New residential property sales in Australia fell by 5.7% in July and are down 3.5% on a quarterly basis, according to the latest new homes index from the Housing Industry Association.

The monthly decline was reflected in both detached house and multi-unit sales, the former falling by 4.7%, while the latter was down by 10.9%.

But the HIA still expects 2014 to see a reasonably healthy level of sales in the sector as the 2013/2014 fiscal year was very strong. But it said it was disappointing that the new fiscal year has seen a relatively weak start.

‘The 2013/2014 fiscal year saw the recovery in new home sales gather strong momentum. The 2014/2015 year, however, has started with confirmation of a downward trend emerging,’ said HIA chief economist Harley Dale.

‘In terms of forward indications, new home sales and building approvals may have peaked for the cycle, but their levels remain historically elevated. This situation, together with longer lag times and a repositioning of geographical momentum at this stage of the current cycle, combine to mean that 2014/2015 will be another healthy year for new home construction,’ he explained.

‘A serious focus on addressing conspicuous impediments to new housing supply, such as large and costly planning delays and a significant lack of titled land would of course extend the recovery, to the benefit of economic growth, labour market outcomes, and housing affordability,’ he added.

A breakdown of the figures show that in July detached house sales increased by 4.1% in South Australia and by 3.1% in New South Wales but fell by 9.3% in Victoria, by 7.1% in
Western Australia and by 6.5% in Queensland.

Over the three months to July 2014 detached house sales declined in each of the surveyed states, albeit to varying degrees. Sales fell by 5.4% in South Australia, by 4.4% in Western Australia by 3.6% in New South Wales, by 2.3% in Victoria and by 0.7% in Queensland.

Average house prices in England and Wales increased 1.7% last month compared with June to reach £175,653, according to the latest official data from the Land Registry.

Annual price growth was 7.2% in July and it means that prices are less than £10,000 below the peak of £181,442 in November 2007.

The region in England and Wales which experienced the greatest increase in its average property value over the last 12 months was London with a rise of 19.3% and London also experienced the greatest monthly rise of 3.3%.

The North East saw the lowest annual price growth with at 2% while Yorkshire and The Humber saw the most significant monthly price fall of 0.6%.

The most up to date figures available show that during May 2014 the number of completed house sales in England and Wales increased by 10% to 72,900 compared with 66,325 in May 2013.

The data also shows that the number of properties sold in England and Wales for over £1 million in May 2014 increased by 32% to 1,032 from 779 in May 2013.

According to David Newnes, director of Reeds Rains and Your Move estate agents, owned by LSL Property Services, price growth has stabilised as more housing stock becomes available and also in the wake of tighter lending regulation introduced earlier in the year.

‘There is still a lot of ground to make up in the volume of sales happening, House prices have stabilised in many regions and have still not matched the heights reached before the crisis. London may routinely grab the headlines, but Help to Buy and higher available LTV lending are indispensable in parts of the country where recovery remains subdued,’ he pointed out.

Peter Rollings, chief executive of Marsh & Parsons, believes that the starkly different figures for London should not cause concern. ‘London has always been an anomaly, a few steps ahead of the curve, and while the London market is now stabilising following a whirlwind few months of growth, parts of the UK are still waiting for the housing market recovery to ramp up,’ he said.

He also pointed out that after months of talks of a housing shortage, particularly in London, supply levels are making a comeback. ‘In the current calmer climate, sellers are emboldened to take their next step up the ladder and put their homes on the market, which is refreshing the choice available to buyers and relaxing the competition. This will spur on sales, but also ease house price rises to healthy and attainable levels, sustaining steady upwards growth for the remainder of the year,’ he added.

Duncan Kreeger, director of lender West One Loans, pointed out that prices are rising fastest where there are jobs and the economic recovery is taking hold most strongly. ‘The urgent next step will be for supply to catch up. Everyone knows we need to get more homes onto the market, but the real squeeze is even sharper in Britain’s centres of…

The price of development land in England and Wales continued to rise in the second quarter of this year, rising by 1%, according to the latest index from Knight Frank.

It means that land values have increased by 2% in the first six months of the year overall and in prime central London development land values are up by 18.9% on an annual basis, compared to 15.9% in the first quarter.

The increase in land values mirrors the growth seen in house prices over the last year and the pace of growth in land prices is also regionalised, just like house prices, the index report shows.

The biggest growth in land values has been seen in prime central London where urban development sites climbed by an average of 6.7% in the second quarter while brownfield sites outside this sector in Greater London have seen the next biggest rise in values, climbing by an average of 14.2% year on year.

Yet it is not just a case of a north-south divide in land price movements. While greenfield site values in the South East have risen around 3% on the year, those in the North West are up by 6%.

According to Grainne Gilmore, head of UK residential research at Knight Frank, the Help to Buy Equity Loan scheme has helped uncork demand, especially in the North and Midlands, and this has been reflected in robust sales volumes reported by house builders in their half year results.

But she pointed out that some developers have noted that the pace of growth in demand may be starting to slow. ‘This could be partly due to the lending market adjusting to recent policy developments. Developers have also been facing increased build costs over the last year or so, as the turnaround in construction activity has put pressure on supply,’ she explained.

‘This is likely to remain the case for some time, and construction cost inflation, ranging from the cost of materials to wages for workers, could in some cases act as a dampener on land prices,’ she added.

Gilmore also pointed out that values in the North West are rising from a lower base per acre, but nevertheless, this increase underlines a return of investment into these markets.

UK house prices increased by 0.8% in August taking the average price of a home to £189,306, according to the latest index from the Nationwide Building Society.

The index also shows that year on year price growth has increased from 10.6% to 11% compared with July and prices have now increased for 16 months in a row.

‘While this is still below the 11.8% recorded in June, house price growth continues to outpace earnings by a wide margin, with average wage growth running at less than 1% in recent months,’ said Robert Gardner, Nationwide's chief economist.

‘Nevertheless, at a national level housing affordability does not appear stretched by historic standards, in part due to the low level of mortgage rates. The cost of servicing a typical mortgage remains close to the long run average as a share of take home pay,’ he explained.

He also pointed out that the outlook for the housing market remains highly uncertain. ‘The number of mortgage approvals fell by almost 20% between January and May, suggesting that activity was cooling. However, there was a modest rebound in June and it is unclear how much of the slowdown was due to the introduction of Mortgage Market Review rather than an underlying loss of momentum,’ said Gardner.

‘Surveyors report that new buyer enquiries have moderated somewhat in recent months, and the prospect of interest rate increases together with subdued wage growth may temper demand in the quarters ahead. However, the brightening economic outlook is likely to provide ongoing support for housing demand. Consumer sentiment remains buoyant thanks to declining inflation and sustained increases in employment,’ he added.

When an interest rate rise is likely to happen is still unclear. According to Gardner the first increase in interest rates still appears some way off. ‘We expect the first increase in the first quarter of 2015. Guidance from the Bank of England suggests that the increase in interest rates is likely to be gradual, and they are expected to settle at a level somewhat below the average prevailing before the financial crisis,’ he said.

‘Moreover, the supply side of the market remains constrained, which will continue to provide underlying support for prices. Impact of good transport links on house prices clearly evident in major UK cities. There are a wide range of factors that determine property values, from the physical characteristics of the property itself, such as the number of bedrooms, bathrooms and floor area, to the type of neighbourhood in which the house is located,’ he pointed out.

Nationwide recently examined how the proximity to a tube or railway station impacted property prices in the three major cities of London, Manchester and Glasgow, taking account other property characteristics, such as property type, size and local neighbourhood type.

‘Our research suggests that people are willing to pay a significant premium to be close to a station. The impact is most marked in London, where being located 500 meters from a station attracts a 10.5% price premium…

Buy to let landlords in the UK could have millions of ghost tenants secretly living in their rented properties which is putting them and lettings agents at risk, it is claimed.

The Online Letting Agents is urging landlords and agents to check their properties to avoid the possibility of hefty fines resulting from the new immigration legislation.

According to recent research at least three million ghost tenants live in the UK’s 4.5 million buy to lets and shared houses in multiple occupation (HMO) and often tenants do not realise that other adults living in the home who are not listed on the tenancy agreement can cause legal problems.

