Posts with tag: housing demand

Housing Demand Increases 5% in July

Published On: August 24, 2015 at 4:55 pm

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The amount of aspiring homebuyers registered per estate agent branch is now at the highest level recorded for 11 years and available property has also increased by 25%, according to the National Association of Estate Agents (NAEA).

Housing Demand Increases 5% in July

Housing Demand Increases 5% in July

The NAEA’s June Housing Market Report revealed that demand was at an 11-year high, and July experienced a further 5% rise in the amount of house hunters, an average of 462 per branch, compared to 439 the previous month. This is the highest reported since August 2004, when an average of 582 hopeful buyers were recorded per NAEA member branch.

Available homes also grew in July, rising 25% from an average of 44 properties in June to 55 in July. Figures like these have not been seen in around two years, when an average of 57 houses per branch were recorded in September 2013.

However, the amount of sales in July remained stable from May and June, with just nine per branch. This suggests that although housing stock is picking up, completing a purchase is still difficult.

The NAEA’s report also shows that the number of sales to first time buyers continued to drop in July, with this type of buyer accounting for just 23% of sales. This is down from 24% in June and 29% in May. However, it is up on last year’s figure of 20% of total sales in July 2014.

Managing Director of the NAEA, Mark Hayward, says: “Typically, we’d expect to see sales taking longer to complete during the summer months, as buyers and sellers are on holiday. It is alarming, however, that the number of sales being made to first time buyers is steadily falling.

“Having said that, the fact that there is more housing coming onto the market means that hopefully over the next few months we’ll see activity in the market increasing and more sales completing, to respond to the growing army of house hunters we’ve seen emerging over the last few months.

“The truth of the matter is though, there simply aren’t enough houses to meet growing demand and until we see more physical bricks and mortar, there may be no hope in solving the housing crisis.

“It’s also alarming that the number of sales being made to first time buyers is steadily falling; with reports of house prices increasing and expectations of rising in the future, first time buyers will continue to be pushed out of the market.”1

1 http://www.propertyreporter.co.uk/property/housing-demand-jumps-further-5-in-july.html

 

Housing Zone scheme reaches landmark

Published On: July 30, 2015 at 11:27 am

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Encouraging news has come today with the announcement that the Mayor of London has reached the 50,000 landmark for new homes in London through his Housing Zone scheme.

In addition, three further zones have been announced, with the Mayor promising to fast-track development in the boroughs of Brent, Westminster and Sutton.

Efforts

The announcement of the new areas builds upon the existing efforts to provide new housing, including the creation of the London Land Commission and the London Housing Bank.

18 of the promised 20 areas outlined in the Housing Zone scheme have been announced, which brings the total number of houses to be built to 50,965. A third of these new homes will be affordable housing to buy or rent. [1]

Housing Zones are the result of a joint effort by the Greater London Authority, the government and local boroughs to quicken up the approval process and push through development. It is hoped that together, valuable brownfield land can be uncovered in order to meet London’s persistent housing demand.

Today’s announcement has seen the Mayor promise to invest £44m in three new Housing Zones in different areas of the capital. Together, the zones will provide 6,600 new homes, alongside new transport links, 13,000 construction jobs and retail precincts, making these areas in urban districts for Londoners.

Housing Zone scheme reaches landmark

Housing Zone scheme reaches landmark

Hard work

Mayor of London Boris Johnson, commented, ‘we have worked very hard to reach our goal of 50,000 homes, and we’ve done it with two more Housing Zones to go. This scheme has proven extremely popular with boroughs, who have clearly been looking for just that extra bit of assistance in revving up their housebuilding to answer clear demand for Londoners.’[1]

‘I could not be more pleased at the progress of this innovative scheme and the real outcomes it has delivered for our city,’ he added.[1]

[1] http://www.propertyreporter.co.uk/property/mayors-housing-zone-scheme-reaches-50000-new-homes-target.html

 

Housing Demand at 11-Year High, but Still No Supply

Published On: July 28, 2015 at 2:01 pm

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Housing Demand at 11-Year High, but Still No Supply

Housing Demand at 11-Year High, but Still No Supply

Housing demand has reached an 11-year high, according to the National Association of Estate Agents (NAEA).

It found that in June, the amount of applicants registered per branch was the highest since August 2004.

The NAEA’s monthly report revealed that 439 house hunters were registered on average per member branch in June, 15% higher than in May.

Despite a rise in demand, supply of housing stock per branch dropped from 46 in May to 44 in June.

Managing Director of the NAEA, Mark Hayward, explains: “What we’re seeing is a market coming back to life in full force.

“Buyers are feeling more confident and those who put their plans on hold over the election and political aftermath have kicked off their hunt, causing this massive jump in demand.

“There’s also an impetus to buy right now in light of the impending interest rate rise as buyers fight to buy and fix mortgage rates.

