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 pace of residential property price growth in the United States is set to slow this year and continue doing so into 2018, according to real estate experts.

The result of the latest quarterly Zillow Home Price Expectations Survey, which takes into account the views of more than 100 expert panellists, suggests that home values will end 2014 up an average of 4.6% from 2013, to a median value of $177,895.

They also expect values to exceed their 2007 peak levels by the end of 2017, roughly a decade after the housing bust and ensuing recession began.

The survey also reveals that 85% of the experts expect the median age of first time home buyers to rise to 32 or higher in next 10 years.

On average, the panellists expect interest rates on a 30 year, fixed rate mortgage to reach approximately 5.3% by the middle of 2016 and this could slow down the market as first time buyers put off making a purchase.

Indeed, the report says that overall the national home ownership rate fell in the second quarter, and a majority of experts said they expect it to fall further in coming years as the Millennial generation delays home purchases and the age of typical first time buyers continues to rise.

In 2013, the typical first buyer was 31 years old, according to the National Association of Realtors and the survey asked panellists for their expectations regarding the median first time buyer age over the next decade.

The demand for London property has meant that it has been deemed a sellers’ market in recent years, however, this is changing for property priced £2 million and above, a new analysis suggests.

With significantly more stock on the market the city’s prime market is becoming more of a buyers’ market, according to independent property buying agency Black Brick.

Camilla Dell, managing partner of Black Brick, pointed out that there are currently 1,968 properties on the market priced at £2 million and above in central London, whereas throughout the whole of 2013 some 1,657 properties in this price bracket sold. And just four years ago that figure was significantly less at 1,096.

‘As such, it has started to become more of a buyers' market for the first time in a long time, particularly in the super prime upper end of the market at £10 million and above. Indeed, we're currently in the midst of a search for a client looking for a house in Mayfair/Belgravia from £20 million up to £100 million and there are well over 20 houses for sale in this price range. This is more than usual which shows the higher end of the market is slowing and buyers have more choice and bargaining power,’ she explained.

She also pointed out that in the current political situation in Ukraine if there are sanctions against Russia which mean that certain Russians might be exiled from the UK, this could create even more supply on the super prime end.

‘Many high end developers are now struggling to find buyers for their trophy mansions, and are having to become more realistic with their asking prices. As such, I believe we could see significant price drops at the super prime end of the market. Indeed, one house in Mayfair has already had a significant price reduction from £120 million down to £95 million,’ said Dell.

‘We advise buyers looking above £10 million to take their time and take advantage of the current market. Good deals can be had when there is an air of nervousness in the market and it is at times like these where we push hard to negotiate the best deals for our clients,’ she added.

Although the looming general election is a concern for both sellers and buyers, the significant rises in London property prices are also causing some buyers across all price ranges to hesitate and question whether it is the right time to purchase, according to Dell.

‘In our experience it is impossible to time a market. All of our clients who have decided to wait have inevitably ended up regretting it. The advice we give clients very much depends on their reason for buying,’ she said.

‘Generally, for those looking to buy a home, it's much more about actually finding the right property, which can take time, than it is about price and getting a bargain, and we remind clients that even if the market does drop 5% or more next year,…

Almost 40,000 households have bought a home through the UK government’s flagship Help to Buy schemes with over 80% going to first time buyers, it has been announced.

Housing and Planning Minister Brandon Lewis said that the new figures show how the scheme is boosting the supply of new homes, with over 32,500 households buying new build homes through the equity loan and NewBuy options, with a further 7,300 sales though the mortgage guarantee.

He also said that the figures were further evidence that Help to Buy was doing exactly what it was designed to achieve: providing assistance to families while expanding and accelerating the supply of new homes.

Over 80% of sales have gone to first time buyers and been for new build homes. The direct result is, according to Lewis, a new generation of homeowners and a 34% increase in private house building during the first year of the scheme.

House building has climbed to the highest level since 2007, while developers have pledged to use the momentum created by Help to Buy to continue increasing their output. The construction sector has grown for 14 consecutive months, and companies are now taking on new workers at the fastest rate for 17 years.

Lewis said the government had expanded the range of available data about Help to Buy and the latest figures include, for the first time, sales data broken down by postcode, so communities, builders and businesses can see exactly how the scheme is benefitting their area.

‘Almost 40,000 households have now achieved their dream of becoming home owners through Help to Buy. Hard working families are getting the homes they want, while house building has increased to its highest level since 2007,’ said Lewis.

‘It’s no accident that since the start of the scheme private house building has shot up by a third and continues to climb. Developers are increasing their output, and taking on new workers at the fastest rate since records began,’ he explained.

‘And for the first time, we’re publishing post code level data about the scheme, so communities can see exactly how this vital part of our long term economic plan is improving the housing market and helping their area,’ he added.

The data shows that sales of new build homes have been strong across the country. The highest number of equity loan sales were in Wiltshire with 469, Leeds with 457 and central Bedfordshire with 427. Milton Keynes, Peterborough, Bradford, Manchester, Country Durham, Bedford, and Birmingham have all achieved over 300 sales.

The average price of a home is far below the national average at £208,000 under the equity loan and £151,000 under the mortgage guarantee.

According to David Newnes, director of Your Move and Reeds Rains owned by LSL Property Services PLC, said that Help to Buy has boosted confidence and with it demand among first timers who have been carefully saving up for their deposit, adding that lenders have been more willing to lend to higher loan to value borrowers.

‘The Bank of…

Residential building approvals in Australia fell in June but they are still 16% higher than a year ago, according to the latest data to be published.

Figures from the Australian Bureau of Statistics show that during June a total of 15,659 new homes were approved, down 5% in the previous month.

A breakdown of the figures shows the number of detached home approvals fell by 2.2% and the number of multi-unit approvals fell by 10.5%.

According to the Housing Industry Association (HIA), the voice of Australia’s residential building industry, new home approvals have now recorded falls in seven of the past nine months.

‘It is thus likely that we have already reached the peak in the home building recovery and that activity is likely to stabilise over the coming year,’ said HIA senior economist, Shane Garrett.

‘Despite Australia’s inadequate supply of housing, it appears that the usual suspects have brought the upturn in activity to a halt. These include factors like slow land release and barriers to the development of residential land,’ he pointed out.

He explained that the current climate is blighted by too many people not wanting new buildings in their backyard, known as the NIMNY effect. ‘Unfortunately, it seems that this culture is catered for too much by aspects of the regulatory mechanisms for new housing,’ said Garrett.

‘With interest rates at historic lows, the window of opportunity remains open for the supply of affordable housing to be significantly augmented in the near future. A greater push on this front by policymakers could ensure that the housing prospects for this generation of Australians are greatly enhanced,’ he added.

Victoria was the only state to record an increase during June, with approvals rising by just 0.3% during the month in seasonally adjusted terms. The largest declines during the month occurred in Queensland where there was a fall of 10.5%.

Elsewhere Tasmania saw approvals fall by 9%, South Australia by 3.6%, Western
Australia down 3.1% and New South Wales down 2.1%. In trend terms, approvals rose by 9.2% in the Northern Territory but fell by some 15.2% in the ACT.

The 2012 Olympic Games seem to have boosted property in the East of London with new data showing that Olympic Park house prices have grown by over 60%, or £1,200 every month since July 2005 when the Games were awarded.

The average house price in the 14 areas of East London closest to the Olympic Park is now £334,123 and since 2012, house prices in the Olympic Park surrounding areas have grown by over £60,000.

Home owners in the 14 postal districts1 in East London closest to the Olympic Park have seen the average value of their property rise from £206,191 in July 2005 to £334,232 in March 2014. This represents growth of 62% or £127,933 over the period, equivalent to a monthly increase of £1,214, according to research by Lloyds Bank.

