New mortgage rules introduced in the UK in April have contributed to an acceleration in bridging lending in the 12 months to the end of June, it is suggested.

Growth in bridging lending has increased to 24% per year, up from 18% before the new MMR rules and annual gross lending has reached a record £2.17 billion, with £470 million lent in just last two months.

The data from the latest West One bridging index also shows that loan volumes are up 28% year on year and borrowers see interest rates close to historic lows, averaging 1.14% over the last two months.

‘Bridging is firing on all cylinders. And this is down to a number of positive factors all coming into alignment over the past few months. Thanks to the constructive approach of the financial regulators, the new MMR affordability assessments don’t apply to most bridging loans. Due to the nature of short term secured finance, the loan term is almost always less than a year and interest is often rolled up,’ said Duncan Kreeger, director of West One Loans.

‘By contrast, post-MMR delays in the mainstream market have crept into many areas of buy to let and commercial lending. So many property investors are now more actively choosing to bypass the usual lenders from the start as the high street is forced to focus its attention on simpler cases,’ he explained.

‘This is combining with a growing awareness about what bridging finance can get done, thanks in no small part to the growing expertise of specialist brokers. As the variety of borrowers grows in line with the sheer numbers of inquiries, we don’t expect this acceleration to reverse any time soon,’ he added.

The index report suggests that the most recent spurt of growth in the bridging market is being driven by progress in both the size and number of loans being written. The average loan size now averages £475,500 over the 12 months to 01 July, a 14.8% improvement on the previous twelve months, when the average loan was for £414,000.

Greater loan volumes have been even more significant, with a 28.2% improvement over the last 12 months. This is driven in particular by a 13.5% increase in loan volumes on a bimonthly basis, the two months from 01 May to 01 July, compared to the two months before the Mortgage Market Review.

‘Property prices are rising, creating both an opportunity for investors and a challenge for those in need of affordable homes or workplaces. Bridging lenders are responding with the finance that can help ease the squeeze on supply, in loan sizes that are more than keeping up with the property market and in volumes that will make a real difference,’ said Kreeger.

He pointed out that average loan to value ratios have increased to a 12 month average of 47.3%, up considerably from the low of 46.5% witnessed over the previous 12 months, ending 01 July 2013.

Government plans to drop planning permission currently required for residential short lets is raising concern among politicans, property professionals and residents in a central London borough.

Under the proposals will end the necessity to apply for planning permission currently required to let out a residential property for a period of less than 90 days in London.

However, Westminster City Council says it is extremely concerned about these proposals, which are a piece of red tape cutting which might be helpful to people who want to rent out their property elsewhere, but which take no account of central London's circumstances.

The rental sector in central London is constantly under pressure because tenants unable to afford to buy in the capital, rent over long periods and like the stability and financial security that a long term rental property provides.

According to Martin Bikhit, managing director of estate agents Kay & Co whose rental department acts on behalf of a large number of private landlords, believes the change will cause a severe lack of longer term permanent residential accommodation.

‘The number of people prepared to pay very high rents for short term lets will tend to push out would be long term tenants and owner occupiers. Permitting short term rents, will effectively blight properties, turning blocks into badly managed hotels and resulting in long term residents having to put up with unsocial noise, lack of security and loss of neighbourliness, not to mention potential issues with prostitutes and housing benefit fraudsters, and an increase in unauthorised rubbish dumping,’ he said.

Opponents cite a case in Barcelona, Spain where Airbnb was fined €30,000 for transgressing the short lets laws in Barcelona where concerns are being expressed that the city is being taken over by tourists.

According to Westminster City councillor Heather Acton the case highlights why deregulation would be a disaster for central London. ‘The property industry is right to be worried. The relaxation of laws around short term lets will cause major issues and disruption for Londoners. We are taking this issue seriously and are seeking assurances from the Department for Communities and Local Government that they are too,’ she said.

The council has recently written to the secretary of state stating its case for planning control to be retained locally. ‘The major impacts of short term letting will be felt in central London’s apartment blocks, flats, and estates,’ explained Acton.

‘It will cause issues for people living in Westminster who will have to suffer everything from refuse waste in corridors to thumping music all night. Westminster's flats and houses should be for residents and not be drawing holiday makers away from our hotels and hostels,’ she added.

Cash sales made up 34.4% of total home sales in the United States in May 2014, the lowest share since May 2010, the latest data shows.

The figures from real estate company Core Logic, also show that the number of cash sales are down from 37.4% from the same month a year ago.

However, the firm pointed out that while the cash sales share also fell from the 36.9% reported in April 2014, cash sales share comparisons should be made on a year on year basis due to the seasonal nature of the housing market.

The share has fallen on a year on year basis each month since January 2013. Prior to the housing crisis, the cash sales share of total home sales averaged approximately 25% and the peak occurred in January 2011 when cash transactions made up 46.2% of total home sales.

Real estate owned (REO) sales had the largest cash sales share in May at 55.5%, followed by re-sales at 34%, short sales at 32.8% and newly constructed homes at 16.8%.

While the percentage of REO sales that were cash transactions remained high, REO transactions made up only 8.2% of total sales in May and therefore did not have a large influence on the overall cash sales share. In January 2011, when the cash sales share was at its peak, REO sales made up 24% of total sales.

Florida had the largest share of any state at 53.4%, followed by New York at 50.3%, Alabama at 48.9%, West Virginia at 48.3% and South Dakota at 46.3%.

Of the nation’s largest 100 Core Based Statistical Areas (CBSAs) measured by population, Nassau County-Suffolk County, New York, had the highest share of cash sales at 66.4% followed by Cape Coral-Fort Myers, Florida, at 64%, West Palm Beach-Boca Raton-Delray Beach, Florida, at 62.8%, North Port-Sarasota-Bradenton, Florida, at 62.7% and Detroit-Livonia-Dearborn, Michigan, at 61.1%.

With a consensus that the first Bank of England base rate interest rise since July 2007 is drawing ever closer on the horizon, it seems that around half of UK home owners are unconcerned about it.

Mortgage holders interviewed by Ipsos MORI on behalf of the Halifax building society found that while 41% say they are concerned there are wide regional variations.

Some 61% of home owners in the North East are not concerned, along with 60% in Wales and 58% in Scotland. But 53% of home owners in the South East are concerned, followed by 49% in the South West.
The research also found that 30% of mortgage holders in the North West would find it difficult to afford monthly repayments if the amount increased by up to £50, followed by 20% in Scotland and 21% in the North of England.

In the West Midlands 45% of home owners would find it difficult to afford repayments if they increased by up to £100 while 60% would find it difficult to afford payments if they increased by up to £150. While in the South West 46% would struggle if their monthly mortgage payment was £100 higher.

Other groups who are more likely than others to say they are concerned about interest rate rises impacting their mortgage payments are women at 45% along with 50% of those aged 35 to 44 and 48% of families with children. While 57% of those with variable rate mortgages compared to 43% of those with a fixed rate mortgage would be concerned.

Nationally 13% are concerned that they would find it difficult to afford their monthly mortgage repayments if the amount was up to £50 higher. A third, 33%, say they would struggle if the amount was up to £100 higher, and this figure rises to 42% for those on variable rate mortgages.

If their mortgage payment was £100 higher, a third of mortgage holders felt that they would have to reduce spending on everyday essential items such as food, energy, clothing and insurance. This rises to 39% for Londoners and those living in Wales.

‘Speculation of a potential rate rise has been high up on the news agenda for some time now so it is perhaps surprising that the majority of home owners are not concerned about this,’ said Craig McKinlay, mortgages director at the Halifax.

‘However, with base rate historically low, and the Bank of England reinforcing its position that there will not be a rush of successive rate rises, it is understandable as to why the perceived impact of future rises is being dampened and homeowner sentiment is reflecting this,’ he explained.

‘With the base rate remaining at 0.5% for over five years, a significant number of homeowners have not yet experienced the effects of a rate rise. While responsible mortgage lenders take in account potential rate increases as part of the affordability checks in the mortgage application process, the way in which people manage their remaining disposable income will…

New rules for UK regarding the immigration status of new tenants are set to place an unfair burden on landlords and lettings agents, it is claimed.

Landlord Assist said it is concerned that landlords and letting agents will soon be responsible for policing the immigration status of their tenants when the new rules which form part of the Immigration Bill and are due to become mandatory in 2015.

It means that that landlords must carry out certain checks on new tenancy agreements before allowing the tenant to move in. Failure to do so could result in landlords facing a fine of up to £3,000.

