Posts with tag: property prices

Agents warned over money laundering by NCA

Published On: July 28, 2015 at 4:53 pm

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Estate agents have once again been warned by the National Crime Agency that it is imperative the authorities are informed should they have any suspicion that a buyer is looking to launder money through the purchase of a property.

The fresh warning, in an interview for The Times with the National Crime Agency’s economic crime command director Donald Toon, comes after a Channel 4 documentary entitled From Russia With Cash.

Correct procedure

Mr Toon tells the newspaper, ‘if estate agents have a suspicion that there may be money laundering involved, then they absolutely should be submitting a suspicious activity report (SAR).’ Toon warns agents, ‘you are at risk of committing a criminal offence if you do not do that.’[1]

Toon claims that foreign criminals are laundering billions of pounds through successful house purchases in the UK, with central London in particular being targeted. He believes that property prices in the capital are being skewed as a result of purchases by rogues, ‘who want to sequester their assets here in the UK.’[2]

Tax

Another feature that alarms Mr Toon are the total number of homes registered to complex, offshore firms and corporations. The Times suggests that the Treasury has gained £150m in the last three months from a tax on homes bought by companies, trusts and investment funds, as opposed to individuals.

The newspaper says that when the tax first came in force in 2013/14, it raised £100m from 3,990 homes. 80% of this revenue came from just two boroughs-the City of Westminster and the Royal Borough of Kensington and Chelsea.

Agents warned over money laundering by NCA

Agents warned over money laundering by NCA

In the Channel 4 documentary, five estate agencies were named. These were:

*Winkworth

*Marsh & Parsons

*Domus Nova

*Chard

*Bective Leslie Marsh

In From Russia With Cash, a fake politician, posing as a Russian Government Minister, is followed to see how agents respond to his supposed plan to use millions in stolen cash to purchase prime property in the capital.

At present, the Royal Institution of Chartered Surveyors and the National Association of Estate Agents have said that they are to hold investigations into claims made in the episode.

[1] https://www.estateagenttoday.co.uk/breaking-news/2015/7/money-laundering-agents-warned-by-national-crime-agency

 

 

 

North-East has most pessimistic outlook on property

Published On: July 16, 2015 at 11:59 am

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Fresh research has revealed that people in the North East of England are the most pessimistic in the UK when it comes to forecasting property prices.

A survey from Clydesdale and Yorkshire banks shows that 11% of homeowners in this region believe the value of their home will dip this year. This is five-and-a-half-times the national average and nearly double the total in the next most-pessimistic area.

Confidence

Data from the research indicates that confidence in the property market has cooled in the last twelve months. Fewer property owners are anticipating an increase in the value of their homes in comparison to the same period last year.

49% of people in the UK believe their property will have increased in value in another year, in comparison to 54% twelve months ago. On average, just 2% of people believe that the value of their property will fall, rising to 11% for the North East region.[1]

Scotland was the next most gloomy region, with 6% of people north of the border suggesting that their home will lose value in the coming year. [1]

Positivity

The most optimistic region when for property price forecasts was London, where 73% of homeowners expect a rise. 62% said the same in the South East, with just 42% in the North East.[1]

In addition, further research from the pair of banks indicate that just 12% of people are planning to move home this year, in comparison to 14% at the beginning of 2015 and 17% at the same period last year.[1]

North-East has most pessimistic outlook on property

North-East has most pessimistic outlook on property

‘Our healthy sense of scepticism is one of many things which make the North East great but on this occasion, I don’t think people need to be so downbeat,’ said Ajay Jagota of sales and letting firm KIS. ‘Our most recent research showed North East house prices rose at the fastest rate for nearly eight months in June, up 0.8% in just four weeks. Over the course of last year, they actually rose by 11% and it’s far from unlikely that they’ll end up having grown a similar amount by the end of this one,’ he continued.[1]

Jagota believes that conditions in the market are, ‘still practically perfect for property purchasing-depsite unemployment rising for the first time in two years this week.’ He also said despite the threat of a rise in interest rates, the market is, ‘enjoying historically low mortgage rates, non-existent inflation and rising wages.’[1]

Concluding, he stated, ‘on top of that North Easterner’s ability to buy a home is rising faster than the rest of the UK with average households having almost twice as much money left after paying the mortgage as people in London-there’s plenty of cause for optimism.’[1]

[1] http://www.propertyreporter.co.uk/property/north-easterners-gloomiest-about-house-prices.html

 

Nationwide says property prices fell in June

Published On: July 9, 2015 at 9:15 am

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Property prices in the UK fell by 0.2% and as a result, brought the annual growth rate to its lowest level for two years, according to new research from the Nationwide.