Property values in areas surrounding the Olympic Park have outperformed national markets over the same period. The average house price in England and Wales grew by 34% from £185,662 to £248,597 in the eight years to March 2014. In cash terms, the increase in average house price in the Olympic areas at £127,933 is more than double the growth seen in England and Wales at £62,935.

The house price premium between the average in the 14 East London areas and the rest of England and Wales has more than trebled from 11% in July 2005 to 34% in March 2014.

Since 2012 property values in Olympic areas have outpaced both London and national markets. Prices in the 14 areas closest to the Olympic Park rose by 23%, from £272,750 in March 2012 to £334,123 in March 2014, compared to just over 8% for England and Wales.

Whilst in London as a whole prices have grown by 17% in the same period. In Shoreditch, Daltson and Walthamstow, average property values have seen the best performance rising by close to a third.

Eight of the 14 areas closest to the main site have seen their average house price rise by over £100,000 since London won the bid to hold the Games. Daltson recorded the largest increase at £236,558, followed by Shoreditch at £209,460, Homerton at £176,275, Clapton at £175,767 and Bethnal Green at £166,760.

The research also shows that half of the areas closest to the Olympic Park now have an average house price of over £325,000 yet in July 2005 there were none.

Seven of the 14 areas closest to the Olympic Park now have an average property value of over £325,000. These include Daltson at £468,792, Shoreditch at £429,537, Bethnal Green at £395,184, Clapton at £393,616 and Homerton at £391,227. In July 2005 none of 14 areas had an average house price above £235,000.

The most affordable area is Plaistow with an average price of £207,004, followed by East Ham at £210,504 and Manor Park at £247,110.

‘Since winning the bid to host the 2012 Olympic and Paralympic Games nine years ago, average property values in the 14 surrounding areas have grown by close to two thirds,’ said Nitesh…

There has been a big fall in opposition to house building in the UK since 2010, according to figures from a new survey by the British government

The British Social Attitudes survey asked people whether they would support new homes being built in their local area, revealing that between 2010 and 2013 opposition fell by 15%.

In 2010, some 46% said they would oppose new homes being built in their local area, compared to 31% in 2013. The data also shows that support for new house building increased from 28% in 2010 to 47% in 2013.

Net opposition, that is the percentage of those saying they are opposed minus those saying they are supportive, fell from 18% in 2010 to -16% and the strength of opposition for new homes has also while the proportion of respondents who said they would strongly support new homes more than doubled from 5% to 11%.

Opposition fell across all age, tenure and income subgroups and among respondents living in different types of areas. However, home owners living in small cities and towns and in rural areas were still more likely to be opposed than renters and those living in large cities.

When respondents who were not supportive of new homes were asked which of the potential benefits from new housing would make them more supportive, they most commonly selected more employment opportunities, 17%, more low cost home ownership at 11%, and more or improved medical facilities also at 11%.

When all respondents were asked if they would be more supportive of new homes if the government provided local councils with more money to spend on local services for every new home built almost half, 47%, said this would make them more supportive.

A majority of respondents thought that a more localist planning system would make them more supportive of new homes. Some 63% said they would be more supportive if local people were given greater control and say over what gets built in their local area.

When asked if the government brought in changes so that when people from a local community come together to get involved in planning for new development, that community can receive extra money to be spent locally, 57% said this would make them more supportive.

The survey also found that 38% agreed whether they support new homes being built in their local area depended on their design and 48% agreed that properties built in the last decade were better or much better designed, in terms of their external appearance, compared to those built around 20 or 30 years ago. Some 27% thought design was worse or much worse.

Some 82% agreed there is a shortage of homes that are affordable to buy in England, with 73% agreeing there is a shortage their local area and 83% agreed it was more difficult or much more difficult to buy their own home today compared to 20 years ago.

Views were mixed whether building more homes would improve affordability with 40% agreeing that building…

Some 17% of US homes were seriously underwater in the second quarter of 2014, down from 26% a year ago, according to the latest figures from housing data firm RealtyTrac.

It means that 9.1 million residential properties were seriously underwater where the combined loan amount secured by the property is at least 25% higher than the property’s estimated market value.

Seriously underwater homes are now at their lowest level since RealtyTrac began reporting negative equity in the first quarter of 2012. The recent peak in negative equity was the second quarter of 2012, when 12.8 million properties, some 29% of all properties with a mortgage were seriously underwater.

The number of equity rich properties, that is homes with at least 50% equity, held steady from the first quarter at 9.9 million in the second quarter of 2014, representing 18.8% of all properties with a mortgage.

Another 8.8 million properties were on the verge of resurfacing in the second quarter of 2014, with between 10% negative equity and 10% positive equity, representing 17% of all properties with a mortgage, up from 8.5 million or 16% in the first quarter of 2014.

The data also shows that fewer distressed properties were in negative equity in the second quarter, with 44% of all properties in the foreclosure process seriously underwater, down from 45% in the first quarter of 2014 and down from 57% in the second quarter of 2013.

The share of foreclosures with positive equity decreased to 34% in the second quarter, down from 35% in the first quarter. Top states for foreclosures with equity include Colorado, Texas, Oklahoma, Hawaii and Louisiana.

‘Home price appreciation has slowed in the last few months in many of the markets with the most underwater homes, slowing the pace at which home owners are recovering equity lost during the recession,’ said Daren Blomquist, vice president at RealtyTrac.

‘For instance home price appreciation in California was at 16% in May 2014 compared to a high of 31% in July and August of 2013. In Arizona, home price appreciation has slowed to 6% annually compared to a high of 24% last year,’ he explained.

‘In addition many of the properties that are seriously underwater are in a deep negative equity hole that will take some time to dig out of. The average loan to value on the 9.1 million homes seriously underwater was 133% and the average loan to value on the homes in foreclosure that are seriously underwater was 134%,’ he added.

States with the highest percentage of residential properties seriously underwater in the second quarter were Nevada at 32%, Florida at 30%, Illinois at 30%, Rhode Island at 29% and Michigan at 27%.

Major metropolitan statistical areas with the highest percentage of residential properties seriously underwater were Lakeland, Florida, at 37%, Las Vegas and Cleveland both at 35%, Palm Bay-Melbourne-Titusville in Florida at 32%, and Chicago, Cape Coral-Fort Meyers in Florida and New Haven-Milford all at 30%.

Major metro areas with the highest percentage of resurfacing equity, between…

Average rents in the prime London market are back to peak levels but growth in the city is not uniform with levels in the east leading the growth, according to new research

Prime London rents are now outperforming underlying capital values for the first time in almost four years, with east of City markets up 8.2% versus their previous peak as financial sector confidence boosts demand, says the study from Savills.

It points out that the relocation family market is also in recovery, boosting prime central London values and overall stronger economic sentiment and a more buoyant employment market have translated into increased corporate budgets and a pick up in the prime lettings market in the first half of 2014, finally restoring average prime London rental values to their 2007 peak.

The pace of recovery remains slow but steady in a market where demand is largely matched by supply, in contrast to the stock constrained mainstream markets, and all prime London market segments are now in positive growth, the report says.

After rising just 0.6% in 2013, rents are up on average 1.4% in the second quarter of this year, outperforming underlying house price growth for the first time since September 2010, the firm’s prime lettings index shows.

Depending on location, growth has been driven by the family housing market, rising corporate relocation budgets and ongoing demand from singles and sharers in markets such as the east of City hotspots of Wapping and Canary Wharf, which have outperformed all prime London locations, rising 3.1% year to date to leave them 8.2% up on peak.

