House prices in Scotland increased by 0.5% in May, but sales fell by 3% probably due to the marketing adjusting to new mortgage rules, according to the latest monthly index.

Year on year prices have climbed 4.3%, or £6,750, to an average price of £162,302, the LSL Property Services/Acadata index also shows.

It points out that May marks longest period of sustained monthly price growth since before the economic crisis and the property market recovery has strengthened across the country, with a new price record being set in Aberdeenshire.

‘We are now seeing the longest sustained period of price growth in seven years. Prices have not climbed so steadily every month since December 2007,’ said Donald MacLellan, chairman of Walker Fraser Steele Chartered Surveyors, part of LSL Property Services.

‘Not only this, but growth has put down roots across the country, with 87% of the local authority areas in Scotland enjoying annual average house price rises. In May a new record house price was reached in Aberdeenshire, taking the cost of an average home to £224,803,’ he explained.

He pointed out that first time buyers provide a solid foundation for the recovery to continue building on.’ In the three months to May 2014, the number of flats sold rose 26% on the same period last year, followed by terraced houses with a 22% annual increase in sales. As the typical property choices for first time buyers, this illustrates the stream of activity at the entry level of the market powering growth and consumer confidence,’ said MacLellan.

He also said that the 3% fall in sales goes against the historic seasonal trend for this time of year, suggesting that tighter regulations under the Mortgage Market Review have temporarily slowed housing transactions.

‘But with recurrent indications that interest rates will rise before the year is out, new record property prices being set, and only three months to go before the independence referendum, potential buyers may also be taking heed of caution and delaying purchase decisions until they can be clear what the future holds,’ he commented.

‘Whether this monthly blip is symptomatic of a broader turning tide in the housing market remains to be seen, as it is still too early to see. More changes are afoot, with greater stress testing and loan to income caps coming into play to ensure the long term health of the property market,’ he said.

He also pointed out that the Bank of England or the UK government intervening further in the property market to rein in housing demand is not necessary in many parts of the UK, and could pull the rug out from under the feet of recovery in areas where growth is still bedding down.

Prices are not rising everywhere. In the city of Glasgow house prices dropped 3.1% in the month to May 2014. ‘The Help to Buy scheme and further investment into new housing developments are a lifeline in areas such as these to consolidate growth,’ added MacLellan.
…

House sales transaction levels in central London’s prime property market are down 45% compared to June 2013, according to a new report.

The volume of transactions is concerning as the market slows down for the summer months, says the analysis report from W. A. Ellis.

It is probably due to buyers are adopting a 'wait and see' approach for political and economic reasons, said Richard Barber, partner at the estate agency.

‘We've seen a 25% reduction year on year in sales at all price ranges across our prime central London areas of Belgravia, Chelsea, Knightsbridge, South Kensington, Mayfair, and Kensington,’ he pointed out.

‘For instance, in June 2014 only 185 properties were sold, compared to 249 properties in June 2013. It is the underlying reduction in the volume of transactions which is of most concern as we enter the traditionally slower summer quarter,’ explained Barber.

The agency said that the proportion of sales under £2 million has also reduced, but only marginally from 67% to 62%. ‘However, when one looks at the actual number of sales, a more disturbing trend emerges, namely that only 115 flats have been sold in June 2014 beneath £2 million and perhaps the most frightening statistic of all is that only 27 houses were sold in June, whereas last year 49 were sold, a reduction (in transactional terms) of nearly 45%,’ said Barber.

‘The underlying factors are very apparent to close observers of the market; the combination of mansion tax threats, higher stamp duty, ATED and the fear of a Labour government is having a cooling effect on the market in general, but is particularly swingeing within the family house market,’ he explained.

‘There are currently 374 houses for sale within our chosen areas and approximately 92% of them have a price tag in excess of £2 million so it is not entirely surprising that the transaction level is lower,’ he added.

He pointed out that arguably, there is also value to be found as many of these properties offer greater floor area, albeit spread over four to five floors, gardens, patios and better bedroom accommodation.

‘It is apparent, however, that the traditional buyer of these houses, buyers from northern Europe and the UK, are currently weighing up the situation both political and economic, and perhaps adopting a wait and see approach,’ Barber added.

‘What is clear is that keen vendors will need to adjust their expectations if they wish to find a buyer this summer. We have achieved 99% of our asking prices since January 2014 which underlines the importance of accurate and responsible pricing in a changing marketplace,’ he concluded.