More than half of letting agents have found ghost tenants living in rented homes when they have visited for inspections. Ghost tenants are not listed on tenancy agreements and move in without the landlord’s knowledge or consent.

‘We know from our recent studies that most landlords are not confident about making the immigration checks that will be required by the new legislation. Despite reassurances that landlords will not be responsible for illegal ghost tenants that are living in their property, one in 10 landlords is still worried that they will be responsible for any tenants subletting to illegal tenants,’ said Eleanor Carroll, director of The Online Letting Agents.

‘It is thought that up to 85% of illegal immigrants end up living in privately rented accommodation. Landlords who do not use a letting agent to let their properties need to be aware that they may be targeted by individuals who do not have the required documentation,’ she explained.

‘It is important that landlords and agents check properties for ghost tenants and we advise looking out for signs such as more rubbish than expected for the number of tenants, excessive wear and tear to the property, and evidence of additional sleeping arrangements, clothing and shoes in the property,’ she added.

Mortgage lending in Wales in the second quarter of 2014 remains driven primarily by lending for house purchase, with first time buyers in particular showing strong year on year growth, according to the latest figures.

In the second quarter, there were 3,300 first time buyer loans in Wales, some 32% up on the previous quarter, and 27% up on the same quarter of 2013. First time buyers in the period borrowed £340 million, up 31% on the previous quarter, the data from the Council of Mortgage lenders shows.

The data also shows that there were 3,500 home mover loans in the second quarter, up 17% on the previous quarter and 9% more than in the same quarter of 2013 while the total value of these loans was £440 million, up 16% on the first quarter and up 13% on the second quarter 2013.

Remortgage lending in the quarter declined in Wales compared to the previous quarter and the same quarter in 2013.

House purchase lending to home buyers increased quarter on quarter in Wales totalling 6,800 loans, up 24% compared to the first quarter and the value of these loans totalled £790 million, a rise of 23% on the first quarter. Compared to the second quarter of 2013, the number of loans increased by 17% and value of these loans increased by 23%.

First time buyer affordability changed fractionally, with first time buyers typically borrowing 3.23 times their gross income, which was less than the UK average of 3.46 and slightly changed from 3.24 in the first quarter.

The typical loan size for first time buyers was £99,000 in the second quarter, up from £98,000 in the previous quarter. The typical gross income of a first time buyer household was £30,400 compared to £30,100 in the first quarter.

The relatively low level of interest rates saw first time buyers' payment burden remaining relatively low in the second quarter at 18.2% of gross income being spent to cover capital and interest payments, a smaller proportion of income than the 19.4% UK average and slightly changed from 18.3% in the first quarter.

In the second quarter of 2014, lending to home movers showed similar growth patterns in Wales to first time buyer lending although at a slower rate of growth. Home mover affordability changed fractionally, with home movers typically borrowing 2.82 times their gross income compared to 3.09 for the UK overall and 2.74 in the first quarter.

The typical loan size for home movers was £117,900 in second quarter, up from £112,500 in the previous quarter. The typical gross household income for home movers was £42,240 in second quarter compared to £42,000 in first quarter.

Home movers' payment burden remained relatively low in Wales at 17.2% of gross income being spent to cover monthly capital and interest payments, less than the 18.7% UK average and 17.3% seen in the first quarter.

Remortgage lending in Wales declined both quarter on quarter and year on year….

Property prices in Spain's luxury real estate markets have continued to remain steady over the past six months, according to the latest half yearly analysis.

Figures from Barcelona based real estate agency Lucas Fox shows the number of transactions is increasing across all its regions as the gap between asking and sales prices continues to narrow.

International clients account for around 90% of all Lucas Fox sales, with interest from Far East and Middle East investors continuing to gain momentum. Following a slight dip in numbers over the past few years, Northern Europeans have returned in to the market, thanks to low prices and attractive investment opportunities.

The firm reports that in Barcelona there has been a steady upswing in sales in the first two quarters of 2014 compared to the same period last year. Northern Europe and UK buyers are still dominant but with increased interest from non-European investors, particularly from the Middle East and Far East

The Lucas Fox Barcelona office is currently generating approximately 30 offers per month, with approximately two out of every three being converted into sales and prime property sales price averages ended the second quarter of 2014 on €4,237 per square meter, slightly up on 2013

‘The Barcelona market has continued to improve in the first two quarters of 2014 and there is a great deal more confidence amongst buyers, in particular international buyers,’ said Lucas Fox cofounder Alexander Vaughan.

‘It looks like prices have now stabilised and the number of transactions is slowly increasing. The big change is that sellers are being more realistic and that asking prices have come down in line with buyer expectations,’ he added.

It also reports that the Ibiza residential market is continuing to perform strongly, with an increased number of transactions compared to the same time in 2013 and prices of premium properties in some prime areas are beginning to increase as demand outstrips supply.

Interest in prime market properties on Ibiza primarily comes from the UK and northern European buyers, however, interest from US buyers has doubled in the past year

‘The continued appeal of Ibiza is most definitely its unique lifestyle. More people are choosing to relocate to the island due to good schools, including international schools, outstanding properties and the exceptional quality of life,’ explained Amanda Marti, director of Lucas Fox Ibiza.

‘The island now offers 4G internet and better flight connections year round. Interest from Europeans is still high but demand has significantly increased from the Asian market, mainly Korean and Chinese buyers. There has also been a rise in interest from American investors,’ she added.

On the Costa Brava there has been significantly more movement in the property market in the opening two quarters of 2014 compared with the same period at any time since before the beginning of the crisis in 2006/2007, the report says, with most buyers being lifestyle investors taking advantage of market conditions and purchasing second homes with a…

House hunters in the UK may have a better chance of finding their dream home, with the average number of properties available for sale through estate agents up by 11%.

The monthly rise in availability is the greatest percentage increase in almost three years, according to the National Association of Estate Agents (NAEA).

Its July Housing Market Report shows that the average number of properties available for sale per branch increased from 46 properties in June to 51 in July, the highest number of available properties since November 2013.

At the same time, it says that competition among house buyers could be easing. The average number of house hunters registered per branch shrank from 371 in June to 368 in July, and has been declining month on month since April 2014.

However, the NAEA pointed out that the number of registered house hunters still remains significantly higher than the same time last year when only 250 house hunters per branch were recorded.

An additional positive for house buyers in July has been agreed sale prices. Some 66% of homes in July were sold for less than the asking price, a sharp contrast to May when only 46% of properties sold for less than the asking price. Also, only 4% of homes were sold above the asking price in July, compared to 19% in May.

The increase in housing supply and the steady decline in the number of registered house hunters could be a direct result of high stamp duty rates faced by many potential buyers, the NAEA report suggests.

Almost 90% of NAEA members said that stamp duty either frequently or occasionally deterred house buyers from moving and 92% believe the government should reform stamp duty land tax.

‘The lack of housing supply has been a significant issue over the last few months, so the sign of increasing stock is positive for the market and house buyers in search of their ideal home,’ said Mark Hayward, NAEA managing director.

‘Another positive for house hunters are the recent reports suggesting house prices are on the decline. Our report has found similar, with a significant amount of homes being sold at less than the asking price. This not only signals an appetite for movement in the market, but is also positive news for current house buyers, especially when faced with the prospect of potentially having to pay higher rates of stamp duty for higher priced houses,’ he added.

The report also reveals that the number of first time buyers in July remained static, accounting for 20% of sales, the same as June. However, despite decreasing house hunters and a stagnant first time buyers’ market, sales were unaffected, remaining consistent from the previous month with an average of nine sales per branch in July.

National green field land values in the UK grew by 2.7% in the second quarter of 2014, bringing year on year rises to 9.8%, the highest rate of annual price growth recorded for three years.

The value of urban land increased by 2.1%, bringing annual growth to 8.5%, according to the latest data from property firm Savills and has been buoyed by strong rates of sale in the new homes market.

Momentum continues to build in the land markets across the country but towns in the London area have performed especially well as builders seek clean, edge of town greenfield sites, pushing prices back to their 2007 levels and beyond.

Brighton, Canterbury, Hayward’s Heath, Crawley, Oxford and Sevenoaks have all seen green field prices return to, or exceed, their pre-crunch levels. However, the national picture disguises distinct regional, and local, markets. In the south east, the best performing region, green field values are within 16% of their peak.