Rents in core prime central London locations have grown by 1.8% over the past quarter and by 2.9% year to date, following 1.9% falls in 2013. The return of the family market saw rents for central London houses rising by 3.4% in the second quarter, with international occupiers now accounting for three quarters of all tenants.

Yields in these core central locations such as Mayfair, Kensington and Chelsea, currently average 2.9% with investors most motivated by capital value growth and a secure store of wealth. Yields vary and are highest for properties worth less than £2 million, though rarely exceed 4%.

In contrast, income return is much more of a consideration for investors in the lower value Canary Wharf and Wapping markets which have more in common with the UK mainstream market, delivering an average gross yield of 4.3% for a typical two bed property worth around £700,000, rising to 5.1% for a one bed. Investor and owner-occupier demand has pushed east of City capital values up by 10.1% in the year to date, compared to just 2.5% for prime central London.

In the capital’s prime commuter zone average rents rose by 0.9% following a strong first quarter when it outperformed London. Savills says that this is a reflection of the ripple of demand from London seen in the sales market, and over the past 18 months people moving from London have accounted for 20%…

The latest UK house price index confirms that price growth is moderating, rising by just 0.1% in July, its slowest pace since April 2013.

The data from the Nationwide Building Society also shows that the annual pace of growth is slower, 10.6% in July compared with 11.8% in June.

The slowdown takes the average price of a home in the UK to £188,949 and Nationwide chief economist Robert Gardner said that although prices have now risen for 15 months in a row it is clear that the pace of growth is slowing.

‘The slowdown was not entirely unexpected, given mounting evidence of a moderation in activity in recent months. Mortgage approvals declined by almost 20% between January and May, and there has also been some softening in forward looking indicators, such as new buyer enquiries,’ he explained.

‘At least part of the slowdown in activity relates to the introduction of Mortgage Market Review measures. The modest rebound in mortgage approvals in June adds weight to the notion that the slowdown will prove temporary, though the underlying pace of demand remains unclear,’ he pointed out.

‘With the labour market strengthening, mortgage rates expected to remain low and consumer confidence rising, activity is likely to recover in the months ahead. Over the longer term, the trajectory of house prices will remain crucially dependant on supply side developments,’ said Gardner.

‘While there have been some encouraging signs that construction activity is picking up, the pace of home building continues to run far below most estimates of what would be required to keep up with household formation in the years ahead,’ he added.

According to Paul Smith, chief executive officer of independent estate agents haart, the latest figures are a welcome ‘pit-stop’ which is necessary for long term, sustained growth. He said that annual growth figures are always a far more reliable indicator of long term trends.

‘Some areas of London are undergoing a price correction whereby people are not willing to pay the prices as they stand, but the laws of supply and demand are still in place and we are seeing steady house price growth in the country as a whole. All elements are pointing to a very busy autumn for the market,’ he added.

The Nationwide also reports that a modest recovery in the number of housing transactions, a pick-up in house price growth and the introduction of higher stamp duty rates on more expensive properties have all contributed to a sharp increase in stamp duty revenues in recent quarters, the majority of which is paid on residential property transactions.

Indeed, stamp duty revenues are near the all-time highs recorded in 2007/2008, reaching over £10 billion in the 12 months to June 2014.

‘Variation in house prices have a strong impact on how much stamp duty is paid across different regions of the UK, with some regions contributing a much greater share of the total stamp duty revenues than their share of housing transactions might suggest,’ said Gardner.

The Nationwide estimates that London…

Prime waterfront properties in the UK are worth an average of 60% more than their inland counterparts, according to the latest index from Knight Frank.

However, a closer look at the data reveals that the premium varies by location. A waterfront position in South West England, for example, offers the most added value when compared to a similar property inland, with prices 75% higher.

Prime riverside homes in London add 55%, waterfront properties in the South East 44% and in East Anglia the premium is 41%.

But the report points out that it is not just the location that adds value to a waterfront property. Amenities are also a crucial factor for many buyers and having direct access to water is something many people are prepared to pay a premium for.

Private slipways are considered the most valuable feature, pushing up the waterfront premium by an average of 115%. Properties with a private mooring or pontoon see their waterfront premium rise by 104% and 100% respectively, while jetties and private beach access add 89% and 85%.

In terms of location types, homes situated on estuaries command the largest uplift of about 85% compared to a similar property inland. Prime harbour side properties enjoy an uplift of 83% due to their rarity and coastal properties are worth 56% more.

Heading away from the sea, lakeside homes are 37% pricier than their waterless equivalent, and being situated next to a river adds, on average, 57% to the value of a prime residential property.

Home to the longest coastline in the UK, the South West has long been a popular location for waterfront property buyers. Its popularity is such that buyers are willing to pay a 75% premium for a waterfront home here, the most added value of any region in the UK.

In this region the stretch of coast starting just after Mevagissy and ending at Falmouth, excluding Truro, is where the largest cluster of prime waterfront property in the South West is currently on sale.

There are also a number of additional peaks along the coast in prime locations in and around Dartmouth, Salcombe and along the North Cornwall coast in Rock. Prime waterfront properties available for sale in these hot spot locations tend to be situated on stretches of river, or in harbours and estuaries where the biggest value uplifts for waterfront property can be found.

Demand for waterfront properties is global. Knight Frank web search data shows that there was a 6% increase in the number of individuals from outside of the UK looking at waterfront properties last year, led by potential buyers in the US, Germany and Australia.

The analysis also shows that waterfront property buyers are getting younger. Over the last year, more than 60% of Knight Frank buyers were in their 40s or younger. Last year, the same percentage was aged 50 or over.

The private rented residential sector has overtaken the social rented sector in England to become the second largest tenure in the country, according to new figures.

The data from the English Housing Survey 2012/2013 shows that there were an estimated 22 million households in England of which 65% or 14.3 million were owner occupied, 18% or four million were privately rented and 17% or 3.7 million were socially rented.

The report also shows that there has been a decline in the proportion of younger people aged under 35 taking out mortgages, down from 21% in 2008/2009 to 18% in 2012/2013.

In comparison the percentage of private renters aged 25 to 34 increased from 31% in 2008/2009 to 45% in 2012/2013.
An analysis of the figures shows that renters, private and social, tend to spend proportionally more of their income, on average, on housing costs than those with mortgages.

On average, owner occupiers buying with a mortgage spent 20% of their income on their mortgage. In comparison, private renters spent 40% and social renters 30% of their income on rent, although both private renters and social renters tended to earn less. Just under a third, 30%, of all private renters had a household income that exceeded £700 a week compared with 47% of owner occupiers.

In 2012/2013 those who had taken out their mortgage within the last five years paid an average of £187 per week on their mortgage. This compared with £133 among those whose mortgage had been running for five years or more.

The majority of all householders were satisfied with their accommodation, but owner occupiers were generally more than other tenures. Private renters were more likely than social renters to expect to own their own property in the future.

Overall, 95% of owner occupiers said that they were satisfied with their accommodation. In comparison, 81% of social renters were satisfied, and 84% of private renters. Around half, 52%, of private renters agreed that their current tenure was a good way of occupying a home. This was much lower than among social renters at 82% and owner occupiers at 93%.

Some 61% of private renters reported that they anticipated owning their own property in the longer term with 27% reporting that they expected to still be renting from a private landlord in the longer term.

The majority, 80%, of social renters anticipated that they would remain renting in the social sector in the longer term, with just 16% reporting that they wanted to own their own home in the longer term.

