Posts with tag: UK housing shortage

UK Housing Shortage sees Sharp Rise in BTL Investors

Published On: September 24, 2014 at 5:03 pm

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Investors are snapping up a rising number of the UK’s lacking housing supply, causing a sharp increase in buy-to-let mortgage lending.

The Council of Mortgage Lenders (CML) have revealed that buy-to-let lending reached £2.4bn in July 2014, a rise of 26% over the year, and 9% higher than June.1

The high demand and lack of supply of properties is causing a rapid increase of house prices. This is enticing investors, who are trying to make good profits from property values and rental income.

The Office for National Statistics found that the average house price in the UK rose 10.2% in the year to June 2014, reaching £265,000. In London, they jumped 19.3%, to £499,000.1

Opponents to the buy-to-let market claim that it abuses the country’s housing crisis, making it harder for first time buyers to find suitable properties.

UK Housing Shortage sees Sharp Rise in BTL Investors

UK Housing Shortage sees Sharp Rise in BTL Investors

Defendants however, say that investors are supplying the demand of the private rental sector by creating more homes available for renting.

However, CML’s figures also revealed that there has been a rise in first time buyer lending.

July saw 30,200 first time buyer loans, 3% more than June, and 25% higher than the previous year. The value equated £4.6bn.1

The recovering economy, low interest rates, and schemes such as Help to Buy have aided firs time buyers, by making mortgages cheaper and easier.

Paul Smee, Director General of the CML, says: “The market has shown steady growth in house purchase and buy-to-let over the past few months with general improvements in economic factors across the UK allowing for more people to enter the property market.

“There have been many factors over the past year that could have caused disruption but the market has remained resilient and lenders have shown themselves adaptable to this change.”1

Officials would like to see tighter mortgage lending, as they are concerned that some borrowers are taking expensive mortgages.

The Financial Conduct Authority (FCA) has enforced stricter affordability tests on borrowers, and the Bank of England are restricting high loan-to-income mortgages.

1 http://www.landlordexpert.co.uk/2014/09/23/uk-housing-shortage-has-seen-a-sharp-rise-in-buy-to-let-investors/

 

 

 

 

Hong Kong Rooms Size of Toilet Cubicle

Published On: April 12, 2013 at 10:33 am

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Categories: Property News

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We are used to hearing about the housing crisis in the UK, and the fact that the sharply rising population has caused a huge shortage of affordable properties. But what about elsewhere in the world?

Hong Kong Rooms Size of Toilet Cubicle

Hong Kong Rooms Size of Toilet Cubicle

It has recently been found that Hong Kong’s housing crisis is much worse, with people living in rooms around the size of a toilet cubicle within massive tower blocks.

In 2012, property prices in Hong Kong rose faster than any other country, and now it will cost about $8 a month for every square foot of space in your home.1

House prices in Hong Kong have tripled since 2009, partly due to a splurge by overseas property investors, particularly from China. The availability of low cost mortgages has also been sparse.

Now there is a huge lack of housing available, meaning that the properties bought in 2009 have now increased in value so much that many of those living in Hong Kong can no longer afford to live in any other accommodation than the tower blocks.

However, some have predicted that there will be a peak in the Hong Kong property market soon. This is expected to stem from the Chinese Government trying to limit the gains on these properties, and the banks increasing home loan rates by 25 basis points, following new stricter risk regulations.1

Chairman of John Swire & Sons Ltd, James Hugh-Hallett, believes that the continuous price gains in the Hong Kong housing market will lead to a “competitive disadvantage” and that property controls enforced by Hong Kong Chief Executive Leung Chun-Ying make sense.1

Hugh-Hallett adds: “We’re at the very top of the market for our global comparison. If you look at the price equivalent you pay in New York, Paris, London, Tokyo, there should be a price ceiling somewhere very soon.”1

Investors with overseas properties in Hong Kong should be aware of the changes that will soon arrive in the housing market, particularly as the rules could change regarding renting, and the amount of potential profit from buying and selling homes. It could also have an impact on overseas property insurance, and rent income and property tax.

1 http://www.justlandlords.co.uk/news/Hong-Kong-has-most-Expensive-Housing-in-the-World-1693.html