Half of all tenants in the UK feel a private sector landlord or letting agent has ripped them off with failure to get repairs done the top reason behind this feeling, new research shows.

With more people renting a home privately than ever before, the survey conducted on behalf of Ocean Finance has revealed a high level of dissatisfaction amongst tenants with the service they receive.

It also shows that 46% of tenants deal with their landlord directly, some 24% deal with both a letting agent and a landlord and 30% communicate only with a letting agent.

Renting is more prevalent among younger generations, with 52% of 18 to 24 year olds renting their home privately. Some 46% of 25 to 34 year olds rent and 22% of those aged 35 to 44.

When asked why they had felt ‘ripped off’ by their landlord or letting agent, the most popular reason given by disgruntled tenants was a failure to get repairs done, with 53% unhappy renters complaining of this. This was closely followed by delays in getting repairs carried out cited by 47%.

Other complaints voiced by tenants who felt their landlord or letting agent had ‘ripped them off’ included non-refund of the tenancy deposit, 37%, unreasonable deductions from the tenancy deposit, 25%, unreasonable increases in rent, 23%, and being handed unreasonable fees or charges to begin the tenancy agreement, 22%.

‘The English Housing Survey recently revealed that private renting has hit a peak of four million and has almost doubled since the 1980s. While many more of us are happy to live in rented accommodation, this survey suggests that at certain points in time we can be less than happy with the service provided by landlords and their agents,’ said Ocean Finance spokesman Ian Williams.

‘The biggest driver of dissatisfaction is the failure or timeliness of getting repairs done. If you are left without heating or hot water, for example, you have every right to expect the landlord or their agent to get it fixed promptly,’ he added.

UK house prices increased by 10.5% in the year to May 2014, up from 9.9% in the year to April 2014, according to the latest index from the Office of National Statistics (ONS).

House price annual inflation was 11% in England, 6.5% in Wales, 3.6% in Scotland and 0.7% in Northern Ireland, confirming that price growth is now reaching the whole of the nation.

Overall house prices are increasing strongly across most parts of the UK, with prices in London again showing the highest growth. Indeed, annual house price increases in England were driven by a record annual increase in London of 20.1% and to a lesser extent increases in the South East of 9.6% and the East at 8.6%.

Excluding London and the South East, UK house prices increased by 6.4% in the 12 months to May 2014 and on a seasonally adjusted basis, average house prices increased by 0.8% between April and May 2014.

The data also shows that in May 2014, prices paid by first time buyers were 11.3% higher on average than in May 2013. For owner-occupiers prices increased by 10.1% for the same period.

David Newnes, director of Reeds Rains and Your Move estate agents, owned by LSL Property Services, pointed out that the housing market recovery continues to seep across the country beyond the capital.

‘Consumer confidence is travelling further afield, but a balanced view has to be taken as some regions of the country have seen very little house price growth. Places like Lancashire and York are still experiencing annual growth below 1%,’ he explained.

He also pointed out that there are also new signs that growth is beginning to slow. ‘In London prices have begun to fall at the upper end of the market, and the City of Westminster and the City of London have now seen house prices drop in the last 12 months. In four of the top five most expensive London boroughs, average house prices have dipped below their respective peak levels,’ said Newnes.

‘With new affordability regulations and stress tests tightening mortgage approvals, the Help to Buy scheme remains a crucial link in bolstering first time buyer demand and fuelling activity outside of London. Help to Buy may not be making a difference in London, where prices often exceed the upper eligibility limit, but it is a vital aid for aspiring home buyers in parts of the country where prices are still regaining ground lost during the recession,’ he added.

According to Paul Smith, chief executive officer of CEO of haart, the UK’s largest independent estate agent, recent statistics from the same government department show that nine of the 12 regions of the UK are still below their peak in January 2008.

‘This helps keep things in perspective. It’s a positive that house prices are continuing to recover around the UK while London remains a law unto itself, but even here we are seeing prices tail off which is a good thing,’ he said.

‘More stock is coming onto…

New home lending activity in Australia is still trending higher with the latest figures from the Australian Bureau of Statistics showing it at its highest level for four years.

The seasonally adjusted number of loans for construction increased by 0.9% in May 2014 and was up by 3.1% in the three months to May, the ABS data shows.

Loans for the purchase of a new homes increased by 1.6% in May, but fell by 1.6% over the three month period. According to the Housing Industry Association, the voice of Australia’s residential building industry, it is an encouraging forward sign for new home building that the number and value of loans for both construction and new dwellings purchase headed higher.