Among social renters who expected to buy, the proportion who expected to buy their current home increased from 37% in 2011/2012 to 44% in 2012/2013. The report says this may, in part, be explained by the reinvigoration of the Right to Buy scheme which allows local authority tenants to buy their home at a discount. Average housing benefits receipts were higher for private renters and the amount of rent paid after housing benefit was also higher for private…

For the first time ever there is to be a close to real time property index in France which will give buyers and sellers a better idea what is happening in the residential real estate market.

The Prix de l’Immobilier index will be launched in September and published weekly taking into account new transactions from a variety of different sources including banks and real estate syndicates.

It has been designed by Michel Mouillart, professor of economics at the University Paris-Ouest and director of the Housing Credit Observatory (CSA) with the aim of using figures from banks, financial institutions such as Crédit Foncier, Gecina, Sogeprom and the SNPI, the national syndicate for real estate prices that covers around 35% of sales in France.

It will be more up to date than the index published by Notaires which is notoriously months out of date. The index will be show data for the whole of France and also by region, city and town and it will give information on different property types such as houses, apartments and ‘special’ property.

French real estate professionals have been calling for an up to date and accurate residential property index for years and it will also benefit overseas buyers.

‘French Notaires have had a monopoly on house price data for a long time and when reports are published they are always six months behind,’ said Nicholas Leach at Athena Advisors which has over 120 partnerships with estate agents and developers in France.

‘Historical data is always useful but the lack of real time market information has always been a frustration for non-resident buyers, especially when this type of information is so readily available in countries like the UK. This new index will be extremely helpful when dealing with foreign investors, especially if it’s their first purchase in the country,’ he explained.

One of the biggest factors for overseas buyers is that they’ll now be able to see data for new build property as well as resale. ‘The Notaires data is largely based on resale property so for areas like central Paris where newly built property is extremely rare this new information will be very useful,’ added Leach.

One of London’s most iconic buildings, The Gherkin, in the heart of the city’s financial district has been put up for sale.

Savills and Deloitte Real Estate have been jointly instructed to sell the building at 30 St Mary Axe in the City of London following the appointment of Phil Bowers, Neville Kahn and Alex Adam of Deloitte LLP as the Joint Fixed Charge Receivers.

Interest is expected from around the globe for the 505,000 square foot, 40 storey landmark office building which opened in 2004 and was designed by Lord Foster.

It is currently multi-let to approximately 20 tenants including Swiss Re, Kirkland & Ellis International LLP and ION Trading and offers in excess of £650 million are being sought.

The tower was placed in receivership in April by its creditors after one of its owners was placed in insolvency. Germany's IVG Immobilien, which co-owned the building with private equity firm Evans Randall, filed for insolvency last year. Although Evans Randall said it was willing to buy a bigger stake in the tower, it was unable to agree a new ownership plan with IVG.

‘This is a globally recognised landmark building, which sits in the heart of London’s business core. The central London commercial property market has benefitted from improving market conditions over the course of the last few years,’ said Stephen Down, head of central London investment at Savills.

‘Not only have we witnessed a sustained appetite from international investors for assets in London but we have seen a substantial improvement in business growth and take up of office supply as the capital’s economy continues to improve,’ he added.

According to Jamie Olley, head of city investment at Deloitte Real Estate, The Gherkin is one of London’s famous landmark buildings and the most iconic office tower in the City’s skyline.

‘For investors, this prime office property provides an attractive combination of stable and reversionary income with opportunities to add value via asset management. The property will appeal to a wide range of domestic and international investors and we are confident of maximising returns to the receivers and creditors,’ he said.

The latest London Office Crane Survey by Deloitte Real Estate shows office development has now been running at below average levels for five years, with 9.2 million square feet under construction across central London. This, combined with a clear rise in office take up over the last 12 months, has resulted in availability falling to its lowest point since 2007, with 45% of space under construction already let.

According to Savills research, over the last five and a half years, central London has seen £71.1 billion invested into the office and retail markets, with overseas investors accounting for £47.7 billion, equating to 67% of the overall volumes.

The research notes that during this time period, investors from Asia Pacific represented 19% of total office and retail transactions, with European buyers accounting for 18%. US and Middle Eastern investors represented 13% and 10% respectively.

The firm also…

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.

UK home owners remain very confident that property values will continue to rise over the second half of this year, but are concerned about mortgage availability, according to the latest sentiment survey.

New lending criteria following the introduction of the Mortgage Market Review in April means that 40% of home owner believe that getting a mortgage is now harder than it was three months ago, the latest Zoopla Housing Market Sentiment Survey has found.

Londoners are no longer the most confident about further house price growth but overall some 92% of home owners surveyed expect UK property prices to increase over the next six months, slightly down from a four year high of 95% earlier this year.

It is the first time in a long time that London home owners are not the most confident across the country about house price rises in their area. The South East, the South West, the East of England and the West Midlands have all overtaken the capital in terms of home owner confidence.

With London prices having moved up so far and fast, the proportion of homeowners in the capital who expect prices to rise over the next six months has fallen from 98% to 92% over the last three months.

And amongst the 7,810 homeowners surveyed by Zoopla, the average prediction for house price growth over the remainder of the year currently stands at 7.6%.

The Mortgage Market Review (MMR) and associated new lending rules have both slowed down the mortgage application process and made securing finance more difficult. Despite that, 79% of UK home owners plan to spend at least the same or more on home improvements over the next year compared to last year.

‘After months of consistent growth in the capital’s property market we are now seeing a slight increase in caution among London’s home owners. More broadly, securing a mortgage appears to be getting harder now that MMR has caused lenders to be more rigorous with their lending criteria and approval process,’ said Lawrence Hall of Zoopla.

A breakdown of the figures show that the most confident about property price rises are home owners in the South West and South East of England with 95% in both regions expecting them to rise. In the East of England and the West Midlands it is 93% and in Wales and London 92%.

In Yorkshire and the Humber some 91% think prices will keep rising by December and in the North West, the East Midlands and Scotland it is 90%. In Northern Ireland it is 87%.

Plans to build Britain's first floating village at London's Royal Docks has moved a step closer after the Mayor of London Johnson, revealed that Carillion Igloo Genesis had won the competition to design and build it.

The Mayor unveiled ambitious plans in February 2013 to create a floating village as part of his ongoing drive to transform London's Royal Docks bringing jobs, commercial space and homes back to the capital's waterways.

Following a competition, Carillion Igloo Genesis has been selected to transform the 15 acres of water at the Royal Victoria Dock site, sitting directly to the east of the Emirates Airline, transforming it into a thriving community with floating homes, restaurants, cafes and bars.

Although a first for the UK, floating developments are already a popular idea on the continent with successful schemes at Ijburg near Amsterdam and Hafen City in Hamburg as well as many others examples of floating homes throughout Scandinavia.

The winning consortium's scheme includes a custom build approach for each of the 50 residential homes, enabling prospective occupiers to be part of the design process of their homes, and a blue water square, framed by a market square and a floating corniche.

There will also be a large multi-purpose events space and a mix of non-residential uses including restaurants, cafes, shops and leisure and office space. Plans for additional facilities, such as a floating Lido and an ice rink, were also proposed as part of the bid.

The scheme takes inspiration from the tried and tested floating homes at Ijberg and have been assisted by Dutch floating structures experts Mark van Ommen of Floatbase and Ton van Namen of Monteflore who have already delivered exemplar schemes of over 300 floating structures.

The Mayor, Boris Johnson, inherited almost 700 hectares of land as a result of the Localism Act and is currently one of the largest owners of public land in London. He is determined to bring more public land forward for development and accelerate the number of homes being built for Londoners.

