Annual house price growth in Scotland has reached a four year high with property prices up 5.7% in a year, outpacing many other parts of the UK.

The latest LSL Acadata index shows prices are up by £8,890 and they are just 0.9% off the pre-crisis peak. This takes the average house price to £164,105.

However the growth is only a third of the pre-crisis rate and in half of Scotland saw prices drop in June. But home sales are also strong, up 15% in June and back on course after a springtime lull.

With the independence vote just a few weeks away, Gordon Fowlis, regional managing director of Your Move, an estate agency chain that is part of LSL, said the housing market is in good health ahead of the referendum.

‘Price growth in the last 12 months is the biggest rise we’ve experienced since September 2010. This is stronger than the annual rises in the North of England, the Midlands and Wales. While the majority of regions across England and Wales are witnessing price falls, the Scottish market is moving the other way,’ he pointed out.

In Aberdeenshire prices climbed to a new high of £228,802 last month and Fowlis pointed out that many households are feeling the weight lift off their shoulders as consumer confidence in the economic recovery mounts.

‘The housing market may have been temporarily subdued in the immediate clamour surrounding the MMR regulatory changes, but activity is again apparent, and sales rose 15% in June, up 26% on the previous year,’ he explained.

While this is widely regarded as a step in the right direction, he also pointed out that in the first six months of this year, property transactions totalled 42,200, which is just half of the volume in 2007/2008.

The data also shows that in reality, it’s a tale of two cities as a quarter of all house sales across Scotland in June were in Glasgow and Edinburgh, pushing average property prices in these cities up 4.5% and 4.2% respectively over the course of the month.

Peter Williams, housing market specialist and chairman of Acadata, said that there were substantial increases in the number of properties changing hands in both cities. Compared to May, 130 more flats were sold in Edinburgh in June and in Glasgow 60 more flats and 30 more terraces. In both cities, this increase in demand raised the average prices paid for flats, by £20,000 in Edinburgh and by £15,000 in Glasgow.

‘The market in Scotland is currently looking robust. The number of housing transactions that have taken place in each of the 11 months from August 2013 to June 2014 have been higher than the same months in the previous five years, with the first six months of 2014 seeing a 25% increase in sales over the first six months of 2013,’ he explained.

‘There were positive house price movements over the year at an average rate of 5.7% in 29 of the 32 local authority areas,…

The property market in New Zealand is experiencing a slight slowdown with rising interest rates and the forthcoming election influencing buyer behaviour.

National median prices fell 2.6% to $416,000 in July but are up 8.1% compared to a year ago, according to the latest index from the Real Estate Institute of New Zealand (REINZ).

In the same month sales increased by 2.3% but are down 13% compared with July 2013 and days to sell improved by two days to 37 days compared to June.

According to REINZ chief executive Helen O’Sullivan, the real estate market is firmly in winter mode at present with listings low and activity muted across the country. ‘Sales volumes picked up a little in July compared to last month but this is about in line with the normal seasonal pattern. Rising interest rates and the forthcoming election are probably also influencing buyer behaviour,’ she said.

‘Reports on the effects of the LVR restrictions continue particularly from the regions, where the reported lack of able buyers is filtering up the price points and on to vendor behaviour,’ she explained, adding that the increase in the national median price is being driven by Auckland and Canterbury/Westland.

A breakdown of the figures shows that five regions recorded an increase in the median price compared to July last year and 83% of this growth was in Auckland, 19% in Canterbury/Westland and 9% in Waikato/Bay of Plenty contributing 9%. Together these three regions accounted for 111%of the increase in the median price between July 2013 and July 2014, with the remaining nine regions contributing -11% of the increase in the median price.

Canterbury/Westland recorded the largest increase in median price compared to July 2013, with an 11.1% increase, followed by Auckland with a 10.5% increase and Waikato/Bay of Plenty with a 5.8% increase. Compared to June, Southland recorded the largest increase in median price, up 4.2%, followed by Otago with 3.8% and Auckland with 1.7%.

Some eight regions recorded an increase in sales volume compared to June with Hawkes Bay recording the largest increase of 22.1%, followed by Otago with 12.4% and Manawatu/Wanganui with 12%.

Compared to July 2013 nine regions recorded a decrease in sales volume with Otago recording the largest fall of 20.8%, followed by Hawkes Bay with a fall of 19.8% and Auckland with a fall of 18.7%.

While the total number of sales was down 13% compared to July 2013, the number of sales below $400,000 fell by 21.8%. This follows a fall in sales below $400,000 of 17.3% between June 2013 and June 2014. O’Sullivan said this may be indicative of fewer sales in the lower price brackets since the imposition of the LVR restrictions.

The REINZ Stratified Housing Price Index, which adjusts for some of the variations in the mix that can impact on the median price, is 5.9% higher than July 2013, at 3885.5. The Auckland Index has risen 12.2% compared to July 2013, with the Christchurch Index up 13.9% and…

The second half of 2014 is seeing a switch from a seller’s to a buyer’s market in the UK as a healthy supply returns, according to the latest market report.

Overall the number of new homes coming to the market has increased 7.3% annually across the UK while the volume of new buyers coming to market is down 2.8%, says the report from independent agents haart.

It also shows that there are 9.5 buyers chase every property for sale across the UK, down from 14.4 in January 2014.

National property prices remain robust, increasing 8.1% annually to £204,216, the highest average price over the last two years. Prices were up 0.1% in July compared with June.

But London has seen even more pronounced growth with prices up 18.6% compared with a year ago, although this growth has fallen to 0% in July.

Also, the switch to buyer’s market is more pronounced in London as new buyers are down 15.7% but property supply has soared by 32.3%.

The monthly report also shows that property sales are healthy, up 9.8% annually and up 7.7% month on month.

‘The second half of 2014 marks a shift in favour of buyers as healthy volumes of stock return to the market. Many home owners are adopting a now or never attitude to take advantage of the continuing strength of the market having seen their equity rocket over the last year at a time when mortgage deals with decent loan to values are still available. Interest rates are to remain at historic lows until the start of 2015 at least and this is helping wider confidence,’ said Paul Smith, chief executive officer of haart.

‘At the start of this year demand for homes was growing at a far greater rate than property supply but this trend has flipped and stock is coming to the market in healthy levels, up 7% annually, yet demand has fallen by almost 3% in the same period. There are now around 10 buyers chasing every property for sale, down from 14 at the start of this year. So the market is still competitive, but buyers now have more choice,’ he explained.

‘As positive market sentiment continues this year, and people return from their summer sojourns, we fully expect a busy autumn with a higher volume of sales transactions,’ he added.

The Royal Institution of Chartered Surveyors has signed a memorandum of understanding with a leading real estate association in China which is set to pave the way for higher standards in the country.

The document, signed with the Real Estate Association of Yunnan Province (YNREA) lays the foundation for long term cooperation and the development of professional training programmes.

Through this collaboration, members of YNREA will receive training from RICS on international standards and industry best practices, and be prepared for attaining chartered status.

Both organizations said that they shared a common goal of advancing the standard of real estate industry in Yunnan in the long run.

Comprised of three branches, two professional committees and local associations in 16 cities in Yunnan province, YNREA is a key player of Yunnan’s real estate industry and has established the Yunnan Real Estate Broker Information Management System.

It has also set standards of information registration management for real estate brokers and compiled technical specification for the province’s real estate archives as well as hosting housing trade fairs in all the cities in Yunnan.

RICS North Asia deputy director Tony Ho said there is widespread commitment to setting and upholding the highest standards of professionalism in the property industry. RICS has been playing a key role in advising and influencing government and policy makers.

YNREA president Han Zhongqing said that there are opportunities for both organizations to collaborate in nurturing talents in the region through professional training, industry events and overseas study tours.

UK landlords are leaving themselves exposed to the country’s worst tenants by failing to carry out basic checks, according to new research.

With the rental market’s peak season about to start, insurance giant AXA reveals just how many of the UK’s estimated 8.3 million tenants are behaving badly and how poorly protected landlords really are when the worst happens.

The study shows that almost 60% of tenants admit to breaking the terms of their rental agreement, and a third had broken the law in relation to their rental.

