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Northern Ireland Property Prices Rising Fastest in UK

Published On: June 11, 2015 at 2:46 pm

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Property prices in Northern Ireland are expected to increase faster than anywhere else in the UK in the coming months, industry experts claim.

The Royal Institution of Chartered Surveyors (RICS) predicts a 4% rise due to a shortage of available homes and more new buyer inquiries.

Northern Ireland Property Prices Rising Fastest in UK

Northern Ireland Property Prices Rising Fastest in UK

The RICS and Ulster Bank residential market study found that properties are not coming onto the market in substantial numbers.

Spokesperson for the RICS, Samuel Dickey, says that the local market is continuing its recovery in terms of activity and average prices: “There are economic challenges ahead, which will likely act as headwinds for the housing market, but our view remains that prices will increase over the course of the year by some 4%.”1

Head of Lending Products at Ulster Bank, Derek Wilson, says that after a “muted” first quarter, April and May had been stronger concerning activity.

“These have been robust months for mortgage demand, and that trend appears to be continuing into June,” he adds.

Wilson continues: “Our aim is to offer choice to customers and to support them in making the financial decisions that are right for them. That’s why we have launched our biggest ever range of mortgage options, with some of our lowest ever rates, as well as a new seven-year fixed range.”1

A net balance of 60% of Northern Ireland surveyors stated that prices increased in the last three months – a higher figure than all other UK regions. Additionally, 43% expect them to continue rising in the next three months.

Regarding newly agreed sales, 35% of local surveyors said they grew in April and 8% predict they will increase in the coming three months.

After a continuous downturn from 2007-13, confidence in the Northern Ireland housing market has picked up in 2015, particularly in the private resale and new development sectors.

Experts have witnessed strong demand in the new homes sector in the last six to nine months. This is due to considerably less building during the recession and buyers being more eager to buy new homes, believing they are secure investments.

1 http://www.belfasttelegraph.co.uk/news/northern-ireland/houses-prices-in-northern-ireland-to-be-fastest-rising-in-uk-31293694.html

Average property prices rise again in May

Published On: June 11, 2015 at 2:32 pm

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Latest Landbay Rental Index Reveals Best and Worst Areas for Growth in England

The average house price in England and Wales rose again during May to record yet another new high.

According to the new LSL house price index, house prices rose by 0.4% to now stand a record value of £277,178. This is the fourth price record set since the turn of the year. However, monthly price growth is still only one third of what it was twelve months ago.[1]

Annual rises

Annually, prices were up by 4.5%. London however does not hold the top spot for regional growth, instead lying in fourth behind the price rises in the North of England. Just a few months ago, price increases in the capital were topping annual figures, but it seems that other regions are beginning to see extended growth. One London borough, Kensington and Chelsea, recorded home values that were 16% down on their peak in Autumn 2014.[1]

Average property prices rise again in May

Average property prices rise again in May

Recovery

Despite monthly property price growth slowing to 0.4% in comparison to 1.2% recorded last May, Adrian Gill, director of Reeds Rains and Your Move, still feels that the recovery of the market is continuing.

Mr Gill noted that only four regions in England and Wales have house prices lower than they were in 2008. Positively, prices in these areas seem to be growing. For example, despite average property values in the North of England being 4% lower than they were pre-crisis, the region experienced the largest annual growth of recent months, rising from 2.3% in March to 3.6% in April.[1]

Rises in the North and South West and in the East Midlands are also increasing at a larger rate than those in the capital. Gill believes that, ‘this has knocked the capital back into fourth position in the rankings of regional house price growth over the past twelve months with the annual rise in London estimated to now be less than 12% of what it was in as of July last year and 2.4% in May 2015, down from 20.7% in the summer of 2014.’[1]

 

 

[1] http://www.propertywire.com/news/europe/england-wales-property-prices-2015061110616.html

 

New London Neighbourhood will have 2,000 Homes and a Train Station

Published On: June 11, 2015 at 1:44 pm

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The Mayor of London’s office has confirmed plans for a piece of industrial land in East London to be developed into a new neighbourhood with thousands of homes and a train station.

The 29-hectare site in Beam Park, Rainham, is one of the largest areas of land reserved for new development currently owned by City Hall and the last major site to be released.

The area could hold around 2,000 new homes, with a potential of 5,000 in nearby developments.

Richard Blakeway, London’s Deputy Mayor for Housing and Land, says: “The development of Beam Park will result in a vibrant new neighbourhood with major transport links, providing a new locus of jobs, activity and growth for south Dagenham and East London. We’re looking for some truly visionary proposals in response to this exciting opportunity.”1

New London Neighbourhood will have 2,000 Homes and a Train Station

New London Neighbourhood will have 2,000 Homes and a Train Station

Beam Park railway station is being funded and built in partnership with Network Rail, Transport for London (TFL) and C2C Rail. It has been awarded £9m from TFL’s Growth Fund. The Fund is designed to invest in transport improvements to release regeneration areas in the capital, where funding is difficult to secure from elsewhere.