Working with the London Borough of Newham, this includes the regeneration of the former Royal Docks area, with recent investments in this area including the opening of the Emirates cable car and the Siemens Crystal Centre, as well as forthcoming developments on GLA owned land at Silvertown Quays and Royal Albert Docks which combined would result in over eight million square feet Gross External Area of new commercial space.

‘This site has the potential to become one of the most sought after addresses in the capital while breathing new life back into London's waterways. Carillion Igloo Genesis' scheme will create a unique mixed use development providing a range of commercial activities within a high quality water environment for Londoners and visitors, creating jobs and raising the profile of London's Royal Docks,’ said Johnson.

Chris Brown, director of Carillion Igloo Genesis said that living in a floating home you've helped to design is a dream for many. ‘By…

Property sales in Scotland increased by 22.4% in the second quarter of this year compared to the same quarter the previous year, according to the latest figures from the Register of Scotland.

It is the fourth consecutive quarter in which the sales volumes have increased in excess of 22%, demonstrating sustained growth over the past year when compared with the previous year. It is also the highest volume of sales for this quarter since the first quarter of 2008/2009.

West Lothian again showed the largest percentage rise in the number of sales with an increase of 39.1% compared to the same period in the previous year and the City of Edinburgh recorded the highest sales volume with 2,944 residential house sales, an increase of 30.6% on the previous year.

All Local Authorities showed an increase in the volume of sales, with the exception of Aberdeen City, which showed a decrease in volume of sales of 2.1%, and the Shetland Islands which is below the 1% threshold.

The average price of a residential property in Scotland increased by 5.9% during the first quarter of 2014/2015 compared with the same period the previous year.

The average price of a residential property for this quarter was £162,122. This increase represents the first time in almost four years that the average price has increased by in excess of 5%.

The highest percentage rise was recorded in Renfrewshire, with an average price of £128,138, a rise of 16.8% compared with the same quarter the previous year. East Renfrewshire recorded the highest average at £232,987, a rise of 10% compared with the same quarter the previous year.

The largest percentage fall in price was again in Midlothian which showed a drop of 6.3% with an average price of £169,014.

The total value of sales across Scotland registered in the quarter increased by 29.7% compared to the previous year to just under £3.95 billion. This again consolidates on the large increase in the value of sales reported last quarter.

The City of Edinburgh remains the largest market with sales of just under £670 million for the quarter, an increase of 39.4% compared with the same quarter last year. West Lothian showed the highest percentage rise with the value of sales increasing by 54.1% compared to the previous year.

All property types showed an increase in average house price in this quarter, the biggest increase being in flats at 5.3%. All property types showed an increase in sales volumes with detached properties showing the biggest increase in sales volumes of 23.3% and semi-detached and flats showing the next biggest increase at 22.2%.

Simon Brown, partner and head of residential sales at CKD Galbraith, said the figures fit in with the firm’s experience which has seen a steady increase in sales throughout 2014. The volume of sales agreed up by 32% compared to the first quarter of this year and a 31% increase compared to the second quarter of 2013.

‘Overall we have seen very…

London and the South of England are seeing more offices converted into residential properties, according to the latest commercial property market survey from the Royal Institution of Chartered Surveyors (RICS).

Nationwide the availability of commercial property has declined at its fastest rate since the index series began and a lack of stock is pushing investors away from prime locations and into B grade commercial investments, the report shows.

Overall during the second quarter of 2014 chartered surveyors saw a rise in the number of transactions of commercial properties being sold with Permitted Development Rights (PDR) to be converted into residential properties.

UK wide, a net balance of 49% of respondents said this activity was having a 'moderate' impact on commercial market activity, while almost one in five, net balance of 18%, said it was having a 'substantial' impact.

The picture across the country, however, was more polarised, with respondents in the north being less affected by PDR transactions, a net balance of 49% saying it was having 'no effect' on the market, compared with 32% of respondents in the south saying it was 'substantial'.

Further compounding shortage issues, overall availability of commercial property declined at its fastest rate since the commercial market series began in 1998, net balance of 33% more surveyors reporting shortages, with sharp declines in office and industrial space availability and the lack of supply to the commercial market is pushing investors away from prime location investments and towards B grade investments.

In London and the South particularly, respondents reported that growing demand and the resulting drop in yields is encouraging investors to look for opportunities beyond prime locations.

In London, a net balance of 50% of respondents indicated that investors were looking to add 'secondary or tertiary' assets in their portfolios, while in the South, 62% signalled a growing appetite secondary space.

Looking ahead, expectations for rent levels over the course of 2014 revealed a net balance of 33% more surveyors expecting rent levels to increase throughout the year. Respondents forecast rents will rise by 5.5% in the industrial sector, 4.3% in the offices sector and 2.8% across retail space.

‘The latest results provide clear evidence that the economic recovery is broadening out across the country with rising employment increasing the demand for space in all sectors of the market. As a result, the balance of power is now shifting back to landlords with rent expectations turning increasingly positive,’ said Simon Rubinsohn, RICS chief economist.

‘Meanwhile, the pressure in the office sector is being exacerbated particularly in popular locations by the gradual conversion of some secondary space into residential. While making a much needed contribution to the substantial shortfall of homes, there are understandable concerns that this could be creating a related problem for businesses looking expand their footprint as economic confidence grows,’ he added.

Property prices growth in the prime central London market slowed to just 2.5% in the first six months of this year and values now appear to have now plateaued having risen by just 0.4% in the second quarter of the year.

The most established core prime central locations such as Mayfair, Knightsbridge, Belgravia and Chelsea, where average values are in the £2,100 to £2,400 per square foot, have all recorded quarterly growth below 1%, while in lower priced Marylebone, where prices average £1,600 per square foot, values rose 3.5% in the quarter.

The data from real estate firm Savills also shows that at the very top end of the market, homes worth over £10 million fell by 1.5% in the second quarter of 2014, meaning that London’s highest value homes saw zero growth on an annual basis albeit values remain 48.0% above peak.

This division is also reflected in sales activity, with sales between £5 million and £10 million in the first six months of the year up by 7% on the same period in 2013 but sales over £10 million down by 10% over the same period.

The strongest growth is now being seen in the lower value core prime markets of Islington and Canary Wharf and Wapping, reflecting confidence amongst young financial sector employees and investor buyers targeting City based renters.

For example, average values in the prime East of City markets have risen 10.1% year to date, which follows 13.3% growth in 2013.

The domestic markets of prime south west London, which beat all other prime markets to rise 14% last year, have also slowed. The report says that in the face of buyer resistance to further price inflation and higher stock levels, year to date growth stands at 4.4%, having slowed to just 0.4% in the past three months.

Across the prime London index, approximately one in four properties recorded small price falls over the last three months.’ This suggests the spectre of interest rate rises, and in some parts of the market more constrained mortgage lending, is beginning to impact on buyer sentiment and constrain prices even in markets rich in equity,’ the report explains.

‘With an election approaching and the taxation of high value property still on the political agenda we expect values to plateau in locations that have seen the steepest price rises as buyers apply the brakes on further increases for a period. New sellers entering the market should price for these new market conditions and a more cautious group of buyers,’ it adds.

One in 10 home buyers in the UK have bought a property to renovate with most intending to make a profit from their endeavours, new research shows.

However, half found the work was harder than they expected although two thirds said they would be prepared to do it again, according to the survey by loan provider Ocean Finance.

The research also shows that the average profit renovators have made or expect to make for their efforts is between £20,001 and £30,000. This was calculated by subtracting the purchase price of the property and the cost of the renovation work from the value of the house now.

While this much money is no small change, some home renovators are expecting to make much more. Some 7.8% of these respondents claimed they had either pocketed or hoped to make a profit of more than £100,000.