Even the north of England, the region where land markets suffered most severely in the recession, is now seeing sustained levels of land price growth. Annual price growth in green field land is up 13.8%, outperforming even the south east over the same period, although values remain half of their former highs. Buyers appear to be taking advantage of discounted prices during this window of opportunity, according to Jim Ward, Savills director of residential research.

He pointed out that recent price movements conceal a reduction in the value of affordable housing land, offsetting stronger growth in the value of land for market housing. Larger serviced green field sites in strong housing market locations are appreciating in value more quickly than their small site counterparts. This comes as house builders seek sites at scale to secure land pipeline while delivering at higher rates.

For example, some very large 2,000 plus unit strategic sites have traded this year, a sign of strengthened market conditions but not without government support. Sherford, a 5,500 unit new town in Devon, was supported by £32 million loan from the HCA’s Local Infrastructure Fund.

Small, oven ready sites are still in demand, however, driven by the requirements of recapitalised small and medium sized builders with growing market ambitions.

The report also shows that urban land continues to underperform green field land, recording more modest levels of quarterly growth for three successive quarters and remaining further from peak.

‘The viability of high density schemes are being increasingly squeezed by build cost inflation. That said, the south east saw comparatively strong urban land price growth in the second quarter at 3.3%, boosted by demand from buoyant housing markets close to London,’ said Ward.

‘With a rapid recovery in the new homes market and higher rates of build, material and labour shortages are putting pressure on build costs. According to the latest Home Builders Federation survey, the availability of materials, materials prices and labour costs were the fastest growing constraints on development in the first part of 2014. Meanwhile,…

Furnished flats in towns and cities provide the best rental returns for UK landlords as they appeal to young, mobile tenants, according to research from Countrywide.

There is an 8.1% premium for furnished flats and a 2.8% premium for furnished houses when compared to their unfurnished counterparts, says the latest report from the lettings agency.

The report also shows that in July, UK rents increased 3.7% year on year, with growth predominantly driven by outer London and it says that landlords are able to achieve greater monthly rental returns by knowing what potential tenants are looking for, letting furnished rather than unfurnished properties in key areas.

Typically towns and cities have a younger tenant population who have little or no furniture and are willing to pay a premium for it to be provided by the landlord. In rural areas typically there are more families who have accumulated their own furniture over time and in many cases are actively seeking unfurnished properties.

In some more affluent urban locations a landlord can expect to expect to achieve a third more in rent for offering a property furnished. This is driven by demand and a tenants’ willingness to pay a significant premium for high quality furnished accommodation.

There are a number of city centre locations where furnished properties make a big difference to the premium a landlord can achieve. The relocation of the BBC to Salford in Manchester has had an impact on the city’s rental market, with an influx of BBC employees willing to pay a high premium for furnished flats close to the corporation’s offices.

Also in seaside locations, such as Eastbourne, there are typically a higher percentage of elderly people who are willing to pay a premium for furnished properties in move-in condition. However, there are exceptions, particularly in less affluent areas such as Barnsley and Luton, where falling levels of home ownership amongst the young mean extended periods of time spent in the private rented sector.

In general, the locations where furnished property attracts a smaller premium tend to be areas outside regional city centres. These are typically expensive areas of central London, where the cost of furniture comprises only a small percentage of the rent and in more rural areas where there is a larger population of older families with children who are more likely to have their own furniture.

There continues to be a gentle growth in average monthly rents in England, Scotland and Wales in July 2014, with the average UK rent now standing at £898 per calendar month. The highest average monthly rent remains in central London at £2,503 per calendar month and the lowest in Scotland at £643 per calendar month.

In terms of property size, there has been a year on year increase in average monthly rents apart from three bedroom homes which have seen a 7.2% decrease year on year. One bedroom properties saw the greatest increase in rents, up 4.2% year on year and 1.5% month…

Average UK house price growth has exceeded all expectations over the past year, leaving some markets with reduced capacity for further mid term growth, according to a new report.

As a result international real estate adviser Savills has released a revised five year mainstream market forecasts taking account of growth seen in the first half of 2014.

The firm now expects average annual UK house price growth to settle at 9.5% this year, up from the previous 6.5% forecast. This will be followed by 4% growth in 2015 and 25.7% overall in the five years to the end of 2018, just fractionally higher than the 25.2% originally forecast.

The most notable changes to the published Savills forecasts are for mainstream London and, to a lesser extent, the corresponding markets in the South and East of England.

So far this year, house price growth in London, the South and East of England has significantly exceeded forecast, with all expected to end the year well into double digits.

Price growth in these mortgage-dependent mainstream markets remains high according to the majority of relevant indices, though there are signs that demand is weakening, with lead indicators suggesting a change in sentiment in London.

In London, full year growth is expected to settle at 15% against a previously published forecast of 8.5% despite an anticipated slowing in the second half of the year. While the five year growth forecast for the period 2014/2018 remains almost unchanged, the rate of recent growth will mean affordability will become stretched as and when interest rates rise.

The markets of the South and East of England were all originally forecast to show marginally higher levels of growth than London in 2014 at 7% but have in fact underperformed the capital to date. Nonetheless, they too are now expected to end the year in double digit growth.

These markets are still expected to show the strongest five year growth, outperforming London, as evidence mounts of the flow of buyers and equity out from the capital. The Midlands and the North have the potential to outperform thereafter, as has been seen in previous cycles.

A breakdown of the figures shows growth in London next year at 5%, followed by 0% in 2016 and then rising to 1% in 2017 and 2% in 2018. In the South East the forecast is for 5%, 4%, 4% and 3.5% with a similar forecast for the South West at 4.5%, 4%, 4% and 3.5%.

The forecast for the East of England is for growth of 5% in 2015, followed by 4%, 4% and 3.5%. In the East Midlands it is 5%, 4%, 4% and 3.5% while in the West Midlands it is 4%, 3.5%, 3.5% and 3%.

Further north, where prices have been slower to grow, the forecast is not much different. In the North East it is for growth of 4% in 2015, followed by 3%, 2.5% and 2.5%. In the…

Renting is currently more expensive than ever in many areas in the United States, making it difficult for renters to save for a down payment on a home, according to a new analysis report.

Homes remain more affordable to buy in 94 of the country's 100 largest metros compared to historic averages. But renting is more expensive than ever in 88 of the country's 100 largest markets.

This comes as the latest Zillow Rent index shows that after three months of flat or negative monthly growth, national rents rose in July from the previous month.

It means that overall only a dozen are currently more affordable than they historically have been for both renters and home owners, as widespread growth in housing costs continues to outpace wage growth.

Nationally, US home values rose 6.5% year on year in July while national rents rose 2.8% over the same period. The Zillow Home Value Index rose to $174,800 in July, up 0.2% from June 2014 and 6.5% from June 2013.

The firm points out that rental affordability is currently much worse than mortgage affordability, largely because rents didn't experience the huge drop seen in home values during the recession, and instead have just kept climbing upward.

Nationally, renters signing a lease at the end of the second quarter paid 29.5% of their income to rent, compared to 24.9% in the pre-bubble period. In 88 of the nation's largest metro areas, renters should currently expect to pay a larger share of their income toward rent than they would have historically.

Thanks mostly to low mortgage interest rates, affordability of for sale homes looks much better. Buyers at the end of the second quarter could expect to pay 15.3% of their incomes to a mortgage on the typical home, far less than the 22.1% share home owners devoted to mortgages in the pre-bubble days.

As of June, home buyers in just six of the country's 100 largest metro markets analysed by Zillow were paying a larger portion of their incomes today than historically in order to buy their area's median priced home.

But mortgage rates are expected to rise in the coming year. When mortgage rates hit 5%, still very low by historical standards, the number of unaffordable metros for home owners among the top 100 will more than double, to 13. At 6% mortgage interest rates, the number of unaffordable metros will almost double again, to 24.

‘The affordability of for sale homes remains strong, which is encouraging for those buyers that can save for a down payment and capitalise on low mortgage interest rates. But the health of the for-sale market is directly tied to the rental market, where affordability is really suffering,’ said Zillow chief economist Stan Humphries.

‘As rents keep rising, along with interest rates and home values, saving for a down payment and attaining homeownership becomes that much more difficult for millions of current renters, particularly millennial renters already saddled with uncertain job prospects and enormous student debt….

