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 property. Show all posts
Showing posts with label property. Show all posts
Wednesday, 23 October 2013
Monday, 21 October 2013
Future of London: The New York Times on the Foreign Rich Buying Up Property
This article by Michael
Goldfarb of theguardian on October 20th 2013, tells us that property in the capital has become a global reserve currency for the elite.
When I wrote this piece in September, shortly after the ONS published its report showing a 9.7% increase in London house prices, I never thought to send it to a British paper. Everybody here knows the score – no one will publish it, I thought. Wrong. It went viral. Clearly, it spoke to people's fears.
They fear that property prices make no sense. It feels like 2005-07 all over again. People shake their heads and say it can't go on like this. Since nothing has changed in oversight of the City and the rest of the global financial system, people fear what the next property- driven crash will do to their lives.
People fear for their jobs. The time frame of productive economic life for the middle classes is growing shorter. People don't get into good full-time work now until their late 20s. By the time they are 50, they are living on borrowed time (it's more like 40 if they work at Silicon Roundabout). And anyway wages are not rising in line with house prices, so they have to take out massive mortgages.
Finally, they fear what I write about at the end of the essay. The balance in London's complex social ecology has been lost. The balance point in any society should be between stability and stasis. Stability is good; stasis is bad. What's happening in London has shifted the ground so dramatically that stability isn't something most people can contemplate. How do you raise your children knowing that the place they were born and raised is – on current trends – not a place they will be able to afford to live when they grow up?
Article Source: http://www.theguardian.com/uk-news/2013/oct/20/london-new-york-times-foreign-rich-property
Aerial view of Tower Bridge and the River Thames at night. Photograph: Jason Hawkes/theguardian.com
Our neighbours Lauren and Matt and their kids moved out of London
to Cambridge the other week. Bibi, Andy and their two left for Bristol
in June. Another of my eight-year-old's classmates and her family are
heading out after Christmas. In my book this is a trend.
The moves are not examples of the lifecycle of the striving middle classes. Nor are they examples of middle-class folks being thrown on hard times by the sluggish British economy.
The families moving out had good incomes. Matt, who had been looking for a house for more than three years, summed up the reason for leaving best: "I don't want to be a slave to a mortgage for the next 25 years." Given the astronomical rise in house prices here, he wasn't speaking metaphorically.
This is what happens when property in your city becomes a global reserve currency. For that is what property in London has become, first and foremost. The property market is no longer about people making a long-term investment in owning their shelter, but a place for the world's richest people to park their money at an annualised rate of return of around 10%. It has made my adopted hometown a no-go area for increasing numbers of the middle class.
According to Britain's Office for National Statistics, London house prices rose by 9.7% between July 2012 and July 2013. In the surrounding suburbs they rose by a mere 2.6%. The farther away from London you go, the lower the numbers get. When you finally cross the border into Scotland, house prices actually decline by 2%.
The gap between London prices and those of the rest of the country is now at a historic high and there is only one way to explain it.
London houses and apartments are a form of money.
The reasons are simple to understand. In 2011, at the height of the eurozone crisis, citizens of the two countries at the epicentre of the cataclysm – Greece and Italy – bought £400m of London bricks and mortar. The Italian and Greek rich, fearing the single currency would collapse, got their money out of euros and parked it some place where government was relatively stable and the tax regime was gentle – very, very gentle. Considering that tax evasion in Italy and Greece was a significant contributory factor to their debt problems, it just seems grotesquely cynical to encourage this kind of behaviour.
But that's what Britain in general, and London in particular, does. The city is essentially a tax haven with great theatre, free museums and formidable dining. If you can demonstrate that you have a residence in another country, you are taxed only on your British earnings.
And the savings on property taxes are phenomenal. The property taxes on New York mayor Michael R. Bloomberg's $20m London home come to £2,143.30 a year. That's $3,430.
Clearly, the mayor bought in at the right time. The Google executive chairman, Eric Schmidt, is reported to be house-hunting here – he's looking in the £30m (about $48m) price range. Yet he will pay a similar amount in property tax as Bloomberg does.
There are other facets of London real estate as a medium of exchange. British gross domestic product has yet to return to pre-crash levels, but the financial services industry has roared back. Banks are paying out big bonuses again, and anyone looking for a safe investment is getting into London property.
From the top of Parliament Hill, on Hampstead Heath, look eastward. Out around the Olympic Park and beyond you see clumps of highrise apartment buildings sprouting like toadstools in a meadow after heavy rain. These aren't being built to meet the calamitous shortage of affordable family housing in the city; they are studio and one- or two-bedroom apartments.
When I say property is money I mean it. An
astonishing £83bn of properties were purchased in 2012 with no financing
– all cash purchases. That's around $133bn.
I suppose the development that houses equals medium of exchange isn't all bad. I have friends who were very successful "creatives" (architects, cinematographers, commercial and television directors, etc) in their 30s and 40s. They bought houses when houses were places to live in. Once they turned 50, they passed through a mirror that turned them invisible. Work dried up. They have survived in London via the magic of remortgaging. They accept that their children will never be able to afford to stay on in the city.
The ripple effect of this frankly demented situation is felt all over town. The foreign rich and the City rich (there is some overlap) have made most of the centre of London unaffordable to any but their own kind. Those who were once considered rich – in the top 10% of earners – now can barely afford to move to my neighbourhood, where a typical row (terraced) house, with three bedrooms (the third bedroom wouldn't qualify as a closet in Manhattan) and a total living space of around 950 square feet tops a million dollars, three times what it cost in 2000.
The overall economy of Britain certainly doesn't justify these prices. Bank lending for businesses is flat, but mortgage lending? Hoo-ha, it's soaring up and up and the bulk of it is concentrated in London. It's as if the whole British economy is based on housing speculation in the capital.
David Cameron's government seems to think that is the case. Cameron may be pursuing austerity policies elsewhere in the economy, doing virtually nothing to help subsidise employment or industry, but his government has just started a "help to buy" scheme. The government will guarantee up to 15% of the purchase price of a house up to £600,000 ($960,000), if you have a 5% down payment.
The ordinary uses of the city have been changed beyond recognition. London was never a cheap place to live, but now more expensive property means more expensive everything else: restaurants, cinemas, bars and theatre tickets.As for services, the minimal tax paid by those who have made property into money means that a city whose population has increased by 14% in the last decade can't afford to build new schools. There will be a capacity shortfall of an estimated 90,000 places by 2015. Children won't be turned away from school, but class sizes will grow to untenable proportions.
So younger people, like my former neighbours, feel compelled to leave – even though they were making a very decent living. The delicate social ecology that made London's transformation into a great world city over the last two decades is past the tipping point, I fear.
For the quarter of a century I have lived here, a sense of community has defined my life. A very organic sense of London pride has allowed this city to withstand substantial shocks – some welcome, like its transformation into a true cosmopolis; some unwelcome, like jihadist terrorism.
Now it is beginning to feel that the next phase of London's history will be one of transience, with no allegiance to the city. I wonder whether those just parking their money here by buying real estate will ever be able to provide the communal sensibility to help the city survive the inevitable shocks it will experience in years to come.
How this story will end doesn't bear thinking about. It seems a very reasonable bet, though, that those who use London property as just another form of money aren't thinking about it at all.
Michael Goldfarb is a writer whose most recent book is Emancipation: How Liberating Europe's Jews From the Ghetto Led to Revolution and Renaissance
© 2013 The New York Times Syndicate
WHY MY STORY HAD SUCH AN IMPACTThe moves are not examples of the lifecycle of the striving middle classes. Nor are they examples of middle-class folks being thrown on hard times by the sluggish British economy.
The families moving out had good incomes. Matt, who had been looking for a house for more than three years, summed up the reason for leaving best: "I don't want to be a slave to a mortgage for the next 25 years." Given the astronomical rise in house prices here, he wasn't speaking metaphorically.
This is what happens when property in your city becomes a global reserve currency. For that is what property in London has become, first and foremost. The property market is no longer about people making a long-term investment in owning their shelter, but a place for the world's richest people to park their money at an annualised rate of return of around 10%. It has made my adopted hometown a no-go area for increasing numbers of the middle class.
According to Britain's Office for National Statistics, London house prices rose by 9.7% between July 2012 and July 2013. In the surrounding suburbs they rose by a mere 2.6%. The farther away from London you go, the lower the numbers get. When you finally cross the border into Scotland, house prices actually decline by 2%.
The gap between London prices and those of the rest of the country is now at a historic high and there is only one way to explain it.
London houses and apartments are a form of money.
The reasons are simple to understand. In 2011, at the height of the eurozone crisis, citizens of the two countries at the epicentre of the cataclysm – Greece and Italy – bought £400m of London bricks and mortar. The Italian and Greek rich, fearing the single currency would collapse, got their money out of euros and parked it some place where government was relatively stable and the tax regime was gentle – very, very gentle. Considering that tax evasion in Italy and Greece was a significant contributory factor to their debt problems, it just seems grotesquely cynical to encourage this kind of behaviour.
But that's what Britain in general, and London in particular, does. The city is essentially a tax haven with great theatre, free museums and formidable dining. If you can demonstrate that you have a residence in another country, you are taxed only on your British earnings.
And the savings on property taxes are phenomenal. The property taxes on New York mayor Michael R. Bloomberg's $20m London home come to £2,143.30 a year. That's $3,430.
Clearly, the mayor bought in at the right time. The Google executive chairman, Eric Schmidt, is reported to be house-hunting here – he's looking in the £30m (about $48m) price range. Yet he will pay a similar amount in property tax as Bloomberg does.
