Posts with tag: residential property

Residential property transactions rise in July

Published On: August 23, 2017 at 12:01 pm

Tags: HMRC,property,property market,residential property

Seasonally adjusted data from HMRC suggests that there were 104,760 residential property transactions in Britain during July. This was a rise of 1.3% on June and 8.3% higher than at the same period of 2016.

However, HMRC urged caution when making comparisons in transactions levels for July, as some buyers could have been deterred by political uncertainty caused by June’s General Election and the EU referendum one year previously.

Encouraging

Danny Waters, chief executive officer of Enra, noted: ‘After three consecutive falls, it’s encouraging to see property transactions start to pick up again. The political and economic upheaval we have seen in recent months has plagued the property sector, so this increase could be an indication that buyers and sellers are beginning to feel more confident.’[1]

Residential property transactions rise in July

Record-low interest rates are likely to keep demand high, however the Government must address the ongoing issue of supply. These are the views of General Mortgage Club Director Jeremy Duncombe.

Mr Duncombe said: ‘We need a long-term solution by building more homes allowing a greater number of affordable properties to come onto the market.

This will not only provide more choice for second and last-time buyers, but also free up additional housing stock for first-time buyers to secure homeownership.’[2]

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2017/8/residential-property-transactions-pick-up-in-year-to-july

InterBay Launches Bridging Finance for Residential and Commercial Property

Published On: July 24, 2017 at 9:39 am

Author: Em Morley

Categories: Finance News

Tags: bridging finance,commercial property,mortgages,residential property

InterBay Launches Bridging Finance for Residential and Commercial Property

InterBay Commercial, which is part of specialist lending group OneSavings Bank, has announced that it will now provide bridging finance for residential and commercial property.

The latest offering for property investors was designed to simplify InterBay’s product proposition.

Rates on the products start from 0.44% and will initially be available through a selected broker panel, incorporating InterBay’s existing range of short-term lending options.

InterBay’s bridging finance range is ideal for borrowers in the following situations:

Those that need to buy a new property or raise capital against existing buy-to-let, Houses in Multiple Occupation (HMOs) or commercial property quickly.
Those that plan to acquire or remortgage a residential property with the intention of refurbishing it, then refinancing onto a standard buy-to-let/HMO mortgage, or selling for profit.
Those that want to exit more expensive residential development finance upon completion of a project, giving them time to sell.

Rates on the new products start at 0.44% per month, with gross loan-to-value (LTV) on residential investment property up to 75% and 70% on commercial.

Terms are available up to 18 months, with a 2% arrangement fee and no early repayment charges.

InterBay offers a fast, efficient service, including Agreement in Principle within four hours.

Another feature of the new bridging finance products is roll-up interest only, with the daily amount charged on net initial loan plus fee.

The Head of Commercial Sales at InterBay, Darrell Walker, comments on the latest offering: “InterBay’s entry into the bridging market has been keenly awaited and, with the backing of specialist lending group OneSavings Bank, we’re delighted to offer our new proposition in partnership with brokers who are experts within this field.”

Landlords, do you think that bridging finance for residential and commercial property could be right for you? If you fit within one of the scenarios mentioned above, perhaps you should take a look at the new products!

Residential Property Transactions Down by 3.3% Between April and May

Published On: June 22, 2017 at 9:23 am

Author: Em Morley

Categories: Property News

Tags: home sales,property transactions,residential property,Stamp Duty

The seasonally adjusted estimate of the number of residential property transactions dropped by 3.3% between April and May this year, reports HM Revenue & Customs (HMRC).

The provisional seasonally adjusted UK property transaction count for May 2017 was 100,170 residential and 10,760 non-residential sales.

Residential Property Transactions Down by 3.3% Between April and May

Last month’s seasonally adjusted figure is 13.4% higher than the same month last year.

Direct comparisons of residential property transactions between May last year and May this year should be avoided, HMRC insists, due to the lower than usual level of sales in 2016. This was associated with the introduced of the higher Stamp Duty rates on additional properties in April 2016.