‘We are concerned that the new legislation will place unfair burden on landlords. Landlords or letting agents will not be familiar with Home Office documentation, passports for countries outside the EU and therefore could easily be presented with fake or falsified documents which they would be unable to differentiate from the originals,’ said Graham Kinnear, managing director at Landlord Assist.

The government says it will carry out a pilot scheme in one location in the UK in two months' time to check a tenant's right to be in the country. The location is yet to be announced.

It is widely reported that up to 85% of illegal immigrants end up living in privately rented accommodation and the legislation is being introduced to stop rogue landlords letting substandard property to low paid immigrants.

Stephen Parry, Commercial Director at Landlord Assist is concerned about the additional red tape for landlords and their letting agents. ‘Without proper education and training it is not viable to expect landlords and letting agents to be able to robustly police the government’s immigration strategy,’ he said.

‘Agents already undertake identity checks on prospective tenants but to be able to decipher Home Office documentation or visa documents is probably a bridge too far. We accept that agents should make efforts in this respect but feel it is unfair that they can have such a significant financial penalty hanging over them in the event that something gets passed them,’ he explained.

‘It seems logical that if the government wish landlords and their agents to carry out a specific function that they should provide appropriate guidance notes on how to do so,’ he added.

Landlord Assist is also worried that landlords who let their property themselves without the assistance of a letting agent may be targeted by illegal immigrants. A recent report stated that more than a third of these landlords make no checks whatsoever on their prospective tenants.

‘Landlords who don’t use a letting agent to rent out their properties should be mindful that they may be targeted by individuals who do not have the necessary documentation. We urge landlords to be vigilant with this matter and keep a close eye on their responsibilities,’ said Kinnear.

Must haves in the property world change all the time with the current list now including party barns, dressing rooms and plunge pools.

Studies are still popular but open plan living is a bit past it, according to the latest list compiled by property search firm Stacks.

‘Anything from a dilapidated outbuilding with dirt floors, to a properly renovated barn with underfloor heating and full sound system counts as a party barn and every home should have one,’ said Rachel Johnston from Stacks Property Search.

Next is a bar in the garden. This can be a cabana, a summer house or even a small covered space that can be dressed up.

Nowadays everyone seems to have too many clothes for a wardrobe so dressing rooms are on the must have list. ‘The best dressed houses all have a customised dressing room, sometimes sacrificing a bedroom for the purpose,’ explained Johnston.

And a swimming pool is no longer essential for the discerning home seller. Plunge pools are today's alternative to a swimming pool. They should have just enough space to plunge in and cool off, but take up less space, and require little maintenance compared to the full sized thing.

Completely open plan living is a bit passé, but blended areas that interconnect kitchen/living/dining/sitting/playing and watching, whilst still providing some privacy is on the desired list.

It used to be called a box room, but if it's big enough for a lap top and some files, it's a study and can add to the value and desirability of a property.

They used to be called fields, but now they're called paddocks and conjure up images of ponies and chickens, rather than a man with a tractor.

Things that have fallen off the desirable list include Jacuzzis which are apparently widely believed to be a health hazard along with egg shaped baths as the more classical look is in vogue.

Grey will be all over by 2016 and polished concrete has already gone out of fashion as have signature walls with oversized flowery wallpaper on one wall of a room.

If you must have a swimming pool then the advice it to go for an indoor pool, especially one that can open up to the gardens, with direct access from the house.

Subterranean floors without any natural light are out as are bifold doors as they're no longer aspirational, and can be found in every mass development. Quality is incredibly variable, and they're not really very practical.

Gross mortgage lending in the UK reached £19.1 billion in July, some 7% higher than the previous month, according to the latest figures from the Council of Mortgage Lenders.

The amount is also 15% higher than July last year when it was £16.7 billion and the highest monthly figure since August 2008 when it was £19.3 billion.

‘Mortgage activity seems to have remained robust following the regulatory changes but the eventual impact of these remains uncertain,’ said CML market and data analyst Caroline Offord.

‘Property transactions in the first half of the year showed a 25% increase compared to the same period a year ago but, as set out in our recent market forecast update, we expect that intensifying affordability pressures could start to dampen this upwards trend,’ she explained.

‘Economic conditions have strengthened but while the Bank of England has signalled an improved economic outlook since May, headwinds remain and the message about future rate rises being measured and gradual remains unchanged,’ she added.

The world’s wealthiest people are looking to Monaco, the tax haven on the French Riviera, to buy property due to its low tax and banking services, but there is a lack of space.

It is experiencing a luxury housing boom that includes the world’s most expensive penthouse as developers prepare for an influx of millionaires and billionaires escaping higher taxes or a loss of banking privacy in Switzerland.

Wealthy buyers have always been drawn to Monaco’s security, sophistication and climate but now it is the financial rules that are seen as a must have, according to Jean Claude Caputo of Savills on the French Riviera.

New taxes on luxury homes in London and the United States are also adding to the attractions of buying in Monaco and it is estimated that one in three of Monaco’s 38,000 residents are millionaires.

As a result some of the world’s most expensive properties are being built including the Tour Odeon, a double skyscraper being built by Groupe Marzocco near Monaco’s Mediterranean seafront which has a 3,300 square meter penthouse with a water slide connecting a dance floor to a circular open air swimming pool. It is set to go on the market next year priced at around €300 million.

So far, the developer has found buyers for 26 of the 36 luxury homes that have been offered for sale in the Tour.

While Switzerland also has some of Europe’s lowest tax rates, it’s becoming less attractive to luxury home buyers as the country’s financial secrecy laws are eroded amid a move toward a global standard of information exchange between tax authorities.

Other jurisdictions, including Monaco, are looking for ways to tap into the wealth held in the Alpine country and Monaco has emerged as an obvious successor.

Asking prices for luxury homes in Geneva have fallen by an average of about 30% in the last 12 months and values have dropped by as much as 6%, according to Alex Koch de Gooreynd, of Knight Frank.

Central London’s luxury home market has also shown signs of cooling amid new taxes and more on the horizon. There is a capital gains tax being introduced on properties sold by people living abroad and the idea of a mansion tax is constantly discussed.

Larger apartments are in demand from home buyers moving their families to the principality. While just 15 new apartments sold there last year, the average price was €9.3 million compared with €2.9 million two years earlier, according to government data. The average price of homes with five bedrooms or more rose 24% last year compared with a 9% fall for studios, according to the report.

The Tour Odeon will be Monaco’s first high rise development since the 1980s. A quarter of the apartments sold on the open market by Groupe Marzocco have gone to expats from the former Soviet Union.

The lower floors were sold to Monaco’s government for use by local citizens, who will enter the building through a separate entrance.

But the tax…

UK house prices increased by 10.2% in the year to June 2014, down from 10.4% in the year to May 2014, the latest official figures show.

House price annual inflation was 10.7% in England, 3.5% in Wales, 6% in Scotland and 4.9% in Northern Ireland, the data from the Office of National Statistics shows.

Overall the figures show that house prices have been increasing strongly across most parts of the UK, with prices in London again showing the highest growth at 19.3%. In the South East prices were up 9.7% and in the East of England up 7.9%.

However, excluding London and the South East, UK house prices increased by 6.3% in the 12 months to June 2014 and on a seasonally adjusted basis, average house prices increased by 0.5% between May and June 2014.

The data also shows that in June prices paid by first-time buyers were 12% higher on average than in June 2013 and for existing owners prices increased by 9.5% for the same period.

The market is moving from strength to strength with widespread recovery apparent across the country and house price growth advancing in a steady, healthy direction, according to Peter Rollings, chief executive officer of Marsh & Parsons.

‘London remains at the top, driving national house price increases, demonstrating its exceptional appeal as a place to live and invest for both domestic and foreign buyers,’ he said.

‘Furthermore, the upturn in the market has boosted consumer confidence, encouraging sellers to put their homes on the market, resulting in a fresh influx of available properties for sale. This is good news for the London property market as it continues its strong, sustainable recovery,’ he added.

However, David Newnes, director of Reeds Rains and Your Move estate agents owned by LSL Property Services, believes that behind the scenes house price growth is more moderate and sustainable beyond London and the South East.

‘These two weighty regions distort the story and are not representative of the wider UK housing market and therefore should not disorient overarching government policy. Prices actually dropped in seven regions across England and Wales in June. This return to a more natural state of affairs indicates a stable market,’ he said.