There are other facets of London real estate as a medium of exchange. British gross domestic product has yet to return to pre-crash levels, but the financial services industry has roared back. Banks are paying out big bonuses again, and anyone looking for a safe investment is getting into London property.
From the top of Parliament Hill, on Hampstead Heath, look eastward. Out around the Olympic Park and beyond you see clumps of highrise apartment buildings sprouting like toadstools in a meadow after heavy rain. These aren't being built to meet the calamitous shortage of affordable family housing in the city; they are studio and one- or two-bedroom apartments.
The
developments are financed by "off plan" buying. Bonus babies look at the
blueprints and put their money down with no intention of living in what
they've bought – just collecting decades of rent. And it's not just
those who work in London's financial district, the City, who buy in. Hot
money from China, Singapore, India and other countries with
fast-growing economies and short traditions of good governance is
pouring into London.
I suppose the development that houses equals medium of exchange isn't all bad. I have friends who were very successful "creatives" (architects, cinematographers, commercial and television directors, etc) in their 30s and 40s. They bought houses when houses were places to live in. Once they turned 50, they passed through a mirror that turned them invisible. Work dried up. They have survived in London via the magic of remortgaging. They accept that their children will never be able to afford to stay on in the city.
The ripple effect of this frankly demented situation is felt all over town. The foreign rich and the City rich (there is some overlap) have made most of the centre of London unaffordable to any but their own kind. Those who were once considered rich – in the top 10% of earners – now can barely afford to move to my neighbourhood, where a typical row (terraced) house, with three bedrooms (the third bedroom wouldn't qualify as a closet in Manhattan) and a total living space of around 950 square feet tops a million dollars, three times what it cost in 2000.
The overall economy of Britain certainly doesn't justify these prices. Bank lending for businesses is flat, but mortgage lending? Hoo-ha, it's soaring up and up and the bulk of it is concentrated in London. It's as if the whole British economy is based on housing speculation in the capital.
David Cameron's government seems to think that is the case. Cameron may be pursuing austerity policies elsewhere in the economy, doing virtually nothing to help subsidise employment or industry, but his government has just started a "help to buy" scheme. The government will guarantee up to 15% of the purchase price of a house up to £600,000 ($960,000), if you have a 5% down payment.
The ordinary uses of the city have been changed beyond recognition. London was never a cheap place to live, but now more expensive property means more expensive everything else: restaurants, cinemas, bars and theatre tickets.As for services, the minimal tax paid by those who have made property into money means that a city whose population has increased by 14% in the last decade can't afford to build new schools. There will be a capacity shortfall of an estimated 90,000 places by 2015. Children won't be turned away from school, but class sizes will grow to untenable proportions.
So younger people, like my former neighbours, feel compelled to leave – even though they were making a very decent living. The delicate social ecology that made London's transformation into a great world city over the last two decades is past the tipping point, I fear.
For the quarter of a century I have lived here, a sense of community has defined my life. A very organic sense of London pride has allowed this city to withstand substantial shocks – some welcome, like its transformation into a true cosmopolis; some unwelcome, like jihadist terrorism.
Now it is beginning to feel that the next phase of London's history will be one of transience, with no allegiance to the city. I wonder whether those just parking their money here by buying real estate will ever be able to provide the communal sensibility to help the city survive the inevitable shocks it will experience in years to come.
How this story will end doesn't bear thinking about. It seems a very reasonable bet, though, that those who use London property as just another form of money aren't thinking about it at all.
Michael Goldfarb is a writer whose most recent book is Emancipation: How Liberating Europe's Jews From the Ghetto Led to Revolution and Renaissance
© 2013 The New York Times Syndicate
When I wrote this piece in September, shortly after the ONS published its report showing a 9.7% increase in London house prices, I never thought to send it to a British paper. Everybody here knows the score – no one will publish it, I thought. Wrong. It went viral. Clearly, it spoke to people's fears.
They fear that property prices make no sense. It feels like 2005-07 all over again. People shake their heads and say it can't go on like this. Since nothing has changed in oversight of the City and the rest of the global financial system, people fear what the next property- driven crash will do to their lives.
People fear for their jobs. The time frame of productive economic life for the middle classes is growing shorter. People don't get into good full-time work now until their late 20s. By the time they are 50, they are living on borrowed time (it's more like 40 if they work at Silicon Roundabout). And anyway wages are not rising in line with house prices, so they have to take out massive mortgages.
Finally, they fear what I write about at the end of the essay. The balance in London's complex social ecology has been lost. The balance point in any society should be between stability and stasis. Stability is good; stasis is bad. What's happening in London has shifted the ground so dramatically that stability isn't something most people can contemplate. How do you raise your children knowing that the place they were born and raised is – on current trends – not a place they will be able to afford to live when they grow up?
Article Source: http://www.theguardian.com/uk-news/2013/oct/20/london-new-york-times-foreign-rich-property
Friday, 18 October 2013
Rents in Private Sector Hit Record High
This article by BBC News Business on October 17th, 2013 is about the average cost of renting a home has now rise according to a survey by LSL Property Services.
Average rents rose by 2.1% in September compared with the same month a year earlier, LSL Property Services said.
This was a 1.8% increase on August, driven by a 3.3% rise in the south east of England.
The lettings group said that greater demand from tenants was pushing up prices.
"Higher rents in almost every region show that, despite government schemes, buying a first home is still a difficult aspiration," said David Newnes, director of LSL, which owns estate agents Reeds Rains and Your Move.
"This is not only down to low salary growth, but also a general shortage of supply - which is the underlying reason why homes are getting more expensive. The long-term trend to renting therefore looks unlikely to change significantly in the near future."
The government has brought forward its Help to Buy scheme, which aims to assist those who can afford mortgage payments, but struggle to raise the necessary deposit to secure a mortgage and purchase a home.
However, critics have said that the scheme could create a housing market bubble, with official statistics suggesting UK house prices are already at a record high.
The LSL survey suggested that tenants' finances were stretched. Some 8.5% of all rent across England and Wales was late in September, up from 7.8% in August.
Article Source: http://www.bbc.co.uk/news/business-24566849
The rental market has been affected by young adults' ability to buy
The average cost of
renting a home privately across England and Wales has reached a record
high of £757 a month, according to a survey.
This was a 1.8% increase on August, driven by a 3.3% rise in the south east of England.
The lettings group said that greater demand from tenants was pushing up prices.
"Higher rents in almost every region show that, despite government schemes, buying a first home is still a difficult aspiration," said David Newnes, director of LSL, which owns estate agents Reeds Rains and Your Move.
"This is not only down to low salary growth, but also a general shortage of supply - which is the underlying reason why homes are getting more expensive. The long-term trend to renting therefore looks unlikely to change significantly in the near future."
The government has brought forward its Help to Buy scheme, which aims to assist those who can afford mortgage payments, but struggle to raise the necessary deposit to secure a mortgage and purchase a home.
However, critics have said that the scheme could create a housing market bubble, with official statistics suggesting UK house prices are already at a record high.
The LSL survey suggested that tenants' finances were stretched. Some 8.5% of all rent across England and Wales was late in September, up from 7.8% in August.
Article Source: http://www.bbc.co.uk/news/business-24566849
Monday, 7 October 2013
Gazumping Returns to Housing Market in Battle of the Bidders
This article by Lauren Thompson of theguardian on October 6th, 2013 tells us the war in the housing market because of help to buy which demand rises up to 17% and supply down by 14%.
Gazumping and other nasties that flourished in the last property boom are making a return, as competition for homes increases with the bringing forward of the second phase of Help to Buy.
The scheme, which allows buyers to purchase a property under £600,000 with a 5% deposit, was brought forward to last week – three months ahead of schedule. Traffic to Zoopla, the property search website, immediately jumped 17% compared to a week earlier.
Yet supply is not matching this surge in demand, with 14% fewer homes for sale than this time last year, according to the property analysts Home.co.uk, and 19% fewer in London.
There are fears that buyers could be caught in a bidding frenzy fuelled by bullish sellers and eager estate agents keen to talk up the market. Around 10% of the adult population – 5.1 million people – say they are likely to buy in the next 12 months, up from 8% (or 3.7 million) in January 2012, according to Santander Mortgages.
So how can homebuyers navigate the risks of this buoyant market?.
Gone in a flash
Buyers in stronger markets will have to work harder to find the right properties, especially in hotspots such as London. However, Lisa Green, director of the County Homesearch Company in the north-west, emphasises: "Buyers outside the south-east and other hotspots should be wary of estate agents talking up the market." She says the market is still quite weak in many areas, such as Oldham, Huddersfield, Hartlepool, and Powys in Wales.
"Buyers in these markets are still in a strong position to negotiate on the asking price," she says.
First-time buyer Helena Gibbon, 29, is struggling to find a property in London's overheated market. She has been searching for a one-bed flat in Walthamstow, east London, all year, with her sizeable budget of £200,000. Gibbon, who works in advertising, has saved for years for a 10% deposit, and currently lives with her parents while she scours the market.
"It's tough out there for buyers. I have friends who have viewed 30 or 40 properties but they go so quickly," she says.
If you are searching in a popular location, make sure you have all your paperwork ready if you decide to make an offer, says Camilla Dell at Black Brick buying agency.
Most serious buyers will be signed up to Zoopla or Rightmove alerts, but sometimes the best properties do not need to be advertised because they are snapped up so quickly.
Buyers at the top end of the market – with a budget of £500,000 or more – sometimes employ a buying agent with good contacts to search the market. But what about the rest of us? Tracy Kellett, a buying agent at BDI Home Finders, says that buyers should "make friends with estate agents" and emphasise their strong and serious position as a buyer. "Ask for the first heads-up when a property becomes available," she says.