In particular some 26% of tenants pay their rent late and AXA says this is equivalent to 2,158,000 tenants nationwide, and one in 10 tenants admit to having done a moonlight flit to avoid paying the landlord money, equivalent to 830,000 tenants nationwide.

Some 18% have kept pets in the property without the landlord’s permission, 15% have received complaints from neighbours for excessive noise and 8% have sub-let to someone else without the landlord’s permission.

At the most serious end of the scale, 8% of tenants admit to actually committing a crime on the landlord’s premises, and 10% say they’ve had the police called to the property.

While these tenants remain in the minority, landlords do carry a legal responsibility to ensure that their premises are not used for criminal purposes. Under the Misuse of Drugs Act, landlords can face prosecution if a tenant is found to be producing cannabis or banned substances on their property.

In October, the new Immigration Bill is also set to come into force, placing greater responsibilities on landlords to vet their tenants. Under the new law, landlords who fail to check a tenant’s right to be in the country will face a fine of up to £3,000 if the slip up means they have someone on their property who is in the country illegally.

AXA warns that while the responsibilities on landlords to keep their houses in order are getting stricter, many are still failing to carry out any checks on their tenants or even visit their properties at all. The research found that 38% landlords carry out no checks on prospective tenants, and only 5% carry out a criminal record check. Meanwhile, a third of landlords never visit their property during a rental.

And despite many landlords relying on rental income to cover expenses such as mortgage payments and basic living costs, few of them check if their tenants have the means to pay their rent. Just under a third of landlords carry out a credit check, only 27% ask for employer references and just 27% ask for references from previous landlords.

Tenancy agreements are also an important part of the picture, giving the landlord a firm foundation to evict non-paying tenants or claim damages for financial loss caused by the tenant and AXA found that landlords are getting better on this front. This year’s study found that 75% of rentals are now based on a formal agreement, compared to just 52% at the beginning of…

UK home buyers missing basic checks when purchasing a property and as a result facing repair bills 45% higher than expected, a new study suggests.

People looking to buy a house in a highly competitive market are spending less time on property viewings and potentially missing out on signs of maintenance issues that could cause them financial pain down the line, says the research from insurance firm Aviva.

Home buyers in the past year spent on average just over half an hour in total looking round a property before making what is likely to be the biggest purchase decision of their lives.

To help buyers make the most of the short time available, Aviva has developed an interactive checklist offering advice on some of the most common problems and how to spot them.

The research suggests that the fierce property market is forcing buyers to make snap decisions with 24% making just one visit to a property before deciding to purchase it. And every year, as many as 40,000 people buy properties without viewing them at all.

Not devoting enough time to inspecting a property can have an impact further down the line. Unnoticed maintenance and structural issues can result in high repair costs or even scupper a house purchase altogether. The survey of 4,000 home owners showed that buyers are forced to spend £1,094 more than they had expected on essential repairs once they move in to their property, with the average total bill coming in at £3,490.

Among the most common unanticipated problems found by buyers are plumbing issues including drain blockages affecting 12% of home owners, damp also affecting 12% and cracks in the walls or ceilings affecting 11%.

‘Renewed competition and rising prices have combined to make many buyers more pressurised to snap up a property quickly. Our research showed that buyers in the past year devoted under 10 seconds to looking round a property for every £1,000 they spent purchasing it,’ said Heather Smith, marketing director at Aviva.

‘We believe it’s important to arm yourself with the right information, that’s why we created the house viewing checklist, an interactive tool that will help home buyers spot common problems,’ she added.

Aviva’s research showed that 31% home buyers did not make any specific checks for issues or problems when viewing their future home. The least common checks performed by buyers are for blocked guttering, invasive plants such as Japanese knotweed, and defective chimney stacks and pots.

‘Your future home could be showing symptoms of potential maintenance or structural issues that could cause you trouble down the line. Most of these are fixable, you just need to know the signs to look out for and you do need to prepare financially. Defective chimneys and Japanese knotweed in particular can be really nasty, with costs to fix running into four or even five figures,’ explained Smith.

New home sales in Australia increased by 1.2% in June and were up 2% on a quarterly basis, according to the latest home sales report from the Housing Industry Association (HIA).

The report, a survey of Australia’s largest volume builders, shows that sales of multi units drove the monthly result, up by 15.9% while new detached house sales fell by 1% in June. However detached sales were up by 2.6% in the second quarter.

‘That is a healthy note on which to finish the fiscal year. Further, albeit modest growth in detached house sales last quarter, together with very elevated multi-unit sales, augers well for new residential construction in addition to wider elements of the domestic economy,’ said HIA chief economist Harley Dale.

He also pointed out that detached house sales increased in four out of five mainland states in the June quarter. ‘The new home building sector will provide a healthy contribution to broader economic growth in 2014/2015,’ he said.

‘As the recovery enters its third year, the magnitude and duration of the current new home building upcycle is less certain than would usually be the case at this juncture. The share of medium/high density construction is higher and there are considerable delays occurring in the availability of titled land for detached and semi-detached housing,’ he added.

A breakdown of the figures show that in June private detached house sales fell in two out of five mainland states. There was a decline of 3.2% in New South Wales and 4.2% in Victoria. Detached house sales increased by 1.8% in Queensland, by 1.3% in South Australia, and 2.2% in Western Australia.

In the June 2014 quarter, detached house sales increased by 0.4% in New South Wales, by 4.1% in Victoria, by 6.6% in Queensland and by 4.1% in Western Australia. Detached house sales fell by 8.4% in South Australia in the June quarter and Dale said that the state may be the most vulnerable new home building market in the second half of 2014.

Meanwhile, in another positive sign for the residential construction sector, the latest housing finance data from the Australian Bureau of Statistics show that new home lending grew in the final quarter of the 2013/2014 fiscal year.

Diwa Hopkins, HIA economist, pointed out that the owner occupier segment of new home lending performed well throughout the year. ‘Following decent increases in the December and March quarters, lending for the purchase or construction of new homes increased again during the June 2014 quarter, albeit at a more modest pace of 1%,’ said Hopkins.

Over the full 2013/2014 fiscal year new home lending increased by 12%. ‘With lending rates remaining very low, turnover in the established home market has risen, as have home prices. The residential construction industry has responded strongly to these signals,’ explained Hopkins.

‘In terms of new home lending being a leading indicator of residential building, the housing finance figures suggest home building activity should continue its strong recovery as we progress through the…

The mortgage industry in the UK in June was driven primarily by lending for homes rather than remortgages with volumes up by 6%, according to the latest report from the Council of Mortgage lenders.

Total gross lending reached £17.9 billion, up 20% up on June last year, according to the Bank of England and in the latest quarter, gross lending totalled £51.4 billion, up 11% on the first quarter, and 23% on the second quarter of 2014.

The CML analysis shows that there were 28,600 first time buyer loans in June, some 7% more than in May, and 19% more than in June 2013 and by value, there was £4.2 billion of lending to first time buyers , up 11% on May and 27% higher than June 2013.

Lending to home movers also grew, but more slowly. In June, the number of loans to movers was 31,900, 4% up on the previous month and 11% on June last year while by value, lending to home movers was £5.9 billion, 5% up on May and 23% up on June last year.

However, remortgage lending remains muted compared with both first time buyer and home mover lending. The number of remortgages in June was 1% up on May but 8% down on June last year, although the value at £3.7 billion was up 6% on both.

The data also show that buy to let lending grew 5% over the month to £2.2 billion in June, though the number of loans was the same as May at 15,600. Growth was strong compared with buy to let lending in June last year, 38% up by value and 23% by number.

Paul Smee, director general of the CML, said that for the second month running since new Financial Credit Authority rules took effect, lending characteristics remain similar to the market beforehand.

‘We now feel confident that, as we would hope, the new MMR lending rules effect is more gentle dampener than hard brake. As we recently suggested in our revised forecasts, lending levels should continue to increase modestly over the course of the year, driven mostly by house purchase but with remortgaging also recovering,’ he explained.

According to David Brown, commercial director of LSL Property Services, all systems are starting to tick over more normally and the big questions are now about speed and capacity for new home owners.