‘Lending has largely adapted to the wave of regulatory changes in the spring, and sales are getting back on course as demand for homes increases with completions rising to the highest level in seven years in July. New buyer demand is a vital bedrock for the recovery to continue building on, and further interventions or borrowing caps could pull the rug out from under the market,’ he warned.

He also pointed out that outside of the capital, Help to Buy is giving many households a much needed leg up onto the ladder, helping activity levels and ensuring growth makes further headway to reach areas of the country that are still only just getting back on their feet.
There are signs of cooling, according to Sophie Carter, UK director of the US property investment…

Residential property sales in Spain increased by 8.8% in June compared to the same month a year ago, the latest data from the National Statistics Institute shows.

The year on year increase in June is the fourth consecutive monthly rise following those experienced in March, April and May, when home sales rose by 22%, 5% and 5.4%, respectively.

The rising sales trend also ends 10 consecutive months of year on year declines and the growth is mainly due to the sales of existing homes while sales of new homes fell by 3% year on year.

The highest number of home sales per 100,000 population were in Valencia followed by the Canary Islands and the Balearics. In relative terms, the regions where home sales increased most year on year were Madrid with a rise of 30.4%, Extremadura up 25.7% and Navarra up 19.3%.

The largest decrease was in Castilla-La Mancha with a fall of 21.6% followed by La Rioja where sales fell by 12.8% and Castilla y León where they were down by 10.3%.

The figures come as a new report indicated that foreign demand for second homes on the Costa del Sol has been strong this year. Overseas buyers regard property in the area as a bargain, according to the report from real estate consultancy Aguirre Newman.

It also reveals that 90% of foreign buyers them can afford to buy without financing while local demand is hampered by lack of mortgage choice.

There was a slight increase in the number of new developments being started on the Costa del Sol, according to the report, with four new developments being started in 2013. Not a single new development was started in the preceding three years.

However, the number of new homes for sale fell by 18% in 2014, from 18485 to 16,508 homes, and 30% of new homes on the coast remain unsold.

The average new flat for sale on the Costa del Sol is 127 square meters with two bedrooms and costs €196,956, whilst the average single family homes is 279 square meters and costs €393,520. That means prices have fallen 5.7% and 9.7 % respectively in a year.

Looking forward, Aguirre Newman forecast that holiday home prices in the best areas close to services and amenities will stabilise in 2014, but continue to fall this year and next in less attractive locations, thanks to the excess inventory and weak demand from local buyers.

A shift in supply and demand in the London prime property rental market is resulting in marked variations depending on location.

The latest rental values index from Chestertons recorded a decline in average rents of 0.8% in the 12 months ending in June 2014.

However, the Index showed a modest increase in average rental values of 0.5% in the second quarter compared to the first quarter of the year although figure this masks variation between submarkets.

The South West saw values fall 0.3% and was the only part of London to record a quarterly drop in prime rents while the North East and Central both saw rental growth of 0.9% over the quarter.

At local market level, Fulham experienced the biggest rise in rents with growth of 7.6% and the firm says this was due largely to strong demand for houses which were in very short supply, while Battersea suffered the sharpest decline with a fall of 3.5%.

The average weekly rent for the index stood at £912 at the end of June. The highest average weekly rental values were achieved in St John's Wood at £1,901, Knightsbridge/Belgravia at £1,804 and Mayfair at £1,700. The lowest average weekly values were recorded in Canary Wharf at £579, Tower Bridge at £468 and Kentish Town at £621.

With the economic recovery gathering momentum and simultaneously boosting the employment market, households are feeling more confident about property commitments, the index report says.

Recent survey evidence suggests that the majority of tenants would choose to own their property rather than rent, however with real incomes barely keeping pace with inflation and annual house prices in London rising by double digit percentages affordability is likely to make this an unobtainable dream for many. Average house prices in June in Kensington and Chelsea and Westminster, for example, were 57.5% and 54.4% respectively above their pre-global recession peak.

‘The tightening of mortgage lending criteria thanks to the implementation of the Mortgage Market Review, plus the likelihood that interest rates will rise before next year's general election and possibly before the end of this year, mean that many households will be forced into the private rented sector,’ the report points out.

The number of households in privately rented accommodation could rise by 131,250 between 2011 and 2021 even if the current ratio of 25% remains static. However, if the level of increase seen between 2001 and 2011 is maintained then this figure could rise to 492,630 or 34.5% of all households.

‘In the shorter term, with supply and demand becoming better aligned, rents are likely to continue to increase gradually across the board over the reminder of this year, aided by a likely rise in the number of forced renters. Increased activity from relocation agents also points to growing tenant demand from the corporate sector. The best prospects for growth lie in the decentralised areas where average rents are lower than in the prime central locations and will offer tenants better value for money,’ it explains.

‘In…

The average price of a typical three bedroom house in Jersey increased to the highest it has been for three years in the second quarter of 2014, the latest official data shows.

The House Price Index report from the Statistics Unit shows that all property types saw an increase in the mean price of properties sold compared with the previous quarter.

But it was the three bedroom sector that has performed the best with an average price of £508,000 and overall the mix adjusted price of all property sold was up 5% quarter on quarter.

But it must be remembered that prices are coming from a low base. For example, the first quarter of 2014 recorded the lowest level of average property price in Jersey for more than five years.

The turnover of properties in the second quarter of the year was 13% greater than in the previous quarter and at a similar level to the average seen in the latter half of 2013 at around 300 properties sold per quarter.

Share transfer transactions accounted for more than half, 56%, of all eligible flat sales, a slightly greater proportion than in 2013.

The index measures the combined average price of one and two bedroom flats and two, three and four bedroom houses and includes share transfer properties and is seasonally adjusted.

It also gives an idea of trends in terms of prices and sales. In 2008 and 2009 the mean price of one bedroom flats had been essentially stable at around £230,000. During 2010 and 2011 a reduction in the mean price of this property type was recorded, largely attributable to an increase in the turnover of lower priced share transfer properties.

The mean price then increased slightly during 2012, to around £210,000, where it remained before falling below £200,000 in late 2013 and early 2014. In the latest quarter the mean price of one bedroom flats at £219,000 was 10% higher than in the previous quarter.

Following a period of stability throughout 2008 and 2009, when the mean price of two bedroom flats was around £320,000, the subsequent two years saw increases, taking the annual mean price of this property type to around £340,000 in 2012.

Since the first quarter of 2013 the average price of two bedroom flats has remained essentially stable at around this level, except for a downward fluctuation recorded in the fourth quarter of 2013.

In the latest quarter the mean price of two bedroom flats at £354,000 was 4% higher than in the previous quarter and almost 7% higher than the average for 2013.

The mean price of two bedroom houses sold between 2008 and 2010 was around £400,000 but has since fallen, with the annual average price recorded in each year from 2011 to 2013 being below £400,000.

In the latest quarter, the mean price of two bedroom houses at £382,000 was similar to the previous quarter, just 1% higher, and 2% higher than in 2013.

After a period of strong…

Only half of aspiring home owners in the UK are aware of the new Mortgage Market Review rules that were introduced in April, according to new research.

Of those that are aware of the MMR, many still don’t understand its impact although many are now preparing in advance for their mortgage application, the research from TSB shows.

Some 41% of those made aware of the MMR feel it will ensure they can only borrow what they are able to afford and after being offered a straightforward explanation of the changes, only 3% felt they still didn’t know how the MMR may affect them.

The bank says that this shows how such explanations can go a long way to help consumers and it is good news that many aspiring home owners are now considering preparing for their mortgage application better by taking a few sensible actions.

More than half, 53%, said that they will save up as much as possible, 49% said they will check their credit report before applying for a mortgage, 45% said they will take the time to work out what they can afford ahead of their application, 29% will look to pay off existing debts and 21% will make sure they’re on the electoral roll.

TSB advices that new mortgage applicants in particular should check with their bank or building society how much you can borrow before searching for properties. TSB offers a soft search approval in principle with no impact on credit rating.

They should also have realistic expectations about what they are able to repay and work out how much you earn, spend and what you spend it on and check their report which can be done online.

Other tips include saving as much as possible as the bigger the deposit, the lower the cost of your mortgage is likely to be and if you’ve never had any borrowing, take out some form of credit such as an agreed overdraft or a credit card, but ensure you pay it back regularly to build your credit rating.

TSB also offers assistance for people whose application has been rejected, helping them understand the reasons behind the decline and assisting them wherever possible.