Gazumping
It's every buyer's nightmare – your offer on a property is accepted and you spend hundreds, or even thousands, on a survey, mortgage and legal fees, only to have another buyer make a higher offer and snatch the place from under your nose.
While still relatively rare, agents say gazumping is making an unwelcome return in pockets across the country.Vicki Wusche at The Property Sourcers says: "We recently had an offer accepted for a client on a three-bedroom house in Norwich at the asking price of £122,000.
We immediately sent over our paperwork and instructed a solicitor and went to bed thinking it was a done deal. But in the morning a cash investor had made a higher offer that had been accepted."
Have a mortgage agreement in principle and your surveyor and solicitor ready before you make an offer, and request the estate agent in writing to take the property off the market as soon as your offer is accepted.
Kate Faulkner at advice site Propertychecklists.co.uk says: "Above all, remember that a seller or agent who gazumps you is not worth doing business with anyway. Have faith that a better property will come along soon."
Sealed bids
Bidding wars – where you compete with other buyers for the same property – can be stressful, but it is vital not to get carried away and pay over the odds.
Buyer Georgina Janion recently bought a flat in Putney, south-west London. The ground floor Victorian conversion had 83 viewings and 13 offers in just one week. The sale went to "sealed bids", where Janion and the other potential buyers had to email their final offer before midday on the same day.
She says: "I had been looking for a property for months and viewed about 30 flats, so I knew the local market well. Going to sealed bids is tough and it's impossible to second-guess what other buyers might be willing to pay. I just had to stay calm and offer a fair price that I could afford."
First-time buyers, most of whom will have saved years for a deposit, need to be especially wary of blowing their budget in a bidding war. Check sites such as nethouseprices.com and mouseprice.com for recent sale prices. It's important to retain a pot of savings to buy new furniture or cover unexpected maintenance costs.
Wusche adds: "Also remember interest rates will go up and you should use an online mortgage calculator to see how your monthly payments would be affected. Could you afford to pay 8% on your mortgage? It's vital not to overstretch yourself."
Article Source: http://www.theguardian.com/money/2013/oct/06/gazumping-housing-market-help-to-buy
Gazumping and other nasties that flourished in the last property boom are making a return, as competition for homes increases with the bringing forward of the second phase of Help to Buy.
The scheme, which allows buyers to purchase a property under £600,000 with a 5% deposit, was brought forward to last week – three months ahead of schedule. Traffic to Zoopla, the property search website, immediately jumped 17% compared to a week earlier.
Yet supply is not matching this surge in demand, with 14% fewer homes for sale than this time last year, according to the property analysts Home.co.uk, and 19% fewer in London.
There are fears that buyers could be caught in a bidding frenzy fuelled by bullish sellers and eager estate agents keen to talk up the market. Around 10% of the adult population – 5.1 million people – say they are likely to buy in the next 12 months, up from 8% (or 3.7 million) in January 2012, according to Santander Mortgages.
So how can homebuyers navigate the risks of this buoyant market?.
Gone in a flash
Buyers in stronger markets will have to work harder to find the right properties, especially in hotspots such as London. However, Lisa Green, director of the County Homesearch Company in the north-west, emphasises: "Buyers outside the south-east and other hotspots should be wary of estate agents talking up the market." She says the market is still quite weak in many areas, such as Oldham, Huddersfield, Hartlepool, and Powys in Wales.
"Buyers in these markets are still in a strong position to negotiate on the asking price," she says.
First-time buyer Helena Gibbon, 29, is struggling to find a property in London's overheated market. She has been searching for a one-bed flat in Walthamstow, east London, all year, with her sizeable budget of £200,000. Gibbon, who works in advertising, has saved for years for a 10% deposit, and currently lives with her parents while she scours the market.
"It's tough out there for buyers. I have friends who have viewed 30 or 40 properties but they go so quickly," she says.
If you are searching in a popular location, make sure you have all your paperwork ready if you decide to make an offer, says Camilla Dell at Black Brick buying agency.
Most serious buyers will be signed up to Zoopla or Rightmove alerts, but sometimes the best properties do not need to be advertised because they are snapped up so quickly.
Buyers at the top end of the market – with a budget of £500,000 or more – sometimes employ a buying agent with good contacts to search the market. But what about the rest of us? Tracy Kellett, a buying agent at BDI Home Finders, says that buyers should "make friends with estate agents" and emphasise their strong and serious position as a buyer. "Ask for the first heads-up when a property becomes available," she says.
Gazumping
It's every buyer's nightmare – your offer on a property is accepted and you spend hundreds, or even thousands, on a survey, mortgage and legal fees, only to have another buyer make a higher offer and snatch the place from under your nose.
While still relatively rare, agents say gazumping is making an unwelcome return in pockets across the country.Vicki Wusche at The Property Sourcers says: "We recently had an offer accepted for a client on a three-bedroom house in Norwich at the asking price of £122,000.
We immediately sent over our paperwork and instructed a solicitor and went to bed thinking it was a done deal. But in the morning a cash investor had made a higher offer that had been accepted."
Have a mortgage agreement in principle and your surveyor and solicitor ready before you make an offer, and request the estate agent in writing to take the property off the market as soon as your offer is accepted.
Kate Faulkner at advice site Propertychecklists.co.uk says: "Above all, remember that a seller or agent who gazumps you is not worth doing business with anyway. Have faith that a better property will come along soon."
Sealed bids
Bidding wars – where you compete with other buyers for the same property – can be stressful, but it is vital not to get carried away and pay over the odds.
Buyer Georgina Janion recently bought a flat in Putney, south-west London. The ground floor Victorian conversion had 83 viewings and 13 offers in just one week. The sale went to "sealed bids", where Janion and the other potential buyers had to email their final offer before midday on the same day.
She says: "I had been looking for a property for months and viewed about 30 flats, so I knew the local market well. Going to sealed bids is tough and it's impossible to second-guess what other buyers might be willing to pay. I just had to stay calm and offer a fair price that I could afford."
First-time buyers, most of whom will have saved years for a deposit, need to be especially wary of blowing their budget in a bidding war. Check sites such as nethouseprices.com and mouseprice.com for recent sale prices. It's important to retain a pot of savings to buy new furniture or cover unexpected maintenance costs.
Wusche adds: "Also remember interest rates will go up and you should use an online mortgage calculator to see how your monthly payments would be affected. Could you afford to pay 8% on your mortgage? It's vital not to overstretch yourself."
Article Source: http://www.theguardian.com/money/2013/oct/06/gazumping-housing-market-help-to-buy
Friday, 4 October 2013
how to Avoid Property Market Dirty Tricks
This article by The Telegraph on October 3rd, 2013 reveals property expert Sarah Beeny's tips on avoiding being ripped off in a rising market.
The housing market is picking up again, which means the familiar cast of property nasties - greedy vendors, gazumping buyers and the oily agents in between - are rising like ghouls back from the dead. And they are bringing with them the old array of dirty tricks that can turn the homebuying process from being merely difficult into pure hell.
The housing market is picking up again, which means the familiar cast of property nasties - greedy vendors, gazumping buyers and the oily agents in between - are rising like ghouls back from the dead. And they are bringing with them the old array of dirty tricks that can turn the homebuying process from being merely difficult into pure hell.
Here, Sarah Beeny gives her top tips for avoiding them.
When a property market is busy, there is a lot of pressure on the buyer to
move quickly or commit more money than they initially planned.
In this situation, it is crucial for buyers to do their homework.
“I truly believe that people shouldn’t panic buy. You should buy when the time is right for you, not in reaction to what the market is doing,” said property expert Sarah Beeny. “You are buying for 25 years and in that time the market will go up and down, so don’t rush into it.
“Make a considered decision and don’t stretch beyond your budget.”
Before you start looking for a property, you should have a mortgage agreed in principle, Ms Beeny said. “Find out how much you can borrow based on your income and then look around for the best mortgage available,” she said.
Ms Beeny also recommended lining up a solicitor in advance. “You can establish a good relationship and have everything in place when you want to put in an offer – it means the process is less painful and you lessen the risk of losing the property because of delays.”
When you start looking at properties, the most important thing is to look at prices in the surrounding area. “If a new build flat is being valued at £100,000 more than the surrounding properties, for example, there is something out of place,” said Ms Beeny.
Information on sold prices nearby is available online and you can ask neighbours for further details.
Article Source: http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/10352319/Sarah-Beeny-on-how-to-avoid-property-market-dirty-tricks.html
“I truly believe that people shouldn’t panic buy. You should buy when the time is right for you, not in reaction to what the market is doing,” said property expert Sarah Beeny. “You are buying for 25 years and in that time the market will go up and down, so don’t rush into it.
“Make a considered decision and don’t stretch beyond your budget.”
Before you start looking for a property, you should have a mortgage agreed in principle, Ms Beeny said. “Find out how much you can borrow based on your income and then look around for the best mortgage available,” she said.
Ms Beeny also recommended lining up a solicitor in advance. “You can establish a good relationship and have everything in place when you want to put in an offer – it means the process is less painful and you lessen the risk of losing the property because of delays.”
When you start looking at properties, the most important thing is to look at prices in the surrounding area. “If a new build flat is being valued at £100,000 more than the surrounding properties, for example, there is something out of place,” said Ms Beeny.
Information on sold prices nearby is available online and you can ask neighbours for further details.
Article Source: http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/10352319/Sarah-Beeny-on-how-to-avoid-property-market-dirty-tricks.html
Wednesday, 25 September 2013
US Consumer Confidence Drops as House Prices Rise at the Fastest Rate in 7 Years
This article by AFP of The Telegraph on September 24th, 2013 reveals the decrease in consumer confidence as house prices rise and shortage in jobs and earnings resurfaced.
