This article by Property Wire on October 22nd, 2013 reveals that UK homeowners are confident that property price rises over the next 12 months.
Households in every region across the UK expect the value of their
property to increase over the next 12 months, with those in London the
most confident about price growth followed by those in the South East.
The latest House Price Sentiment Index (HPSI) from Knight Frank and
Markit, which reflects the opinions of 1,500 households across the
country, illustrates the localised nature of the market at present, with
households in the North East and Wales expecting more modest rises in
values.
October’s survey is the first taken since the government
brought forward the second phase of its Help to Buy scheme and, while
the jump in price perceptions since September was relatively muted, the
overall level of confidence about house price gains remains at
unprecedented levels in the survey history.
Only one in 14
households expect the value of their home to decline over next 12 months
and mortgage borrowers and those who own their home outright anticipate
the largest rise in the value of their home in the next year.
Overall
it is the seventh month in a row that the index has increased and more
than 23% of the home owners surveyed said that the value of their home
had risen over the last month, up from 6.3% in October last year. Only
5% of households said the value of their home had fallen over the last
month, giving a HPSI reading of 59.1. Any figure under 50 indicates that
prices are falling, and the lower the figure, the steeper the decline.
Any figure over 50 indicates that prices are rising.
This is up
from last month’s record reading of 57.9 and marks the highest reading
since the index began in February 2009. This is the most sustained
period of upward price movements in three years.
The future HPSI,
which measures what households think will happen to the value of their
property over the next year, rose to a new high in October at 71.1, up
from 69.6, in September. On a smoother three month average basis, the
future HPSI reading was 68.8, up from 68.2 in the previous three month
period.
‘The momentum in house price expectations gained over the past few
months continued this month, with households across the country
expecting the value of their home to rise over the next 12 months,’ said
Gráinne Gilmore, head of UK residential research at Knight Frank.
‘This
is the latest evidence of increased confidence in the market, which has
been boosted by the Government’s Help to Buy mortgage guarantee scheme,
introduced at the start of the month,’ she explained.
‘The
difference in the rate of growth expected in the regions is quite
pronounced however, reflecting the localised nature of the housing
market at present. Households in London and the South East expect the
largest rise in prices over the next year, an indication of the strength
of the housing market in the capital and in surrounding areas within
easy commuting distance,’ she added.
Tim Moore, senior economist
at Markit, said the outlook is positive. ‘Looking ahead, only one in 14
households forecast a decline in their property value over the next 12
months. In London, the number of respondents expecting a price fall
between now and October 2014 stands at around one in 30 households, and
across the wider South East this proportion has reached just one in 20,’
he pointed out.
Article Source: http://www.propertywire.com/news/europe/uk-property-price-outlook-201310228373.html
Showing posts with label household. Show all posts
Showing posts with label household. Show all posts
Wednesday, 23 October 2013
Thursday, 12 September 2013
England Needs More New Homes Than Previously Estimated
According to the new analysis England needs news homes a year are needed because of its increasing demand as shown on this article by the Property Wire on September 11th, 2013.
An analysis of Census information for England shows that over 240,000 new homes a year are needed as demand continues to significantly outstrip supply.
The analysis by housing academic Dr Alan Holmans published by housing and planning charity, the Town and Country Planning Association (TCPA), shows that the scale of housing need is greater than currently estimated.
Holmans, from the Cambridge Centre for Housing and Planning Research, says in the report that housing requirements are on average around 240,000 to 245,000 per year, with around 60% of all demand and need in the four southern regions of England.
This is up to 10,000 more homes per year than the generally used 235,000 figure. The report also shows that house building levels are slowing rising from their lowest levels since the 1920s, at around 100,000 per year.
‘This research, the first of its kind to analyse the Census 2011 data, is a crucial reminder of the desperate need for more and better housing in the right places. We have a hopelessly inadequate supply of housing and a serious backlog, as well as chronic affordability problems,’ said Kate Henderson, TCPA chief executive.
‘While house building levels remain at about 100,000 per year, the Census reveals a staggering need for over 240,000 homes per year. The research also shows that nearly one third of newly arising housing need requires some subsidy; without this investment affordability, overcrowding and ultimately homelessness will worsen,’ she added.