‘Though the Mortgage Market Review is usually recognised as a positive change by people who understand it, many still have worries as it remains shrouded in mystery,’ said Ian Ramsden, TSB mortgages director.

‘We say don’t panic, but do prepare for your mortgage application with some straightforward, simple steps. Break down your finances, work out how much you can afford and aim to future proof your mortgage as far as possible by discussing plans with your mortgage adviser,’ he added.

Higher fees and the recently introduced mortgage cap are having an effect on the prime property market in Dubai with price growth weakening.

After entering positive territory in the middle of 2011, annual residential price growth in Dubai’s mainstream segment has been very strong indeed. However, after peaking at 35% at the end of 2013, the growth rate has now been slowing.

According to Khawar Khan of international real estate firm Knight Frank the deceleration in price growth can be attributed to a combination of higher transfer fees and the mortgage caps.

But he pointed out that the new rules have impacted Dubai’s luxury homes market to a much greater degree. Indeed prices increased by just 6.3% year on year in the second quarter of 2014 compared with 24% in the mainstream property market.

‘Established, mainstream locations such as Dubai Marina remain very popular among western expats and continue to see healthy demand and thus price growth. That in turn has led some investors to look elsewhere for value, including newer developments in areas such as Jumeriah Village, Dubai Sports City and Dubai Silicon Oasis where prices are rising off a relatively low base,’ said Khan.

‘Therefore with demand for residential property remaining strong in both newer, as well as more established, mainstream locations in Dubai, prices in this segment continue to post strong gains,’ he explained.

He also pointed out that the new mortgage rules implemented by the UAE Central Bank are stricter for those buying residential property worth over AED5 million. For example, if an expat buyer was to purchase a property above that value, they would need to raise a 35% deposit. By comparison, the same buyer looking for a property worth less than that amount would require a 25% deposit.

‘Thus, while the new mortgage caps have hit the residential market as a whole, they have had a lesser impact on the mainstream segment,’ added Khan.

He explained further that after halving between 2008 and 2010, both mainstream and luxury home prices have since largely recovered. However, rents in the latter segment haven’t been able to keep up, which in turn has led yields to harden. By comparison, as a result of a stronger recovery in rents, mainstreams yields continue to look relatively attractive to investors.

Finally, Dubai’s strong economic conditions and buoyant labour market continue to attract foreigners in their droves. ‘Since this rising population needs decent, and not always luxurious, accommodation, we expect demand to outstrip supply in the short term. All else equal then, we believe that mainstream residential prices will continue to rise faster than luxury home prices over the next 12 to 18 months,’ added Khan.

The price of property coming onto the market in the UK has fallen for the first time this year, down by 0.8% or £2,116, according to the latest figures from Rightmove.

This takes the price of an average home to £270,159 and means that the annual rate of growth has fallen from 7.7% to 6.5%.

However, Rightmove has upgraded its 2014 forecast and says that new seller asking prices will see an 8% annual increase by the end of the year, hitting the top end of its original forecast of 6% to 8%.

The firm also says that there is evidence that the frenetic activity seen in some areas during the first half of the year is cooling, in part due to stricter mortgage eligibility criteria and previously pent-up demand having now been partially satisfied.

However, the significance of the first fall of the year in new seller asking prices should not be overstated in spite of the dampening effect of the more cautious tone from the Bank of
England. July has seen price falls in six of the last 10 years, with this drop largely reflecting a normal seasonal slowdown.

‘A price fall in July is not unexpected as prospective buyers turn their attention to the summer holidays. Buyer confidence may also have taken a knock with suggestions that mortgages are becoming harder to get and repayments may get more costly sooner than originally anticipated should the rumours of an interest rate rise before the next election come true,’ said Miles Shipside, Rightmove director and housing market analyst.

He pointed out that the Bank of England is trying to cool some of the existing and potential excesses of the housing market, with affordability, personal debt and default risk all high on the agenda. The Mortgage Market Review (MMR) and additional high loan to income and stress -testing guidance, along with suggestions of earlier than expected interest rate rises have had a dampening effect.

‘However, while lower than in the latter months of 2013, Bank of England mortgage approvals are still running at an average of over 60,000 a month, 23% higher in the year to date than during the same period in 2013, and 40% above the 48,162 monthly average between 2008 and 2012. It is also likely that current mortgage approval numbers are still being curtailed by the hangover from the implementation challenges of MMR,’ he explained.

‘Market conditions still compare favourably with this time last year, with growth in both the economy and employment, plus a comparative thaw in mortgage availability,’ he said, adding that he does expect that market activity will slow down in the run-up to the election in May next year.

‘Faster turnover of property breeds confidence among potential sellers, bringing more to market. This is important to help satisfy pent-up buyer demand and it also helps to keep a lid on prices if there is more property choice for buyers and more competition among sellers,’ he pointed out.

Rightmove…

The average advertised rent in Great Britain increased by 6.56% in July 2014 compared to the same time last year, reaching £1,029 per month, the latest index shows.

National rents surpassed the £1,000 per month mark in June 2014, and since then have continued to climb steadily, rising an average of £11 per month over the past four weeks, the data from Move with Us shows.

Contributing to the sustained national growth is the average rent in Greater London which stood at £2,376 per month in July and showed no signs of abating having increased consistently for the last 12 months.

On average, renting a property in the capital is now £43 more expensive that it was at the beginning of July and £223 or 10.11% per month more expensive than July 2013 when rents reached a low of £2,148 per month.

The data also shows that these improving markets conditions are not limited to the capital. A monthly increase of £9 in the South East means properties in the region are also becoming more expensive to rent, with average prices £90 (8.07%) per month higher than the same time last year.

Average advertised rents in East Anglia, traditionally an expensive marketplace given its commuter connections to London, averaged at £948 per month in July. As rents continue to increase, this month by £13, it would not be unexpected to see average advertising rents overtake the £1,000 per month mark within the next 12 months.

As house prices in Scotland stalled in July, the rental market flourished. Average rents stood at £737 per month in July, approximately £60 per month more than when compared to the same time last year. Other northern regions also experienced growth in July. The North West saw a slight decline over the last 12 months of 1.43%, with average advertised rents at £625 per month in July 2014.

‘Typically if the sales market improves, the rental market falters and vice versa. However, any fears that the rental market would decline as the sales market sprang back to life have now been allayed. The rental market has continued to grow alongside the sales market. It’s as strong as it’s ever been,’ said Robin King, director of Move with Us.

‘For once it’s not just the South that’s driving climbing advertising rents as improvements have spread up to the northern regions too. While the North West was the only region where the average advertising rent declined in a yearly comparison, we expect to see rents in this region increasing in the coming months,’ he added.

The private rental market in Scotland saw a sharp rise with average rent prices rising 10% last month compared to 4.4% in the UK as a whole.

The data also shows that, for the first time this year, private rental prices in all regions of the UK have risen, with an average increase of 4.4% since June.

The HomeLet Rental Index, the largest monthly survey of private tenants in the UK, shows that annually the UK private rental market continues to rise. The average UK private home rent rose by 8.3% over the year to July 2014. The average rent in the UK now stands at £900 a month, compared to £825 a year ago.

While in previous months the Greater London market has shown itself as a clear front runner in rent rises, July’s data points to fast rising markets in other parts of the UK.

Scotland has seen the biggest increase in rents across the whole of the UK with rents rising 10% from an average of £578 in June to £636 in July. Rent prices in Scotland over previous months have indicated a falling market, with annual figures showing prices falling 0.5% in May and 3.8% in June, so the 10% rise in July represents a sudden change in the state of the market. July's rise was enough to tip Scotland back into positive territory on an annualised basis, with rents now 1.4% higher than a year ago.

Other regions in the UK showing strong growth this month include Wales, East Anglia and the South West. Year on year, East Anglia and the South West have consistently shown the highest rent price rises in the UK, at 9.4% and 8.1% respectively, alongside Greater London at 9.4%.

‘With all eyes on Scotland ahead of the September independence vote, it is interesting to note that in July Scotland has shown the biggest leap in rental prices across the whole of the UK, with a rise in tenant’s incomes too. These are early figures, so it is too early to tell if this represents a sustainable uplift in the Scottish market, but indicates Scotland may be one to watch,’ said Martin Totty, chief executive officer of Barbon Insurance Group.

‘The private rental sector has seen rental values increasing across the whole of the UK this month, without exception. East Anglia and the South West continue to be very strong markets, with annual figures in these regions showing prices rising year on year as fast as the London market, and standing well ahead of the rest of the UK,’ he added.