US consumer confidence fell slightly in September as Americans grew more wary
about the outlook in coming months, according to a closely watched report.
The Conference Board said its consumer confidence index fell to 79.7 in
September, down from a revised 81.8 in August.
Though a decline was expected for September, the figure was weaker than the
80.0 consensus estimate.
"This is in line... with buyers awaiting a battle among lawmakers over raising
the Treasury debt ceiling that could threaten a government shutdown," said
Nate Kelley of Moody's Analytics.
The Present Situation Index rose to 73.2 in September from 70.9 in August.
The Expectations Index, indicating consumers' views on the outlook six months
into the future, dived to 84.1 from 89.0 last month.
"Consumer confidence decreased in September as concerns about the short-term
outlook for both jobs and earnings resurfaced, while expectations for future
business conditions were little changed," said Lynn Franco, the Conference
Board's director of economic indicators.
"While overall economic conditions appear to have moderately improved, consumers are uncertain that the momentum can be sustained in the months ahead."
Consumers' outlook on jobs and incomes in the coming months darkened.
The number of consumers expecting more jobs fell to 16.9pc from 17.5pc in August, while those anticipating fewer jobs rose to 19.7pc from 17.2pc.
Income expectations were sharply lower. Those expecting their incomes to increase tumbled to 15.4pc from 17.5pc.
The concerns about lower incomes could crimp consumer spending, the engine of US economic growth.
The decline in expectations "also gibes with our call for a relatively weak holiday shopping season this year," said Moody's Kelley.
But while consumer confidence declined, a closely-watched survey of house prices across 20 major US cities showed that property values increased 12.4pc in the year to July. The rise, the highest in seven years, was widely expected by economists, but some foresee a cooling over the rest of the year as mortgage rates climb.
Lawrence Yun, chief economist at the Realtors group, said the surge in sales in August was probably the “last hurrah” for the next year to 18 months as higher prices and the jump in mortgage rates hurts affordability for some buyers.
Article Source: http://www.telegraph.co.uk/finance/economics/10331727/US-consumer-confidence-slips-as-house-prices-rise-at-the-fastest-rate-in-seven-years.html
"While overall economic conditions appear to have moderately improved, consumers are uncertain that the momentum can be sustained in the months ahead."
Consumers' outlook on jobs and incomes in the coming months darkened.
The number of consumers expecting more jobs fell to 16.9pc from 17.5pc in August, while those anticipating fewer jobs rose to 19.7pc from 17.2pc.
Income expectations were sharply lower. Those expecting their incomes to increase tumbled to 15.4pc from 17.5pc.
The concerns about lower incomes could crimp consumer spending, the engine of US economic growth.
The decline in expectations "also gibes with our call for a relatively weak holiday shopping season this year," said Moody's Kelley.
But while consumer confidence declined, a closely-watched survey of house prices across 20 major US cities showed that property values increased 12.4pc in the year to July. The rise, the highest in seven years, was widely expected by economists, but some foresee a cooling over the rest of the year as mortgage rates climb.
Lawrence Yun, chief economist at the Realtors group, said the surge in sales in August was probably the “last hurrah” for the next year to 18 months as higher prices and the jump in mortgage rates hurts affordability for some buyers.
Article Source: http://www.telegraph.co.uk/finance/economics/10331727/US-consumer-confidence-slips-as-house-prices-rise-at-the-fastest-rate-in-seven-years.html
Tuesday, 24 September 2013
Landlords - Are You Ready for the Winter?
This article by Stride on September 4th, 2013 covers how landlords should be ready for winter and check if their properties are still in good state and repair in the col weather.
Autumn is upon us with the temperatures cooling down and evenings closing in, it's the ideal time for landlords to check their properties are ready for the winter months.
Properties need to be in a good state of repair and able to cope with the rigours of the cold weather, while tenants may start to look elsewhere for somewhere to live if they find the house an unpleasantly cold one to live in, or too expensive to heat if bills are not included in the rent.
There are several steps that a landlord can take to ensure the home is ready for the colder weeks and months ahead, both on the inside and out.
Guttering is one area that needs looking at, not least as wind, rain and falling autumn leaves can turn a gutter or downpipe into a disaster area. Overflowing can cause water to seep into brickwork and stone, damaging this and causing damp. So these channels should be checked to ensure they are in good order and not blocked. In addition to this, check if any of the mortar is cracked, as this will only widen in the cold and wet.
Other outdoor problems can include blockages with rubbish, which can cause flooding, along with potential plant damage. This can include small things like moss growing in cracks. This needs removing and the cracks filling in, as the process of freeze-thaw can widen these through the natural effects of expansion and contraction.
Larger vegetation problems can include trees, where it is important to check that there are no branches that might fall in inclement weather. Not only do these pose a threat to life, limb and property, but they may also be a visual irritant to neighbours. Root problems should also be dealt with, although only in an emergency should the tree be felled.
Alongside the risk of damp, cold is a key issue that will drive tenants away and put prospective new ones off. It is important to ensure the roof tiles are all in place and loft insulation is a good way of keeping heat in. On snowy days it is easy to tell which homes have this. While some have white roofs, others are clear of the stuff and may have birds perching on them to keep their feet warm.
Insulation is also something that should be fitted in cavity walls, unless the house lacks these. Insulating a home is not expensive and will help slash energy bills.
Draughts are another issue too. It is no use having insulation to stop heat escaping through the walls or roof if it has an easy way out through a gap at the bottom of the door, or a loose window fitting.
Having a home that is warm and well-insulated means less chance of burst water pipes, cold homes and those living within suffering from poor health. By keeping a home snug and warm, it will instead offer tenants a haven they will enjoy retreating to in winter and prevent expensive repair bills that could have been avoided with better preparation.
Article Source: http://www.stride.co.uk/insurance-news-and-articles/commercial-insurance-articles/property-insurance/landlords-are-you-ready-for-the-winter-/176/
Autumn is upon us with the temperatures cooling down and evenings closing in, it's the ideal time for landlords to check their properties are ready for the winter months.
Properties need to be in a good state of repair and able to cope with the rigours of the cold weather, while tenants may start to look elsewhere for somewhere to live if they find the house an unpleasantly cold one to live in, or too expensive to heat if bills are not included in the rent.
There are several steps that a landlord can take to ensure the home is ready for the colder weeks and months ahead, both on the inside and out.
Guttering is one area that needs looking at, not least as wind, rain and falling autumn leaves can turn a gutter or downpipe into a disaster area. Overflowing can cause water to seep into brickwork and stone, damaging this and causing damp. So these channels should be checked to ensure they are in good order and not blocked. In addition to this, check if any of the mortar is cracked, as this will only widen in the cold and wet.
Other outdoor problems can include blockages with rubbish, which can cause flooding, along with potential plant damage. This can include small things like moss growing in cracks. This needs removing and the cracks filling in, as the process of freeze-thaw can widen these through the natural effects of expansion and contraction.
Larger vegetation problems can include trees, where it is important to check that there are no branches that might fall in inclement weather. Not only do these pose a threat to life, limb and property, but they may also be a visual irritant to neighbours. Root problems should also be dealt with, although only in an emergency should the tree be felled.
Alongside the risk of damp, cold is a key issue that will drive tenants away and put prospective new ones off. It is important to ensure the roof tiles are all in place and loft insulation is a good way of keeping heat in. On snowy days it is easy to tell which homes have this. While some have white roofs, others are clear of the stuff and may have birds perching on them to keep their feet warm.
Insulation is also something that should be fitted in cavity walls, unless the house lacks these. Insulating a home is not expensive and will help slash energy bills.
Draughts are another issue too. It is no use having insulation to stop heat escaping through the walls or roof if it has an easy way out through a gap at the bottom of the door, or a loose window fitting.
Having a home that is warm and well-insulated means less chance of burst water pipes, cold homes and those living within suffering from poor health. By keeping a home snug and warm, it will instead offer tenants a haven they will enjoy retreating to in winter and prevent expensive repair bills that could have been avoided with better preparation.
Article Source: http://www.stride.co.uk/insurance-news-and-articles/commercial-insurance-articles/property-insurance/landlords-are-you-ready-for-the-winter-/176/
Friday, 20 September 2013
Tips to Increase the Value of Your Home
On this article by Express on September 20th, 2013 shows the different effective ways to increase the value of your property.
According to national estate agent Strutt & Parker the top five ways to increase the value of your home are as follows:
1. Room to Improve
Adding an extension is the most costly outlay but could increase the value of your home by up to 20 per cent.
2. Tap into Healthy Returns
The kitchen is the hub of the home. Creating a real asset by modernizing it can help you achieve your target asking price.
3. No Reason to Blow Hot and Cold
The prospect of upgrading a bathroom may deter some buyers but a new bathroom can be a prized asset.
4. Splash out on this Upgrade
Installing an en suite or wet room will increase the property’s appeal.
5. Appealing Aspects
An attractive garden has been proven to add value to a property.
Article Source: http://www.express.co.uk/news/property/430774/Five-tips-to-increase-the-value-of-your-home
According to national estate agent Strutt & Parker the top five ways to increase the value of your home are as follows:
1. Room to Improve
Adding an extension is the most costly outlay but could increase the value of your home by up to 20 per cent.
2. Tap into Healthy Returns
The kitchen is the hub of the home. Creating a real asset by modernizing it can help you achieve your target asking price.
3. No Reason to Blow Hot and Cold
The prospect of upgrading a bathroom may deter some buyers but a new bathroom can be a prized asset.
4. Splash out on this Upgrade
Installing an en suite or wet room will increase the property’s appeal.
5. Appealing Aspects
An attractive garden has been proven to add value to a property.