‘Moderating price rises are a sign of steadying confidence, the equivalent of winding down the engines after take-off. And recent flows of first time buyers are a sign of making real headway. Sellers are finding quality buyers more quickly, and transactions volumes are growing,’ he said.

‘But to get the dream of homeownership truly airborne, we need more homes. Building levels are growing rapidly, and this will need to carry on indefinitely. If so, the house purchase market could one day see affordability improve consistently, as we’ve seen with the private rented sector. But in the meantime, below inflation rent rises, thanks to solid…

The National Landlords Association (NLA) is reminding UK landlords of the importance of understanding their obligations as its latest research shows that more than a quarter have been letting for less than five years.

The research conducted by the NLA shows that 27% of landlords have been letting for less than five years, with 14% letting for just two years. Some 21% of landlords have been letting between six to 10 years and 52% for more than 10 years.

The figures correlate with the NLA’s recent findings that the proportion of part time or ‘amateur’ landlords is now at its highest ever level, comprising 70% of the sector.

With this in mind, the NLA is reminding all landlords of their obligations toward their tenants and the importance of ensuring good standards within the private rented sector (PRS) are maintained.

‘These findings tell us that a significant proportion of landlords have only been in business for a relatively short period of time. Even the most seasoned of landlords experience problems, so it is crucial that anyone new to the industry is aware of their obligations and understands that being a landlord involves much more than simply purchasing a property,’ said Richard Lambert, NLA chief executive officer.

‘Landlords should make sure they educate themselves as to what is expected of them, legally and professionally, especially if they plan to manage the properties themselves. Not knowing your obligations as a landlord could result in serious problems, financial as well as legal. A tenant should be safe and comfortable in their home and ignorance is no excuse,’ he explained.

‘In order to ensure good standards in the sector, anyone who is thinking of becoming a landlord should do their research first and make sure they continually keep up to date with legislation and good standards of practice. As the leading landlord association, landlords can rely on us as a source of valuable information and advice,’ he added.

Meanwhile, separate research shows that nearly one in three private tenants only deal with a letting agent and have never met their landlord.

Some 30% of private tenants deal only with their letting agent, 24% of these respondents work primarily with the letting agent but have met their landlord, and 46% deal with the landlord directly on issues concerning their home, according to research from mortgage and loan broker Ocean Finance.

Across the country, London renters were among the most likely to only work with a letting agent, along with residents in the North East at 36% and 38% respectively. The capital is home to the highest percentage of renters in England and Wales at 50% of all households in the city.

Renters may want to speak with their landlords directly if there is a problem with the property, rather than having to wait to go through the letting agent to reach them. They may also see good communication with their landlord as part of the service they are paying for. On average, private renters spend 40% of…

A new compulsory valuer registration programme for real estate in the Cayman Islands has been introduced with the aim of providing more confidence in the property market.

The Royal Institution of Chartered Surveyors (RICS) programme sets out to raise confidence in the accuracy and delivery of valuation reporting and advice.

Michael Zuriff, RICS manager of regulation for the Americas said it will provide lenders, asset managers and investors a clearly identifiable designation for the best regulated and qualified professionals.

‘The Valuer Registration Programme is an independent system of regulatory monitoring which reduces the risk of poor quality valuations, and enforces high standards of competence and ethical awareness,’ he explained.

‘Valuer Registration sends a clear message to clients, governments and banks that RICS members welcome open scrutiny and comparison with industry best practice. As an underpinning to important financial transactions, it is in the public interest that confidence in the accuracy of valuation work is upheld,’ he added.

RICS members already perform valuations under RICS Valuation Standards, also known as the ‘Red Book’, which are in compliance with International Valuation Standards (IVS), and International Financial Reporting Standards (IFRS), and in turn, globally recognized by banks, lenders and other major financial institutions.

In an increasingly global business environment, RICS is facilitating greater consistency and transparency within these international valuation standards.

It is a significant milestone for the islands according to Uche Obi, senior valuer with the Cayman Islands Government and board member of RICS Caribbean & Americas.

He explained that in recent years there has been an upswing in reporting standards, with increasingly high levels of transparency, credibility and consistency shown in valuation reports.

‘RICS' mandatory Valuer Registration Programme will now continue to drive forward the progress made to date, and will put us on the map as being an example of best practice in the Caribbean,’ he added.

The programme was conceived by RICS’ leading valuation experts in response to the global financial crisis and first implemented in the UK in 2010. It has since gone mandatory for RICS members performing valuations in the Netherlands, Hong Kong, and the United Arab Emirates.

One in 10 home owners in the UK have had a DIY or large scale home improvement project go wrong, with an average repair cost of £3,200, new research shows.

Over half, 54%, believe the cause of the issues was down to shoddy workmanship at a time when 33% of home owners are choosing to add value to their properties with home improvement projects.

The research from Lloyds Bank reveals that the average cost of these improvements is £4,000. Some 12 % spent £2,001 to £5,000, 12 % spent 5,001 to £10,000, 6% spent £10,000 to £25,000 and 2% spent £25,000 or more on their most recent project.

If the average cost at each level is compared to the average repair cost of £3,200, botch jobs at any level can add an additional 12% to 91% on top of homeowner’s initial outlay, the research report points out.

Lloyd’s says that adding value to a property is key for home improvement projects. When the job is done correctly, the perceived value of some home improvements mirrors how much people spent on projects.

For example, 29% of the total number of home owners who carried out work believed they had added £10,001 to £25,000 to the value of their home. This is compared to 31% of the total number of home owners who said it had cost them the same amount to complete the project.

Still, a high number of people buy properties cheaper with the view to renovate to add value. Some six million buy under budget, with 25% of those intending to extend or convert their property to add value in the future. In the current market, nearly half, 44%, buy properties with the view of moving when they can afford something better.

The improvements made to homes often involve changing the purpose of one room within a property. Some 32% said they had changed the purpose of a room, with the spare bedroom being the most popular choice for 16%. Of this 16%, over half had changed this room into an office, and 7% had used the space as an entertainment room.

Although alterations made to purposes of rooms are generally not made to increase the value of the home, and indeed, 40% of respondents believed this to be the case, some changes do add perceived value. Some 17% believed that the changes made had added £10,001 to £25,000 and 10% thought changes had added £25,001 to £50,000.

‘Most home owners will dabble with home improvements at some stage, whether it’s a DIY project or a major construction. What’s important is to ensure the job is done to a high standard as botched job can be quite costly to rectify,’ said Marc Page, mortgages director, at Lloyds Bank.

‘Although the reasons for home improvements may differ from person to person, making a house a home is a key motivator,’ he added.

There are signs of uncertainty in central London’s prime property market but the outlook for residential prices is still good.

All the recent reports have shown that the strong price growth seen in this sector is slowing and the latest from Strutt & Parker indicates that in the second quarter of the number of transactions in the sub £2 million market was down by 17.2% on the same quarter last year.

The £5 million plus market fared much better, with a 18.6% increase in transactions whilst the £2 million to £5 million bracket stayed relatively stable with a fall of just 0.5%.

‘The drop in values and volumes in the sub £2 million market has come as a surprise. The prime central London market is volatile and those buying around the £2 million mark are becoming increasingly nervous of the election in 10 months’ time,’ said Stephanie McMahon, head of research at Strutt & Parker.

‘Having said this, the whispers of mansion tax and the on-going geopolitical issues seem to have had very little effect on the sales market in the £2 million to £5 million category,’ she added.

Kensington and Notting Hill performed the strongest with 9.1% growth, and the firm said this is thanks to a balanced supply and demand market. Knightsbridge and Belgravia's performance was the poorest, with a 26.3% decrease in transactions.

The lettings market performed better. There were 2,862 property lets agreed in during the second quarter which was 3.6% above the quarterly average for the past five years. Achieved rents by price band also remained positive above the £1,500 per week threshold.

‘Our London lettings network of offices has bucked the trend, reporting a year on year transactional increase of 61%. We foresee a continued supply shortage of rental properties as tenant demand increases,’ said Zoe Rose, head of London Lettings.

Strutt & Parker and its retained economic advisors Volterra are predicting 4.5% growth for residential house prices in prime central London in 2014 compared to 8% for the UK as a whole.