According to Kate Faulkner, property analyst at propertychecklists, the data suggests that for tenants who can stay for long periods in their rental properties, they are more likely to be able to keep their rental costs down, while moving often could mean paying higher rents, potentially each time they move.

‘Just as with property…

The first wave of projects to benefit from a UK government £1 billion scheme to provide new homes has been announced with 36 large projects set to get a share.

Communities Secretary Eric Pickles said the move will unlock or accelerate the provision of over 200,000 new homes across the country.

Some £850 million will be released as part of a five year £1 billion programme and five projects will be chosen from a shortlist of 36. The funding will be used to build the infrastructure needed to provide schemes of at least 1,500 homes.

The money will go towards the building of road improvement, schools and parks to support the extra homes being planned and the shortlisted projects will now go through a final rigorous due diligence process before receiving the funding.

Sites include the continued development of the Greenwich Peninsula in South East London, which will help provide nearly 10,000 new homes, while funding is also expected to go to Ebbsfleet Eastern Quarry, to help provide 3,500 homes.

‘Residential construction is now at its highest level since 2007 and continuing to rise, and 216,000 new homes were given planning permission last year. We are supporting locally led development, and this £1 billion programme will help unlock or accelerate over 200,000 new homes across the country,’ said Pickles.

‘This is part of our wider package of housing programmes to support home ownership, increase investment in the private rented sector and further increase house building,’ he added.

Pickles explained that the funding will be available between 2015 and 2020 and will be in the form of a long term loan, with interest, ensuring a fair rate of return for taxpayers.

As well as the £1 billion loan funding, the large sites infrastructure programme also includes £12.5 million capacity funding and expert planning and technical support for councils dealing with large scale sites, as well as brokerage support from central government to unblock obstacles to development.

The shortlisted projects are in Greenwich, east London, Rugby, Monkton Heathfield just outside Taunton, Doncaster, Bishop Stortford, New Lubbesthorpe in Leicester, North Wellingborough, Wokingham, Truro, Ashford, Northampton, Telford, Exeter, East Kettering, Gloucester, Hinckley, Branston Locks in East Staffordshire, the Festival Gardens site in Liverpool, Bath, Colchester, Weston Airfield in North Somerset, Ebbsfleet Valley, Daventry, North West Bicester, Fareham, Scarborough, Thetford North, Ealing, Scunthorpe, Dover, Chelmsford, Corby, Alphington near Exeter, Wood Wharf in London and West Witney.

The £1 billion large sites infrastructure fund is one part of a wider package of support to get large scale housing developments back on track. Other support includes a £12.5 million local capacity fund to enable councils to put in place the skills and resources to move major schemes forward through the planning process.

The government has already helped unlock a range of large scale sites across the country. These include Sherford near Plymouth, where £32 million government investment is being put towards the road improvements needed to support over 5,000 new homes, schools, shops and communities facilities.

In Cranbrook near…

Residential property price growth in Australia has moderated with values in capital cities up just 1.7% in the second the second quarter of the year.

The latest figures from the Australian Bureau of Statistics show that while prices are still on an upward trajectory they are not growing as fast as they were a year ago.

This means that prices are easing back to a more sustainable pace, according to the Housing Industry Association (HIA), the voice of Australia’s residential building industry.

‘Capital city residential property prices grew by 1.7% during the June 2014 quarter. While this pace was slightly faster than in the March quarter, this growth is more modest compared with what occurred during mid to late 2013,’ said HIA economist, Diwa Hopkins.

‘During that period, residential property prices were increasing between 2% and 4% per quarter. While it’s too early to call a trend, the signs are mounting that price growth is easing back to a more sustainable pace,’ she explained.

She pointed out that annual growth reached what looks to be a cyclical peak rate of 10.9% in the March 2014 quarter. This rate eased back to 10.1% per annum in the June quarter.

Residential property prices in Sydney continue to grow the most rapidly, in both quarterly and annual terms but growth rates remain highly divergent across the different capital cities.

‘Steady and sustainable price growth reinforces confidence in the market and is a key ingredient to achieving healthy levels of new home building activity. We expect starts to break through 180,000 in 2014, following nearly 170,000 last year,’ said Hopkins.

‘Continuing improvements in the supply of new homes will be important in taking some of the momentum out of house price pressures, and we may already be seeing early signs of this,’ she added.

A breakdown of the figures show that over the June 2014 quarter, residential property prices increased fastest in Sydney with growth of 3.1%. In Brisbane they increased by 1.8, in Melbourne by 1.3% and in Adelaide by 1%.

Canberra saw prices increase by 0.8%, Darwin by 0.7% and Hobart by 0.3% while prices fell in Perth by 0.3% during the June 2014 quarter.

Hopkins also pointed out that the ABS Residential Property Price Indexes may be discontinued as part of reductions to the ABS work programme and said this was a blow to the real estate industry.

‘There have already been significant cuts to data provision for the housing industry in recent years. At a time when governments and businesses need more not less official information about economic conditions, the reduction in ABS data represents a cost to the economy, not a saving,’ she said.

Residential property price growth in Australia has moderated with values in capital cities up just 1.7% in the second the second quarter of the year.

The latest figures from the Australian Bureau of Statistics show that while prices are still on an upward trajectory they are not growing as fast as they were a year ago.

This means that prices are easing back to a more sustainable pace, according to the Housing Industry Association (HIA), the voice of Australia’s residential building industry.

‘Capital city residential property prices grew by 1.7% during the June 2014 quarter. While this pace was slightly faster than in the March quarter, this growth is more modest compared with what occurred during mid to late 2013,’ said HIA economist, Diwa Hopkins.

‘During that period, residential property prices were increasing between 2% and 4% per quarter. While it’s too early to call a trend, the signs are mounting that price growth is easing back to a more sustainable pace,’ she explained.

She pointed out that annual growth reached what looks to be a cyclical peak rate of 10.9% in the March 2014 quarter. This rate eased back to 10.1% per annum in the June quarter.

Residential property prices in Sydney continue to grow the most rapidly, in both quarterly and annual terms but growth rates remain highly divergent across the different capital cities.

‘Steady and sustainable price growth reinforces confidence in the market and is a key ingredient to achieving healthy levels of new home building activity. We expect starts to break through 180,000 in 2014, following nearly 170,000 last year,’ said Hopkins.

‘Continuing improvements in the supply of new homes will be important in taking some of the momentum out of house price pressures, and we may already be seeing early signs of this,’ she added.

A breakdown of the figures show that over the June 2014 quarter, residential property prices increased fastest in Sydney with growth of 3.1%. In Brisbane they increased by 1.8, in Melbourne by 1.3% and in Adelaide by 1%.

Canberra saw prices increase by 0.8%, Darwin by 0.7% and Hobart by 0.3% while prices fell in Perth by 0.3% during the June 2014 quarter.

Hopkins also pointed out that the ABS Residential Property Price Indexes may be discontinued as part of reductions to the ABS work programme and said this was a blow to the real estate industry.

‘There have already been significant cuts to data provision for the housing industry in recent years. At a time when governments and businesses need more not less official information about economic conditions, the reduction in ABS data represents a cost to the economy, not a saving,’ she said.

With the football season starting in the UK an annual analysis of the price of homes close to Premier League football grounds shows that they have increased by 129% over the last 10 years.

The average house price in the surrounding postal districts of the 20 clubs contesting the Premier League for 2014/2015 is now £329,520, some £79,918 higher than the average for the whole of England and Wales which is £249,601.

This is more than double the 55% increase in house prices across England and Wales as a whole over the same period, the research from the Halifax shows.

This represents an average increase of £185,478 during the past decade; from £144,042 in 2004 to £329,520 in 2014, and is equivalent to a weekly rise of £386.

The biggest increases in value have been seen in homes close to Manchester City’s Etihad Stadium, where the average home value in this postal district has risen by 150% over the decade.

The area around Hull City's KC Stadium has seen the second biggest increase with a rise in average property prices of 123% and house prices around Chelsea’s Stamford Bridge ground have recorded the third biggest rise of 121%.

Newcastle United finished bottom of the Premier League house price table with the average value of properties close to its home ground falling by 22% between 2004 and 2014, the only stadium to record a decline in prices over the past decade.

Despite not seeing the largest percentage increase in prices, the postal district covering Stamford Bridge in SW6 is the most expensive area to live in currently, with an average house price of £959,522. This is more than 15 times the average price in the least expensive Premier League postal district of L4 which is home to both Liverpool and Everton Football Clubs.