While the majority, 78%, of the people who have taken on a renovation project have completed it, some 22% admitted it was still underway.

Many respondents also revealed that the project had not been as easy to complete as they were expecting. In fact, nearly half, 46%, of home renovators admitted the work involved had been harder than they anticipated.

However, despite this the end result may have been worth it for most, as 63% of people who had taken on a property renovation scheme said they would do it all again.

People aged between 25 and 34 years old were found to be the most likely to have invested in a property in need of improvement, with 19% of this age group revealing they have done so. This might be because this is the age when people are thinking about taking their first steps on the property ladder, and buying somewhere that needs a facelift could save them some money.

Londoners were also the most likely to take on a renovation project at 20%. With house prices in the capital so much higher than the average across the rest of the UK, buying a house or flat that needs doing up might save residents money.

‘Taking on a renovation project can be a daunting prospect, but not only could it help you bag your dream home for a bargain price and you may end up making a profit too,’ said Ian Williams, Ocean Finance spokesman.

‘Of course, people should always make sure they carefully budget so that they don’t end up spending more than they can afford on doing up the property, and that they don’t take on a project they can’t manage,’ he pointed out.

‘House prices can go up and down, as can mortgage rates, and this may have an impact on the project’s budget but if all goes well, when the work is finished not only will they be left with a sense of achievement, but hopefully a healthy profit as well,’ he added.

After six years of sluggish activity, the Barbados luxury homes market is picking up according to the latest report from Knight Frank.

Christian de Meillac, Knight Frank’s Head of Caribbean sales said that he has seen a marked increase in buyer enquiries and this is backed up by the number of online property viewings being generated via Knight Frank’s Global Property Search Website which have increased 56.7% in the year to June 2014.

‘The sun seems to be rising again on the Barbados property market as the traditional selling season is extending into summer. Buyers are back and we are seeing regeneration in the market with more and more sales along the premium west coast from Bridgetown to Speightstown,’ he explained.

‘With the positive signs coming from the UK economy, price discounts and a new impetus amongst buyers, we have seen a marked increase in sales and interestingly, this is continuing into the summer months when things traditionally quiet down,’ he added.

In terms of the nationalities buying, UK buyers still lead the market accounting for around 70% of all prime sales, followed by Canadians but the presence of European buyers is also on the increase.

‘Demand varies according to price. The most popular spot seems to be those properties located along the west coast and priced between US$1 million and US$3 million. Beachfront apartments and standalone villas are generating the most interest with a sea view and privacy the two key prerequisites,’ de Meillac pointed out.

‘However, this has also been a year of record deals at the top end of the market, with two deals circa US$20 million and one deal rumoured to be in excess of US$40 million, a sign that things are looking up,’ he explained.

An analysis of applicant numbers now with a year ago shows that not only are more applicants registering their interest in a Barbados home but a greater proportion of them are buying.

De Meillac believes the strong pound has been influential. ‘The more favourable exchange rate has certainly assisted British buyers, not only providing them with an effective discount on the property price but visits on the whole are less expensive. Cars, dining and golf are all more affordable and the UK government is considering reducing taxes on long haul flights to the island. This also encourages tourism, and in turn home owners can increase their rental income, again helping reduce the cost of the property,’ he said.

However, despite the strengthening pound and the fact that Barbados is attracting more buyers and seeing more sales, locally property prices have not begun to increase. ‘Buyers are well informed, taking their time and researching the market thoroughly. Vendors need to be patient and it is still the best priced properties that are attracting attention,’ he added.

For the first time ever, average rents in Greater London are more than double those across the rest of the UK at £1,412 and £694 respectively, new research shows.

Average UK private home rents have increased 6.3% in the last 12 months, now standing at £862 per month compared to £811 a year ago, according to the latest HomeLet rental index.

It also shows that the North East of England, Scotland and Wales offer the most affordable rent when comparing rental prices to average tenants’ incomes in the regions,

Overall it says, the average cost of renting a home in the UK has risen so quickly in some locations that Greater London, the South West and the South East of England are pushing the bounds of affordability.

While this figure was inflated by very large rental increases in Greater London, where rents are up by 11.2%, rents have risen year on year in 10 out of 12 regions of the country, with only the North East of England and Scotland seeing minor falls in rental prices.

The London market continues to race ahead with the average monthly rent in Greater London being £1,412, compared to £694 for the rest of the UK, excluding London, meaning that London rental prices are now more than double those of the rest of the UK for the very first time.

When comparing average rental prices to average tenants’ incomes, Greater London represents the least affordable rental market in the UK, with the average tenant’s gross income being just 2.23 times the average annual rental.

Other regions feeling the squeeze on affordability are the South West and South East of England with the average tenant’s gross income being 2.55 times and 2.93 the average annual rental value in the respective regions.

‘The private rental sector continues to show strong growth with rental values increasing year on year across the country, with little exception. Although average incomes have also been rising, there are parts of the country where we are seeing affordability getting tighter,’ said Martin Totty, Barbon Insurance Group’s chief executive officer.

‘As a rule of thumb, for a rental property to be affordable, a tenant’s gross income must be at least two and a half times his or her annual rent. Our data shows that rents in London have pushed beyond that boundary, with the South East and South West of England close behind,’ he added.

A breakdown of the figures shows that the annual variation in average rental value in Greater London is 11.2%, in East Anglia it is 6.4%, in Wales 4.7%, in the South West 4.6%, in the South East 4.4% and the West Midlands 4.3%.

The North West saw a variation of 2.9%, Yorkshire and Humber 2.2%, Northern Ireland 2% and the East Midlands just 0.2% while there was a decline of 2.3% in the North East and 3.8% in Scotland.

‘The options for Londoners who are looking to rent in the capital are…

Average house prices in England and Wales have seen annual growth of 6.4% but price growth stalled in June, according to the latest flagship Land Registry House Price Index.

There was no change in June compared with the previous month but with the average price of a home now at £172,011, the market is not far off the peak of £181,466 in November 2007.

London has seen the greatest increase in its average property value over the last 12 months with a movement of 16.4% and the North East saw the lowest annual price growth with a rise of just 0.8%.

The West Midlands experienced the greatest monthly rise with growth of 1.9% Yorkshire and the Humber saw the most significant monthly price fall of 1.3%.

The most up to date figures available show that during April 2014 the number of completed house sales in England and Wales increased by 31% to 66,659 compared with 51,022 in April 2013.

The number of properties sold in England and Wales for over £1 million in April 2014 increased by 39% to 1,028 from 740 in April 2013. The region with the greatest fall in repossession sales in April 2014 was the West Midlands.

According to David Brown, commercial director of LSL Property Services, confidence is all about stability and he believes that the property market is delivering that. ‘We are seeing a shift from a period of catch-up to one of stable price growth and across the country, prices are now rising more uniformly too. All of this will reassure buyers and sellers and encourage more investment in new homes,’ he said.

‘Certainly, investment is what’s required. By contrast, the private rented sector has delivered below inflation rent rises for more than 12 months now, due to extra supply via landlords expanding portfolios. And across all tenures, the affordability of housing will ultimately depend on having enough homes to go around. A healthy purchase market is just the first step towards serious growth,’ he added.

Peter Rollings, chief executive officer of Marsh & Parsons, pointed out that after a frenetic start to the year, the pace of house price growth has slowed as the market stabilises and returns to more normal trading conditions.

‘With more choice coming onto the market, sellers are able to find their next onward purchase and consider trading up. Calmer conditions in the market have meant buyers view purchasing London Prime property as a less daunting process than has been the case previously,’ he explained.