The large increase in home sales for March 2016, followed by the substantial decline in April, is likely to be a direct consequence of the 3% Stamp Duty surcharge, believes HMRC.

The additional tax rates were announced in the Autumn Statement 2015 for England, Wales and Northern Ireland, and in the Scottish Government’s draft 2016-17 Budget for Scotland.

Non-tax factors may also have played a role, reports HMRC, for example, the Bank of England’s plans to curb buy-to-let mortgages resulting in a rush to purchase property before April 2016, and the EU referendum affecting residential property transactions in recent months.

For May 2017, the number of non-adjusted residential property transactions was around 7.9% higher than in the previous month. On an annual basis, the non-adjusted figure was up by 15.9%.

The residential count includes properties paying the main and additional rates of Stamp Duty.

The figures for the three most recent months are provisional and therefore subject to revision.

The Director of mortgage broker Private Finance, Shaun Church, comments on the data: “Although the volume of residential transactions is higher than it was a year ago, there is little value in annual comparisons, as the market was remarkably flat in May 2016 following the changes to Stamp Duty. The residential market is clearly still struggling to move out of first gear, with these changes and a persistent lack of supply limiting transaction volumes.

“It’s not all bad news, however, as the latest research from Lloyds found that first time buyers made up almost half of all house purchases in 2016 – the highest level since 1996. First time buyers have been supported by the record low interest rates and, in many cases, a helping hand from the bank of mum and dad. This has softened the impact of high prices and creeping inflation on housing affordability”.

Property price inflation at 12-year high in some cities

Published On: April 28, 2017 at 9:46 am

Author: Em Morley

Categories: Property News

Tags: house price growth,investors,property prices,residential property

Residential property price growth at city level gathered pace during the first quarter of the year, according to the latest Hometrack UK cities house price Index.

Property price growth in major cities increased by 3.5% during Q1 2017, driven by rises in Manchester, Birmingham and Newcastle.

Rises

Manchester is still the largest growing city in the UK, with annual property price rises of 8.8%. This was followed by Birmingham, which posted growth of 8% over the same period.

House price affordability, coupled with record low mortgage rates, is driving demand for property in Britain.

Birmingham, Manchester and Newcastle are posting property price increases not seen since the middle of 2005. In addition, these regions are offsetting weaker growth in southern cities, such as London and Oxford, where pressures on affordability are having a detrimental impact.

The Index reveals that the annual rate of growth for UK cities analyzed was running at an average of 6.4%.

Property price inflation at 12-month high in some cities

Taking Advantage

Richard Donnell, insight director at Hometrack, said: ‘Buyers outside the south of England appear to be shrugging off concerns over Brexit and a squeeze on real incomes to take advantage of low mortgage rates.’[1]

‘This is shifting the dynamics of the housing market. Cities that have been driving house price growth over the last 2-3 years, such as London and Cambridge, are now seeing a significant slowdown while large regional cities continue to register robust and sustained levels of house price growth,’ he continued.[1]

In addition, Mr Donnell said the Prime Minister’s decision to call a snap general election for the 8^th June could create some short-term uncertainty in the market.

However, he noted: ‘Compared to the level of uncertainty over Brexit, it is debateable whether the election will really make a material difference to buyers’ decision in the next two months. In our view the current market trends appear well set for the rest of 2017 where above average growth in regional cities offsets weak, single digit increases in southern cities.’[1]

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2017/4/city-level-residential-property-price-growth-gained-momentum-in-the-first-quarter-of-the-year-rising-by-3-5-led-by-large-regional-cities-such-as-manchester-birmingham-and-newcastle-according-to-the-latest-hometrack-uk-cities-house-price-index-w

UK residential property prices up by 5.1% year-on-year

Published On: March 7, 2017 at 12:55 pm

Author: Em Morley

Categories: Property News

Tags: demand for property,Halifax,landlords,property price growth,residential property

Property price growth in the UK rose by 0.1% in February to reach an average of £219,949, according to the latest figures released by the Halifax.

Year-on-year, values are 5.1% greater, however this rate is down from the 5.7% seen in January. It is also the slowest year-on-year growth recorded since July 2013.