At £329,520, the average house price outside a Premier League ground in 2013 may not stretch a Premier League footballer as average wages reportedly topped more than £30,000 a week in 2013 but it’s a different story for everyone else, as this is10 times higher than national average gross annual earnings.

Nevertheless there are some variations, and while four of the five least affordable Premier League postal districts are in London, it’s not the same story at other grounds around the country. Chelsea has the least affordable Premier League postal district with the average property price of £959,522 being 18.4 times gross average earnings in the area. Arsenal at 11.7 times is in the second least affordable postal district, followed by Queen Park Rangers at 10.6 times and Tottenham Hotspur 8.7 times.

However, at the other end of the league, the postal district L4 for Liverpool and Everton Football Clubs is the most affordable Premier League postal district with the price of the typical home just 2.2 times gross annual average earnings.

‘With the Premier League hailed by many as the best in the world, for many clubs some of this success also seems to have rubbed off on the…

Annual rent rises in England and Wales have increased to 2%, the first real time growth since September last year, to average £753 per month, the latest index shows.

It means that rents have returned to levels last seen in November 2013 but the rise is just 0.1% when inflation is taken into account, according to the index from LSL Property Services.

The report also shows that tenant finances have improved with 7.3% of rent in arrears, down from 7.8% in June and 8.1% last July. But landlords have seen total returns moderate, down to 10.3% per annum as property price rises cool.

‘The rental market is approaching its busiest period yet rent rises remain modest. However, tenants looking to rent a new property this month still need to budget the same as they would have in November. At a time when the UK is facing a serious shortage of homes, and with purchase prices rising steadily, that is an immense achievement for the private rented sector,’ said David Brown, commercial director of LSL Property Services.

‘Rents have tracked inflation for many years and as of July remain down 0.2% in real terms since the start of 2010. This is testament to serious improvements in the supply of new homes to let, thanks to investment by landlords. If that investment keeps flowing, and the right incentives for new landlords remain, this positive trend should continue,’ he pointed out.

A breakdown of the figures show that rents in nine out of 10 regions are higher than a year ago. The fastest annual increase is in the South East, where the average monthly rent is now 3.8% higher than in July 2013.

This is followed by a 3% annual increase in the North West, and annual rent rises of 2.3% in London. The North East is the only region where rents have dropped over the last 12 months, falling 3.8%.

On a monthly basis, eight out of 10 regions have seen rents rise in July. The fastest month on month increases are in the South East and North West, with rents respectively 1.7% and 1.6% higher than in June. Coming a close third is the East of England, where rents are up 1.5% over the past month.

Only two regions have seen rents fall on a monthly basis. The South West experienced a 1% monthly drop in average rents in July, while in the West Midlands rents were 0.5% lower than in June.

As of July the gross yield on a typical rental property in England and Wales stands at 5.1%. This represents a fall of 0.2% since July 2013 when the gross yield on a rental property averaged 5.3%. However, yields are steady on a monthly basis, at 5.1% over the past six months. .

Taking into account price growth alongside void periods between tenants, total annual returns on an average rental property stand…

Property bridging loans have provided investors with the greatest annual returns and the lowest volatility across a range of alternative asset classes, according to the latest research.

In the 12 months to the end of June, private investors in short term secured loans have seen a total annual return of 10.5%, almost twice the 5.3% return from collectable art, and compares with negative returns for gold and wine investments.

Physical gold investments are worth 1.6% less than a year ago, while investors in fine wine have suffered an even greater loss of 16.5% over the 12 month period.

Those who invested £500,000 in bridging loans on 1st July 2013 would now see their investment worth £552,000, while the same investment in fine art would have gained approximately half as much value, to reach £526,500, according to the research from West One Loans.

If invested in gold, the same £500,000 would be worth just £492,000. However this drop represents only a fraction of the losses seen for fine wine. A £500,000 investment in fine wine would have lost more than £80,000 in the course of the last year, to be worth £417,500 as of July.

‘Economic recovery is strengthening across the developed world, led by the UK. So alternative investments are no longer a question of finding havens. Growth is on the agenda – and investors are on the hunt for ways to get involved,’ said Duncan Kreeger, director at West One Loans.

‘Property now has an enormous capacity for growth, to overcome a particularly sharp downturn and make up for the ground lost over the last five years. But while developers are in no way short of projects, finance is the tightening bottleneck to further progress,’ he explained.

‘For those private investors who can offer assistance, this is presenting enormous opportunities. Bridging loans can give individuals and smaller institutions access to the property lending market previously dominated by increasingly cautious large banks,’ he added.

When compared by volatility, the same major asset classes also favour bridging for stability of returns, with a three month standard deviation of 0.03% for property bridging loans.

Second lowest for volatility, though reflecting consistently low returns, is fine wine, with a volatility of 1.6% over the last three months. Meanwhile, fine art has seen a three month volatility of 1.7%, a considerable improvement since art investments saw a peak in volatility earlier in 2014. However, these assets all compare favourably with gold, which saw volatility spike over 10% in the three months to July.

‘Sophisticated investors are looking to alternative assets as a new way to navigate risk and return, spreading their capital between a greater variety of asset classes. But alternatives are also about new ways of linking the investor to the asset. For example, physical gold or art works are an excellent way to hedge against more mainstream markets but the ownership and investment structures are…

The Miami residential real estate market continued to see rising prices in the second quarter of 2014 due to strong demand, according to the latest report from estate agents.

The data from the Miami Association of Realtors show that there is particularly strong demand for single family homes priced between $200,000 and $400,000.

Overall the median sales price for homes in Miami-Dade County was $245,000, an increase of 8.9% compared to last year, while the median sales price for condominiums rose 5.6% to $190,000.

The market has now seen prices increase for 10 consecutive quarters for both single family homes and condominiums with demand from both domestic and overseas buyers.

‘While supply is growing and creating more balance between buyers and sellers, inventory in certain price points and market segments remains tight, particularly for single family homes. Financing for condominiums is still difficult to obtain, a fact that is hurting sales for this property type,’ said Liza Mendez, chairman of board.

Compared to last year, the average sales prices for single family homes and condominiums increased 3.5% to $460,018 and 6.7% to $375,941, respectively.

While in the whole of Florida the median sales price for single family existing homes in the second quarter was $180,000, up 5.3% from the same quarter a year ago and for condominiums it was up 10.1% to $142,000.

There were 8,139 homes and condos sold in Miami-Dade County during the second quarter of 2014, a negligible decrease of 0.9% compared to the second quarter of 2013, when there was record sales activity. Sales of single family homes increased 4.9% and condominium sales decreased 5.2%.

However, sales of single family homes priced between $200,000 and $400,000 surged 68% in the second quarter while sales of condominiums priced between $100,000 and $400,000 increased 35%.

‘As the Miami real estate market continues to normalize and perform in a healthy manner, there are increased opportunities for all types of buyers. While inventory is still limited depending on the area and price range, buyers generally have more to choose from and prices remain at affordable 2003 levels,’ said Francisco Angulo, residential president of the Miami Association of Realtors.

The Association also said that its initiatives to increase inventory and focus on assisting members to get more listings has proven successful along with some additional distressed properties coming on the market. The fact that sales remain at historically strong levels while inventory is growing points to seller confidence, it said and sellers are listing properties for sale because they have confidence in the market.

Home and condominium listings also increased in the second quarter but by narrower margins. There were 8,635 new single family home listings during the second quarter, a growth of 4% compared to a year ago. New condominium listings increased 3.8% from 6,025 in the second quarter of 2013 to 6,255 this year.

At the current sales pace, current inventory represents 5.5 months of inventory for single family homes and 7.8 for condominiums. Compared to the second quarter of 2013, supply…

There has been a huge surge in student housing investment activity in the UK over the last two years, according to a new analysis paper from Savills.

There was £5 billion worth of standing stock and development sites sold in 2012 and 2013, and the early signs for 2014 suggest there will be similar high levels of investment activity this year.

Indeed, the latest data shows that in the first four months of the year, there have been transactions worth £950 million and this equates to over 17,000 beds, above the level seen in the same period of 2013 and well above previous years including 2012.

The report points out that with a further £1.4 billion worth of investments on the market Savills expects to see activity in the region of £2.5 billion by the year end.

According to Yolande Barnes, Savills director of world research, the lower volume of investment activity in 2013 relative to 2012, some 33% less compared to only 18% fewer beds traded reflects an important trend. She also pointed out that 2013 saw a substantial increase in the number of deals in prime regional markets which were up 76%.