‘London house price inflation made headlines all across the world at the start of the year, and this hasn’t escaped the attention of canny investors looking for a safe harbour for their capital. But the demographic of investors is changing and contrary to popular belief, the prime London property market isn’t being propped up by overseas money,’ he said.

He also pointed out that there is a new wave of UK ‘pension’ investors looking for steady rental yields and guaranteed long term capital…

Fewer people in the UK think the coming months will be a good time to buy a property with more than half believing it is a good time to sell, the latest confidence tracker report shows.

It says that confidence in the housing market is split and while the public have never been more optimistic about house sales, the outlook for the purchase market is at its lowest level since 2011.

The quarterly Halifax Housing Market Confidence tracker shows that 57% feel it will be a good time to sell in the next 12 months, exceeding those who think it will be a bad time at 32%.

This is the highest score of this measure since the survey’s inception in April 2011, making a net balance of +25 compared with +12 in the fourth quarter of 2013 and -6 in the third quarter of 2013. Sentiment towards selling is even stronger among owner occupiers with 63% stating that now is a good time to sell.

In contrast, the proportion of respondents who feel that now is a good time to buy has fallen to a net balance of +5, a fall of 29 points in the last quarter. This is the largest fall in this measure since the tracker’s inception in 2011.

Positive sentiment fell by 16 points among owner occupiers between the first and second quarters of 2014 and is now at 53% and those in London and the South East are the most negative.

Positive sentiment towards selling is highest in the East and South East, where 65% think it will be a good time to sell, compared with only 36% who say this in Scotland.

Overall net balance of respondents thinking that in the next 12 months it would be a good time for people to sell a property less those who think it will be a bad time for people to sell a property.

‘Over the past two years consumer confidence has continued to grow, however it appears that we’ve reached a tipping point with the equilibrium between buyers and sellers much more out of sync,’ said Craig McKinlay, mortgages director at the Halifax.

‘The results highlight the regional variations as now people believe that it’s a good time for to sell but not buy, particularly in London and the South East where house price expectations are generally higher and buyers appear to be less inclined to rush into a buying a property as we have seen over the past 12 months,’ he added.

The report also reveals a sharp rise in the number of people identifying rising prices as a barrier to buying, now at 35% which is up from 20% a year ago. Concerns about rises in interest rates is on an upward trajectory, up from 13% a year ago to 18% but, still, deposit raising remains the biggest perceived barrier as mentioned by 55%.

Some 71% predict the average UK house price will rise over the next year with 30% expecting it to…

The number of products on the market to service the growing interest in buy to let mortgages in the UK has risen to highs not seen since 2008, new research reveals

The research by Moneyfacts shows that the number of buy to let products on offer in July 2013 increased to 466, but now the number has risen by 42.7% to 665.

At the same time, average interest rates charged for both fixed and variable deals have fallen to the lowest levels ever at 4.17% for the average fixed rate and 4.03% for the average variable rate.

Lender interest in the buy to let market may be fuelled by the knowledge that it falls outside of the recent Mortgage Market Review which makes getting a loan more rigorous, according to Sylvia Waycot, Moneyfacts editor.

‘This makes the process of granting any buy to let mortgage quicker and simpler as it is not subject to the new affordability criteria that is starting to clog up the mainstream mortgage market,’ she explained.

‘In addition, the new pension regime means that retirees could consider by to let as a way of supplementing their income instead of purchasing an annuity,’ she added.

She also pointed out that Help to Buy is attracting potential borrowers into the housing market, but the advent of MMR is acting almost like a contradiction, putting the brakes on the process, and the funding element, although sensible, is making it harder for some to get onto the housing ladder.

‘Ultimately this all points to the buy to let market being here to stay and to remain attractive to lenders, hence the surge in products on offer for landlords who seem assured of a healthy supply of tenants,’ Waycot concluded.

Residential property prices in Ireland have increased by 12.5% in the year to June, up from10.6% in May, according to the latest index from the Central Statistical Office.

It is substantially up on the increase of 1.2% recorded in the 12 months to June 2013 and up 2.9% month on month, up from the 2.3% recorded in May and an increase of 1.2% recorded in June of last year.

In Dublin residential property prices grew by 3.3% in June and were 23.9% higher than a year ago, the data also shows but experts suggest that a supply shortage is behind the market growth.

Dublin house prices rose by 3.1% in the month and were 24.4% higher compared to a year earlier while apartment prices were 18.2% higher when compared with the same month of 2013.

However, a CSO spokesman said that it should be noted that the sub-indices for apartments are based on low volumes of observed transactions and consequently suffer from greater volatility than other series.

The price of residential properties in the rest of Ireland rose by 2.3% in June compared with an increase of 0.7% in June of last year and prices were 3.4% higher than in June 2013.

A breakdown of the figures show that house prices in Dublin are 42.7% lower than at their highest level in early 2007 while apartments in Dublin are 50.5% lower than they were in February 2007.

Residential property prices in Dublin are 44.5% lower than at their highest level in February 2007 while in the Rest of Ireland they are 45.8% lower than their highest level in September 2007. Overall, the national index is 43.4% lower than its highest level in 2007.

Meanwhile, figures from estate agents, Douglas Newman Goode (DNG,) suggest that there has been a 5.9% increase in Dublin house prices since the end of April. It says that house prices in the capital climbed by €20,000 since the end of March or €220 per day in the capital and found that houses with price tags of less than €250,000 grew at the fastest rate 10.9% in the second quarter of the year.

Between April 2005 and April 2006 the growth in national prices was 13.2%, up on the rate of growth to March 2006 of 12.1% and more than twice the 6.5% rise recorded in the 12 months to April 2005.

Although the rise in prices is generally welcome, experts point out that the recovery in property prices is mainly confined to the Dublin market and the price growth is due to a shortage of supply.

Indeed, the Society of Chartered Surveyors Ireland has called for the prompt implementation of the measures recommended in the government’s Construction 2020 Strategy to address the current housing supply shortage and pace of increases in property prices.

‘Average property prices have increased by almost a quarter since this time last year in Dublin and while property values still remain approximately 45% lower than in 2007, the…

House prices in England and Wales increased by 0.1% in July, a further decline in the rate of growth from 0.3% last month, and the lowest level of growth over a month since February 2013, the latest index shows.

Seasonal factors and an increasingly pronounced slowdown in the London market where prices have stalled in July, have been taking hold, according to Hometrack’s July Housing Survey.

It also reveals the slowest growth in house prices in 18 months and says that weakening demand and a continued slowing in the rate of house price growth is more than just a seasonal slowdown.

Indeed, tougher lending rules and changing buyer sentiment have impacted demand. London, which has been the engine for house price growth, has seen a particularly pronounced slowdown in the last month with a small proportion of markets in the capital now registering price falls.

Also, demand for housing fell slightly in July, with the percentage change in new buyers registering with agents at -0.9% compared to 0% in June. The gap between overall supply and demand has narrowed sharply in the last three months, pointing to a reduction in the upward pressure on house prices, meaning that the measure of demand has moved into negative territory.

Less than a quarter of postcode districts registered a price rise in July, almost half the level seen in the spring, when 50% of markets were registering price gains.

The proportion of the asking price being achieved is starting to decline nationally, as agents find it harder to push prices ahead in the face of weaker demand. The measure is still relatively high but has fallen from 96.8% in May to 96.1%. In London it has declined more sharply from over 99% to 97.5% over the same period.

The time on the market remains flat at an average of six weeks nationally, but there has been a slight rise in London from a recent low of 2.7 in March 2014 to 4.3 weeks. It’s also starting to rise in the South East, but elsewhere the downward trend continues.