Article Source: http://www.express.co.uk/news/property/430774/Five-tips-to-increase-the-value-of-your-home
Wednesday, 18 September 2013
Rental Properties in the UK New Guidance on Adverts Are Issued
This article by the Property Wire on September 10th, 2013 reveals information relating to non refundable fees and tenancy charges in the UK's residential lettings must now be displayed prominently on marketing and advertising material.
The Committee of Advertising Practice has published new advice which it has sent to all relevant trade bodies across the lettings sector following an Advertising Standards Authority ruling published in March 2013 in which it ruled against a letting agent which had not provided sufficient information about their fees in their online ads.
Residential lettings agents must now make changes to their websites and adverts placed on property portals and in other media and have until 01 November to do so.
‘We’ll be closely monitoring ads in all media from November onwards and will consider appropriate follow up action against non-compliant ads from this date,’ said the CAP.
The guidance comes after the CAP worked closely with bodies such as the Association of Residential Lettings Agents (ARLA) and The Property Ombudsman (TPO) as well as letting agents and private landlords to draw up the new requirements.
CAP has also published a new AdviceOnline, Compulsory costs and charges: Letting agents, for marketers to ensure that they comply with the rules.
Commenting on the CAP guidance, Caroline Kenny of the UK Association of Lettings Agents, said it should provide more clarity to letting agents on how to comply with the ASA ruling in March. ‘We have worked closely and consistently with the CAP and other industry colleagues since the ruling to ensure that any subsequent guidance is as clear and unambiguous as possible for letting agents to adhere to and it is encouraging to see that additional in depth advice regarding compliance,’ she pointed out.
‘We encourage all letting agents to review their property listings across all media platforms before the November compliance deadline in order to ensure they fall in line with the CAP’s guidance,’ she added.
The ASA ruling in March related to property firm Your-move.co.uk Limited which was told to ensure that their adverts make clear when non-optional fees and charges, that could not be calculated in advance, were excluded from quoted prices, and to provide enough information to allow the consumer to establish easily how further charges would be calculated.
The Royal Institution of Chartered Surveyors (RIVS) is also encouraging its members to familiarize themselves with the CAP guidance and to take action to ensure their businesses are compliant with the new requirements.
It pointed out that the CAP guidance articulates what compliance looks like for adverts in different media, with further help and advice available via the CAP copy advice team.
Article Source: http://www.propertywire.com/news/europe/uk-rental-property-guidance-201309118223.html
The Committee of Advertising Practice has published new advice which it has sent to all relevant trade bodies across the lettings sector following an Advertising Standards Authority ruling published in March 2013 in which it ruled against a letting agent which had not provided sufficient information about their fees in their online ads.
Residential lettings agents must now make changes to their websites and adverts placed on property portals and in other media and have until 01 November to do so.
‘We’ll be closely monitoring ads in all media from November onwards and will consider appropriate follow up action against non-compliant ads from this date,’ said the CAP.
The guidance comes after the CAP worked closely with bodies such as the Association of Residential Lettings Agents (ARLA) and The Property Ombudsman (TPO) as well as letting agents and private landlords to draw up the new requirements.
CAP has also published a new AdviceOnline, Compulsory costs and charges: Letting agents, for marketers to ensure that they comply with the rules.
Commenting on the CAP guidance, Caroline Kenny of the UK Association of Lettings Agents, said it should provide more clarity to letting agents on how to comply with the ASA ruling in March. ‘We have worked closely and consistently with the CAP and other industry colleagues since the ruling to ensure that any subsequent guidance is as clear and unambiguous as possible for letting agents to adhere to and it is encouraging to see that additional in depth advice regarding compliance,’ she pointed out.
‘We encourage all letting agents to review their property listings across all media platforms before the November compliance deadline in order to ensure they fall in line with the CAP’s guidance,’ she added.
The ASA ruling in March related to property firm Your-move.co.uk Limited which was told to ensure that their adverts make clear when non-optional fees and charges, that could not be calculated in advance, were excluded from quoted prices, and to provide enough information to allow the consumer to establish easily how further charges would be calculated.
The Royal Institution of Chartered Surveyors (RIVS) is also encouraging its members to familiarize themselves with the CAP guidance and to take action to ensure their businesses are compliant with the new requirements.
It pointed out that the CAP guidance articulates what compliance looks like for adverts in different media, with further help and advice available via the CAP copy advice team.
Article Source: http://www.propertywire.com/news/europe/uk-rental-property-guidance-201309118223.html
Monday, 16 September 2013
Buying into Britain
This interesting article by Chen Dujuan of Global Times on September 15th, 2013 shows the milestone of Chinese investment in Great Britain.
Two years ago, the BBC made a TV documentary called "The Chinese are coming," focusing on growing Chinese investment in Africa and South America. Now, the Chinese are coming again, but this time to the home country of the BBC: Britain.
Many of the country's well-known brands have been either wholly acquired or bought into by Chinese firms, including Weetabix, Thames Water and Heathrow Airport.
"There are around 500 Chinese companies currently investing in Britain and taking advantage of the world's most open investment environment. We welcome more," Daniel Carvalho, China marketing and communications manager with the UK Trade & Investment Office at the British Embassy in Beijing, told the Global Times on Tuesday.
"I think we're seeing the beginning of a very strong trend of Chinese investment into the UK," Carvalho said.
Chinese investment in Britain reached $8 billion in 2012, more than the total from 2009 to 2011, with domestic firms expanding into areas such as high-end manufacturing, infrastructure and research, the Chinese Embassy in London said in January.
From the beginning of 2013 to early August, China has invested more than $2 billion yuan in the country, Zhou Xiaoming, minister counselor for commerce at the Chinese Embassy in Britain, was quoted as saying by the 21st Century Business Herald on August 10.
Zhou said that Chinese firms will announce new infrastructure investment worth hundreds of millions of pounds in Britain in September, the report said.
Desirable sectors
China has made breakthroughs in infrastructure investment in Britain in recent years, partly due to local preferential policies.
In 2012, China's sovereign wealth fund China Investment Corp bought an 8.68 percent stake in Kemble, which controls Thames Water, and acquired a 10 percent stake in Heathrow Airport.
Gingko Tree Investment Ltd, a fund wholly owned by China's State Administration of Foreign Exchange, also invested in a British water utility company last year.
Companies owned by Hong Kong billionaire Li Ka-shing control 30 percent of Britain's power supply, as well as 25 percent of its natural gas and 7 percent of the water supply.
Property is another new area of interest for Chinese investors.
In July, Ping An Insurance Group bought London's landmark Lloyd's building for 260 million pounds ($411 million).
Dalian Wanda Group in June spent around 700 million pounds to develop a real estate project in London, including two apartment buildings and a five-star luxury Wanda hotel.
In May, Beijing-based property developer Advanced Business Park signed a $1.5 billion deal with London's city government to develop Royal Albert Dock.
Wang Jianlin, chairman of Dalian Wanda, told the Beijing News in June that the real estate project is "a big bargain for Wanda," which partly explains these firms' enthusiasm for property in Britain.
The land price for the project is much cheaper than in Beijing, and the sales revenue will be far more than the investment costs, Wang said.
Frank Chen, head of research at the China office of commercial property services company CBRE, told the Global Times Tuesday that the amount of high-quality property available for investment in Asia Pacific is still limited compared with North America and Europe, so Chinese investors are expected to focus on property in gateway cities that are capable of generating reliably stable returns on investment.
Chinese companies have also shown interest in buying high-end manufacturing brands in Britain and setting up R&D centers there.
Wanda acquired a 91.81 percent stake in British yacht maker Sunseeker in June and Chinese automaker Geely bought black cab manufacturer Manganese Bronze in February.
Companies including Shanghai Automobile and Huawei Technologies have set up or expanded research centers in the country.
Local benefits
"The British economy is growing again after several years of stagnation, so the timing is right for Chinese investors," Qing Wang, professor of marketing and innovation at Warwick Business School in Britain, told the Global Times Wednesday.
She said that Britain's sound legal system and open economy as well as the status of London as an international finance and services center make the country an attractive destination in Europe for Chinese investors.
Preferential policies are also playing an important role. Britain has chosen an "open door" philosophy to foreign investment in almost all of its industrial sectors, Michele Geraci, head of research at the Global Policy Institute, a think tank under the London Metropolitan University, told the Global Times Wednesday.
"We want to be the destination for Chinese investment. Tell other Chinese investors to come to London and spend their money," British Prime Minister David Cameron told Fortune magazine in May.
Chinese companies will be made to feel welcome, and will receive the full support of the British government, the British Embassy's Carvalho said.
A competitive tax regime and highly skilled workers are Britain's other advantages, Carvalho said. "We have hundreds of billions of foreign investment in Britain, so we're used to it. It's how our economy works - we accept investment from overseas, and we also make huge investments around the world ourselves," he noted.
Wang said that both governments have set a target to boost bilateral trade, and that the two countries can combine complementary assets and competencies, offering huge potential for Chinese firms investing in Britain.
Foreign owners welcome
Qing Wang and Michele Geraci both agreed that British people are not too concerned about local firms being bought by foreign investors, so long as it brings more employment to the country.
Chinese companies that wish to invest in the UK should be prepared to be more transparent about their shareholding structure, so that the sellers know exactly who is buying their assets, Geraci said.
Carvalho suggested that foreign investors should have "a PR strategy to engage with the UK media and local communities to build trust and gain confidence." The British Embassy can offer advice on this, he noted.
It is important that Chinese firms understand and abide by the rules and regulations of the British legal and economic system, Wang said, expressing the hope that Chinese firms can develop innovative products and global brands through investing in Britain.
Zhou with the Chinese Embassy in Britain suggested that Chinese firms could take advantage of the innovative advantages in Britain and cultivate their brands there, the 21st Century Business Herald report said.