‘Construction loans, the principal component of new home lending, are at their highest level in over four years. New dwelling commencements are on track to hit their second highest level on record in 2014,’ said Harley Dale, HIA chief economist.

‘It is also encouraging to see that lending for larger alterations and additions is moving higher since a low point reached in February. The market hit a decade low in 2013 and a turnaround this year would clearly be a desirable outcome,’ he explained.

‘With low interest rates and the recurrence of capital gains, there is the opportunity for the market to gather upward momentum,’ he added.

Over the three months to May 2014 HIA’s seasonally adjusted estimate shows the number of loans for new housing in New South Wales rose by 2.1%, by 0.6% in Victoria, by 7.6% in Queensland, by 8% in Western Australia and by 13.8% in Tasmania.

Over this three month period the number of new housing loans fell by 4.4% in South Australia, by 9.9% in the Northern Territory and by 12.4% in the Australian Capital Territory.

The number of homes in the UK that entered the market for sale valued at over £500,000 rose by 30% in the second quarter of 2014, the latest Experian property index shows

Homes in the second highest price band of £250,000 to £500,000 increased by 16%. This is the highest level since 2010 for both price bands.

The data also shows that in the second quarter of 2014 homes worth more than £250,000 made up 41% of all the homes that entered the market for sale compared to 37% in the same quarter of 2013.

Overall, the number of properties to enter the market for sale between April and June 2014, increased by 9.6% compared to the same period in 201 and this rise was led by the North East region which saw the number of houses coming to the market for sale increase by 25.6%.

The only area in the UK that witnessed a fall in numbers was the East of England, which found the number of homes coming on to the sales market decreased slightly by 2.6%.

The rise in the over £500,000 was, led by the London region with an increase of 50.7%. This was followed by the Outer Metropolitan and South West areas.

The West Midlands appeared among the areas to see the highest increase in properties with more than £500,000 coming onto the market for sale with a rise of 25.5% and the North East continued to see the most affordable properties worth less than £100,000 entering the market with a rise of 33.6%.

The rental market, which had been seeing a steady growth each quarter, saw fewer newly advertised properties coming onto the market for rent, down 4.3% across the UK compared to the second quarter of 2013.

The fall was led mainly by the Outer Metropolitan and South East areas which were down 10.5% and 8.8% respectively. The North East and Wales were the only areas to continue to see a growth in rental properties, up 4.3% and 1.8%.

‘The growth in houses prices suggests that home owners may have made reasonable capital gains on their existing properties, especially as they seek to move up the property ladder,’ said Jonathan Westley, managing director of Consumer Information Services at Experian UK and Ireland.

‘Our latest index shows that higher end properties now form a greater proportion of properties appearing for sale, implying it is now second or third time buyers, who are more active in the housing market. But, 59% of all properties across the UK were still valued at less than £250,000 so there are opportunities for those with smaller budgets,’ he explained.

‘The challenge for people wanting to secure a mortgage is showing themselves in the best possible light to lenders, i.e. applicants who can afford the long term commitment, especially with an interest rate rise looming. Lenders have just as an important role to play ensuring they are not making decisions that could see a person fall into debt in…

Many property buyers or current home owners in the UK haven’t even heard of the government flagship Help to Buy scheme, new research suggests.

Others have admitted to hearing the name but not knowing what it was, according the survey carried out by removals company Bishop’s Move.

Nationally some 22% don’t know about the scheme but there are regional variations. For example, 25% of home owners and current buyers in the North East hadn’t heard of Help to Buy while only 7% in Yorkshire and 6% in the West Midlands had done so.

A further 28% in the South West and 26% in Yorkshire also admitted to hearing about the scheme but not realising what it was.

Overall just 3% said they were fully aware of Help to Buy’s benefits and have used or knew someone that has used the scheme whilst 52% said they were aware that it was helping first time buyers onto the property ladder.

‘Help to Buy has certainly been making the headlines for some time there are yet pockets of home owners and property buyers across the UK that remain completely unaware of the scheme,’ said Chris Marshall, sales and marketing director at Bishop’s Move.

‘In areas such as the North East, where the property market is somewhat stagnate, it is a worrying statistic that over a quarter of those surveyed haven’t even heard of Help to Buy,’ he pointed out.

‘In order to improve local economies through the housing market, more needs to be done from a regional perspective to ensure people are fully aware of the many benefits Help to Buy can bring,’ he added.