‘The prime central London market is particularly difficult to forecast because it is made up of a wide range of locations and price ranges. For example, transaction levels in the £2 million to £5 million price bracket have remained high in the second quarter of 2014, although there is some evidence that volumes have dropped in the £10 million plus category,’ explained McMahon.

‘The economic foundations would certainly suggest that prices may continue to rise at the same rates over the next few years, but the biggest perceived uncertainty surrounding the prime central London market over 2014/2015 will continue to be the looming election and the possibility of a mansion tax. We therefore expect that price growth during the remainder of 2014, and even more so in 2015, will be sensitive to prevailing political press and expectations,’ she added.

According to Andrew Scott, head of London Residential, the effects of the election are clearly being felt across the market. ‘As…

The majority of lenders in the UK expect interest rates to rise early in 2015 and predict that existing home owners will be more affected than first time buyers.

But opinion is divided. The research from the Intermediary Mortgage Lenders Association (IMLA) shows 36% of mortgage brokers expect a rise in the Bank of England base rate before the year is out. Just 17% of lenders anticipating a rise this year.

The consensus among lenders is that the Bank of England will raise its base rate from 0.5% in the first half of 2015, for the first time since March 2009 with 72% taking this view including 44% who expect to see a rise in the first three months of 2015.

There is a greater split among brokers, with 44% predicting the rise will come in the first half of 2015 while 20% expect the 0.5% base rate will survive past the middle of next year.

IMLA’s research also reveals diverging opinions across the mortgage industry about which group of borrowers will be most affected when the interest rate rise finally occurs.

Some 56% of believe that it will be existing home owners who will be the most affected demographic, while 28% think it will be first time buyers. Just 11% believe recent first time buyers will feel the biggest impact.

By comparison brokers expect recent first time buyers and existing home owners will share the brunt of the interest rate rise, ahead of aspiring first time buyers. Both lenders and brokers agree that buy to let owners and landlords will be least affected by the eventual base rate rise.

‘The prospect of a rise in interest rates has been looming on the horizon for some time, but now it appears an increase is hovering closely overhead. The majority view across the mortgage industry is that a rise in 2015 still looks to be the most likely outcome. But it won’t be long before the consensus is challenged within the Monetary Policy Committee, and speculation over an early rise has clearly registered with a significant number of brokers,’ said Peter Williams, Executive Director for IMLA.

‘The fact that lenders feel recent first time buyers will be spared the impact of rising rates is an encouraging sign that stress tests implemented under the Mortgage Market Review are doing their job and will ensure that borrowers are financially prepared for higher interest payments,’ he explained.

‘Brokers will have a vital role to play in the months ahead as existing homeowners review their current deals and look to ensure they are on the most favourable rates for their personal circumstances,’ he pointed out.

‘It’s important to remember that the first rate rise in more than five, or potentially even six years will seem like a momentous occasion when it arrives, but the size of increase is likely to be very modest, certainly to begin with. The Bank is firmly…

Farm land prices in the UK increased by 3% in the first half of 2014 to £9,594 an acre, according to the latest survey from the Royal Institution of Chartered Surveyors (RICS).

It means that farm land prices are now 12% higher than a year ago and costs more than four times what it did when RICS first began recording rural land market data in 1994 when land cost £2,028 per acre.

The index report says that price growth in the last decade has been driven principally by farmers.

The breakdown shows that Wales saw the largest price increase over the last 12 months with growth of 19% and the average price per acre now stands at £8,625, higher than anywhere else across the rest of the UK and nearly 7% greater than the national average.

Despite some respondents in Scotland reporting sales of bare land in excess of £10,000, the average price of farm land in Scotland now stands at around 44% below the national average at £4,500 per acre.

‘While interest from potential buyers has now seen substantial rises since the end of 2008, the imbalance between supply and demand appears to show no sign of waning. In the face of growing concerns around housing shortages and burgeoning populations, investors increasingly are seeing land as an economic safe haven,’ said Simon Rubinsohn, RICS chief economist.

The report also shows over the last 12 months 32% more chartered surveyors reported rises, rather than falls in demand and looking ahead to the next 12 months 44% of respondents expect prices to rise, rather than fall.

It reveals that growth in demand for farm land continues to outstrip that of supply and this is pushing up prices and supporting expectations for further increases over the course of the next 12 months.

Demand remains very strong on the commercial side, particularly from farmers keen to expand production onto neighbouring plots.

Rubinsohn said that significantly there has been a revival in residential or ‘lifestyle’ demand, which only began to start growing at the end of 2013 having been more or less flat since 2008. This coincides with the broader turnaround in the UK housing market.

Rents are also rising, but at a slower pace than land prices. Yields for let land remain close to their all-time low of 1.7%. According to surveyors, average annual arable land rents under the Agricultural Tenancies Act now stand at £162 per acre, having increased by 3.6% during the first half of the year and 6.1% over the year. On the same basis, pasture land rents are £104, having risen by 4.2%.

‘Notwithstanding respondents’ concerns over the potential impact of an increase in interest rates, reforms to CAP and worries over future farm profitability, prices are expected to increase further right across the country both for commercial and residential use,’ Rubinsohn concluded.

Year on year property price growth in the United States fell from 9% to 8.4% in July, raising concerns about the market’s ability to maintain long term growth.

The data from the latest Clear Capital index also shows that distressed sales fell to 18%, a stark reduction since its peak of 40.8% in March of 2011.

The key issues facing the market include whether home price gains continue to fall past the historical range of 3% to 5% as discounted deals dry up or whether they stabilize to sustain moderate long term growth, according to the report.

Clear Capital's forecast through 2015 shows national home prices will rise just 1.5%, indicating prices may not have the strength to stabilize within this historical range of growth.

While the West of the country continues to dominate regional gains with eight of the top 15 major metro markets, the MSAs within the region are not immune to the strong moderating patterns unfolding across the country, the data shows.

The report points out that each market has its own unique demand drivers, yet similarities exist. Some Western markets like Phoenix and Riverside are seeing a strong pull back from their investor fuelled recovery, while others, like San Jose and Seattle, are experiencing moderation alongside strong local economic foundations.

The West is projected to see price declines of 0.8% through 2015, while the historically volatile Midwest could be home to the recovery's next group of heroes, with leading forecasted growth of 3.4%.

Missing from July's Top 15 list is Phoenix which has suffered from the effects of waning investor demand. In July, Phoenix yearly price growth softened to 10.4%, while distressed saturation fell to 13.5%. This is a significant reversal from more than 60% distressed saturation in March 2011, and a cumulative recovery of 62.3% home price appreciation.

The report says that following these notable gains, Phoenix is nearly in line with 2004 price levels, off by just 5%, suggesting Phoenix is where it needs to be. But there are doubts about whether it can stay there through 2015. Forecasts show Phoenix should see 2.6% through 2015, a sobering, yet realistic, rate of stable growth for the market.

Even the current recovery leader, Riverside, is going down the price path of Phoenix. Over the past two years, prices in the MSA have appreciated by a total of 53.2%, while distressed saturation has fallen from 68% to just 15.5%. Riverside's quarterly and annual growth led the top 50 metro markets in July at 2.1% and 18.3%, respectively.

Despite these seemingly strong growth trends, yearly growth in Riverside has fallen 6.6% points from 25% at the start of 2014, and quarterly growth has been cut by more than half over the same timeframe. Forecasts through 2015 show expected losses for the metro of 1.1%, indicating Riverside could see continued moderation turn to losses in the near future.

‘The force of moderation in July trends raises questions around the market's ability to sustain gains through 2015. Relatively speaking, a…

House sales in England and Wales have recovered to the highest level for seven years and average prices are up 9.9%, according to the latest index report to be published.

The average price has now reached £270,636 but the growth is being dominated by London and the South East, the LSL house price index shows.

UK wide the annual price growth is 9.9% but this drops to 4.6% when London and the South East are excluded from the calculation. The average price in London is not £560,386.

Month on month prices are up 0.6% and prices have stabilised across seven regions with the market being described as ‘steady’.

The index data also shows that there were 90,000 sales in July, up 10% from the previous month and 21% year on year and the report says the housing market has recovered from a slowdown caused by the introduction of new mortgage rules in April.