Zhou said that the eurozone crisis has offered advantageous timing for Chinese companies, which can depend upon Britain's status as an international center and its open environment to expand into the international market, according to the report.
Article Source: http://www.globaltimes.cn/content/811462.shtml#.UjZiRT_tYh8
Two years ago, the BBC made a TV documentary called "The Chinese are coming," focusing on growing Chinese investment in Africa and South America. Now, the Chinese are coming again, but this time to the home country of the BBC: Britain.
Many of the country's well-known brands have been either wholly acquired or bought into by Chinese firms, including Weetabix, Thames Water and Heathrow Airport.
"There are around 500 Chinese companies currently investing in Britain and taking advantage of the world's most open investment environment. We welcome more," Daniel Carvalho, China marketing and communications manager with the UK Trade & Investment Office at the British Embassy in Beijing, told the Global Times on Tuesday.
"I think we're seeing the beginning of a very strong trend of Chinese investment into the UK," Carvalho said.
Chinese investment in Britain reached $8 billion in 2012, more than the total from 2009 to 2011, with domestic firms expanding into areas such as high-end manufacturing, infrastructure and research, the Chinese Embassy in London said in January.
From the beginning of 2013 to early August, China has invested more than $2 billion yuan in the country, Zhou Xiaoming, minister counselor for commerce at the Chinese Embassy in Britain, was quoted as saying by the 21st Century Business Herald on August 10.
Zhou said that Chinese firms will announce new infrastructure investment worth hundreds of millions of pounds in Britain in September, the report said.
Desirable sectors
China has made breakthroughs in infrastructure investment in Britain in recent years, partly due to local preferential policies.
In 2012, China's sovereign wealth fund China Investment Corp bought an 8.68 percent stake in Kemble, which controls Thames Water, and acquired a 10 percent stake in Heathrow Airport.
Gingko Tree Investment Ltd, a fund wholly owned by China's State Administration of Foreign Exchange, also invested in a British water utility company last year.
Companies owned by Hong Kong billionaire Li Ka-shing control 30 percent of Britain's power supply, as well as 25 percent of its natural gas and 7 percent of the water supply.
Property is another new area of interest for Chinese investors.
In July, Ping An Insurance Group bought London's landmark Lloyd's building for 260 million pounds ($411 million).
Dalian Wanda Group in June spent around 700 million pounds to develop a real estate project in London, including two apartment buildings and a five-star luxury Wanda hotel.
In May, Beijing-based property developer Advanced Business Park signed a $1.5 billion deal with London's city government to develop Royal Albert Dock.
Wang Jianlin, chairman of Dalian Wanda, told the Beijing News in June that the real estate project is "a big bargain for Wanda," which partly explains these firms' enthusiasm for property in Britain.
The land price for the project is much cheaper than in Beijing, and the sales revenue will be far more than the investment costs, Wang said.
Frank Chen, head of research at the China office of commercial property services company CBRE, told the Global Times Tuesday that the amount of high-quality property available for investment in Asia Pacific is still limited compared with North America and Europe, so Chinese investors are expected to focus on property in gateway cities that are capable of generating reliably stable returns on investment.
Chinese companies have also shown interest in buying high-end manufacturing brands in Britain and setting up R&D centers there.
Wanda acquired a 91.81 percent stake in British yacht maker Sunseeker in June and Chinese automaker Geely bought black cab manufacturer Manganese Bronze in February.
Companies including Shanghai Automobile and Huawei Technologies have set up or expanded research centers in the country.
Local benefits
"The British economy is growing again after several years of stagnation, so the timing is right for Chinese investors," Qing Wang, professor of marketing and innovation at Warwick Business School in Britain, told the Global Times Wednesday.
She said that Britain's sound legal system and open economy as well as the status of London as an international finance and services center make the country an attractive destination in Europe for Chinese investors.
Preferential policies are also playing an important role. Britain has chosen an "open door" philosophy to foreign investment in almost all of its industrial sectors, Michele Geraci, head of research at the Global Policy Institute, a think tank under the London Metropolitan University, told the Global Times Wednesday.
"We want to be the destination for Chinese investment. Tell other Chinese investors to come to London and spend their money," British Prime Minister David Cameron told Fortune magazine in May.
Chinese companies will be made to feel welcome, and will receive the full support of the British government, the British Embassy's Carvalho said.
A competitive tax regime and highly skilled workers are Britain's other advantages, Carvalho said. "We have hundreds of billions of foreign investment in Britain, so we're used to it. It's how our economy works - we accept investment from overseas, and we also make huge investments around the world ourselves," he noted.
Wang said that both governments have set a target to boost bilateral trade, and that the two countries can combine complementary assets and competencies, offering huge potential for Chinese firms investing in Britain.
Foreign owners welcome
Qing Wang and Michele Geraci both agreed that British people are not too concerned about local firms being bought by foreign investors, so long as it brings more employment to the country.
Chinese companies that wish to invest in the UK should be prepared to be more transparent about their shareholding structure, so that the sellers know exactly who is buying their assets, Geraci said.
Carvalho suggested that foreign investors should have "a PR strategy to engage with the UK media and local communities to build trust and gain confidence." The British Embassy can offer advice on this, he noted.
It is important that Chinese firms understand and abide by the rules and regulations of the British legal and economic system, Wang said, expressing the hope that Chinese firms can develop innovative products and global brands through investing in Britain.
Zhou with the Chinese Embassy in Britain suggested that Chinese firms could take advantage of the innovative advantages in Britain and cultivate their brands there, the 21st Century Business Herald report said.
Zhou said that the eurozone crisis has offered advantageous timing for Chinese companies, which can depend upon Britain's status as an international center and its open environment to expand into the international market, according to the report.
Article Source: http://www.globaltimes.cn/content/811462.shtml#.UjZiRT_tYh8
Wednesday, 11 September 2013
A Quarter of All Homes Sold to First Time Buyers
According to this latest article by Alex Johnson of The Independent on September 10th, 2013 NAEA figures show around 26% home sales were sold to first-time buyers.
Around 26% of home sales in August were by first time buyers, according to figures from the National Association of Estate Agents (NAEA), the highest proportion since July 2010 and up from 22% in July.
NAEA members also reported an increase of 29% in the average number of house hunters per branch, up from 250 in July to 322 in August, as well as a slight increase in the average sales agreed per branch in August (nine) compared with July (eight). However, supply levels dropped slightly over the month – the number of available properties per branch decreased from 53 in July to 52 in August.
Around 40% of home buyers last month were aged between 41 and 55 years old, followed by 31 to 40 year olds at 36 per cent. Nearly eight out of ten properties were sold to couples.
Five thousand Lanarkshire homes set to receive green energy
Muirhall Energy has secured a £9million finance package from Santander to expand the Muirhall Windfarm in South Lanarkshire. It is adding two new turbines to the site, the tallest in the UK, to increase production to 60,800 MWh per year, enough to power over 14,300 homes each year. This will prevent 26,144 tonnes of carbon dioxide emissions each year.
Chris Walker, Managing Director of Muirhall Energy, said: “As demand for power increases and fossil fuel reserves deplete it is important we continue make the most of alternative sources of energy and wind power continues to be one of the most cost effective and green solutions.”
Lack of rental homes for families on the market
Figures from Countrywide show that two and three bedroom rental properties saw an increase in average monthly rents in August, up 0.6% and 0.9% respectively. One and four-plus bedroom properties saw a drop of 0.1% and 1.6% respectively. Nick Dunning, Group Commercial Director at Countrywide, said: “August is traditionally a busy period for the rental market with tenants, particularly families, wanting to move into their new rented accommodation before the start of the school term in September. However, demand is not being met by supply and currently there is a particular lack of family-sized properties available to rent, especially in the South of England. Improved conditions in the sales market are attracting reluctant landlords to sell these types of properties specifically in the catchment areas for good schools.”
Property prices in Surrey
According to Zoopla the property prices in Surrey are up 7.35% from five years ago and 4.12% from a year ago. James Wyatt, Partner of Barton Wyatt and Chairman of NAEA Surrey, said: “These figures point to the change in attitude of the money lenders in the last there months. Yet again financial institutions are driving the market and the recent decisions which enables UK buyers to borrow money more easily again has positively turned the market. This has aided sales in the small to medium sized end of the market as most of these properties are purchased with mortgages and in turn we have seen a 33% increase in domestic buyers over the past year in north Surrey.”
Article Source: http://blogs.independent.co.uk/2013/09/10/a-quarter-of-all-homes-sold-to-first-time-buyers/
Around 26% of home sales in August were by first time buyers, according to figures from the National Association of Estate Agents (NAEA), the highest proportion since July 2010 and up from 22% in July.
NAEA members also reported an increase of 29% in the average number of house hunters per branch, up from 250 in July to 322 in August, as well as a slight increase in the average sales agreed per branch in August (nine) compared with July (eight). However, supply levels dropped slightly over the month – the number of available properties per branch decreased from 53 in July to 52 in August.
Around 40% of home buyers last month were aged between 41 and 55 years old, followed by 31 to 40 year olds at 36 per cent. Nearly eight out of ten properties were sold to couples.
Five thousand Lanarkshire homes set to receive green energy
Muirhall Energy has secured a £9million finance package from Santander to expand the Muirhall Windfarm in South Lanarkshire. It is adding two new turbines to the site, the tallest in the UK, to increase production to 60,800 MWh per year, enough to power over 14,300 homes each year. This will prevent 26,144 tonnes of carbon dioxide emissions each year.
Chris Walker, Managing Director of Muirhall Energy, said: “As demand for power increases and fossil fuel reserves deplete it is important we continue make the most of alternative sources of energy and wind power continues to be one of the most cost effective and green solutions.”