First time buyers in Greater London borrowed 27% more in the second quarter of this year than they did a year ago, according to the latest figures from the Council of Mortgage Lenders.

Overall the lending market grew in both house purchase and remortgage activity compared to the previous quarter and the same period last year.

First time buyer loans totalled 12,300 in the second quarter in London, 4% up on the previous quarter, and 17% up on the same quarter in 2013. First time buyers in the period borrowed £3 billion, up 10% on the previous quarter and 27% on the second quarter of last year.

The data also shows that there were 9,000 home mover loans in the second quarter, up 1% on the previous quarter and 7% on the second quarter of 2013. Total value of these loans was £3 billion, up 9% on the first quarter and 26% on the second quarter 2013.

Remortgage lending in the quarter showed growth in London compared to the previous quarter and the same quarter in 2013.

House purchase lending to home buyers increased quarter on quarter in London totalling 21,300 loans, up 3% compared to the first quarter and the value of these loans totalled £6 billion, a rise of 9% on the first quarter. Compared to the second quarter of 2013, the number of loans increased 13% and value of these loans increased by 27%.

First time buyers typically borrowed 3.90 times their gross income, more than the 3.83 in the previous quarter and the UK average of 3.46. The typical loan size for first-time buyers was £212,000 in the second quarter, up from £200,000 in the previous quarter. The typical gross income of a first-time buyer household was £55,000 compared to £52,500 in the first quarter.

Due to higher house prices within London compared to the UK overall, there was a continued shift in the mix of properties bought by first time buyers in London towards more expensive properties. In the second quarter, 63% of first time buyers bought properties priced at more than £250,000, up from 57% in the first quarter and 51% in the same period last year. This was significantly higher than the UK overall level of 17%.

First time buyers in London have tended to put down larger deposits than in the UK and the report points out there was a period in 2009 and 2010 when there was no difference and typical deposits increased to 25% in London and in the UK, but whereas in the UK the typical loan to value has drifted up to 80%, in London it has remained at 75%.

In the second quarter, first time buyers paid 21.1% of gross monthly income towards capital and interest payments, a higher proportion of income than 20.7% in the first quarter. Lending to home movers showed similar, albeit slightly lower, growth patterns in Greater London to first time buyer lending.

Home mover…

The ban on tenant fees has accelerated rent rises in Scotland with annual average rents up 2.3% after years of stability, according to the latest published index.

The average rent in July was £534 per month compared with £508 per month before the fees change, the first rise in almost two years, the buy to let index from Your Move, part of LSL Property Services shows.

It also reveals that tenant finances healthier than south of the border, with 15% less rent in arrears in Scotland and landlord total returns are three times as high as a year ago, climbing to 9.9% a year or £14,994.

This means that tenants in Scotland are currently paying an extra £26 a month in rent on average than before the legislation was introduced, amounting to £312 across a year. This is substantially more than the typical upfront costs tenants used to pay when setting up their tenancy.

At an average of £534 a month, this is the highest level of rent in Scotland on record but is still 29% lower than the average monthly rent across England and Wales, which was £753 in July 2014.

‘Tenancy fees were outlawed in Scotland with the well meaning intention of protecting thousands of households reliant on rental accommodation. But we can see that in reality tenants are starkly out of pocket,’ said Gordon Fowlis, regional managing director of Your Move.

‘They are paying much more over a 12 month tenancy than they would have expected to pay for a single set up fee, adding to the daily cost of living challenge. Before this policy was implemented rents had been flat, relaxing the burden on household budgets and giving tenants some breathing space to climb back on their feet after the dark days of the recession. Banning fees has heightened the financial strain on tenants, as greater costs are now incurred elsewhere through rents increasing at a faster pace,’ he explained.

He pointed out that the biggest threat to the private rented sector is further unwarranted regulation. ‘As we move into the final furlong before the referendum, all sides need to be careful not to scare landlords off the playing field as private renting is now a key integral solution to fulfilling Scotland’s housing needs. If private Landlords sell up and leave the rental market due to more well-meaning, but clumsy, regulation this could force a housing shortage for renters,’ added Fowlis.

Overall the data reveals that in four out of five regions in Scotland, rents are higher than a year ago. The fastest annual increase is in the South, where the average monthly rent is now 4.8% higher than in July 2013.

This is followed by a 3.6% annual rise in Edinburgh and the Lothians, and annual rent uplift of 3% in Glasgow and Clyde. In both of these areas, rents reached the highest level on record in July. In the East, there has been no annual change in average rents,…

Developers in Dubai should introduce rent to own schemes to help many buyers who can no longer afford homes in the emirate’s booming residential real estate market it is claimed.

Although Dubai suffered price falls of up to 60% in some locations during the economic downturn, prices have been rising strongly again and new mortgage rules means it is harder to get a loan, especially for expats.

International property agency Chesterton believes that rent to own schemes, which were popular during the early 2000s when Dubai was establishing its own property marketplace, would help those struggling to afford to buy amid stricter regulations designed to cool rising prices.

According to Robin The, director of valuations at Chesteron MENA, such a move would also inspire confidence in buyers and reduce the risk element in buying into the UAE market.

‘There are several expats who have been here for years and are now looking at buying a property, but are finding it difficult due to the current mortgage cap restrictions. Exponential growth in the UAE property market has made buying a property a near difficult proposition for the majority of end users,’ he explained.

Mortgage regulations requiring a 50% down payment for expats has also hit the loans sector. So while the regulations have stabilised the market, they have at the same time made property investment unaffordable for most expat residents who usually cannot manage the deposits needed.

‘The solution to this is a rent to own option which gives owners the flexibility to terminate the contract towards the end of the tenure if the decision has not been made to purchase the house without any penalty,’ he added.

A typical rent to own real estate agreement is structured like an option contract. It allows the tenant to purchase the property at a fixed price within a specific period of time. A portion of the monthly rent paid during the lease period is counted towards the down payment on the property.

Usually the property is leased higher than the market rate to cover the option price or the deposit that tenant has to pay to activate the option. If the tenant is unable to exercise the option to buy, the owner is then free to rent or sell the property to another buyer.

‘Rent to own schemes have various benefits for both tenants and developers. While sellers get an option fee and potential buyer, tenants get to live in the property and try out the neighbourhood before actually settling in for the long term,’ said Simon Gray, managing director for Chesterton MENA.
‘It also provides an opportunity for the seller to sell the property at a higher asking price because buyers who cannot own a house in any other way are usually willing to offer a higher future price based on the assumption that the market will improve,’ he pointed out.

‘From the developer's point of view, offering a lease to own scheme will surely open up an additional pool of…

With house prices in the UK generally still on the rise despite talk of interest rate rises and new mortgage rules, a the leading holiday homes market place is encouraging property investors to consider the holiday rentals market to maximise their returns.

The firm, HomeAway, reports that it has experienced at 32% rise in demand for staycation holidays in the UK in 2014 and says that the revenues from short term rentals outstrip long term tenancies.

‘Holiday rentals also mean owners can still enjoy their second home without committing to the obligations of being a landlord. If owners are considering selling their properties, we suggest holiday rentals are the perfect solution in an uncertain market, and may be a long term strategy for investors,’ said Karen Mullins, marketing director of HomeAway which has more than a million holiday home listings.

Research by the firm shows that London is the top destination for enquiries from customers around the world, accounting for 43% of enquiries for UK based holiday homes. The West Country came second with 17%, South East England next with 9% and then the Cotswolds with 5%.

The firm added that the Cotswolds is a becoming a hot destination for both staycationers and overseas visitors alike with enquiries for the area up by 89% year on year. While this is good news for people who already own property in the area, prices in the Cotswolds are higher than London with the average home costing 19 times an average annual salary, according to the National Housing Federation.

‘We would suggest owners and investors in Yorkshire, the Midlands, the North East and Conwy in particular, look at holiday rentals, as these areas have seen enquiries more than double on HomeAway in the last 12 months and property there is far more affordable,’ explained Mullins.

HomeAway claims that there are other benefits to letting second homes rather than leaving them empty for 48 weeks a year that go beyond the rental revenue. Not only will the property be more secure when hosting guests, but these high spending visitors also provide a welcome boost to local attractions and restaurants, ensuring the long term prosperity of the destination and therefore value of the property.