First time buyers and buy to let landlords are helping the flow of activity in the UK housing market, according to David Newnes, director of Reeds Rains and Your Move estate agents, owned by LSL Property Services.

‘As the common property choice of a new buyer or investor, flats have seen the largest increase in sales during the second quarter of this year, rising by 36% compared to the second quarter of 2013,’ he said.

‘As the market emerges from the chrysalis of regulatory change, sales have climbed 10% in the past month. But chequered supply across the country has created considerable regional variation in sales. London and the South East have seen the slowest growth in house sales between the second quarters of 2013 and 2014,’ he explained.

He added that in these areas, limited availability of property is impacting sales. Elsewhere, lower prices and the stimulus of Help to Buy are aiding activity. The biggest boost in sales during the second quarter of 2014 was in the North West and East Midlands, increasing by a 32% on the same period last year.

With the average price paid for a home in London reaching £560,386 in June, following a £10,850 monthly rise, in some locations the temporary waning of growth has halted. Indeed the report shows that 24 London boroughs have set new peak prices and in Kensington and Chelsea average house prices are on track to surpass the £2million mark.

‘However, a dampening of sales activity and more supply starting to come to the market will help control house price inflation in London,’ said Newnes.

He also pointed out that housing policy should not be led astray by what is happening in prime central London. ‘If London and the South East are removed from the equation, the annual change in average houses prices drops by 5.3% to 4.6%.
Average prices in Northamptonshire, Bournemouth, and Wiltshire rose in June as the housing recovery starts to spread. The tendrils of recovery may be branching out from the centre, but they haven’t yet unfurled to all corners of the…

Median house prices have increased by 4.2% to £187,500 across England and Wales year on year but in Scotland they are up 8% to £135,000 in the same period, the latest published data shows.

With a number of potential headwinds slowing the market, including the upcoming general election, the Mortgage Market Review, talk of interest rate changes and the Scottish Referendum, the figures are rather surprising, especially where Scotland is concerned, according to the report from Strutt & Parker.

‘Interestingly and somewhat counter intuitively, Scotland is not showing a slow down through the data, with values up 29%, and volumes up 22% on the second quarter of last year,’ said Stephanie McMahon, head of research at Strutt & Parker.

‘Normally markets slow down due to uncertainty and on that basis we would have expected Scotland to pick up in the latter half of the year but at the moment it seems to be bucking the trend,’ she added.

Greater London remained the strongest performing region with prices up 14.9% to a median house price of £365,304 whilst the North East saw the weakest performance with a decline of 2.3% to a median price of £120,250.

As part of the report, Strutt & Parker also analysed the behaviour profiles of its buyers and sellers who sold or purchased homes over £2 million outside of London. In prime central London, nearly 50% of buyers move from somewhere else in London. In the UK that figure declines to nearly 14% but when looking at the £2 million plus market outside of London, the figure jumps back up to over 20%.

‘Last year has shown a distinct increase in international buyers, including expats as well as foreign nationals who own houses in London and have decided to settle with stronger roots in the UK,’ said James Mackenzie, partner in the country homes department at Strutt & Parker.

‘They have stretched out to the Cotswolds and Hampshire specifically. We are starting to see a significant increase in enquiries from London based British purchasers looking to move out to the country and I am sure it will only be a matter of time before the balance returns to normal,’ he pointed out.

Strutt & Parker and its retained economic advisors Volterra are predicting 8% growth for residential house prices across the UK in 2014.

‘Improved economic foundations would certainly suggest that prices will continue to rise over the next few years, while the biggest perceived uncertainty surrounding the property markets over 2014 to 2015 will continue to be the looming election,’ said McMahon.

‘This uncertainty will be most significant around the £2 million price bracket due to the potential change of government and associated possibility of mansion tax. We therefore expect that prices growth during the remainder of 2014, and even more so in 2015, will be sensitive to prevailing political press and expectations,’ she added.

According to Michael Fiddes, head of regional residential agency at Strutt & Parker, the election does not appear to be affecting…

The Competition and Markets Authority (CMA) has issued an update on its market study into the provision of residential property management services in England and Wales.

The study, which was launched in March 2014 by the CMA's predecessor the Office of Fair Trading (OFT), is looking at whether the market is working well for leaseholders and whether there is effective competition in the sector.

The CMA has identified a number of causes for concern about how the market works. It says that some leaseholders appear to suffer from a lack of control over aspects of property management, and may experience excessive or unnecessary charging for services arranged by property managers, poor service quality, insufficient transparency, poor communication and ineffective redress.

At the same time, other leaseholders are satisfied with their property management services and the CMA has found evidence to suggest that the existing checks and balances in the market can work well.

In light of this, the CMA has set out some views on possible remedial action to improve the performance of the market and secure better outcomes for leaseholders, on which it is seeking views.

‘Whilst the market works well for some leaseholders, our emerging findings suggest that improvements may be needed in a number of areas,’ said Rachel Merelie, CMA senior director of delivery.

‘Given the broad range of issues we are considering, we have decided to seek views at this stage on a range of possible remedies to the problems we have identified. This will help us to develop recommendations that are both effective and proportionate,’ she added.

Rising property values, booming tourist numbers and ever improving air access is making Turkey more attractive to foreign real estate investors, it is claimed.

Turkey's attraction to foreign property buyers has gained momentum during the first half of 2014 with a promising second half ahead, according to real estate agency Spot Blue International Property.

Sales to foreigners in Turkey rose 60% year on year during the first six months of 2014, totalling 8,507 property purchases, according to figures from the Turkish Statistical Institute.

For the same period, Istanbul alone recorded a 150% increase in foreign buyers, putting it ahead of the tourist province of Antalya, home to the popular resorts of Alanya, Belek and Kalkan.

Meanwhile, the average price of a new Turkish home was 12.05% higher in June compared to June 2013. It was one of the strongest months for the Turkish property market with 600 foreign purchases in Istanbul, followed by Antalya at 586 and Aydin at 108.

The Turkish Ministry of Economy confirmed that foreigners bought $1.26 billion worth of Turkish real estate in the first four months of the year, which was $893million more than in the same period in 2013.

‘Istanbul has certainly been a winner for us this year. Interest has been strong from Middle Eastern buyers in particular, with most buying one or more buy to lets in the mushrooming suburbs of the city, such as Beylikduzu and Bahcesehir,’ said Julian Walker, director at Spot Blue International Property.

Foreign visitors to Turkey increased by 3.24% year on year in the first three months of 2014, reaching 4.35 million, according to data from the Ministry of Tourism and Culture. The second quarter recorded even greater growth, up 6.8% year on year, peaking at 10.9 million. In terms of revenue, tourism generated a record high of $8.9 billion in the second quarter of 2014, a 7.9% increase over the same period last year.

Turkey welcomed more than 35 million foreign visitors in 2013, becoming the sixth most popular travel destination in the world, but is forecast to receive 43 million tourists in 2014, with the sector generating revenue of $36 billion.
‘Increased tourists not only stimulate the property market in terms of sales but they also are encouraging for foreign owners who let their property to holidaymakers,’ explained Walker.

This year has seen Turkey's global air links and air traffic continue to grow, with interest in the Middle East driving much of this. In June, a record 16 million passengers passed Turkish airports, while in May, Istanbul's Ataturk Airport broke a European record for the highest number of landings with 1,267, in any one day.

At Istanbul's second airport, Sabiha Gökçen, Turkey's Pegasus Airlines has make progress in 2014 to becoming the fourth largest low cost carrier in Europe. Results from the first quarter of this year showed the airline carried over four million annual passengers, growth of over 25%.

Meanwhile, in June, Turkey's flagship national carrier, Turkish Airlines, launched its 257th destination, cementing its…

Nearly one in 10 home owners in the UK say they will sell up if interest rates rise and a third say they will potentially struggle, new research has found.

Around one in 10 mortgage customers have already fallen behind with current payments and a third would cut back on all non-essential spending to make ends meet, according to the survey from mortgage broker Ocean Finance.