Nationwide’s report suggests that despite a 3.3% increase from June 2014, house value increases were down from the 4.6% recorded last month. Despite a different survey from the Halifax suggesting that average UK home values had shot through the £200,000 barrier, Nationwide’s data suggests that this price is £195,055.[1]

Prices

Price growth and overall activity in the market have slowed since last summer, following an extremely busy start to 2014. However, Nationwide says that the slowdown in prices has not applied to the capital, where affordability has spiralled out of reach for many would-be buyers.

‘House price growth continues to outpace earnings, but the gap is closing, helped by a pickup in annual wage growth, which moved up to 2.7% in the three months to April from 1.9% at the start of the year,’ said Robert Gardner, Nationwide’s chief economist.[1]

Mr Gardner went on to say state that, ‘the slowdown in house price growth is not confined to, nor does it appear to be driven primarily by, developments in London. In quarter on quarter terms, London has continued to see price growth a or above the rate in the UK overall over the past three quarters.’[1]

Nationwide says property prices fell in June

Nationwide says property prices fell in June

Irish smiles

Nationwide’s figures are based on mortgages that the firm has approved during the month and shows that Northern Ireland has overtaken the English capital to record the largest yearly house price growth.

Figures assessing the second quarter of the year show that prices in Northern Ireland have increased by 8% during the last twelve months, in comparison to 7.3% in London. It was not such good news for Wales and Scotland, where prices fell by 0.8% and 1% respectively.[1]

Howard Archer, chief UK economist at IHS Global Insight commented that he was, ‘slightly surprised,’ by the figures but said that the price fall recorded in June, ‘does not fundamentally change our view that house prices are likely to be firmer over the second half of the year amid improving activity.’[1]

‘A current shortage of properties on the market is also likely to provide support to house prices,’ Archer added.[1]

[1] http://www.theguardian.com/money/2015/jul/02/uk-house-prices-slip-in-june-says-nationwide

 

 

Annual Property Price Growth at Two-Year Low

Published On: July 3, 2015 at 5:06 pm

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The annual rate of property price growth dropped to a two-year low in June, revealed Nationwide.

Annual Property Price Growth at Two-Year Low

Annual Property Price Growth at Two-Year Low

The building society found that annual house price inflation fell to 3.3% last month from 4.6% in May. A year ago, prices were increasing by 11.8%.

Property prices in Wales and Scotland have even fallen in the past year, according to Nationwide.

Between May and June, prices around the UK decreased by 0.2%, making the average UK house price now £195,055.

Nationwide’s Chief Economist, Robert Gardner, says: “House price growth continues to outpace earnings, but the gap is closing, helped by a pick-up in annual wage growth, which moved up to 2.7% in the three months to April from 1.9% at the start of the year.

“The slowdown in house price growth is not confined to, nor does it appear to be driven primarily by, developments in London.”1

Last month, a study by LSL Property Services revealed that prices in parts of central London have declined by up to 22% since last autumn.

Some economists did not expect house price inflation to drop so continuously.

Chief UK and European Economist at IHS Global Insight, Howard Archer, comments: “While we are slightly surprised by June’s dip in house prices, it does not fundamentally change our view that house prices are likely to be firmer over the second half of the year.”1 

Archer still predicts price rises of 6% this year and 5% next year.

Capital Economics’ Matthew Pointon says the monthly price drop does not mean the market is cooling: “On an underlying basis, prices are still rising, and with active housing demand finally recovering, annual house price gains have bottomed out.”1 

Regionally, the area with the fastest price growth is now Northern Ireland, with increases of 8% over the year between the second quarter (Q2) of 2014 and Q2 2015, found Nationwide.

In London, prices rose by 7.3%.

In Scotland, prices dropped by 1% in 12 months and Wales experienced price decreases of 0.8%.