‘People who book with HomeAway get to stay in fantastic properties across the globe that invariably provide better quality accommodation and value than hotels. These savvy staycationers also provide a welcome boost to rural economies and offer owners a healthy revenue stream of up to £54,000,’ said Mullins.

‘With the housing market showing signs of cooling, now is the perfect time to consider renting your second home to holiday makers, rather than selling up,’ she added.

The prime residential market across Scotland has showed a strong performance this year and seeing its busiest 12 month period since 2008, according to new research.

This sector, comprising properties worth £400,000 and more, has outperformed the mainstream housing market and seen a 35% annual increase in activity, reaching 2,860 transactions during the year ending May 2014.

The prime market has been robust from spring 2013 onwards while sales in the mainstream market across Scotland increased annually by 22% across the same period, according to the research from Savills.

The prime market is being boosted by the hubs of Edinburgh, the Aberdeen area and Greater Glasgow, where activity increased annually by 31%, 43% and 44% respectively. Edinburgh was heavily supported by the hotspots of Grange, Morningside and Merchiston and sales in these areas combined increased annually by 26% while sales in the New Town of Edinburgh increased annually by 49%.

Similarly, the prime southern Glasgow suburbs of Pollokshields, Newlands, Giffnock and Newton Mearns experienced a strong market with a 45% annual increase in activity. These areas continue to be supported by top quality education facilities and excellent transport links.

According to Faisal Choudhray, associate director of residential research at Savills Glasgow, the market strength in the core locations of Edinburgh, Aberdeen and Glasgow has spilled out to some of Scotland’s provincial locations, such as Tayside, where prime transactions increased last year by 33% and also the Midlothian area, south of Edinburgh, where prime transactions also increased. The prime markets in Ayrshire and the Borders also improved last year following restrained performance in previous years.

‘Prime values across Scotland have fallen over the last few years due to the high levels of stock available on the market. However, the significant increase in prime sales has created a net reduction in stock levels in some hotspots, resulting in an annual rise of 6% in prime values in Edinburgh and 4.5% in Glasgow during the second quarter of this year. The rebalancing of supply and demand has started in the country locations of Scotland, with values stabilising during 2014,’ Choudhray explained.

‘In previous years, the prime market has seen a reliance on those aged over 50. However, the market in the city hotspots of Edinburgh and Glasgow is increasingly being driven by professionals below the age of 40, comprising around 43% of Savills sales during the year ending July 2014, compared to 30% during the previous year,’ he pointed out.

‘This target market had been somewhat subdued following the housing market downturn, mainly due to affordability issues. However, there was an ever present pent up demand among this age category aspiring to upsize. This upswing is enabling the whole of the market to move again, following low levels of sales during 2011 and 2012,’ he added.

The research also shows that there was a jump in transactions at the top end of the market above £1 million in Scotland, with 143 sales recorded during the year ending May 2014, compared to 119…

Households in all regions of the UK perceived that property prices rose in August, but at the slowest rate since March, the latest price sentiment index shows

According to the HPSI from Knight Frank and Markit Economics expectations for future price growth ticked up, but still remain substantially lower than May’s record high.

Some 28.9% of the 1,500 households surveyed across the UK said that the value of their home had risen over the last month, while 5.3% reported a fall. This gave the HPSI a reading of 61.8, the seventeenth consecutive month that the reading has been above 50.

However, the reading was down on the 62.4 achieved in July and was the third consecutive month that households’ perceptions about house price growth have moderated. Any figure over 50 indicates that prices are rising, and the higher the figure, the steeper the increase. Any figure below 50 indicates that prices are falling.

Households in all 11 regions covered by the index reported that prices rose in August, with those living in London perceiving that the value of their home had risen at the strongest rate at 71.4, followed by households in the South East at 68.4 and the East of England at 63.5.

The future HPSI, which measures what households think will happen to the value of their property over the next year, crept up in August to 72.8, up from July’s reading of 71.7.
‘While this suggests that households are expecting slightly bigger price rises than in July, the future HPSI remains well below its peak of 75.1 achieved in May,’ said Gráinne Gilmore, head of UK residential research at Knight Frank.

The index also shows that households in every region expect the value of their home to rise, with those in the South East most confident about price increases at 79.3. This is the third consecutive month that those in the South East have reported large price expectations than Londoners.

The index also rose to a record high in the West Midlands to 74.3, signifying that households here are more confident that the value of their home will rise in the next 12 months than at any time since the index started in early 2009.

After three consecutive months of declining expectations for price growth in London, expectations for future price growth in the capital picked up to 77.7, although this remains well below the record high of 83.1 in April.

Some 5.9% of UK households said they planned to buy a property in the next 12 months, down from 6.7% in July. Looking at the figures on a regional basis reveals that some 9.3% of
Londoners plan to purchase a property in the next year, compared to just 3.4% in the West Midlands.

Those aged between 25 and 34 are the most likely to be considering a house purchase within the next 12 months at 9.9%, while those aged between 45 and 54 were the least likely to be buying a new…

The number of home owners in the UK who can claim to be ‘property millionaires’ now stands at 484,081, almost 50% higher than last year, according to new research.

The latest Property Rich List 2014 from property listings firm Zoopla, shows that the 10 most expensive streets in Britain have seen property values grow 12.9% over the last year, compared to the rest of the country where average values have risen by 6.6% over the same period.

Overall there are 10,613 streets with an average property value of over £1 million, up 29% on 2013 and the value of the most expensive streets are rising at nearly twice the national average. Just under a third of these streets with average property values over £1 million are located in London.

There are now 12 streets with average house prices over £10 million, all of which are in London. The average property on Kensington Palace Gardens, the most expensive street, is now worth £42,730,706, some 162 times the value of the average British home currently valued at £263,705 according to Zoopla.

The Boltons in SW10 takes second place on this year’s property rich list with average house prices standing at £26,570,341, and Grosvenor Crescent in SW1 rounds out the top three with average property prices of £22,293,470.

Outside of the capital, the most expensive street in Britain is Sunninghill Road in Surrey, where the average home is currently worth £5,605,067. The two most expensive towns outside London are both in Surrey, with average house prices in Virginia Water at £1,186,262 and Cobham at £1,003,400.

W8 remains London’s most prestigious postcode, with average property prices in the area of £2.78 million. Neighbouring SW7, the next most expensive area in the capital, has average values of £2.48 million, while property values in third placed SW3 stand at £2.37 million. The rest of the top 10 is dominated by areas in South West, West and North West London.

‘London boasts all of Britain’s 20 priciest addresses. Prime properties in the capital have long been a magnet for the super wealthy looking for a safe investment asset. For the lucky few who can afford these stratospheric price tags, the fabulous mansions on streets like Kensington Palace Gardens and the Boltons are offering very strong returns,’ said Lawrence Hall of Zoopla.

‘However you don’t need to be a billionaire to get a chance to own the crème de la crème of property on offer. In Wales and the North East, you can still snap up a prime property in the region’s most desirable streets for little over £1 million,’ he added.

Existing home sales in the United States increased in July to their highest annual pace of the year, according to the latest report from the National Association of Realtors.

Total existing home sales, which are completed transactions that include single family homes, town homes, condominiums and co-ops, rose 2.4% to a seasonally adjusted annual rate of 5.15 million from a slight downwardly revised 5.03 million in June.

Sales are at the highest pace in 2014 and have risen four consecutive months, but remain 4.3% below the 5.38 million unit level from last July, which was the peak of 2013.

According to Lawrence Yun, NAR chief economist, says sales momentum is slowly building behind stronger job growth and improving inventory conditions.

‘The number of houses for sale is higher than a year ago and tamer price increases are giving prospective buyers less hesitation about entering the market. More people are buying homes compared to earlier in the year and this trend should continue with interest rates remaining low and apartment rents on the rise,’ he said.

Yun does warn that affordability is likely to decline in upcoming years. ‘Although interest rates have fallen in recent months, median family incomes are still lagging behind price gains, and mortgage rates will inevitably rise with the upcoming changes in monetary policy,’ he explained.

The median existing home price for all housing types in July was $222,900, which is 4.9% above July 2013, the 29th month in a row when year on year prices have increased.