‘This trend is likely to continue given the attractiveness of the student housing sector to investors, although investors will have to bear in mind some of the risks,’ she said.

‘We saw some compression of blended average yields in the sector over the last year, with average initial yields falling slightly to 6.2% compared with 6.3% previously. This reflects the increased competition for investments in prime London and super prime regional markets,’ explained Barnes.

‘Although activity in prime and secondary regional markets increased by 80% last year, yields remained relatively static reflecting the riskier profile of student demand in these markets,’ she said.

‘For 2014, we are forecasting total returns of 13.7%. This is comprised of average blended yields compressing to 6.0% and rental growth of 3.5%,’ she added.

The report points out that the introduction of university fees for UK domiciled undergraduates has led to falling student numbers in the 2012/2013 academic year. However, UCAS application data suggests that numbers are recovering, but a close look at the figures shows evidence of a flight to quality emerging.

It also points out that there is a lack of certainty over the position of tuition fees in the event of Scotland gaining independence. Under European Union law it is possible to discriminate against students from other parts of the member state but not those from other parts of the EU. It appears likely that the government would charge all students the same fee but offer Scottish domiciled students a grant equal in value to the fees. This leaves the future position of other EU students studying for free in Scotland uncertain.

Savills has expanded its analysis of how the purpose built student accommodation sector can play its part in solving the housing crisis and identified 77,000 student properties across the UK that, with the provision of more…

Much has been written about the property market in prime central London cooling but there are now signs that this is spreading to other parts of the country as asking prices begin falling.

Price rises are slowing down in response to rising supply and the average asking price for a flat has actually dipped slightly since July to £161,956, ending a 14 month rally, according to the latest asking price data from Home.co.uk.

Less affected by supply issues are detached, semi and terraced properties and asking prices are continuing to rise for the time being overall but home prices have dropped back during the last month in some regions.

The relatively strong regional markets of the South East, South West, East Anglia and Yorkshire have seen asking prices fall by 0.1%, the first time this has happened this year and is regarded as further evidence of a cooling market.

Greater London posted a more muted month on month asking price rise of 0.3%. Price rises in other English regions, Scotland and Wales since July were all similarly modest at 0.2% or less with the exception of the East Midlands where asking prices increased by 0.5%.

It means that the average annual appreciation for England and Wales fell by 0.3% to 9.3% as the dynamics in the residential property market show signs of changing. The increase in supply was particularly high in Greater London, up 39% compared with a year ago.

‘Record prices in Greater London have tempted many more potential vendors to sell. Supply is up 39% but we must remember that it is rising from an ultra-low level. Some 14,720 properties entered the market last month which is 31% less than the 20,615 properties that were placed on the market in August 2008. Such is the demand in London that supply would need to much more before price stability was seriously threatened,’ said Doug Shephard, Home.co.uk director.

‘If we look at the wider supply dynamics across the rest of the country it is clear that buyer demand is certainly lower than it was before the financial crisis of 2007, but supply remains very low indeed. On the demand side, mortgage lending is working and interest rates remain very favourable for the time being,’ he pointed out.

But he added that on the other hand supply has increased by just 6% over the last 12 months across the UK. Outside of London, the largest rises in supply were found in the West Midlands and in Wales with 9% and 8% growth respectively year on year.

‘Such modest increases, from what is a record low level, are hardly likely to cause a crash any time soon, but they will help tame price rises and that will both help stabilise the market and be welcome news for aspirant buyers,’ said Shephard.

The report also reveals an end to the improving trend observed in the slower markets in terms of marketing times. In August 2013, only four regional markets, London, the South East, East…

Mortgage arrears and possessions in the UK continued to fall in the second quarter of 2014, according to the latest data published by the Council of Mortgage Lenders.

The number of mortgages in arrears of 2.5% or more of the balance stood at 131,400, or 1.18% of all mortgages, at the end of June, down from 138,200 or 1.24% three months earlier and 154,900 or 1.38% a year ago.

The figures shows that there was a fall in numbers across all arrears bands, and the overall total is now at its lowest since the first quarter of 2008.

A total of 5,400 properties, representing 0.05% of all loans, were taken into possession in the second quarter, down from 6,400 in the preceding quarter and 7,600 a year ago. At 11,800, the number of cases of possession in the first half of this year was at its lowest since the second half of 2006.

The totals reported include arrears and possessions in the buy to let sector, which also continued to decline. The number of buy to let mortgages in arrears of three months or more, including cases in which a receiver of rent had been appointed, stood at 13,400 at the end of June, down from 14,700 three months earlier and 17,900 a year ago. In the second quarter, 1,300 buy to let properties were taken into possession, compared to 1,400 in the previous quarter and a year ago.

The figures are broadly in line with the CML’s revised forecast of 135,000 mortgages in arrears at the end of 2014, down from 150,000, and 25,000 cases of possession in the year, down from 28,000.

‘Another fall in arrears and possessions is clearly welcome and shows that borrowers, lenders and money advisers are generally continuing to work well to contain payment problems where they arise, helped by an improving economy and low interest rates. But rates will rise at some stage, of course, and borrowers should be planning for that now,’ said CML director general Paul Smee.

‘We welcome the message from the Bank of England that, when it raises rates, it plans to do so in a series of baby steps, matched to a careful assessment of the ability of households to deal with higher borrowing costs. Any borrower anticipating payment problems should talk to their lender as soon as possible. Today's figures continue to show that in many cases it is possible to work through a period of difficulty, with lenders committed to helping borrowers get their finances back on track,’ he added.

Figures released by the Finance & Leasing Association (FLA) confirm the picture. They show a 27.3% fall in second charge mortgage repossessions in the second quarter of 2014 compared with the same period last year. In the first half of 2014, repossessions were down by 36.2%.

‘The low number of repossessions is what we would expect to see in this market given lenders’ approach to forbearance. The forecast for 2014 suggests that the…

Demand for new homes in the UK fell slightly in July, the first monthly decline since January 2013, according to the latest residential market survey from the Royal Institution of Chartered Surveyors.

At the same time the supply of new properties coming onto the market increased for the second consecutive month and as a result of the rebalancing in demand and supply, house price growth across the UK appears to be moderating.

The RICS report suggests that the housing market has paused, with a net balance of 49% more respondents reporting an increase in prices in July, down from 52% in June and 56% in May.

In London, both sales and new buyer demand fell more sharply than elsewhere, with enquiries falling at their fastest rate since April 2008 and a net balance of 10% more respondents reporting an increase in prices, down from 30% in June.

The average number of sales per chartered surveyor, however, increased to 24.6, up from 21.1 at the start of the year, and sales expectations remain positive across the country, albeit a little less so than previously.

While there is a little more member caution reflected in the comments, prices are still projected to rise nationally over the next year and expected to increase by 2.6% on a 12 month view compared with around 4% at the start of the year. Surveyors in Scotland appear most optimistic, anticipating a price gain of 3.3%.

Loan to Value ratios on mortgages were little changed during the month but the results, nevertheless, show that lenders are now a little more circumspect in providing finance to the more expensive parts of the market. The average LTV mortgage for a first time buyer in the capital remained below 78% for the second successive month, which compares with an average close to 81% during the early part of the year.

‘A range of policy initiatives adopted by the Bank of England in recent months alongside heightened expectations surrounding a turn in the interest rate cycle has clearly had an impact on sentiment in the market,’ said Simon Rubinsohn, RICS chief economist.

‘The shift in the mood music amongst potential buyers in the London market has been particularly pronounced but that is in a sense consistent with the move to a more sustainable market in the capital,’ he explained.

‘Elsewhere around the country, the market in general is showing a greater degree of resilience, but that largely reflects the fact that in some areas the recovery has only recently taken hold and affordability is rather less stretched. Significantly, members now expect price gains over the next year to be faster outside of the capital, than in it,’ he added.

Peter Rollings, chief executive officer of Marsh & Parsons, said the data shows that the market has settled into a more sustainable rhythm. 'The housing market hit the ground running at an unbelievable pace at the start of this year, but it couldn’t maintain this speed long term and as we move into…

Flat sales in the prime central London property market are down 11% year on year but house transactions are up 20%, the latest market report shows.

The data from agents W.A. Ellis also show that there has been a 13% fall in sales in the second quarter of 2014 of properties priced over £10 million compared with the same period last year.

In the prime central London rental sector new tenancies are up by 84% compared to the same period in 2013 and the student market in full swing as demand exceeds supply.

