brexit are pushing the market into uncharted waters.’[1]

‘Yet for astute buyers those uncharted waters can teem with opportunity. Prime prices in London have softened considerably in the wake of the 2014 Stamp Duty increase and last year’s Brexit referendum. In that time we’ve seen a steady stream of buyers secure substantial discounts as anxious sellers adjust their expectations in return for the certainty of a sale,’ he continued.[1]

Concluding, Mr Hopper said: ‘Where London leads other regions tend to follow, and as the post-election fizzle spreads out from the capital, the next few months will provide some strong buying opportunities for Prime buyers across the country.’[1]

[1] http://www.propertyreporter.co.uk/property/minority-government-puts-breaks-on-traditional-post-poll-house-price-surge.html