Total housing inventory at the end of July rose 3.5% to 2.37 million existing homes available for sale, which represents a 5.5 month supply at the current sales pace. Unsold inventory is 5.8% higher than a year ago, when there were 2.24 million existing homes available for sale.

Distressed homes, known as foreclosures and short sales, accounted for 9% of July sales, down from 15% a year ago and the first time they were in the single digits since NAR started tracking the category in October 2008.

The data shows that some 6% of July sales were foreclosures and 3% were short sales. Foreclosures sold for an average discount of 20% below market value in July, while short sales were discounted 14%.

Yun said that the deepest housing wounds suffered during the recession are beginning to fully heal. ‘To put it in perspective, distressed sales represented an average of 36% of sales during all of 2009. Fast forward to today and rising home values are helping owners recover equity and strong job creation are assisting those who may have fallen behind on their mortgage due to unemployment or underemployment,’ he explained.

All cash sales in July were 29% of transactions, down from 32% in June and representing the lowest overall share since January 2013 when it was 28%. Individual investors, who account for many cash sales, purchased 16% of homes in July, unchanged from last month and July 2013. Some 69%…

The cost of a first time buyer owning a home in the UK is now on average £110 per month lower than renting or £1,316, new research shows.

The average monthly mortgage costs associated with owning a three bedroom house for a typical first time buyer in the UK stood at £677 in June 2014, some £110 lower than the average monthly rent paid on the same property type at £787.

This compared to five years ago when the average cost of buying was £37 a month more at than the typical rent paid at £734 compared to £697, according to the research from the Halifax.

The building society, one of the UK’s biggest lenders, says that the significant fall in the monthly cost associated with buying compared to renting has been driven by the decline in the average mortgage rate since 2009.

The mortgage rate for a first time buyer has fallen to an average of 3.09% from 4.92% in June 2009, helping to reduce the average monthly mortgage payment by £57 or 8%. In the past year the difference has grown from £93 to £110, although the average buying cost has grown by £25 this has been more than offset by average rental costs rising by £42.

Regionally, buying is currently most cost effective compared to renting in London, Wales and the West Midlands with the average first time buyer taking out a new mortgage to finance house purchase in the West Midlands paying 12% less per month than the typical private tenant. Only in the East Midlands are first time buyers still better off renting.

The lower costs of owning compared with renting, together with lower mortgage rates and an improving economy may have contributed to a 29% to the number of buyers getting on the housing ladder for the first time. In 12 months to June 2014 there were 301,300 house purchases made by first time buyers, compared to 233,400 a year ago, almost double compared to five years earlier. First time buyers now account for 45% of all house purchases, compared to 38% in 2009.

‘It is clearly encouraging that since 2009 there has been a significant decline in the cost of buying a home for those for those trying to get on the housing ladder. The improvement is due to a combination of lower mortgage rates and rising private rents. In contrast, market conditions for renters have deteriorated as rents have risen over the same period,’ said Craig McKinlay, Halifax’s mortgage director.

‘Buying costs have been remarkably stable for much of the past five years making home ownership a more attractive option. With greater availability of mortgages that require smaller deposits, the property ladder has also become even more accessible for those who can afford the monthly costs of owning but had previously not been able to save the necessary deposit,’ he added.

Homes close to the top 30 state schools in England have the largest price premium and cost on average 8% or £21,000 more, new research shows.

And it is in the postal district of the Beaconsfield High School in Buckinghamshire where parents face paying a premium of £483,031 or 154% compared to the average house price in neighbouring areas.

The research by Lloyds Bank also shows average property prices in the postal districts of the top 30 state schools in England, defined as those secondary schools that achieved the best GCSE results in 2013, have now reached £268,098 compared to their county average of £247,143.

Five of the 30 top state schools are in locations that command a house price premium of over £115,000 compared to their surrounding locations. Homes within the postal district of Sir William Borlase's Grammar School in Buckinghamshire command the second highest premium with house prices in the postal district of SL7 at a premium of £184,058 or 59%.

However, half of England's top 30 state schools are in locations where the average property price is below the average of those in neighbouring areas. With an average price of £134,261, properties in the postal district of Devonport High School for Girls in Devon PL2 are 38% or £83,375 below the county average.

In cash terms, the largest discount can be found in the area close to Reading School where the average house price in RG1 of £212,994 is £107,979 lower than the Berkshire county average.

Those on average earnings are finding it difficult to purchase a property close to many of the best state schools. The average house price of £268,098 in the postal districts of the 30 best performing state schools is almost eight times average gross annual earnings of £35,157 compared to the 7.4 average across England.

Homes within the postal district of the Beaconsfield High School are the least affordable with the typical property price of £796,909 in this part of Buckinghamshire are just over 18 times gross average annual earnings in the area. Houses in the postal district of the Sir William Borlase's Grammar School, also in Buckinghamshire, are the second least affordable at 11.4 times average annual earnings.

In contrast, properties in the postal district of the Heckmondwike Grammar School in Kirklees are the least expensive in this survey at £99,063 and are the most affordable with a house to price ratio of 3.2.

The postal districts of the top performing secondary state schools in six of the nine English regions command a house price premium compared to their county average. The South East has the largest premium with average house prices in the postal districts of the top 10 state schools in the region trading 27% or £72,314 above the average house price in their county.

This is followed by East Anglia with a premium of 25% and the North West with a premium of 24%. In contrast, homes in the East Midlands and the South West that are close…

A baby born today in the UK faces paying £3.4 million for their first property based on historic house price increases, new research shows.

At the current rate of property growth, if a child is born in 2014, by the time they reach the average first time buyer age of 35, the average house price in 2048 will be an astounding £3.4 million.

Even children of 10 years old today, face paying over £1.6 million for a property, requiring a deposit of over £320,000, according to the research from online estate agent eMoov.

It also shows that if you have a child who is currently four years old, they will most likely need £2.4 million and by 2032 the average 20% deposit needed to buy a property will equal the price of the average price of a property in 2014.

Some 67% of parents polled by eMoov stated that they will have to financially aid their children get on to the property ladder.

A house worth the national average of £205,199 by the end of 2014 is estimated to be worth £3,391,474 in the year 2048 if the historical pattern continues in property.

‘Our research shows the staggering truth about the rise of property prices within the UK over recent times. Property prices are always on the move but viewed over decades our research shows an annual rise of 8.6% since 1954,’ said Russell Quirk chief executive officer of eMoov.

‘If the trend continues then the bank of Mum and Dad will become even more important for the next generation of home owners,’ he added.

Unscrupulous letting agents that are charging tenants and landlords for the same service such as checking references or alterations to contract extension agreements, new research has found.

They are charging for the minutest changes, even when revisions to the contract amounted to just a change of a date, says the research published by insurance firm Direct Line for Business.

The research revealed how a South London letting agent charged a landlord £670 for a simple contract extension, which only necessitated a change of date, while the tenant was charged £90 for the same action.

The research also highlighted the variance in fees landlords pay when they rent out their property through an agent. While on average landlords are charged 11% of the revenue they receive on a monthly basis if they rent out their property through a letting agent, the research found a range from as low as 5% to a high of 17%.

When calculating the yield they hope to generate, landlords should consider the range of additional charges involved in renting out a property. The research revealed the cost of a letting agent completing an inventory on a property ranged from £65 to £300, property visits from £20 to £100 and the charges for managing a checkout from £30 to £125.

Other charges landlords often encounter include paying for the cost of running credit checks on prospective tenants, reviewing references and checking tenants into a property.

‘Whilst most letting agents are transparent and fair, a minority are doing an injustice to the majority through double dipping activities,’ said Jasvinder Gakhal of Direct Line for Business.

‘That aside, it is important landlords consider all the costs they will face when estimating the yield for a property. Taking into account agents’ fees, taxes and unbudgeted costs such as emergency property repairs, landlords can easily pay out expenses of 25% of their annual rental income for a property,’ he explained.

He pointed out that letting through an agent can take the hassle out of the rental process and provide additional legal protection in the event of an incident but research shows it pays to shop around for the best value as charges and services can vary significantly from one agent to another.

To help landlords keep track of charges paid, ongoing expenses and to assist in calculating the yield on their portfolio Direct Line for Business has launched a new landlord app, Mobile Landlord. It enables landlords to manage up to five properties on the go through a single online, mobile portal. Mobile Landlord is free to download and available on both iOS and Android.