Alex Williams, TFL’s Director of Borough Planning, explains: “Excellent transport links are key to supporting growth and regeneration across London. Beam Park is a prime example of how TFL is using its Growth Fund to work with the GLA [Greater London Authority] and the boroughs to secure the delivery of transport schemes that will unlock development.”1

Leader of Barking and Dagenham Council, councillor Darren Rodwell, comments: “Barking and Dagenham is London’s growth opportunity. Beam Park and the adjacent Ford Stamping Plant comprise one of our six growth hubs, which collectively will deliver 35,000 new homes and 10,000 new jobs by 2035.

“These sites have the potential for 2,500 homes and will not only enjoy access to the new Beam Park Station but also convenient access to the existing Dagenham Dock Station.”1

Leader of Havering Council, councillor Roger Ramsay, says: “The news from the Mayor of London that the Beam Park development is set to go ahead is wonderful.

“I am delighted that residents in the Rainham area will see a dramatic improvement in the provision of homes and jobs, and significantly improved transport links.”1

The Mayor, Boris Johnson, is now asking members of the London Development Panel to offer him proposals on how best to develop the site into a residential area and neighbourhood with around 2,000 high-quality homes. 35% of the development is expected to deliver affordable housing through a mix of tenures.

Johnson has vowed to release all land currently owned by City Hall by the end of his mayoral term in 2016.

Beam Park’s release arrives after other parts were freed, including: the Royal Docks in East London; the 10.6-hectare Stephenson Street site near West Ham station; and the 40-hectare industrial land portfolio in London Riverside.

The new railway station will help improve the employment opportunities Johnson hopes to create in Rainham. The Mayor’s team are working with development partners to provide industrial premises, expected to bring new jobs to the area.

Beam Park is within the London Riverside Opportunity Area, which is aiming for 26,500 new homes and 16,000 new jobs in the boroughs of Barking and Dagenham, and Havering.

1 http://www.24dash.com/news/housing/2015-06-09-New-London-neighbourhood-to-include-nearly-2-000-homes-and-new-train-station

UK Property Prices to Rise 25% in Next Five Years

Published On: June 11, 2015 at 12:40 pm

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Property prices in the UK are expected to increase by 25% in the next five years and become even more unaffordable due to a huge shortage of houses for sale, a leading organisation has cautioned.

The Royal Institution of Chartered Surveyors (RICS) revealed that the supply of properties for sale, measured by the average number on a chartered surveyor estate agent’s books, has dropped to the lowest level since records began in January 1978.

Furthermore, the anticipated post-general election supply boom has failed to emerge, with the North West and London experiencing the sharpest fall in instructions compared to April.

The average stock of properties per surveyor is now 52, down by around 12% since the start of the year. Meanwhile, new buyer inquiries rose at their fastest rate in over a year. As a

UK Property Prices to Rise 25% in Next Five Years

UK Property Prices to Rise 25% in Next Five Years

consequence, house prices increased further in May at a quicker pace than in April, found RICS.

Economists have indicated that prices will rise again now that the Conservative Government is in power. Earlier this month, Chief Economist at F&C Investments, Steven Bell, said boom conditions have returned to the market.

Last week, Halifax’s Housing Economist, Martin Ellis, warned that housing supply “remains extremely tight.”

He continued: “The imbalance between supply and demand is likely to continue to push up house prices over the coming months.”1

The Halifax and Nationwide both found the average house price to be £195,000-£196,000.

Chief Economist at RICS, Simon Rubinsohn, says: “There has been some hope that the removal of political uncertainty would encourage more properties onto the market, but the initial indications are that this is not proving to be the case.

“As a result, it is hardly surprising that prices across much of the country are continuing to be squeezed higher, with property set to become ever more unaffordable.”

He adds that feedback from RICS members “points to prices at a headline level rising by another 25% over the next five years.”1

He says that this suggests there is no real confidence amongst members that the Government will deliver effective measures to boost new supply.

The chartered surveyor, Frost Partnership in Ashford, Surrey, told RICS: “Listings are in very short supply, which is pushing up asking prices to unrealistic levels in some cases.”1 

However, Christopher Green of Curzon Land in central London, which specialises in prime property investments, was pleased with the election result, telling RICS: “The market has gained an immense amount of optimism now that the socialist spectre has been removed for the next five years.”1 

But tenants are also receiving some bad news – RICS members are also forecasting rent rises averaging around 3% in the next 12 months. The group says this reflects the fact that demand for rental accommodation is continuing to grow.