‘We urgently need a new vision for housing and the development of new communities. That new vision has to ensure a substantial increase in the supply of new homes and address affordability. At the same time, we must focus on building successful new communities, whether as part of urban regeneration or through new Garden Cities. This is essential not just to our economic future but also the social and environmental wellbeing of our country,’ she added.
The figures make projections for 2021 and extend them to 2031 to enable longer term decisions for land use management, planning and local government. The projections in the report, together with adjustments for gains, losses and vacancies in stock, suggest that over 240,000 additional homes will be required to meet newly arising demand and need.
The report says that even if the economy remains depressed and household formation rates remain low, there will still be almost a 20% increase in the number of households over the 20 year period to 2031. This is mainly because of the expected continued growth in population.
It also shows that there was an abrupt break with longer term trends in household formation in England between 2001 and 2011. To take the most obvious example, the number of one person households in 2011 according to the Census was nearly one million lower than the 2008 based projections published by the Department of Communities and Local Government in 2011.
Other large scale shifts in the mix of household types include far more couple plus other adult households than expected. In part this is about younger people staying at home or sharing accommodation for longer. But that is not the whole story as changes are observed in all age groups.
Applying past trends based mainly on household composition would suggest that some 68% of new households would be in the market sector of owner occupation or private market renting without benefits, but that housing to meet nearly one third of newly arising need would require some subsidy.
At the regional level, not far short of a quarter of all housing demand and need is likely to be concentrated in London, with over 60% in the four southern regions. But all regions require significant additional housing investment.
‘It is enormously important that we plan for recovery and deliver much higher output levels. Otherwise if recovery happens increasing house prices will worsen affordability. Planning based on the past few years of recession will simply build in the next crisis,’ said Professor Christine Whitehead, who was involved in the research that lies behind the report.
Chris Tinker, board director at home builders Crest Nicholson, which supported the research, said that the study re affirms the on going need for over 240,000 new homes per annum, 60% of which is required in London and the four main Southern regions.
‘With developer's consented land banks amounting to less than two year's housing demand there is therefore an urgent need for Local Authorities and developers to work together, especially in key demand areas, to identify and plan for a significant increase in new communities within which well designed homes can be delivered. A failure to meet housing demand will continue to undermine affordability and put the future prosperity and success of our communities at risk,’ he added.
Article Source: http://www.propertywire.com/news/europe/england-house-building-analysis-201309118222.html
An analysis of Census information for England shows that over 240,000 new homes a year are needed as demand continues to significantly outstrip supply.
The analysis by housing academic Dr Alan Holmans published by housing and planning charity, the Town and Country Planning Association (TCPA), shows that the scale of housing need is greater than currently estimated.
Holmans, from the Cambridge Centre for Housing and Planning Research, says in the report that housing requirements are on average around 240,000 to 245,000 per year, with around 60% of all demand and need in the four southern regions of England.
This is up to 10,000 more homes per year than the generally used 235,000 figure. The report also shows that house building levels are slowing rising from their lowest levels since the 1920s, at around 100,000 per year.
‘This research, the first of its kind to analyse the Census 2011 data, is a crucial reminder of the desperate need for more and better housing in the right places. We have a hopelessly inadequate supply of housing and a serious backlog, as well as chronic affordability problems,’ said Kate Henderson, TCPA chief executive.
‘While house building levels remain at about 100,000 per year, the Census reveals a staggering need for over 240,000 homes per year. The research also shows that nearly one third of newly arising housing need requires some subsidy; without this investment affordability, overcrowding and ultimately homelessness will worsen,’ she added.
‘We urgently need a new vision for housing and the development of new communities. That new vision has to ensure a substantial increase in the supply of new homes and address affordability. At the same time, we must focus on building successful new communities, whether as part of urban regeneration or through new Garden Cities. This is essential not just to our economic future but also the social and environmental wellbeing of our country,’ she added.
The figures make projections for 2021 and extend them to 2031 to enable longer term decisions for land use management, planning and local government. The projections in the report, together with adjustments for gains, losses and vacancies in stock, suggest that over 240,000 additional homes will be required to meet newly arising demand and need.