With the bank holiday weekend underway it has been revealed that more home owners in the UK are attempting DIY without professional help and two million have damaged their property as a result.

The most commonly ‘botched’ DIY tasks are painting and decorating, applying bath sealant and tiling and home owners have paid out £67 million to put right their DIY disasters, according to research from LV= home insurance.

They survey found that one in 10 had to claim on their home insurance as a result of damaging their property doing DIY and 5% have to call in professionals to repair damage caused by their own botched attempts, a figure which has increased year on year since 201o.

The jobs most likely to go wrong include painting and decorating, 32%, applying sealant around a bath or shower 18%, tiling 16%, plastering 13% and filling a hole or crack in the wall 12%.

Some 49% said they have caused cosmetic damage such as spilling paint, 26% water damage and a further 16% resulted in electrical faults. Some 16% have also damaged the fabric of their property by, for example, putting their foot through the loft floor or smashing a hammer through a wall.

Most amateur DIY attempts start from a desire to save money. In total, 85% who attempted DIY did so because they thought it would be cheaper to do the jobs themselves rather than hiring a professional, while 22% thought the job would be relatively easy to complete.

Over ambition and lack of knowledge are among the main causes of DIY disasters. Among all those that caused damage in their home, 36% didn’t know what they were doing, 18% found the job was just too complicated and 24% blamed their tools for the job going awry.

The rise of online tutorial videos has exacerbated the problem, with complicated do it yourself looking too easy. Some 8% did the work after watching an online tutorial video as it gave them the confidence to have a go. And 29% have attempted to have a go at potentially dangerous tasks such as electrical repairs, 8% roofing work and 4% knocking through a wall. Some 3% have even attempted gas appliance repairs without professional help.

The firm pointed out that for specialist jobs involving gas, electrical, plumbing or structural work, it is essential to call in the professionals to ensure the work meets current safety and building regulations, otherwise home owners risk invalidating their home insurance policy if things go wrong.

It also explained that in the past five years 10% have made a claim on their insurance policy as a result of damaging their home through botched DIY and want to remind people it is important that they know what they are doing before they start a job.

‘August bank holiday is a key time for home owners to get out their tools and undertake some DIY, but home owners need to be realistic about how much they can achieve without professional help,’…

The introduction of Real Estate Investment Trusts in India will help deepen the country’s property industry and bring greater industry stability, it is claimed.

India has approved legislation allowing the creation of REITs, a long awaited move that should encourage the creation of big institutional grade buildings and give developers a ready outlet for projects, according to Shobhit Agarwal, JLL managing director of capital markets in India.

He pointed out that until now many institutional investors have been put off investing in Indian property because it is highly fragmented, sometimes with multiple members of an extended family owning a building in strata title fashion.

The Securities and Exchange Board of India (SEBI) has now outlined the basic rules for REITs and industry insiders said they are very similar to the REIT legislation in other Asian countries such as Singapore and Hong Kong.

The first talk about introducing REITs came as far back as 2008. But previous administrations dragged their feet on codifying them. Property professionals see their relatively sudden introduction after a consultation paper last October as a credit to the administration of new Prime Minister Narendra Modi and his BJP party.

Agarwal believes that the government is going out of its way to be business friendly and is putting through policies more quickly than previous administrations.

Indian REITs, like many others around the world, will be required to pay out 90% of their income from stable assets to investors. That will result in a twice yearly dividend. Only 20% of an Indian REIT’s assets can be invested in development, the riskiest end of the real estate industry, and the remaining 80% of the fund’s assets must be invested in income producing property.

Agarwal explained that since those projects, often office buildings or shopping malls, have already been developed and already have tenants, their income stream is relatively easy to predict. While they may increase in value, the REIT will hold them long term and won’t trade in and out of real estate.

‘This is not meant for speculators. These are for investors that are looking for steady returns as opposed to capital appreciation,’ he added.

The buildings must have multiple tenants to reduce risk to any one company, and there must be a single ownership structure for any building that is folded into a REIT. The REIT must also hold multiple buildings, and cannot have more than 60% of its assets in any one project. It must own assets worth US$82 million at the time of going public and must have an initial size of US$41 million on the stock exchange when it lists.

Now overseas investors will be able to access stable assets via REITs. JLL estimates that of the 370 million square feet of Grade A office stock in India, some 170 million is of REIT standards.

SEBI has also created a similar structure known as an infrastructure investment trust that will allow developers of infrastructure projects to sell those into a fund, with the same requirement to distribute…

The number of first time buyer sales in England and Wales rose to a seven year high in July and they are paying smaller deposits, new research shows.

There were 30,000 first time buyer sales last month, a quarter more than 24,100 a year before, according to the latest First Time Buyer Tracker from Your Move and Reeds Rains, part of LSL Property Services.

It was the highest number of monthly first time buyers since August 2007 and data from estate agency chains also reveals the average first time buyer deposit fell 10% year on year from £29,609 a year ago to £26,642 in June 2014, a drop of almost £3,000 in a year.

The average deposit fell as a proportion of average first time buyer income as a result. Twelve months ago, the average deposit represented 82.6% of a first time buyer’s income. In July 2014, that had fallen to 72%. The average first time buyer income stood at £37,000 in July compared to £35,843 a year ago.

Over the same period, the average first-time buyer LTV has risen from 79.5% to 82.9%, helped by the increase in higher LTV lending facilitated by Help to Buy.

‘The first time buyer market is still active, even as the wider property market is starting to show signs of cooling down. As the economic recovery gathers momentum, more buyers are finding themselves in a position where they can afford to own their own home,’ said David Brown, commercial director of LSL Property Services.

‘A whole generation of young buyers were trapped on the side lines of the property market as the economy recovered from the recession, struggling to save for a deposit whilst inflation remained stubbornly high, savings rates were stuck at a historic low, and real wages fell. But the recent increase in high LTV lending options, enabled by Help to Buy, has allowed them a shot at getting on the ladder at long last, and the number of first time buyers has climbed to a seven year high,’ he explained.

‘Any stalling of the mortgage market caused by the introduction of the new mortgage rules has mostly worked its way through the system. Lending is operating on full steam ahead once again, although the end to end process has tightened and elongated,’ he added.

The latest e.surv Mortgage Monitor found that more borrowers are taking out high loan to value loans as the stock of affordable properties is falling. There were 13,256 approvals on properties worth £125,000 or less in July 2014, some 13% fewer than 15,244 a year ago.

The index also shows that the average first time buyer purchase price has risen 8% over the last year and 6.5% over the last three months to £155,844 in July. Simultaneously, average first-time buyer mortgage rates climbed for the fourth consecutive month in July, up from 3.99% in March to 4.19% in July. In the…

House prices in the South East of England have recovered strongly since the economic downturn with homes in Surrey performing the best within the region, a new report from Savills shows.

It reveals that the market for new build property in Surrey is very positive, signalled by certain developments in Guildford achieving over £500 per square foot.

Across the county various sub-markets for new homes can be found, but in general the demand for property is such that in many areas of the county the market is more comparable to prime areas of West and South West London, including neighbouring boroughs such as Richmond and Kingston, than the rest of the South East.

In Woking, flats are the dominant new build type, and prices are more affordable than in Elmbridge or in Guildford. The average sale price of a new property was £264,000 in the year to March 2014 according to Land Registry data.

In Guildford development ranges from town centre flats and family housing to large detached houses in the surrounding villages. Across all new property types the average sale price over the same period in Guildford was £474,000.

To the north of the county is the affluent district of Elmbridge, where the most desirable new properties in locations such as Esher and St. George’s Hill can command values around £800 per square foot. The average value of a new detached house in Elmbridge was £1.73 million in the year to March 2014.

The report also indicates that smaller, niche developments have proved popular and can command premiums over equivalent second hand homes where they are able to offer something different to the existing stock.

For example, Mulberry Mews is a development of nine terraced houses in central Reigate, and has achieved values of around £500 per square foot according to Savills data. This compares very favourably with second hand values in the area, which average around £300 per square foot according to Hometrack. Low levels of stock in the general second hand market, particularly of high quality period properties, have reinforced the interest in new build developments.

‘Demand for new homes in the area comes from a range of sources. Older, equity rich downsizers are attracted by the prospect of lower maintenance and running costs, along with the peace of mind that comes from new, high spec appliances and a builder guarantee,’ said Nick Gregori, Savills research analyst.