With the Governor of the Bank of England Mark Carney recently suggesting that interest rates could start to rise over the next few months, almost half of mortgage borrowers, 46%, admit they would either definitely or potentially struggle if the interest rate on their home loan went up by 3%.

A 3% rise in interest rates would potentially mean borrowers with repayment mortgages paying an additional £150 a month for every £100,000 owed. UK home owners were asked how they would cope making the increased payments.

More than a third, 38%, said they would potentially struggle with the increase and would have to look at ways to save money and 7.9% revealed they would definitely have difficulties and would immediately seek to sell their property.

Just over one in three, 35%, of mortgage customers noted they would adjust their current budget so they could make sure they were still able to afford the payments. Only one in five claimed they would comfortably manage if the interest rate on their mortgage increased by 3%.

With the Bank of England base rate at a historic low of 0.5%, there are home owners who are already struggling to make their repayments. Asked to describe their ability to make their current mortgage payments, some 9.8% of home owners said they have had difficulty keeping up and have fallen behind. A further 19% claimed they are up to date but do struggle to pay their mortgage.

Should their mortgage rates increase by 3%, some home owners admitted they would have to take drastic measures to be able to maintain their payments with 37% saying they would cut back on all non-essential spending, and 33% saying they would reduce all their non-priority spending as well as some essential spending.

Meanwhile, 11% of mortgage holders said they would work more hours so that they could afford their increased repayments and still maintain their current lifestyle. Only 22% said they did not think they would have to make any cut backs.

‘Clearly it is likely to take a while for rates to rise by 3%. But if they do go up by that much over the next couple of years it’s worrying to hear that nearly half of mortgage borrowers are concerned about how they would keep up with the repayments, especially when one in 10 are already behind with their payments,’ said Ian Williams, spokesman for Ocean Finance.

‘If home owners are currently on a variable rate or tracker mortgage and are concerned about how rate increases might affect them, they could seek out professional advice to find out if switching…

Residential property prices in Australia’s capital cities increased by 1.1% in the second quarter of 2014 with Sydney and Melbourne continuing to drive a two tier housing market in the country.

It means that the aggregate capital price gain across all capital cities since the beginning of the year is 5% but price growth varies considerably depending on location, according to the latest RP Data index.

Sydney saw prices increase by 2%, Canberra by 2.1% and Melbourne by 1.8% which offset falls in other capital cities.
Darwin saw mild growth of 0.8% while price fell by 2.6% in Adelaide, 1.2% in Hobart, 0.4% in Brisbane and 0.1% in Perth.

Broadly, capital city dwelling values have trended higher since June 2012 with the combined capitals index has recording a cumulative gain of 17.4%. The data shows that Sydney has seen the most growth, up almost 25% during this period, while Darwin saw growth of 20.4% and Melbourne 18.5%.

The lowest rate of capital gain over the current cycle was in Adelaide where values are just 5.5% higher, and in Canberra where values have recorded a 7.9% increase.

According to Tim Lawless, RP Data research director, despite the most recent set of data showing a rise, the growth trend has eased from the peak conditions recorded last year. Over the past six months, capital city dwelling values moved 3.7% higher compared with the peak rate of growth of 7.2% which was recorded over the six months to November last year.

Lawless said that over a similar time frame the growth in mortgage demand has started to ease, suggesting buyer demand may be being dampened by rising affordability hurdles and low rental yields in the largest cities.

Regional markets continued to languish and recorded a 0.7% fall over the June quarter and a year on year growth rate which is slightly higher than inflation at 3.5%.

‘Regional markets are of course diverse and range from agricultural regions which are largely driven by weather conditions and export factors, mining and resource-centric areas where the downturn in commodity prices and fewer major infrastructure projects are generally causing weak housing market conditions, and lifestyle markets where buyer demand is bouncing back and values are generally rising,’ Lawless explained.

Examination of the housing market across broad price segments reveals that the most expensive quarter of the combined capital city housing market has shown the highest capital gains over the past year. Dwelling values across the most expensive quarter of the capital city market are up 10.8% over the past 12 months compared with a 7.9% gain across the most affordable quarter of the market, and a 10.1% capital gain across the broad middle of the market.

Rental yields were down over the month, with capital gains continuing to outpace rental growth. The typical gross rental yield on a capital city dwelling fell to 3.9% in July from 4% in June, with Melbourne yields the lowest of any capital city at 3.4% gross, followed by Sydney at 3.9%…

A strengthening UK economy and more buoyant employment market has translated to a pick up in the prime lettings market in London in the first half of 2014.

The prime central London (PCL) market saw growth of 2.9% in the first half of 2014 compared to falls of 1.9% over 2013, according to the latest report from real estate firm Savills.

The firm says that while high stock levels remain an issue in some areas, the return of the family market resulted in rents increasing 3.4% for houses compared to 0.9% for flats over the quarter.

International tenants are now more dominant in the PCL market than those from the UK. In 2013 and the first half of 2014 they accounted for 75% of tenants, with Western Europeans the largest sub group. For all tenants the largest employment sector in PCL is financial and insurance services which accounts for roughly half of market demand.

However, there is evidence that the tenant profile is widening and becoming less dependent on this sector alone. The proportion of those working in the financial and insurance sector has fallen from 55% in 2011 to 47% during the first half of this year.

‘While this may temper rental growth for PCL property over the short term, strong employment growth in the professional, media and communications sectors is likely to underpin demand in this market going forward,’ said Lucian Cook, director of residential research at Savills.

The prime outer London markets that includes popular areas such as Islington, Clapham and Wimbledon, have benefited over the past three months from the pickup in demand for family housing.

The prime north west markets of Hampstead and St John’s Wood saw the strongest quarterly growth across prime London, with average rents increasing 2.2% as low stock levels of family houses has intensified competition.

Prime south west London also saw demand for large family housing increase and average rents for five plus bedroom properties rose 1.6% over the quarter. However, in this area demand from singles and sharers unable to buy in the highly competitive London housing market resulted in higher rental growth for flats. Smaller properties have seen stronger annual growth than houses, with rents for one bedroom properties increasing 2.2%.

Over the past six months the prime east of City markets of Canary Wharf and Wapping have seen the strongest rental growth across prime London, with average rents increasing 3.1%. ‘Canary Wharf has been the driver of this growth due to the continued strong demand from corporate, students and sharers and a current lack of stock on the market. With an average pound per square foot of £27 compared to £40 across all prime London, these markets are attractive for the relative value they provide,’ explained Cook.

The report also shows that across the commuter zone, average rents in prime cities and towns rose 1.2% annually compared to 0.6% for rural properties. Similar to the prime sales market, the trend for urban living remains more popular than rural living…

The number of foreclosed homes in the United States on the market fell by 35% in June, the 17th month in a row when levels have fallen by more than 20%, the latest data shows.

The CoreLogic data also shows that year on year inventory declines have been recorded for 32 months in a row and the amount of completed foreclosures is also falling, down 20.4% for a year ago.

It means that in June there were approximately 648,000 homes in foreclosure, just 1.7% of all homes with a mortgage.
At its peak, the seriously delinquent inventory increased 88% year on year in April 2008, but it was down 23.3% year on year in June 2014.

Furthermore, pre-foreclosure filings decreased by 12.5% from 83,500 to 73,100 per month nationally in June 2014 from a year ago. As of June, pre-foreclosure filings had fallen 68% from their peak of 229,000 in March 2009. By comparison, monthly filings averaged 21,000 from 2003 to 2005 prior to the financial crisis.

The five states with the largest year on year drop in the foreclosure inventory were Arizona with a fall of 53.6%, Utah down 51.5%, Minnesota down 49.5%, Georgia down 46.9% and Nevada down 46.1%.

All 50 states and the District of Columbia posted declines in the foreclosure inventory from a year ago, with 45 states showing decreases of more than 25%.

CoreLogic said that of particular interest this month is the improvement in the top three states as ranked by foreclosure rates. Among the three states, Florida was hit the hardest, peaking in June 2011 at 12.5% and falling to a rate of 5% in June 2014.

However, the improvements in New York and New Jersey have been much smaller. Over the 12 months ending in June 2014, the foreclosure rate in New York and New Jersey fell by only 0.6% compared to a 4.2% decline in Florida.