The momentum of price rises in the London market has slowed dramatically in the last few months. Just 12% of London postcodes registered price gains in July. 11% of London markets actually recorded lower prices over the month.

‘Seasonal factors always lead to a slowdown in demand and market activity in the summer months, but it is clear that there are bigger forces at work with a pronounced loss of momentum in the London housing market in the last three months,’ said Richard Donnell, director of research at Hometrack.

‘The lead indicators in the survey have pointed to a slowdown in the rate of growth for the last two months, in part due to warnings from the Bank of England and others of a possible house price bubble. Demand for mortgages has also been slowing for several months now,’ he explained.

He also said there…

The number of tenancies agreed across England’s Home Counties rental market between was 50% higher year on year in the second quarter of 2014, according to the latest Knight Frank lettings index.

This has been driven by an increase in demand from corporate tenants working in London and in the first half of the year nearly 40% of all tenancies agreed were to international tenants led by individuals from North America.

The report explains that tenants relocating from the US are often present during the first half of the year, with many wanting to move before the new American school term starts in August.

Not only have activity levels risen in the second quarter, but there are indications that there could be a further pick up in the coming months with the number of potential tenants registering with Knight Frank lettings agents over the three months to June rising by 49%, compared to the same period last year.

Prime rents in the Home Counties increased by 2.6% in the second quarter of 2014, a marked improvement on the 0.7% growth in the first quarter of the year.

The recent strong performance of the Home Counties lettings market has come as global economies return to health, and business confidence in the UK grows, prompting companies to expand and increase corporate relocations. In fact, the latest ICAEW/Grant Thornton UK Business Confidence Monitor shows that business confidence was at a record high level in the second quarter of 2014.

Corporate demand for rental accommodation has come from a range of industries including the oil and gas, tech and mining sectors.

However, despite two consecutive quarters of rental growth, over the 12 months to June 2014, rents are still 3.8% lower.
Looking at supply, the number of new instructions, regarded as a good indicator on the level of stock coming onto the market, was 14% higher across the Home Counties between April and June compared to the same period last year, although the rise varied depending on location.

‘The strong prime sales market in Beaconsfield, for example, where prices rose by 5.4% over the year to June 2014, has resulted in some landlords deciding that now is a good time to sell,’ said Oliver Knight of the firm’s residential research team.

‘This has resulted in a fall in the number of available properties to rent and could serve to underpin further rent rises in the area,’ he added.

Residential property sales to first time buyers in the UK have grown 27%, marking the strongest opening half of a year since 2007, new research shows.

There were 146,000 first time buyers between January and June, some 30,000 more than in 2013, according to the First Time Buyers Opinion Barometer from Your Move and Reeds Rains, part of LSL Property Services.

In June alone there were 26,500 first time buyer sales, some 10% more than 12 months ago and topping 26,000 for the second consecutive month, the data also shows.

The last time the opening half of a year saw more first time buyer sales was in 2007 before the financial crisis began to bite when there were 181,500 transactions.

On a monthly basis, there were 26,500 first time buyer sales in June, 10% more than twelve months ago. It was the second consecutive month in which the number of transactions topped 26,000.

The average first time buyer deposit was a fifth lower than a year ago and at the same time, first time buyer purchase prices have stayed fairly stable.

The average first time buyer mortgage has risen 2.9% over the last year to £119,743, while prices have stayed flat but deposits have fallen. The market is indicating signs at first time buyer level of remaining stable and prices not spiralling out of control.

‘The bottom of the market continues to recover, even as activity further up the price bands is beginning to show signs of slowing down. Lenders have been more willing to lend to higher loan-to-value borrowers. Help to Buy has boosted confidence and with it demand among first timers who have been carefully saving up for their deposit,’ said David Brown, commercial director of LSL Property Services.

But he believes that the new loan to income caps could have a stifling effect on the first time buyer market. ‘They have understandably been designed to prevent too much risky lending to borrowers with smaller deposits, but they need careful interpretation to ensure they do not cut good buyers with realistic and very affordable borrowing expectations out of the market,’ he explained.

‘MMR regulations already stress test borrowers’ ability to withstand a base rate rise. The further regulation could sap the energy at the bottom of the market,’ he added.

The data also shows that in June 2014, some 93% of tenants registered with Your Move and Reeds Rains wanted to become home owners and overall the proportion of registered tenants expecting to buy in the near future is increasing. In June 2013, only 12% of tenants expected to buy in the next 12 months. A year later, that proportion has risen to 17%.

A further 38% of tenants surveyed in June 2014 believe they will be able to buy within the next five years and 29% expect to buy at some point in the future.

But the number of tenants who believe they will never be able to afford to buy is also increasing. Some 14% were…

A garden can add up to 10% to the price of a property in London where outdoor space can be at a premium, according to new research.

London properties with outside space are most likely to go to sealed bids and 65% of London property searches request outside space, says the research from independent agent Greene & Co.

The demand is fuelled by the growing popularity of entertaining at home and an increasing number of families choosing to stay in London, rather than move away from London and face rising travel costs. As a result, these properties are the most likely to be sold through sealed bids, the firm says.

In Crouch End, a one bedroom garden flat marketed for offers in excess of £360,000 saw 58 viewings in just one open house afternoon. The property received eight offers through sealed bids, sold for £50,000 over the guide price and exchanged and completed within six weeks.

A Maida Vale garden flat sold for £35,000 over the asking price to a buyer who had missed out on five other properties through sealed bids.

‘Space is at a premium in London, and we are seeing a growing number of homeowners in the Capital seek to maximise the square footage of their home. Properties with outside space are popular with families, but now we are seeing a rise in the number of downsizers, who enjoy gardening, and young professionals looking for additional room to entertain or that always useful outside storage room,’ said David Pollock, managing director of Greene & Co.

‘Outside space can add 10% to the value of a home. The current housing shortage, combined with a dearth in new properties with usable outside space has created intense competition for these homes and as result the majority go to sealed bids,’ he explained.

‘With the hottest summer on record in the capital, this demand is unlikely to subside and we should expect properties with outside space to continue to lead the curve on house price growth,’ he added.

Eight out of 10 landlords in the UK believe that the new immigration legislation which comes into force in October 2014, places too much responsibility on them, a new study shows.

Some 43% of landlords are not confident about making the checks that will be required by the legislation, while 30% said they are optimistic that they will cope with the new checks, according to the research by the Online Letting Agents.

When it comes to selecting new tenants, nearly half of landlords say they will be much more wary taking on tenants that they think might be immigrants.

Despite reassurances that landlords will not be responsible for illegal ‘ghost’ tenants that are living in their property, 11% of landlords are still worried that they will be responsible for any illegal tenants subletting.

‘The new legislation will be a big burden on both letting agents and landlords and there is no way around it. The industry needs to take these changes seriously as landlords and agents will face heavy fines if they fall foul of the law,’ said Eleanor Carroll, director of the Online Letting Agents.

‘Landlords and agents will need all the help they can get to integrate the new checks and validations into their overall tenant application process. Not surprisingly, there are a number of companies now offering immigration checking services,’ she pointed out.

She explained that if agents and landlords make the initial immigration checks part of the referencing process and then carry out ongoing checks on visa status, they will be compliant with the law.

‘The danger is that agents and landlords will refuse potential tenants if they believe them to be immigrants. This could lead to a housing shortage for a growing segment of the population,’ said Carroll.

‘There are a number of referencing agencies, such as Legal 4 Landlords, that are preparing for the new legislation. Landlords and agents will be well supported by the industry, as immigration checks become a standard as part of the referencing procedure,’ she added.