Lack of rental homes for families on the market
Figures from Countrywide show that two and three bedroom rental properties saw an increase in average monthly rents in August, up 0.6% and 0.9% respectively. One and four-plus bedroom properties saw a drop of 0.1% and 1.6% respectively. Nick Dunning, Group Commercial Director at Countrywide, said: “August is traditionally a busy period for the rental market with tenants, particularly families, wanting to move into their new rented accommodation before the start of the school term in September. However, demand is not being met by supply and currently there is a particular lack of family-sized properties available to rent, especially in the South of England. Improved conditions in the sales market are attracting reluctant landlords to sell these types of properties specifically in the catchment areas for good schools.”
Property prices in Surrey
According to Zoopla the property prices in Surrey are up 7.35% from five years ago and 4.12% from a year ago. James Wyatt, Partner of Barton Wyatt and Chairman of NAEA Surrey, said: “These figures point to the change in attitude of the money lenders in the last there months. Yet again financial institutions are driving the market and the recent decisions which enables UK buyers to borrow money more easily again has positively turned the market. This has aided sales in the small to medium sized end of the market as most of these properties are purchased with mortgages and in turn we have seen a 33% increase in domestic buyers over the past year in north Surrey.”
Article Source: http://blogs.independent.co.uk/2013/09/10/a-quarter-of-all-homes-sold-to-first-time-buyers/
Tuesday, 10 September 2013
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."
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."
Monday, 9 September 2013
House Prices Rising at Their Fastest Rate for 3 Years
House prices are rising at their fastest rate for three years, new figures have revealed.
Data from the Halifax showed the average property shot up by 5.4% in the three months to August, compared with the same time last year.
Prices rose by 0.4% in August alone – the seventh consecutive monthly rise, leaving the average home worth £170,231.
Experts say the pick-up in property prices has been fuelled by a flood of cheap finance, boosted by the Bank of England’s Funding for Lending scheme and the Government’s Help to Buy initiative.
Rock-bottom mortgage rates led to a 45% jump in first-time buyers in July, a report earlier this week found.
But critics warn the latest leap in prices is creating another housing bubble that is excluding many people from the property market and lumbering borrowers with large debts.
Halifax housing economist Martin Ellis said: “Overall, house prices are expected to rise gradually over the remainder of the year.”
Halifax’s report follows similar findings from building society Nationwide last week that the housing market revival is gathering pace.
Bank of England governor Mark Carney recently addressed concerns that Government stimulus measures risk stoking another property bubble. He said the Bank is “acutely aware” of the potential threats and said action will be taken to clamp down on mortgage lending if needed.
Matthew Pointon, property expert at Capital Economics, said the imbalance between demand and the supply of homes for sale is likely to subside gradually, which will reduce the upwards pressure on prices.
He added: “The rise in wholesale interest rates seen over the past few weeks may soon start to feed through to mortgage rates, dampening demand.”
That’s the number of working families in this country who are taking home between £20,000 and £40,000 – but are still priced out of a reasonable home of their own.
In the past, they would have been able to put down roots in a home they own or in social housing.
But now, their reality is often expensive private renting, where they can find themselves trapped on a merry-go-round of one six-month tenancy to the next. Shelter’s advisers see families like this every single day.
Many simply won’t be able to afford high monthly mortgage payments, thanks to rising house prices.
And Government mortgage guarantees won’t help – because it means borrowing more, and paying higher costs each month.
The root of the problem is that we need more homes that people can afford.
Until we do, the simple laws of supply and demand will keep pushing prices higher.
If we want to give hope to forgotten families, celebrating high house prices won’t help. We need to build more homes.
Data from the Halifax showed the average property shot up by 5.4% in the three months to August, compared with the same time last year.
Prices rose by 0.4% in August alone – the seventh consecutive monthly rise, leaving the average home worth £170,231.
Experts say the pick-up in property prices has been fuelled by a flood of cheap finance, boosted by the Bank of England’s Funding for Lending scheme and the Government’s Help to Buy initiative.
Rock-bottom mortgage rates led to a 45% jump in first-time buyers in July, a report earlier this week found.
But critics warn the latest leap in prices is creating another housing bubble that is excluding many people from the property market and lumbering borrowers with large debts.
Halifax housing economist Martin Ellis said: “Overall, house prices are expected to rise gradually over the remainder of the year.”
Halifax’s report follows similar findings from building society Nationwide last week that the housing market revival is gathering pace.
Bank of England governor Mark Carney recently addressed concerns that Government stimulus measures risk stoking another property bubble. He said the Bank is “acutely aware” of the potential threats and said action will be taken to clamp down on mortgage lending if needed.
Matthew Pointon, property expert at Capital Economics, said the imbalance between demand and the supply of homes for sale is likely to subside gradually, which will reduce the upwards pressure on prices.
He added: “The rise in wholesale interest rates seen over the past few weeks may soon start to feed through to mortgage rates, dampening demand.”
Comment by Campbell Robb, Chief Executive, Shelter
Some people might cheer as house prices rise again, but not England’s 1.8 million forgotten families.That’s the number of working families in this country who are taking home between £20,000 and £40,000 – but are still priced out of a reasonable home of their own.
In the past, they would have been able to put down roots in a home they own or in social housing.
But now, their reality is often expensive private renting, where they can find themselves trapped on a merry-go-round of one six-month tenancy to the next. Shelter’s advisers see families like this every single day.
Many simply won’t be able to afford high monthly mortgage payments, thanks to rising house prices.
And Government mortgage guarantees won’t help – because it means borrowing more, and paying higher costs each month.
The root of the problem is that we need more homes that people can afford.
Until we do, the simple laws of supply and demand will keep pushing prices higher.
If we want to give hope to forgotten families, celebrating high house prices won’t help. We need to build more homes.
Friday, 6 September 2013
Adult Children Live with Their Parents at Home as Rents and House Prices Rise
This alarming article by Tanya Powley of Financial Times on September 6th, 2013 reveals grown-up children are still living at home with their parents because getting on to the property ladder is increasingly difficult as rents and house prices rise.
“Empty nest” syndrome has become a problem of the past for millions of parents who have adult children in their twenties and early thirties still living at home.
Three
in ten parents have at least one child aged between 21 and 40 living at
home, according to a survey published by the National Housing
Federation on Friday. Two-thirds of these parents said their child could
not afford to move out.
The poll, which surveyed more than 1,100 parents, highlighted the emotional and financial burden parents face and why the returning offspring have been given another nickname: Kippers – kids in parents’ pockets eroding retirement savings.
One in five said having a grown-up child at home had caused them stress, while a further fifth said it had given rise to family arguments.
“Moving out and setting up a family home of your own is a normal rite of passage,” said David Orr, chief executive at the National Housing Federation. “Yet as rents, mortgages and deposits continue to soar out of reach, it is no longer an option for many.”
Official figures show the number of young adults living at home has jumped by 20 per cent since 1997. According to the Office for National Statistics, almost 3m Britons between the age of 20 and 34 now live at home – of which 1.8m are men.
Amanda Lightstone, a 57-year-old dental nurse, has her youngest son, Andrew, 25, living with her in her three-bedroom house in Edgware, northwest London. She has already lent more than £100,000 to her older sons to help them buy their homes and said she will do the same for her youngest.
“How will he save for a deposit if he starts renting? He will live at home for quite a few years – he’ll be more than 30 when he can afford to buy his own place. I will just have to delay my retirement plans, you can’t have everything!” said Ms Lightstone.
Ann Berrington, professor of demography at the University of Southampton, said the percentage of young adults in their twenties living with their parents has increased since the recession.
Her analysis of the 2008 and 2012 UK Labour Force Surveys found the percentage of women aged between 21 and 22 living at the parental home rose from 46.4 per cent to 55.6 in the four years to 2012.
“The lack of affordable housing is clearly a factor as well as having to raise bigger deposits, but there are other factors at play,” said Professor Berrington.
While research published on Friday showed that in July the number of first-time buyers was at its highest since November 2007, according to LSL Property Services, transaction levels are still significantly lower than at the peak of the housing market.
Local government department figures published on Thursday showed that the government’s housing schemes, which aim to make it easier for people to buy a home with just a 5 per cent deposit, have made little headway.
Paula Higgins, chief executive of the HomeOwners Alliance, said: “We
haven’t been building enough houses for 30 years and this is a real
embedded crisis that’s not going to go away.”
Article Source: http://www.ft.com/intl/cms/s/0/eb71071c-163e-11e3-a57d-00144feabdc0.html#axzz2e596ach1
“Empty nest” syndrome has become a problem of the past for millions of parents who have adult children in their twenties and early thirties still living at home.
The trend of young adults returning to live in the
parental home – generation boomerang as they have been called – has
grown in recent years, as rents and house prices have risen further out of the reach of would-be homeowners.
The poll, which surveyed more than 1,100 parents, highlighted the emotional and financial burden parents face and why the returning offspring have been given another nickname: Kippers – kids in parents’ pockets eroding retirement savings.
One in five said having a grown-up child at home had caused them stress, while a further fifth said it had given rise to family arguments.
“Moving out and setting up a family home of your own is a normal rite of passage,” said David Orr, chief executive at the National Housing Federation. “Yet as rents, mortgages and deposits continue to soar out of reach, it is no longer an option for many.”
Official figures show the number of young adults living at home has jumped by 20 per cent since 1997. According to the Office for National Statistics, almost 3m Britons between the age of 20 and 34 now live at home – of which 1.8m are men.