Recently data has been suggesting that in the UK property market price growth has been slowing but the latest index shows a month on month rise of 1.4%.

The figures from the Halifax House Price Index also show a quarterly rise of 3.6% and an annual rise of 10.2%, taking the average price of a home to £186,322.

Looking at previous figures, the data showed a fall in June but this has now been countered by the 1.4% rise in July. Since last December there have been four monthly price increases and four price falls.

Stephen Noakes, mortgages director at the Halifax, pointed out that monthly figures can be volatile and the quarterly data gives a more accurate picture of what the trends are.

‘While supply remains low, housing demand continues to be supported by a continuing economic recovery, growth in employment, improving consumer confidence and low mortgage rates. However, earnings growth is still lagging behind consumer price inflation,’ he said.

Although home sales have edged down by 6% since a recent peak in February, they are close to 103,000. Home sales during the April to June quarter were 21% higher than in the same three months last year, according to seasonally adjusted figures from HMRC.

New buyer enquires continue to ease, a trend that started in November last year, according to data from the Royal Institution of Chartered Surveyors (RICS).

On the other hand, the latest Halifax Housing Market Confidence Tracker indicates that sentiment towards selling is growing. Over half, 57%, of those surveyed believe the next 12 months will be a good time to sell, compared to only 32% who feel it will be a bad time. This is the highest score of this measure since the survey’s inception in April 2011.

Over a quarter of young British people would prefer to buy a house if they were given £20,000, rather than put the cash towards their wedding, a new survey shows.

On average couples saving to buy their first home cut their wedding budget by over £5,000 and 28% of those aged between 18 and 34 would spend a £20,000 gift from their parents on a deposit for a house, according to research by HSBC.

With the cost of a wedding now averaging £20,000, the findings reveal that only 1% of young adults would choose to shell out the entire sum on their nuptials.

With such gifts the reserve of a lucky few, most young people are pondering how to split their savings between a deposit for a new home and a dream wedding. Nearly half, 47%, would look to cut the cost of their wedding in favour of putting it towards a house deposit, while 26% would ask guests for cash instead of a traditional wedding gift to put towards a house.

‘With the average deposit for first time buyers now £23,500, it appears that couples are choosing to be pragmatic when it comes to tackling the difficult decision of whether to shell out on a big wedding or buy a home,’ Peter Dockar, head of mortgages at HSBC.

‘Clearly, it appears that being savvy with the pennies and giving more thought to home buying is becoming a priority,’ he added.

The research also reveals that those looking to cut the cost of their big day in order to boost their deposit savings will do so to the tune of £5,443 on average.

The most popular ways of cutting costs are to reduce guest numbers (45%), choose a cheaper reception venue (29%) and reduce the cost of the honeymoon (26%).

Some 60% with aspirations of home ownership admit that they cannot afford a deposit for a first home without financial help from their family

Monthly rents in the UK, excluding London, have increased by 4% annually to £689 with six tenants are chasing every available property across the country, the highest since 2011, the latest rental index shows

Overall demand for rental properties across the UK has increased by 15% annually, while the supply of rental homes has dropped 17%, the Sequence report also shows.

Meanwhile, in London rents have reached a four year high, increasing 10% annually to £1,515 and tenant demand has been rising at more than nine times the rate of supply.

According to Stephen Nation, head of lettings for Sequence, which includes Barnard Marcus, William H Brown and Fox & Sons, the rental market in London is a hive of activity, with close to seven tenants chasing every available property.
‘Demand to rent in the capital is rising at more than nine times the rate of supply reaching a four year high of £1,515 per month, up 10% annually,’ he pointed out.

The report also shows that applications for buy to let mortgages have reached the highest level in 2014, so far increasing by 14% annually in June and 12% since May. Nation explained that buy to let mortgages are not subject to scrutiny under the new mortgage market rules and change to pension annuities has also encouraged more investors to look to property for their pension pot as house prices and rents continue to rise.

Nationally, excluding London, the number of viewings is up 6% annually and 2% since May, the highest number of viewings in one month since November 2011.

However, new agreed tenancies are flat on the month but up 17% annually, just off their September 2013 peak. The flat monthly growth means that the ratio of viewings to new tenancies has marginally increased to 7.0/1 from May, but annually it has dropped from 7.7/1. Nation said that this suggests that competition in the market is hotting up and when tenants view their ideal property they are moving more quickly to secure it.

London viewings have increased by 25% annually and by 2% on the month in June. New agreed tenancies are up 28% annually but are flat on the month. This has resulted in a slight increase in the ratio from 12.7/1 in May to 12.9/1 in June.
‘Across the country it is clear that the rental market is very active this year, which goes to show how a healthy rental market works independently of the sales market,’ added Nation.

More European style family apartments should be built in Ireland to help tackle the nation’s lack of affordable housing, according to a new report from chartered surveyors.

The Society of Chartered Surveyors Ireland has also called for a reduction of VAT on new home building at a time when there is concern about rising house prices and the low level of house building currently being undertaken.

The SCA has published a strategy that is says will ensure there is an adequate supply of houses in urban areas and in Dublin in particular.

The proposals also suggest an exemption on property tax for people trading down, the establishment of a builders' finance fund, and the introduction of a vacant site levy on vacant sites with residential development potential.

The society said the builders' finance fund would help smaller builders and would speed up housing developments of between 15 and 250 units that have slowed down or stalled.

The society also said that if future apartments were designed for family living it would reduce pressure on the supply of traditional three and four bedroom homes.

The Society, which is the professional body for the property and construction sector, said it is concerned about a lack of new homes available at a time when house prices are rising, particularly in Dublin.

The latest house price figures from the Central Statistics Office show that house prices in Dublin are 24% higher than a year ago and the Society says this is simply not sustainable.

Only 8,301 new houses were built in Ireland last year while the Housing Agency has pointed to a need for 80,000 units over the next five years, or approximately 16,000 per annum with half of those required in Dublin.

Chairman of the Residential Group of the SCSI, Simon Stokes, pointed out that new houses cannot be supplied on tap and that the lead in time through construction and to completion generally takes a minimum of two years.

‘Our strategy document focuses on practical steps which can accelerate the delivery of new homes. There is a lack of development finance for builders but the government could address this by establishing a Builders Finance Fund. In the UK a BFF fund of €660 million has been established to help smaller builders and to speed up housing developments of between 15 and 250 units which have slowed down or stalled,’ said Stokes.

‘A reduction in the VAT rate for the hospitality sector worked extremely well here in recent years, boosting the tourism sector and helping to create 15,000 jobs. We believe a reduction in the current 13.5% VAT on new homes to 5% for a period of two years could have a similarly positive impact on house building and job creation,’ he explained.

‘The need to fund infrastructure in advance of a development being completed is a significant barrier to unlocking supply and we believe the creation of a Revolving Infrastructure Fund could address this issue. RIF’s are not grants or subsidies but…

Almost half a billion pounds is being allocated to build thousands of new affordable homes in London, mayor Boris Johnson has announced.

Some £404 million has been allocated under the Mayor's ambitious plans to increase house building, which also include funding for the London Housing Bank and Housing Zones as part of an overall £1.25 billion package to deliver 45,000 affordable homes by 2018.

It will result in almost half of London's boroughs running their own development programme with funding from City Hall and 11 housing associations running large scale construction programmes of over 500 homes each.

These latest allocations will unlock a total investment of £4.23 billion into house building in the capital. Of the 54 providers receiving funding, Notting Hill Housing Trust have won the largest allocation with £59.3 million to deliver 2,250 homes.

Overall some 15 boroughs in all corners of the capital are also benefiting with Waltham Forest receiving £9.7 million to deliver 387 homes, while in Lambeth 303 homes will be delivered with an investment of £10.9 million. For the first time the Greater London Authority is also making an allocation to Grainger Trust, a significant private landlord active since 1912, which has been allocated £5.6 million to deliver 195 homes.

In addition, the Mayor is taking forward five bids for a portion of a further £85 million to establish an innovative revolving fund that could see up to 5,000 homes built over a longer period by 'recycling' investment. The revolving fund bids, including one from the Big Issue Foundation and another from Mill Group, are part of the Mayor's drive to attract wider sources of investment to support house building and develop longer term funding packages with individual providers.