“Contributors [to the study] anticipate that rents will rise across all parts of the UK over the next three months, with expectations most elevated in the East Midlands and the South West,”1 RICS concludes.

1 http://www.martinco.com/news/2015/06/10/uk-house-prices-will-rise-25-in-next-five-years/?utm_campaign=Social%20Media&utm_content=15884523&utm_medium=social&utm_source=twitter#.VXlHQlupr8t

Buy-to-let activity rises again in May

Published On: June 11, 2015 at 12:04 pm

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A new report has indicated that May was another good month for the buy-to-let market, but first-time buyer activity fell once again.

Research from Connells Survey and Valuation shows that there were 33% more buy-to-let valuations conducted during May than at the same time one year ago. However, first-time buyer valuations fell by 4% over the same period.[1]

Month by month, buy-to-let valuations rose by 3%, whereas valuations for first-time buyers dropped by 2%.[1]

Ups and downs

John Bagshaw, Corporate Services Director of Connells Survey & Valuation, said that, ‘Britain’s buy-to-let market is booming right now as would be-landlords are eager to enter the sector and current landlords look to expand. However, for first-time buyers, May was not just less positive than the rest of the housing market, but also disappointing in comparison to the previous month.’ Bagshaw noted that, ‘previously, valuations for new buyers had proved resilient in April, even when uncertainty about the impact of the election result on home-buyers was at fever pitch.’[1]

Mr Bagshaw went on to say that, ‘the picture painted here is a consistent one. Fewer people looking to buy their first home means more tenants sticking to the rental sector. As such, new landlords enter the market and those already in the sector grow their business to capitalise on the increased demand. Yet what remains unclear is how long this contrast in fortunes will continue.’[1]

Buy-to-let activity rises again in May

Buy-to-let activity rises again in May

Remortgaging gains

The data from Connells also shows that May was a good month for remortgaging, with valuations up by 9% in comparison to April. In addition, there was a 31% increase in the number of remortgaging assessments in comparison to May of last year.[1]

Valuations for existing home-owners looking to move to a new property as opposed to remortgaging were up by 4% from April. This contributed to an 8% yearly rise in the number of home-owner valuations from May 2014.[1]

Bagshaw observed that, ‘remortgaging is going from strength to strength right now. Record-low mortgage rates are the main reason for this, and with inflation still near zero and flirting with a negative reading, the Bank of England is likely to play it safe and keep rates at bargain-basement levels for the forseeable future.’ However, he went on to say that, ‘the recent cooling in home mover activity points at another cause for the remortgage rush. Increasingly, home owners are opting to upgrade the property they already have, be it through a loft conversion, conservatory or major face lift, rather than sell up and get a new one. In short, people are improving not moving.’[1]

Secure

Mr Bagshaw feels that, ‘people feel financially secure enough to use their home as a guarantee against which to raise big capital-a sentiment that was absent for some time immediately after the crash. He went to say however, that people , ‘still don’t feel the property market overall is safe enough to risk trading up what they already have.’[1]

‘For a government reliant on movement further up the property chain to spur first time buyer activity, these lacklustre home mover figures will both partially explain the disappointment of the poor first time buyer results, and compound the problems,’ he added.[1]

 

[1] http://www.netrent.co.uk/may-sees-surge-in-btl-activity/

The Average Tenancy is Now Three Years

Published On: June 11, 2015 at 11:46 am

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The average tenancy length is now almost three years, an industry report reveals.

Property consultancy Allsop’s fifth annual Rent Check report states that the average tenancy length is 2.7 years, up from 2.5 years recorded in autumn 2014.

The Average Tenancy is Now Three Years

The Average Tenancy is Now Three Years

Allsop conducts the Rent Check, which surveys more than 2,000 landlords, in partnership with BDRC Continental, the UK’s largest independent market research consultancy.

Some of the main findings are:

  • 38% of landlords said that tenant demand has risen in the last three months, down 4% on last autumn.
  • 26% of respondents expect rent growth in the next six months, down 2% in the same period.
  • 14% of landlords bought at least one property in the three months to March, down 1%.
  • 29% plan to purchase at least one property in the next year, up 2% on autumn 2014.
  • 8% hoping to buy expect to buy a new build property.
  • 4% have lowered rents across their portfolio in the past 12 months, down 1%.

The report also uncovered average monthly rents in all UK regions. The highest for a two-bedroom flat in the first quarter (Q1) of 2015 was recorded in London Zones 1-2 at £1,595 per month, an annual increase of £75.

The Rent Check found that the average monthly rent on a three-bedroom house rose in most regions during Q1.

However, declines were recorded in four regions. The greatest were annual decreases of £65 in London Zones 3-6 and £50 in the North East.