The fall in the number of flat transactions could be down to concerns about a mansion tax which has not been completely ruled out by the government, according to Richard Barber, partner at W.A. Ellis.

He also pointed out that the trend shows that the achieved prices are below the original asking prices, and doesn't take into account any price reductions throughout the property's time on the market. Currently a fifth of all property on the market has had a price reduction at some point.

A breakdown of the figures shows that the average price per square foot paid on property above £10 million in prime central London increased by 31% from 2009 to 2013, however, in the second quarter of 2014 this fell to 5.7%.

There has also been a 13.6% reduction in instructions in the second quarter compared with the same period in 2013. In contrast, the sub £2 million market has seen an average price per square foot rise of 4.1% across London.

‘Over the past few weeks, we've exchanged on a wide range of properties, from a prime car parking space near the Albert Hall to the highly coveted Chester Street at £7,375,000. As we approach the autumn market, realistic pricing is key and serious sellers must look at recent sales evidence before they consider their asking price and not let agents talk them into marketing at a figure that will not be achieved,’ added Barber.

Lucy Morton, senior partner and head of lettings at W.A. Ellis, revealed that it has been the busiest start to a month the firm has ever known with regards to new tenancies, which have increased by 84% compared to the same period last year.
‘The seasonal student market is in full swing, with students focusing on finding accommodation for the upcoming year and demand exceeding supply,’ she said.

‘The family house market is also facing a lack of supply due to landlords selling because of uncertainty around a possible mansion tax. Landlords who choose to stay are benefitting, however, and this week we've seen three good Chelsea houses in Jubilee Place, Flood Street and Markham Square let within a week of reaching the market,’ she pointed out.

‘It is this level of the market that is most interesting and reflective of the recovering employment market. Corporate relocation budgets have increased, and we've seen the family house market rise by 3.4% in the second quarter of 2014,’…

More than one in five property owners in the UK are interested in getting solar panels installed on their homes and many think it will make their home more saleable.

Some 21% said they would like to get panels, some 6.4% already have them and a further 3.6% and planning to get them, according to a new poll conducted on behalf of Ocean Finance.

Across the UK, home owners in London are twice as likely to have solar panels installed on their property than residents elsewhere in the country. Some 15% of property owners in the capital revealed they have the panels, which is almost double that of the area where the products are the next most popular in East Anglia where just 8% of home owners have them.

Meanwhile, 13% said that although they own a property, they do not think their roof would be suitable for hosting solar panels. This might be because the roof is not strong enough to support the panels, is north-facing or because the owners live in a flat.

A further 6% of home owners revealed they have been unable to secure planning permission for the work, while half admitted they are simply not interested in investing in the technology.

When asked why they are not considering solar panels, the main reason given by these respondents was the up-front cost involved, cited by 35%. According to the Energy Saving Trust, the average cost of a solar panel system for a domestic property in the UK comes to between £6,000 and £7,400.

However, it points out that the technology falls within the improvements eligible for the government’s Green Deal, which allows people to pay for the energy efficient work they have had done through the money they save on their utility bills.

Other reasons given by home owners who are not interested in solar panels include a belief that there is not enough sun where they live, with 20% saying this, although usually it is only north-facing roofs that some installers claim may not get enough light.

Some 19% said that uncertainty as to whether they would get a financial return on their investment put them off while 14% revealed they did not like the way the panels look and 8.2% simply don’t see the point in solar power.

‘Solar panels remain a dividing subject among home owners in the UK, but one in five appear to be interested in installing the technology and generating some of their own power,’ said Ian Williams, spokesman for Ocean Finance.

‘While the up-front cost is off-putting to many, the government’s Green Deal finance plan allows eligible home owners to repay the balance through the savings they make on their electricity,’ he pointed out.

‘There are other options available people could use to fund the work, such as home improvement loans, although home owners should be aware that securing finance against their property could mean their house is at risk if they do not keep up with the repayments,’ he explained.

‘Once…

There are signs that the property market in Cyprus is recovering from the downturn which saw sales plunge and prices fall considerably after the island has to seek financial back up from the European Union.

The latest figures from the Land Registry shows that there has been an increase in domestic and foreign buyers but it must be remembered that the growth is coming from a very low base.

Overall sales to foreign buyers have increased by 20% year on year in the first five months of 2014 with the biggest growth in Nicosia, Famagusta and Limassol.

Nicosia has seen the number of sales in this period rise from 246 to 371, a rise of 51%, Famagusta from 89 to 136, a rise of 53% and Limassol from 366 to 529, a rise of 45%.

In other locations popular with overseas buyers, Larnaca has seen a small rise in transactions, up 10% from 264 to 290 but Paphos has seen sales fall, down from 547 to 484, a decrease of 12%.

The Land Registry data shows that overall 551 bills of sales were submitted in May this year, an increase of 157% compared to May last year. Over the same timescale the number from foreign buyers has increased from 71 to 153, a rise of 115.5%.

‘There is a significant increase in the purchase of real estate by foreigners on a national basis. This suggests that Cyprus with its attractive prices offered in combination of quality products and service, good weather, geographical and geopolitical position, the legal framework, the low corporate tax, as well as the conditions in our neighbouring countries, continues to attract the interest of foreign and local investors,’ said Alecos Vilanos, manager of Vilanos Real Estate.

He believes that Limassol is set to lead the way for foreign buyers with its major marina project having been recently opened to the public on June 19. It is expected that recent offshore discoveries and the development of the island’s energy sector is expected to attract a significant number of local and foreign property investors.

‘The real estate sector still retains the leading role in terms of the recovery of Cyprus’s economy. Incentives to real estate investors in terms of permanent residence permits for non-European nationals are expected to increase the demand for real estate and boost the investment market for offices, homes and other facilities,’ Vilanos explained.

‘There is optimism around of a full recovery of the property sector in Cyprus, and in particular in attracting a larger number of buyers and investors. Investments in property over time lead to long term benefits and never lose their values,’ he pointed out.

‘The Land Registry figures point to a gradual recovery of the property market with an increasing interest from foreign investors and buyers. The situation in the real estate market is showing signs of stabilisation. However, in order to achieve a complete recovery and return to normalcy, the restrictions concerning financing for purchase or real estate…

First time buyers have boosted annual growth in the UK’s housing market activity despite a seasonally quiet month of July, according to the latest research from chartered surveyors.

The total number of valuations carried out in July 2014 is 14% higher than in July 2013, according to the latest monthly report from Connells Survey & Valuation.

This is despite a seasonal slowdown of 21% compared to June and in line with an average 22% dip between each June and July since 2007.

Annual increases are led by first time buyer activity which is up 23% since July 2013, and with first time buyers showing the smallest seasonal drop off, at 17% from June to July.

According to John Bagshaw, corporate services director of Connells Survey & Valuation, a motoring economy is bringing with it renewed consumer confidence and emphasis on first time buyers from lenders, partly due to government schemes, appears to be getting people on to the property ladder.

‘We’re not on an open road to prosperity yet. After the summer slowdown, there will be more clarification on the long term impact of various potential speed bumps. The limiter could be interest rate rises or the fundamental squeeze on affordability for many would be buyers. But with consistent double digit annual growth in activity, there is now a growing sense that the housing market is running more smoothly,’ he explained.

Overall the report says that the number of valuations for those already on the property ladder has been more sedate. Home mover valuations number 12% more than in July last year, or around half the annual growth in activity among new buyers. On a monthly basis, the number of home mover valuations dipped by 19% between June and July.

‘Further up the chain the market is more muted. Plenty of householders are content to sit on an appreciating asset, often sticking with a mortgage they know. Jumping in the deep end just before interest rates change direction feels like a leap of faith. Despite this, some home owners, taking advantage of strong property prices, have used their added value to upsize,’ said Bagshaw.

Remortgaging activity in July is up 11% from July 2013. On a monthly basis the number of valuations for remortgaging purposes fell 25% since June, faster than the overall monthly drop. Due to this, remortgaging as a proportion of all activity has normalised, returning to the average 26% level of the last year, from 28% of all valuations in June.

‘A squeezed middle is still not feeling the full effect of recent good economic news with many choosing to rejig their finances. Particularly ahead of a rate rise many will be looking to catch the fixed rate train, even as lenders already start to price-in slightly more expensive funding over the next few years,’ explained Bagshaw.

The firm reports that buy to let valuations activity has increased 3% on an annual basis but between June and July it saw a 26% fall. This is in line…