The research also found that over 15% of 18 to 24 year olds think the Help to Buy scheme is a recently launched face to face, personal shopping service by the major supermarkets for over 60s and 11% believe the Help to Buy scheme is a new web service to help online traders shop more securely on sites such as eBay.

In fact less than half of 18 to 24 year olds, 42%, agreed that Help to Buy is a government scheme to help first time buyers onto the property ladder and it isn’t until you reach over the age of 45 years that people fully understand what the scheme is. Some 85% of those aged 45 to 54 and 94% of those aged over 55 knew exactly what Help to Buy is.

'With Help to Buy targeted towards first time buyers, 18 to 24 year olds is a key demographic for the scheme. However, these stats will prove alarming for government officials who are relying on Help to Buy to ensure people fulfill their ambitions of owning a property,' said Marshall.

'It is a concern to see that is isn’t until you reach over the age of 45 where people know exactly what Help to Buy yet this demographic is very likely to be filled with property owners already. Clearly…

Imposing lending restrictions on the buy to let mortgage market in the UK could have damaging consequences for landlords and the supply of rental properties, it is claimed.

According to tenant eviction and rent recovery firm Landlord Assist, changes to the mortgage lenders conditions could make it more difficult to find a buy to let loan or to remortgage an existing deal.

The Bank of England recently told banks not to give more than 15% of new home loans to home buyers borrowing more than 4.5 times their annual income. It also told lenders to perform stricter tests to ensure borrowers can repay their loans when interest rates start to rise.

Although lending in the buy to let market wasn’t covered by the tougher rules announced by the Bank of England, it is believed that the rental sector is to be closely monitored to ensure private landlords don’t take on debts they may struggle to repay.

‘The banks are being asked not to provide a loan of greater than 4.5 times income for the vast majority of their loans and being asked to stress test applications to see if people can afford the mortgage if interest rates were to go up by 3%,’ said Graham Kinnear, managing director at Landlord Assist.

‘Whilst this is in place for the owner occupier market we can see a situation where this is, in some form or another, extended to the buy to let market as well. Clearly, we do not advocate landlords taking loans out which they can’t afford when interest rates go up but it is important that the income those properties generate is included within any affordability calculations,’ he added.

Stephen Parry, commercial director at Landlord Assist, pointed out that many landlords have no employed income but have a property portfolio which pays the mortgages and provides them with a surplus as an income. ‘We would not want to see these people struggling to remortgage onto competitive rates should they wish to do so,’ he said.

Landlord Assist is concerned that imposing restrictions on lending in the buy to let market could reduce the supply of rental accommodation in the UK at a time when it is most needed.

‘There is a strong and growing rental sector and there is a clear need for the amount of available property to rent to increase to meet this growing demand. Making buy to let borrowing more difficult could have the reverse effect and leave the market in a painful cycle of increasing rents and reduced choice,’ added Kinnear.

Prime property prices in Scotland were 2.8% higher in the second quarter of 2014 compared with the same period in 2013, according to the latest data to be published.

At the end of June 2014, there were six potential buyers registered for each available property and stock levels were 36% higher than at the end of the first quarter, the data from Knight Frank shows.

It also shows that the volume of prime property for sale in Scotland has increased steadily through 2014 but warns that buyers are becoming more cautious in the run up to the referendum on independence in September.

Overall country house prices were unchanged in the second quarter of the year, following three consecutive quarters of price growth but on an annual basis prime property values in Scotland are 2.8% higher.

The greater choice available to buyers ensured that the number of property viewings taking place between April and June was 3% higher year on year.

However, there are signs that buyers are becoming more reluctant to enter the market with the referendum just around the corner. The number of individuals looking to purchase a prime country home in Scotland was 25% lower at the end of the second quarter compared to the same time last year, reflecting the uncertainty caused by the referendum.

‘There is some hesitancy on the part of buyers to get involved with the market until the question over Scottish independence has been answered. This is especially true for buyers from outside of Scotland, who are waiting until after the result of the referendum is announced in September,’ said Ran Morgan, head of Knight Frank’s Scottish residential department.

‘However, an increase in the number of homes available for sale is good news for those who are looking to move as it affords them greater choice in their home search. And while activity and interest from buyers has been greatest for homes worth up to £1 million, we have noticed a rise in interest for properties priced above this, with the sale of the Auch and Invermearan Estate in Argyllshire and Perthshire for over £10 million a particular highlight,’ he added.

While prices remained static across all regions over the course of the quarter, there are regional variations in price performance for prime Scottish homes over the year to June 2014. The Scottish Borders and the Central region lead the way with growth of 5.8% and 3.2% respectively.