The report says that even if the economy remains depressed and household formation rates remain low, there will still be almost a 20% increase in the number of households over the 20 year period to 2031. This is mainly because of the expected continued growth in population.
It also shows that there was an abrupt break with longer term trends in household formation in England between 2001 and 2011. To take the most obvious example, the number of one person households in 2011 according to the Census was nearly one million lower than the 2008 based projections published by the Department of Communities and Local Government in 2011.
Other large scale shifts in the mix of household types include far more couple plus other adult households than expected. In part this is about younger people staying at home or sharing accommodation for longer. But that is not the whole story as changes are observed in all age groups.
Applying past trends based mainly on household composition would suggest that some 68% of new households would be in the market sector of owner occupation or private market renting without benefits, but that housing to meet nearly one third of newly arising need would require some subsidy.
At the regional level, not far short of a quarter of all housing demand and need is likely to be concentrated in London, with over 60% in the four southern regions. But all regions require significant additional housing investment.
‘It is enormously important that we plan for recovery and deliver much higher output levels. Otherwise if recovery happens increasing house prices will worsen affordability. Planning based on the past few years of recession will simply build in the next crisis,’ said Professor Christine Whitehead, who was involved in the research that lies behind the report.
Chris Tinker, board director at home builders Crest Nicholson, which supported the research, said that the study re affirms the on going need for over 240,000 new homes per annum, 60% of which is required in London and the four main Southern regions.
‘With developer's consented land banks amounting to less than two year's housing demand there is therefore an urgent need for Local Authorities and developers to work together, especially in key demand areas, to identify and plan for a significant increase in new communities within which well designed homes can be delivered. A failure to meet housing demand will continue to undermine affordability and put the future prosperity and success of our communities at risk,’ he added.
Article Source: http://www.propertywire.com/news/europe/england-house-building-analysis-201309118222.html
Thursday, 22 August 2013
Small Debts Enough for UK Lenders to Force Borrowers to Sell Property
UK lenders can now go to court and force their borrowers who has unpaid credit card bill worth 1,000 pounds to sell their property as revealed in this August 20, 2013 issue by RT.
An unpaid credit card bill worth 1,000 pounds is now enough for a UK lender to go to court, forcing debtors to sell their property. A recent regulation puts tens of thousands of British homeowners at risk of losing their houses. Frankie Waller, an owner of a modest London dwelling, might well soon lose the place holding memories of the last 20 years of his life. September court hearings will decide if he can keep his home or will have to sell it to repay 6,000 pounds of credit card debts he has run up.
“Nobody asked me or twisted my arm to take out the credit. That’s my doing entirely”, Waller confessed to RT’s Polly Boyko. “But the word ‘unsecured’ was attached to it.”
That key word – unsecured – is supposed to mean the loan is not attached to any of your assets. However, as of October 2012 the rules of the lending game have been changed by a government regulation, making it easier to turn unsecured debt into secured. That means failure to pay it off puts borrowers at risk of losing their homes.
A creditor has been given the right to apply to court for a charging order, forcing the debtor to sell his property. As of April, accumulating a debt of just 1,000 pounds is enough for the ‘un’ prefix to disappear from your unsecured loan.
Edward Ware from Step Change Debt Charity, which is trying to help those with serious debt problems, believes the regulation makes too many homeowners vulnerable.
“We wanted that threshold set at 25,000 pounds because we wanted that extra layer of consumer protection. The government have [sic] made it easier for lenders to get charging orders,” Ware told RT.
Britain’s Office for Fair Trading has already warned major banks over threatening to force debtors to sell their homes over debts of just over 1000 pounds.
However, when the threshold was introduced in April, the Justice Ministry justified it as a measure helping protect debtors.
“With a high threshold, such as 25,000 pounds, there is a risk that creditors may seek to recover their debt by initiating bankruptcy proceedings as an alternative to enforcement. This would be a more draconian outcome for debtors than an Order for Sale”, Lord McNally, Minister of State (Ministry of Justice) said.
However, house prices in the UK are on the rise, and debt charities are predicting a surge in charging orders. Because if a debtors’ house gains value, its sale is guaranteed to return their debts to their creditors.