Demand/Supply Imbalance

Martin Ellis, housing economist at the Halifax, believes that prices will continue to move upwards if the current supply/demand imbalance carries on. He suggests that housing demand is being supported by an improving economy and increased employment.

Ellis noted: ‘Meanwhile, the supply of both new homes and existing properties available for sale remains low. This combination is pushing up prices.’[1]

Alex Gosling, Chief Executive Officer of online estate agents HouseSimple, noted that despite annual house price growth slowing, this could be due to the rush to purchase before Stamp Duty changes twelve months ago.

‘The continued supply shortage is still playing a significant role in price stability. The general consensus is that price growth will be low digits in 2017, but the critical Spring market often sets the tone for the rest of the year,’ Gosling observed.[1]

‘Early indicators suggest that we could see a healthy Spring as buyers as starting to make offers rather than simply window shopping and stock levels are creeping up. Also, the Chancellor may want to play a strong hand tomorrow and if he announces further changes to Stamp Duty, this could breathe new life into the market,’ he added.[1]

UK residential property prices up by 5.1% year-on-year

Price is right

A number of buyers are committed to purchasing property, but only at the right price, according to Jonathan Hopper, Managing Director of Garrington Property Finders: ‘The ongoing chronic lack of supply is a significant factor currently underpinning prices. Despite renewed focus on house building by the Government, there doesn’t appear to be a quick fix solution that will change the demand/supply imbalance any time soon, although tomorrow’s budget announcements may help make a step towards this.’[1]

‘Despite total UK home sales continuing to push up, we anticipate more sedate price growth in 2017, as rising house price to earnings ratios start to bite in parts of the country and restrict overall affordability. On the ground, there is a pervasive sense of caution. Astute vendors are increasingly prepared to reduce their asking price in exchange for the guarantee of a sale,’ he explained.[1]

Rob Weaver, director of Investments at property crowdfunding platform Property Partner, believes record low interest rates, coupled with the supply/demand imbalance, will put upwards pressure on prices.

‘If the UK is to fix its broken housing market, it needs radical solutions. There was a lukewarm reception for the recent housing white paper so all ears will now be on tomorrow’s Spring Budget in eager anticipation of any incentives to get Britain building affordable homes,’ Weaver said.[1]

[1] http://www.propertywire.com/news/uk/prices-uk-residential-market-continue-upward-trend-5-1-year-ago/

Could car parks be used to build new homes?

Published On: January 24, 2017 at 2:42 pm

Author: Em Morley

Categories: Property News

Tags: car parks,new homes,property,residential property

Thousands of new properties could be built on car parks in Britain, without losing vital parking facilities, according to new research from real estate firm JLL.

The firm suggests that 400,000 new properties could be built on 10,500 surface car parks in towns and cities around the country. This could be enough to home about a million people.

Car Parking Space

For the majority of cases, JLL believe it to be possible to build homes without the loss of public parking facilities.

Nick Whitten, residential research associate director at JLL, said: ‘A trend towards urban living has disproportionately put a strain on the UK’s town and city local authorities to allocate sites for residential development, typically in areas where land is rarely available. It is crucial that more residential sites are created in urban locations where housing is needed most.’[1]

‘The Government has indicated that it is actively exploring solutions to the UK housing crisis through innovative measures to boost supply. Crucially, more than half of the car parks identified by JLL are in public ownership under the control of local authorities. This gives Government a direct stake in the potential for delivery on these sites, he continued.[1]

Could car parks be used to build new homes?

Permissions

In order to negotiate planning hurdles, the Government could introduce a planning permission in principal for residential development on car parks. It could utilise new rules as outlined in the Housing and Planning Act 2015.

Mr Whitten went on to observe that policies for car free urban centres are getting more and more common. Technological advancements could see the demand for ubran parking fall.

Concluding, he said: ‘Demand for city centre living is expected to increase , putting further pressure on the provision of sufficient housing.’[1]

[1] http://www.propertywire.com/news/uk/car-parks-across-uk-used-build-new-homes-research-suggests/