Scottish House Price 'Reality Gap' Narrows

This article by BBC News on November 11th, 2013 reveals the new report that buyers are willing to pay more than they actually achieve.

 

S1homes said buyers were now prepared to pay more than they had been "for quite some time" 

 

The gap between what Scots hope to sell their properties for and the price they actually achieve has narrowed, according to a new report.

Property website S1homes found the "reality gap" narrowed in Scotland from 9% to 2% in the third quarter.

The change was driven by an increase in the amount buyers were prepared to pay, and not a drop in prices.

The S1homes report compared average asking prices with officially-registered settlement prices.

It found that the average selling price in Scotland increased by more than £8,500 to £161,748 in the third quarter, while, on average, properties sold for about £4,000 less than their asking price. The difference in the previous quarter was £14,500.

However, there were significant variations between the top and bottom of the market, with all property types except detached homes achieving more than the asking price.

Flats continued to perform well across Scotland, selling on average more than 17%, or £19,000, above their advertised price.

Terraced and semi-detached houses also sold well above what sellers hoped to achieve.

But detached properties continued to sell significantly below their asking price despite an increase in the average selling price during the quarter.

The average asking price for properties fell in most areas, except for East Renfrewshire, Fife and West Lothian.

In Edinburgh, the average selling price overtook the advertised price, due to an increase of 4.5% in the amount homes were sold for.

S1homes commercial director Ewan Stark said: "This quarter's report shows that there have been significant changes taking place in the property market.

"Buyers are now prepared to pay more than they have been for quite some time and that, coupled with a slight decline in average asking prices, is what has led to the upsurge in the volume of properties being sold.

"That's positive if you're looking to sell a property but the sharply rising prices at the lower end of the market aren't good news for first-time buyers."

Article Source: http://www.bbc.co.uk/news/uk-scotland-scotland-business-24865606

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Abu Dhabi Islamic Bank Arranges Islamic Financing Deal for London Property

This article by WAM of gulfnews.com on October 30th, 2013 reveals the deal that marks ADIB's debut in London's real estate market.

Abu Dhabi: Abu Dhabi Islamic Bank (ADIB) has arranged a £20 million (Dh118.02 million) structured Islamic financing transaction to fund the development of Westbourne House, a prime 1980s commercial property in central London, combining office and retail space.

The deal marks ADIB’s debut in London’s real estate market at a time when the British government is promoting the city as a centre for Islamic finance. British Prime Minister David Cameron told a gathering of political and business leaders on Tuesday that he wanted London to “stand alongside Dubai and Kuala Lumpur as one of the great capitals of Islamic finance anywhere in the world.”

ADIB’s financing package for Westbourne House was specifically tailored to meet the investors’ aims of acquiring, refurbishing and reselling high-value luxury properties to overseas buyers.

Arif Usmani, global head of wholesale banking at ADIB, said: “ADIB welcomes the increasingly high profile role being played by the UK’s financial services sector to encourage the global acceptance and growth of Islamic finance products and services. Resilient demand from international buyers for prime residential real estate has underpinned the performance of London’s property market which has outpaced most other markets in recent years. ADIB appreciates the value of building strategic partnerships with investors in international markets, which enable us to extend our global reach and to identify similar opportunities in London and other key international locations for our clients.”

Article Source: http://gulfnews.com/business/general/abu-dhabi-islamic-bank-arranges-islamic-financing-deal-for-london-property-1.1249375

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Who is the Typical First Time Buyer?

This article by Alex Johnson of The Independent on September 9th, 2013 basically identifies the percentage of the typical first time buyer according to age, salary, house type, property value, etc.

According to the latest figures from LSL Property Services, the average first-time buyer in
July was aged 30, with an annual salary of £36,299, 4 per cent higher than in July 2012.

The average purchase price for a first-time buyer rose by 8 per cent year-on-year in July, and is now £146,726.

The number of first-time buyers who were able to self-fund their purchase fell to 41 per cent in July, from 51 per cent in April. Around 36 per cent of all first-time buyers in the UK received financial help with their deposit from parents or relatives, while 9 per cent benefited from an inheritance - 2% received family help with mortgage repayments. Another 4 per cent received financial help from a government scheme such as Help to Buy, up from 1 per cent in April.

A total of 44 per cent of all first-timers were looking for houses with three or more bedrooms.

The second most popular property type was two bedroom houses (31 per cent). Flats continued to attract far fewer first-time buyers with just a quarter of buyers looking for flats rather than houses.

Four in ten first-time buyers said they were choosing to buy now as they had only recently been in  a position financially stable enough to purchase a property, while a quarter chose to buy to own a house with their partner, and another quarter feel it is time for them to settle down. Only 8 per cent bought for investment purposes,  expecting house prices to rise, down from 11 per cent in April.

First-time buyers are also confident that the value of property is set to rise. Almost half  of UK first-time buyers think that house prices will rise by up to 5 per cent in the next year, while a further two in ten believe prices will rise between 5 per cent and 10 per cent.

Connells also reported that the number of first-time buyers in August 2013 outpaced those recorded in August 2007. There were 40% more first-time buyers last month than in August 2012 and 1% more than August 2007.

John Bagshaw, Corporate Services Director of Connells Survey & Valuation, comments:

"Numbers of first-time buyers are flowing again, but it isn’t like the floodgates have been thrown open for everyone.  There are still thousands of households whose earnings have little chance of matching inflation – let alone being sufficient to support loans based on current house prices.  The other side of the story to first-time buyers are those still renting, and buy-to-let activity is still growing at an astounding pace to keep up with demand for renting."

In the LSL survey, tenants currently unable to become first-time buyers named the inability to save for a deposit as the biggest stumbling block to homeownership. More than half are unable to buy as they can’t save for a deposit, and a growing number of potential first-time buyers (19according to chartered surveyors Connells Survey & Valuation) are concerned that rising costs like stamp duty will get in the way, up by a third from 13according to chartered surveyors Connells Survey & Valuation in December 2012.

David Newnes continues: “It remains a huge challenge for first-time buyers to purchase property in the capital. House prices are more expensive, and the size of deposit required dwarfs that in the rest of the country. It’s the reason why six out of tenants in London can’t afford to buy. And there are further concerns for the London market. Higher legal fees and stamp duty costs are turning further first-timers off buying."

Article Source: http://www.independent.co.uk/property/who-is-the-typical-first-time-buyer-8804580.html