Besides, a recent survey, issued on Monday, suggests the Britons have become less cautious with unsecured loans, finding them increasingly easy to obtain. Households' perceptions of credit availability rose to 48.4 in August from 47.7 in July, survey compiler Markit says, adding that it’s the biggest rise since the survey began in February 2009.
"A brightening economic and financial outlook, alongside some signs of improved access to household credit, looks to have spurred consumer spending again in August," senior Markit economist Tim Moore, as cited by Reuters.
Frankie Waller, however, has been sobered out of his own bright vision of lending and spending.
“How’d you think it makes me feel?” he asks. “I mean I feel thoroughly sick, and my wife feels thoroughly sick over it. It’s something in the good times we took pride in paying and throughout the bad times we’ve struggled for very hard. This extra pressure, financial pressure is causing a rift between my wife and I. Our relationship is very strained… life’s not good.”
And Waller’s not alone in his grief. Eighty-one thousand and fifty-nine Britons faced charging orders in 2011, according to the most recent statistics by the Ministry of Justice. The post-regulation statistics is yet to come.
Article Source: http://rt.com/news/uk-regulation-charging-order-718/
An unpaid credit card bill worth 1,000 pounds is now enough for a UK lender to go to court, forcing debtors to sell their property. A recent regulation puts tens of thousands of British homeowners at risk of losing their houses. Frankie Waller, an owner of a modest London dwelling, might well soon lose the place holding memories of the last 20 years of his life. September court hearings will decide if he can keep his home or will have to sell it to repay 6,000 pounds of credit card debts he has run up.
“Nobody asked me or twisted my arm to take out the credit. That’s my doing entirely”, Waller confessed to RT’s Polly Boyko. “But the word ‘unsecured’ was attached to it.”
That key word – unsecured – is supposed to mean the loan is not attached to any of your assets. However, as of October 2012 the rules of the lending game have been changed by a government regulation, making it easier to turn unsecured debt into secured. That means failure to pay it off puts borrowers at risk of losing their homes.
A creditor has been given the right to apply to court for a charging order, forcing the debtor to sell his property. As of April, accumulating a debt of just 1,000 pounds is enough for the ‘un’ prefix to disappear from your unsecured loan.
Edward Ware from Step Change Debt Charity, which is trying to help those with serious debt problems, believes the regulation makes too many homeowners vulnerable.
“We wanted that threshold set at 25,000 pounds because we wanted that extra layer of consumer protection. The government have [sic] made it easier for lenders to get charging orders,” Ware told RT.
Britain’s Office for Fair Trading has already warned major banks over threatening to force debtors to sell their homes over debts of just over 1000 pounds.
However, when the threshold was introduced in April, the Justice Ministry justified it as a measure helping protect debtors.
“With a high threshold, such as 25,000 pounds, there is a risk that creditors may seek to recover their debt by initiating bankruptcy proceedings as an alternative to enforcement. This would be a more draconian outcome for debtors than an Order for Sale”, Lord McNally, Minister of State (Ministry of Justice) said.
However, house prices in the UK are on the rise, and debt charities are predicting a surge in charging orders. Because if a debtors’ house gains value, its sale is guaranteed to return their debts to their creditors.
Besides, a recent survey, issued on Monday, suggests the Britons have become less cautious with unsecured loans, finding them increasingly easy to obtain. Households' perceptions of credit availability rose to 48.4 in August from 47.7 in July, survey compiler Markit says, adding that it’s the biggest rise since the survey began in February 2009.
"A brightening economic and financial outlook, alongside some signs of improved access to household credit, looks to have spurred consumer spending again in August," senior Markit economist Tim Moore, as cited by Reuters.
Frankie Waller, however, has been sobered out of his own bright vision of lending and spending.
“How’d you think it makes me feel?” he asks. “I mean I feel thoroughly sick, and my wife feels thoroughly sick over it. It’s something in the good times we took pride in paying and throughout the bad times we’ve struggled for very hard. This extra pressure, financial pressure is causing a rift between my wife and I. Our relationship is very strained… life’s not good.”
And Waller’s not alone in his grief. Eighty-one thousand and fifty-nine Britons faced charging orders in 2011, according to the most recent statistics by the Ministry of Justice. The post-regulation statistics is yet to come.
Article Source: http://rt.com/news/uk-regulation-charging-order-718/
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