Regional house price changes between Q2 2014-Q2 2015

Region Annual change Average price
Northern Ireland 8% £126,525
London 7.3% £429,711
Outer London 6.8% £315, 620
South East 6% £244,119
East Anglia 5.2% £198,826
East Midlands 4.1% £160,482
South West 3.8% £215,363
West Midlands 3.4% £165,873
Yorkshire and the Humber 3.3% £147,387
North West 1.4% £146,908
North 0.1% £125,189
Wales -0.8% £144,701
Scotland -1% £140,512

However, within these regions, there were large variations between prices in individual cities.

In property hotspots, Reading saw prices rise 13%, Oxford experienced price growth of 12% and in Edinburgh, prices increased by 11%.

Prices fell in areas including Sunderland, at 4% and Nottingham, the Highlands and Islands, and West Yorkshire at 2%.

1 http://www.bbc.co.uk/news/business-33359468

Property prices have motored through the years

Published On: July 3, 2015 at 3:33 pm

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This week is a significant one in the British sporting calendar. Not only is Wimbledon in full swing, this weekend will see thousands of motor sport fans converging on Silverstone for the Formula 1 British Grand Prix.

To mark the occasion, online estate agent eMoov.co.uk has conducted an interesting survey into how the British property market has evolved since the first British GP in 1955.

Motoring

Data from the report shows that when Sir Stirling Moss won the inaugural race back in 1955, the average UK house price was just £1,928. In 1969, when Sir Jackie Stewart won in 1969, prices had risen to £4,222. When he won again in 1971, prices had increased further to in excess of £5,000.[1]

When James Hunt took the chequered flag in 1977 prices stood at £12,805 and when Nigel Mansell won in 1990, prices had increased further, by £32,500. By the time he had won again in 1991, house prices had increased to £54,626.[1]

Pit-stop

However, when Mansell won his last title in 1992, prices had dropped annually by £2,811. Next British victories in 1994 and 1995 by Damon Hill and Johnny Herbet respectively coincided with further UK average value drops.

This slump had ended by the time the next British man took the Silverstone honours, with David Coulthard’s victory in 1999. By now, prices had recovered and risen more than £20,000 in four years to stand at £71,000.[1]

Property prices have motored through the years

Property prices have motored through the years

Speed

Since Coulthard’s last win in 2000, it is fair to say that house prices have speeded up at fifth-gear rates. Prices have increased 165% from then until now, rising to £168,973 when Lewis Hamilton took the plaudits in 2008. When Lewis achieved his second Silverstone victory last year, prices had risen to £185,620.[1]

CEO of eMoov.co.uk Russell Quirk said, ‘things have changed dramatically in the UK since Stirling Moss first made the podium in 1955, both in F1 and property. It really is mind boggling to think a property back then was under £2,000. Of course this was the equivalent to about £50,000 in today’s money but still a darn site cheaper none the less.[1]

Quirk concluded by commenting, ‘this said, I don’t think today’s drivers will be too hard pushed to climb the property ladder but if a British driver does win at Silverstone this weekend, we’ll happily sell their house for free!’[1]

 

[1] http://www.propertyreporter.co.uk/property/pole-position-property-prices.html

 

Property Market Optimism Steadies

Published On: July 3, 2015 at 2:02 pm

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Property Market Optimism Steadies

Property Market Optimism Steadies

Fewer homeowners are expecting a rise in the value of their property in the next 12 months, revealed research from Clydesdale and Yorkshire Banks.

Under half (49%) of survey respondents believe the value of their home will grow over the next year, compared to 54% in January and 55% a year ago. A further 49% predict that the price of their property will stay the same and 2% think it will decrease.

The study also found that homeowners in London are the most optimistic, with 73% forecasting an increase in the value of their home. This is followed by those in the South East at 62% and 56% in the East of England.

Contrastingly, 11% of respondents in the North East expect the value to drop and 6% of homeowners in the North West and Scotland are not positive.

For those predicting value rises, growing house prices is the key factor, alongside the economic recovery.

67% of homeowners in the South East and 64% in London name this as the main reason for expecting an increase in the value of their property. Just 37% of those in the North West said the same.

Director of Retail Banking, Steve Fletcher, says: “It has been a positive to see confidence returning to the property market, however, our latest research has shown that this is levelling out with a drop in the number of people who believe their home will increase in value over the next year.

“There are still a number of property hotspots, such as London and the South East, where property prices are rising and we anticipate that this will continue. However, this is not mirrored across the UK as a whole.”1 

1 http://www.propertyflock.co.uk/f/F1A4CAE9E