‘The only way to address the huge demand for housing and tackle the 30 year back log of under supply is to build more homes. We've worked closely with expert housing providers to ensure this funding will deliver much needed low cost homes across the capital,’ said Johnson.

‘These latest funds, together with innovative measures to unlock land and development being pioneered by City Hall, will produce thousands more good quality affordable homes for Londoners to rent and buy. We will continue to work with the government, developers and investors to drive forward and deliver the thousands of homes needed in the capital,’ he added.

The Mayor is on course to deliver more affordable completions this financial year than at any other point since 1980 as part of his pledge to build 100,000 affordable homes over two terms, with 78,000 completed so far. Over this investment period, over 4,000 housing schemes will have been built with support from City Hall to deliver more affordable housing for Londoners.

Since taking on almost 700 hectares of surplus public land in 2012, the Mayor has already moved 87% of it into development. There is capacity for thousands more homes on strategic public land across the capital, ripe for development, and the Mayor is lobbying the government for…

The average time it takes to sell a property in Britain has reduced to 88 days, some 16 days or 15.38% faster compared to the same time last year, new data shows.

It is the fastest selling time recorded since 2007, according to the research from residential property group Move with Us.

It shows that properties in Greater London were selling the fastest in the second quarter of 2014 with an average of just 43 days. This was followed by the South East and East Anglia where the selling times were the fastest in five years, taking an average of 59 and 68 days respectively.

At the other end of the spectrum, properties were slowest to sell in the North East where the average selling time reached 138 days in the second quarter of 2014. However, this was still 50 days or 26.6% quicker in a yearly comparison and the second biggest change outside of Greater London since 2007.

‘The market has gained a spring in its step thanks to increased confidence and more readily available funding bringing more buyers to the market,’ said Robin King, director at Move with Us.

‘Faster selling times have now spread outside Greater London and the South East where competition has always been relatively strong compared to areas such as the East and West Midlands where the market has taken longer to recover,’ he explained.

He pointed out that the average selling time is now almost back to the pre-crash levels of 2007. ‘Due to faster timescales, buyers should do all they can to get ahead of the competition and make sure they secure their dream home,’ he added.

The firm advises buyers to get financially and legally prepared when they first start looking to buy. ‘This will help to make sure they don’t miss out on their chosen home as they will stand out as a serious buyer and it will have the added benefit of working to reduce timescales,’ said King.

A breakdown of the figures show that after Greater London and the South East the region with the fastest selling time is East Anglia with 68 days followed by the South West at 68, the East Midlands with 87 and the West Midlands at 89.

Average selling time in Scotland is 106 days, in Yorkshire and Humber 110 days, in the North West 114 days, Wales 129 days and the North East bottom at 138 days.

The residential property market in Spain is set to bottom out next year and see a 2% rise in prices in 2016, according to ratings agency Standard & Poor’s.

It is well documented that the fall in prices has been slowing in recent months and the agency is predicting that prices will fall overall by 2% this year compared with 4.6% in 2013.

Property prices in Spain have fallen around 30% since the economic downturn hit the country’s real estate markets in 2008.

S&P says that the positive outlook for the property market is down to a faster than expected recovery of the Spanish economy and a subsequent quicker fall in unemployment.

According to the Spanish Central Bank the country's economy grew by 0.5% in the second quarter of 2014, the fastest rate in six years, and the latest job figures show that 192,000 people had joined the country's workforce in the 12 months to the end of June.

Experts say there has been a change in trends in the Spanish property market in the last 12 months with the arrival of British and US property funds who are taking advantage of the offers in the Spanish property market.

But the market is unlikely to recover everywhere at the same pace. It is predicted that properties on the coast, including areas popular with second home owners, will see prices rise first.

However, according to S&P the long term recovery of the property market could be kept on a leash by the high number of properties on the market in Spain and the country’s population decline could also put a brake on the long awaited recovery.

S&P said in January that Spain's housing market was overvalued by somewhere in the region of 12% to 20%.
According to Mark Stucklin of Spanish Property Insight, Standard & Poor’s is a bit more pessimistic than other agencies, who believe a recovery may begin as early as 2015.

Several reports in recent weeks have spotlighted the slowdown in the price declines, prompting different analysts to predict the bottom of the market may be nearer.

A more robust private rented sector needs to be created in Scotland and more land made available for building new homes, according to a new report from the independent Scottish Housing Commission.

Made up of a cross section of housing industry experts and led by the Royal Institution of Chartered Surveyors (RICS) the commission has made a series of recommendations across all property tenures.

In particular it calls for a renewed emphasis on establishing a sufficient quantity and quality of land for housing, including the creation of new communities across Scotland aimed at addressing potential crises in Scotland’s housing market.

The report says that the imbalance that exists between supply and demand for housing remains an on-going problem in today’s, and potentially tomorrow’s, Scottish housing market.

It makes 15 recommendations and identifies three key issues for Scotland’s housing future, namely: housing land supply, new housing growth and the emerging importance of the private rented sector.

‘A substantial increase in land supply for housing would assist development partners in their business preparation, reduce land costs and impact positively on the affordability of housing. In addition, scaling up production of new house building across all tenures is in our view an essential aspect in a sustainable housing solution for Scotland,’ the commission report points out.

‘By promoting the creation of up to eight major new communities, either as new towns, regenerating existing communities or an expansion of existing plans, could make major in-roads in addressing Scotland’s acute housing need in the decade that lies ahead. At the same time this would give a continued shot in the arm to the Scottish economy, by creating new jobs and supporting existing economies,’ it adds.

The report also suggests that a greater level of attention toward the private rented sector could help alleviate pressure on the market. According to the latest RICS Residential Market Survey, a net balance of 25% of chartered surveyors reported a rise in tenant demand within the private rented sector, with respondents reporting growth in demand through 2014.

‘An effective, regulated private rental market is vital for future housing in Scotland. Significant investment in a private rented growth plan for Scotland is required to provide security for the growing number of families and individuals depend on privately rented properties,’ said commission chairman Tom Barclay.

The report further recommends that the Scottish government put in place a Change Fund to support the social housing sector. ‘The social housing sector has the potential to play a major role in delivering smarter and better housing outcomes in Scotland. However, in terms of finance, evidence from lenders suggests that the risk rating of the housing association sector in Scotland has increased as a result of welfare and pension reforms, as well as a reduction in capital subsidies,’ it explains.

‘The fund would facilitate potential partnerships, both constitutional and non-constitutional, helping shape new business models, evaluate transfers of stock between organisations, and, in essence, help provide a stimulus to give greater vitality to the sector,’ it…

The UK, excluding London, has seen new buyer registrations rise 21% annually, while new property instructions are up by just 2%, according to new research.

At the same time the property market is described as buoyant with prices up 1% on last month and 8% annually to £175,728, says the report from Sequence which owns over 300 estate agent branches.

But the London market is slowing. In London new instructions are up 8% on the month and 19% annually but new buyer registrations are down 14% on the month.

There are 11 new buyers for every new property in the capital, a drop from 14 last month. The data also shows that London house prices are flat on the month, but up 21% annually to £457,833.

Overall mortgage applications seem to have bounced back following the new MMR regulations which were introduced in April and have increased by 13% on the month.

‘Demand for properties across the UK remains robust with new buyer registrations up over 10 times the rate of new instructions which are up 2%,’ said David Plumtree, chief executive officer of Sequence.

He pointed out that there are now over six buyers for every property coming onto the market, a two year high for June but in London there has been a slight cooling in demand. ‘This has led to an adjustment in pricing, with prices remaining flat on the month as vendors look to be more flexible in their views on sale price. There is still a great deal of activity in the market, with the number of viewings and offers up annually by 7% and 17% respectively,’ he explained.

‘This activity is translating into sales, which are also up 10% annually, so while there is a slight shift in the balance of supply and demand, the number of new properties on the market remains low and we still have close to 11 new buyers competing for every new instruction,’ he added.

He also pointed out that despite mortgage applications weathering the MMR regulations figures are still 5% below last year, although the appetite to buy across the UK remains very strong.