“But the fact that demand is at an 11-year high, without the housing stock to fuel it, is bad news for the market.”1

However, there are growing signs of unaffordability for first time buyers. The NAEA also found that sales to first time buyers accounted for 24% of transactions in June, down from 29% in May.

1 http://www.propertyindustryeye.com/housing-demand-soars-to-11-year-high-but-wheres-the-supply/

Vendors in the North are Most Active

Published On: July 21, 2015 at 9:58 am

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Housing supply is still generally low in the UK, but in a large number of towns and cities, new property listings are picking up, particularly in the North of England and Scotland.

Vendors in the North are Most Active

Vendors in the North are Most Active

The amount of homeowners putting their homes on the market has grown by 7.1% in the last month and over two thirds (67%) of major towns and cities have recorded an increase in the number of new properties being marketed, found HouseSimple.

However, the largest rise was seen in Wiltshire, in the South West, up 47.3% in the past month. In the Yorkshire & the Humber region, Hull and Doncaster experienced a drop of 13.7% and 12.5% respectively.

Oxford has witnessed an increase of 17.5% in new property listings, whereas there has been an 8.7% fall in Cambridge over the same period.

CEO of HouseSimple, Alex Gosling, says: “A stampede of sellers coming to market was expected after the general election result, but that stampede never materialised.

“In fact, for the first few weeks there appeared to be a fair amount of caution and reluctance amongst sellers to market. This may have been a case of waiting to see if property prices might start to rise rapidly with the confidence generated by a stable, majority government.

“Now it appears sellers have waited long enough and we’re starting to see some movement.

“New stock levels are still quite low, but it will be reassuring for the market to see that two thirds of UK towns and cities have seen stock levels rise in the past month. The market still needs more stock to temper house price growth. One of the reasons why prices haven’t cooled, and are seemingly on a relentless upwards trajectory, has been a lack of new properties coming onto the market, especially in London.

“Hopefully, we’re going to start seeing a rebalancing of supply and demand.”1 

1 http://www.financialreporter.co.uk/finance-news/northern-sellers-fuel-71-rise-in-new-listings.html

Housing Supply Crisis is Worsening, says Rightmove

Published On: July 20, 2015 at 2:12 pm

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The shortage of supply on the housing market is worsening, says Rightmove.

The property portal has found that the number of new vendors has dropped 10.6% in the past year.

However, Rightmove reveals that demand is still high, with traffic and enquiries to agents both up 22% in June compared to June 2014.

The site also says that asking prices for properties new onto the market have reached another record high, rising 0.1% month-on-month to an average of £294,542.

Housing Supply Crisis is Worsening, says Rightmove

Housing Supply Crisis is Worsening, says Rightmove

Demand is strongest for small properties with up to two bedrooms.

The amount of inquiries for small homes is 24% higher than for larger houses with three or more bedrooms.

However, the greatest decrease in supply is in the standard first time buyer sector.

Miles Shipside, Director of Rightmove, explains: “The greatest mismatch between demand and supply is at the lower end of the property ladder, as no doubt many buyers in this category would like to afford to buy a larger home, but have had to accept that it is out of their reach and downsize their aspirations to increase their chances of a successful purchase.

“The forthcoming extra tax burdens on buy-to-let investors may help to tip the balance in favour of first time buyers, but the consequent drop in rental property supply could push up rents.

“More supply of affordable starter homes for the growing demand from both renters and buyers is required, which means more new builds for both sectors to meet the country’s current and future housing needs.

“The challenge for Government, planners and developers is how best to ensure the right properties are built in the right locations and at more affordable prices.”1

Two agents have reacted to Rightmove’s revelations, noting high property investor activity in the lower price range.

Trevor Binch, Managing Director of Merrick Binch in Coventry, comments: “We’re finding that any properties on the market with us at under £150,000 – so your typical two-beds or some three-bed terraced – are selling immediately.

“There are a lot of investors snapping up these types of properties and this, coupled with the fact that a lot of sellers aren’t coming to market, is making the supply shortage worse.

“While there are some new developments being built in Coventry, there just isn’t enough to satisfy the demand, especially at the lower end of the market.”1

Donald Collins, Director at Go View London in Ealing, adds: “The natural consequence of a growing London population, young professionals trying to get on the ladder and investors looking for long-term investments, is a big shortage of two-bed properties coming to market.

“For properties we have on between £400,000 to £700,000, half of the interest comes from residential buyers and half from investors.

“The fact that investors have a long-term focus of building their portfolio and in many cases handing it down to their kids, means that these kinds of properties in the right locations won’t come back round on the market for about 15-20 years.”1

1 http://www.propertyindustryeye.com/supply-crisis-worsening-says-rightmove-as-new-instructions-dive/