‘This group are likely to have lived locally in a semi-rural location, and once they are retired or their children have grown up and left home a more urban environment becomes appealing. The centres of Guildford, Woking, Reigate and Farnham all have wide ranges of amenities such as restaurants and cafes, bars, theatres and shops,’ he explained.

‘Family buyers traditionally consisted of people moving up the ladder locally, but recently this has been supplemented by buyers moving out from London, who now make up a key component of the demand. Not only is a typical three bedroom family home in…

London home buyers are willing to pay a substantial premium to live near a tube or train station with homes within 500 meters commanding some £42,000 more compared to one 1,500 meters away.

On average, London houses closest to Circle line stations are the most expensive while those nearest the Metropolitan line are cheapest, according to the research by the Nationwide Building Society.

The Nationwide examined how the proximity to a tube or railway station impacted property prices in Greater London after taking account of other property characteristics, such as property type, size and local neighbourhood type.

‘Our research illustrates that people are willing to pay a significant premium to be close to a station, and suggests that this premium has increased relative to two years ago when we last explored the issue,’ said Robert Gardner, Nationwide's chief economist.

In general the premium that buyers are willing to pay increases as you move closer to a station. A property located 1,000 meters from a station commands a 4.9% premium, whilst at 750 metres this increases to 7.6% and 10.5% for a home 500 meters from a station.

The report points out that just 6% of properties in London are more than 1,500 meters away from a station, and the vast majority of these are in outer suburban areas, where stations tend to be more spread out serving larger catchments.

Excluding the City of London, Camden is the borough best served by the tube and rail network, with 85% of properties within 500 meters of a station. Whilst Camden has always benefited from a high density of tube stations, it has also recently seen improved rail services thanks to London Overground. However, it is also one of the most expensive areas of the capital, with average prices currently around £843,000.

Havering, Bexley and Barking and Dagenham are amongst the least connected boroughs, with fewer than 20% of properties within 500 meters of a station. Average house prices tend to be lower in these areas, but this also reflects that they are further away from central London.

Amongst the outer boroughs, Brent stands out as having good transport connections, with more than 50% of properties within 500 meters of a station. Brent benefits from access to a number of tube lines, with the Metropolitan, Jubilee, Piccadilly and Bakerloo all passing through.

The research also looked at which tube line is associated with the highest house prices. The Circle line serves the capital’s most expensive areas taking in much of central London and also parts of west London. Average house prices are over £800,000 in areas where the nearest station is on the Circle line.

Average house prices are least expensive where the nearest station is on the Metropolitan line. This probably reflects that the line stretches towards the outer suburbs, with only a short section in central London.

The Nationwide has conducted similar research for Manchester and Glasgow, looking at the impact of rail links on local property prices. ‘London home…

Home sales in Spain are increasing but price are continuing to fall with the latest data from the Notaires showing transactions up 16% compared to a year ago.

But the same set of figures show that prices are down 5.7%, although the general opinion is that the Spanish property market is well on its way to recovery.

Apartments saw the biggest jump in sales activity with an increase of 11.6%. The average price per square meter was €1,214, a 5.7% drop from a year and 35.7% below prices in 2007.

The Notaires said that the jump in sales is a normalisation in the wake of changes in tax laws, but it also represents a stabilisation of monthly sales. For example, the number of sales from January to June was similar to the number of transactions in the same period of 2013, at 29,171 in 2014 compared to 27,958 in 2013.

Meanwhile a village in Spain with the country’s oldest population is so desperate for people to come and live and build new homes that it is selling building plots at bargain prices.

It is possible to buy land to build a home in the village of Olmeda de la Cuesta, 100 miles from Madrid, from €160 for 60 square meters, rising to €1,300 for 205 square meters and there are eight plots available.

‘We want to attract more people so that the village does not disappear. Buyers can build a house of up to three floors and can put in a garden. Some plots have caves that can be used as wine cellars,’ said mayor, José Luis Regacho, who is one of the youngest residents at the age of 47.

The village once had 500 residents but now there are only 15 permanent residents and 20 home owners that return for weekends and holidays. The average age is 75. It has a church, a medical clinic that is staffed once a week and a bar. The local school closed 40 years ago, due to a lack of students.

It is the second time that the village has sold bargain plots. Last year six plots were sold for between €600 to €3,500 but this time the prices are much lower.

However there is a downside. ‘This isn't a place where people can move and expect to find a job. There are really no work opportunities here,’ said Regacho who commutes weekly to his job in a city 30 miles away.

‘It would be perfect for people who want a quiet place to relax or to get away from daily life. Or a writer who wants a quiet place to work or an artisan who wants a place to make and store products,’ he added.

More homes are being built in England with housing starts up 18% in the second quarter of 2014 compared to a year ago, the latest construction data shows.

Housing and Planning Minister Brandon Lewis announced that there were 36,230 new housing starts between April and June, bringing the total number of starts over the last 12 months to 137,780, a 22% increase on the previous year and the highest level of house building since 2007.

He pointed out that government efforts to help people onto the housing market are working with almost 40,000 households have bought a home through Help to Buy, with over 80% of sales going to first time buyers purchasing new build homes.

He said that the direct result is a new generation of home owners and a 34% increase in private house building during the first year of the scheme.

At the same time the construction sector has been growing for 15 consecutive months, and is currently experiencing the sharpest rise in house building orders since 2003, while companies are taking on new workers at the fastest rate since 1997.

He also pointed out that a growing pipeline of new projects is also emerging from the reformed planning system. Last year successful applications for major housing schemes were up 23%, and planning permissions were granted for 216,000 new homes.

Also published were the latest figures for Right to Buy, which allows people to buy their council homes. In the second quarter some 2,845 council owned properties were sold, a 31% increase on the same quarter last year, and bringing the overall number of homes sold under the reinvigorated Right to Buy to nearly 22,500.

Receipts from additional sales are now being recycled into building new affordable homes. In the last quarter councils received £211 million, and started work on 675 new homes, bringing the total number of replacement homes started to almost 3,700. More than 480,000 new homes have now been delivered since July 2010, including almost 200,000 affordable homes.

‘Wherever you look across the housing market, the signs of progress are clear. House building in England is up by over a fifth compared to last year, orders for building materials are rising at the quickest pace for 11 years, and companies are hiring new staff at the fastest rate since 1997. Hardworking tenants are also voting with their feet and taking up the Right to Buy,’ said Lewis.

‘This progress did not happen by accident. It bears testament to our efforts to reform the planning system and help home buyers while paving the way for house builders to boost their output. But there’s still more to do, and improving the housing market will remain a vital part of our long term economic plan,’ he added.

However, some property industry experts are pointing out that this is still nowhere near the number of new homes that are needed. ‘The tide is gradually moving in the right direction but the UK property industry can’t forever compare itself…

Property sales in the UK fell by 1.3% in July compared with the previous month but were 13.5% higher than the same month last year, the latest data from HMRC shows.

The seasonally adjusted estimate for July was 101,190 for residential properties and 9,330 non-residential transactions.

Meanwhile, the number of registration applications received by the Land Registry in July totalled over 1.4 million with the South East submitting the most.

There were 359,687 applications in respect of registered land, 653,293 were applications to obtain an official copy of a register or title plan, 202,740 were searches and 80,360 were transactions for value.

The slight fall in transactions revealed by HMRC is nothing to worry about, according to experts who point out that there is usually a slowing in the summer months.

Indeed, Peter Rollings, chief executive officer of Marsh & Parsons, believes that the market is returning to more natural and orderly trading conditions. ‘Buyers and sellers are finding the property market a less intimidating environment than it seemed a few months ago. The number of house sales may have fallen in the month to July 2014, but it still represents a steady and sustainable increase of activity when compared to the picture a year ago,’ he said.

‘In the short term, the introduction of more stringent borrowing regulations and affordability criteria in the spring tempered the market. But all the ingredients are in place to ensure the continued vigour and vitality of the housing recovery,’ he explained.

‘A surge in supply of available properties is soothing competition and keeping house price growth in check. Buyers and sellers alike have a bigger selection of choice available to them when looking to step onto the housing ladder or trade up, sending budding shoots of consumer confidence all the way up the chain,’ he added.