Amanda Lightstone, a 57-year-old dental nurse, has her youngest son, Andrew, 25, living with her in her three-bedroom house in Edgware, northwest London. She has already lent more than £100,000 to her older sons to help them buy their homes and said she will do the same for her youngest.
“How will he save for a deposit if he starts renting? He will live at home for quite a few years – he’ll be more than 30 when he can afford to buy his own place. I will just have to delay my retirement plans, you can’t have everything!” said Ms Lightstone.
Ann Berrington, professor of demography at the University of Southampton, said the percentage of young adults in their twenties living with their parents has increased since the recession.
Her analysis of the 2008 and 2012 UK Labour Force Surveys found the percentage of women aged between 21 and 22 living at the parental home rose from 46.4 per cent to 55.6 in the four years to 2012.
“The lack of affordable housing is clearly a factor as well as having to raise bigger deposits, but there are other factors at play,” said Professor Berrington.
While research published on Friday showed that in July the number of first-time buyers was at its highest since November 2007, according to LSL Property Services, transaction levels are still significantly lower than at the peak of the housing market.
Local government department figures published on Thursday showed that the government’s housing schemes, which aim to make it easier for people to buy a home with just a 5 per cent deposit, have made little headway.
According to the government, 3,749 people have
bought a home through its NewBuy scheme launched in March 2012. This
equates to less than 5 per cent of its 100,000 target. The second part
of the scheme has had a bigger impact, with 3,000 sales and 10,000 reservations since April 2013.
Article Source: http://www.ft.com/intl/cms/s/0/eb71071c-163e-11e3-a57d-00144feabdc0.html#axzz2e596ach1
Thursday, 5 September 2013
Almost 2 Million UK Would Be Homeowners Can’t Get on Property Ladder
New research suggests that almost two million would be homeowners in the UK, mostly families, can't get on the property ladder because they can't afford to save for the deposit needed, according to this September 4th, 2013 recent article by the Property Wire.
According
to housing charity Shelter around 1.8 million families face a life time of
renting a home with three quarter priced out of the market and even with the
government’s flagship Help to Buy scheme some 78% are unable to afford the
repayments on a family sized home.
The charity is calling for a major new house building programme of shared ownership homes to revolutionise ownership for what is describes as ‘forgotten families’. This would allow families to find an affordable home of their own, and provide a real alternative to the confusing postcode lottery of existing small scale schemes, or the overheated private rental market.
The report says that investing £12 billion, less than 1% of GDP, could build 600,000 new shared ownership homes which would be enough to give almost half of England’s private renting families the chance to own their own home.
‘We need to see a new generation of shared ownership for the ordinary families priced out of home ownership. The reality is that soaring house prices mean that the traditional market is no longer working for ordinary people,’ said Kay Boycott, director of campaigns and policy at Shelter.
‘Building the new shared ownership homes we desperately need is the only way to give thousands of families a stake in the stable home they want at a price they can afford,’ she added.
But the government says it is doing more to help families onto the housing ladder. As well as schemes like Help to Buy and Funding for Lending, both credited with boosting the number of first time buyers, it points to the fact that it has also launched a new scheme to bring back empty homes into the housing stock.
It is working with the public and private sector through the National Empty Homes Loan Fund (NEHLF) to give borrowers access to a secured loan at a fixed 5% interest to renovate some of the 710,000 empty homes in England.
A joint £3 million initiative has been launched with the charity Empty Homes, the Ecology Building Society and 39 participating local authorities to help home owners who cannot afford to bring the property up to a useable standard.
The Ecology Building Society, a specialist mortgage lender that supports sustainable communities, said that it should provide funding for hundreds of properties and is available to individuals aged 18 and over who own a property that has been empty for six months or more.
‘We know that many homes are empty because it is difficult for owners to raise the money that is required to bring them back up to a habitable standard. This initiative will kick start efforts to tackle this. This scheme is a first in England and is a great example of central government working together with the public and private sector to try and reduce the number of empty homes in the UK,’ said David Ireland, chief executive of Empty Homes.
Paul Ellis, chief executive of the Ecology Building Society, said that at a time when there is increasing demand for homes but an acute lack of supply it makes sense to bring new life to existing but neglected properties.
Article Source: http://www.propertywire.com/news/europe/uk-property-ladder-families-201309048193.html
Wednesday, 4 September 2013
Prices on Climb Amid Strongest Market Conditions for Six Years in UK
The market is in its best shape since the financial crisis as demand continues to outpace the number of homes for sale, adding to
values, according to this recent article by South China Morning Post on September 4th, 2013.
British house price growth accelerated last month amid the strongest market conditions for six years as demand continued to outpace the number of homes for sale, Hometrack said.
Average values in England and Wales rose 0.4 per cent after a 0.3 per cent gain in July, the London-based property researcher said. Prices were up 1.8 per cent from a year earlier, the most since July 2010.
In a separate report, the Engineering Employers' Federation raised its forecasts for UK economic growth and manufacturing output.
Hometrack's survey adds to evidence of a mini-boom in the housing market, with reports last week showing values rising and mortgage approvals at their highest since 2008.
Bank of England Governor Mark Carney said he was alert to risks from the property market and policymakers would act if signs of a bubble emerged.
Richard Donnell, director of research at Hometrack, said: "A lack of housing for sale is set to remain a feature of the market and this will keep an upward pressure on prices in the near term.
"We expect demand to continue to expand over the remainder of the year so long as the outlook for the economy and mortgage rates remains unchanged."
Underlying market conditions are at levels not seen since the financial crisis, with the average time taken to sell a property falling to 8.1 weeks and sellers achieving 94.6 per cent of the price sought last month, Hometrack reported.
New buyers registering with real estate agents to browse property rose 1.1 per cent, the same as in July. Demand fell in August in each of the last three years. Growth in new property listings slowed to 0.8 per cent from 2.4 per cent.
Seven of the 10 regions tracked by Hometrack showed price gains, led by a 0.9 per cent increase in London. Two regions showed no change while values dropped 0.1 per cent in the northeast.
Signs of economic growth have lifted consumer confidence. The economy expanded 0.7 per cent in the second quarter, and recent data suggests the recovery is gaining traction.
A survey by the manufacturers' organisation EEF and the accounting firm BDO showed manufacturing output rose to a three-year high in the third quarter, with a gauge of production rising to 32 from 12.
A measure of investment intentions rose to 24, the highest in six years.
The group raised its forecast for manufacturing growth next year to 2.1 per cent from 1.9 per cent, following a 0.5 per cent contraction this year.
It also raised its forecast for UK gross domestic product growth to 1.2 per cent this year and 2 per cent next year, versus earlier projections of 1.1 per cent and 1.8 per cent.
"Industry's prospects have brightened considerably," said Lee Hopley, chief economist at the EEF. "There is growing confidence that improving trading conditions will continue into the final months of this year and then accelerate through the gears in 2014."
Nationwide Building Society said last week that home prices rose 0.6 per cent last month and the Bank of England's commitment to maintain record-low interest rates until at least the end of 2016 may be helping to support demand.
Article Source: http://www.scmp.com/property/international/article/1302634/prices-climb-amid-strongest-market-conditions-six-years-uk
British house price growth accelerated last month amid the strongest market conditions for six years as demand continued to outpace the number of homes for sale, Hometrack said.
Average values in England and Wales rose 0.4 per cent after a 0.3 per cent gain in July, the London-based property researcher said. Prices were up 1.8 per cent from a year earlier, the most since July 2010.
In a separate report, the Engineering Employers' Federation raised its forecasts for UK economic growth and manufacturing output.
Hometrack's survey adds to evidence of a mini-boom in the housing market, with reports last week showing values rising and mortgage approvals at their highest since 2008.
Bank of England Governor Mark Carney said he was alert to risks from the property market and policymakers would act if signs of a bubble emerged.
Richard Donnell, director of research at Hometrack, said: "A lack of housing for sale is set to remain a feature of the market and this will keep an upward pressure on prices in the near term.
"We expect demand to continue to expand over the remainder of the year so long as the outlook for the economy and mortgage rates remains unchanged."
Underlying market conditions are at levels not seen since the financial crisis, with the average time taken to sell a property falling to 8.1 weeks and sellers achieving 94.6 per cent of the price sought last month, Hometrack reported.
New buyers registering with real estate agents to browse property rose 1.1 per cent, the same as in July. Demand fell in August in each of the last three years. Growth in new property listings slowed to 0.8 per cent from 2.4 per cent.
Seven of the 10 regions tracked by Hometrack showed price gains, led by a 0.9 per cent increase in London. Two regions showed no change while values dropped 0.1 per cent in the northeast.
Signs of economic growth have lifted consumer confidence. The economy expanded 0.7 per cent in the second quarter, and recent data suggests the recovery is gaining traction.
A survey by the manufacturers' organisation EEF and the accounting firm BDO showed manufacturing output rose to a three-year high in the third quarter, with a gauge of production rising to 32 from 12.
A measure of investment intentions rose to 24, the highest in six years.
The group raised its forecast for manufacturing growth next year to 2.1 per cent from 1.9 per cent, following a 0.5 per cent contraction this year.
It also raised its forecast for UK gross domestic product growth to 1.2 per cent this year and 2 per cent next year, versus earlier projections of 1.1 per cent and 1.8 per cent.
"Industry's prospects have brightened considerably," said Lee Hopley, chief economist at the EEF. "There is growing confidence that improving trading conditions will continue into the final months of this year and then accelerate through the gears in 2014."
Nationwide Building Society said last week that home prices rose 0.6 per cent last month and the Bank of England's commitment to maintain record-low interest rates until at least the end of 2016 may be helping to support demand.
Article Source: http://www.scmp.com/property/international/article/1302634/prices-climb-amid-strongest-market-conditions-six-years-uk
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