The luxury property market in Spain’s Balearic Islands has seen an encouraging start to the year with demand from wealthy buyers reported as being well up on 2013.

Ibiza is seeing the biggest upswing, according to Glynn Evans, managing director of Ibiza Sotheby's International Realty, with interest being generated by a constant stream of luxury lifestyle news items relating to the island.

He pointed out that Ibiza is now thought to have the most expensive restaurant in the world with the Sublimotion restaurant at the Hard Rock Hotel charging €1,500 euros per head for 20 courses. Also Michelin star chefs Ferran and Albert Adria of elBulli fame, have just announced that they're opening a new restaurant in Ibiza in 2015.

The 16th edition of the annual Gumball 3000 Rally concluded in Ibiza in June bringing supercars and supermodels to the island, the Class 1 World Powerboat Championship is on its way for a three day Grand Prix in September and the port of Ibiza it so have an €8 million facelift to create a much improved super yacht haven.

‘It's not just hearsay anymore that the island can rival the French Riviera in terms of cuisine, ambience and cool factors. ‘We're attracting buyers who have previously had homes in the South of France but are selling up and moving to Ibiza. The celebrities are also coming early this year, we've had Naomi Campbell, Sir Paul McCartney, Kate Moss, Enrique Iglesias, David Silva, Paz Vega, all in the past few weeks, and it all adds up to Ibiza being a very desirable place to own a second home,’ explained Evans.

‘Halfway through 2014 the island's luxury property market is in a very encouraging state. At the high end, there have already been in excess of 25 transactions for villas priced over €2 million, some with which we've had direct involvement, others where we have gained specific knowledge. There will undoubtedly be further high end sales that haven't been openly publicised,’ he said.

The firm is seeing unprecedented demand, up more than 50% on 2013, and Evans said it has already sold its target number of €2 million plus villas for the whole of 2014.

‘Although it's hard to evidence, particularly with the notoriety of Spanish statistics, prices are on an upward trajectory. The volume is really too low at the high end to draw proper year on year comparisons, but recently we had two parties fighting over the same house and one offered €150,000 over the asking price to seal the deal. Likewise, I would very much love to have some of last year's sold property still on our books, as I am sure they would achieve higher prices today,’ he pointed out.

He also explained that British buyers are still predominant, followed by a more even spread of Germans, French and Dutch. Generally interest is from Europe, and there has not been a rise in buyers from China and Russia attracted by Spain’s golden visa programme which grants citizenship…

Average house prices across the UK now exceed 2007 levels, however some indicators suggest that the pace of growth may be set to slow with new mortgage rules adding a dampener.

UK house prices rose by 1% in June, and are now 11.8% higher on an annual basis but the latest house price sentiment index from Knight Frank and Markit suggests there is an easing of expectations for future price growth.

The value of an average home has risen by £20,000 or 11.8% over the last year. Data from Nationwide shows that the value of an average property in the UK is now £188,903, above the pre-crisis peak levels seen in 2007.

However there are still large regional variations in the pace of growth, with London prices up 26% over the year while property in Yorkshire and Humberside has risen in value by 7% over the same period, Knight Frank says in its latest UK residential update report.

This rapid rise in prices has been identified by Sir John Cunliffe, deputy governor of the Bank of England, as the biggest threat to the UK economy. He said that prices rising faster than earnings led to the risk of rising consumer debt which the bank sees as a threat to stability.

His colleagues have been active around mortgage credit in recent weeks, with a much anticipated announcement by the central bank’s Financial Policy Committee that it would step in and apply curbs on new home loans. From October, lenders will have to limit the number of loans they advance where the value of the mortgage exceeds 4.5 times a borrower’s annual income.

Lenders will have to ensure than 85% of their loans are under this 4.5 limit. It added that lenders should apply stress testing to ensure that borrowers can still afford their monthly mortgage repayments if interest rates climbed by 3%.

The impact of the changes may be limited on a national level, coming shortly after the new MMR mortgage rules which had already tightened up the application process. In addition, many mortgage lenders already carry out ‘stress tests’ to check that new borrowers can still make repayments. However, the limiting of loans advanced at 4.5 times income could have an effect on the London market, which has seen a sharp rise in the number of loans advanced at this level.

The report also points out that the measure of the price growth anticipated by households across the UK fell by the biggest margin since 2011 in June this year. Londoners’ expectations for growth moderated for the second month in a row.

‘There is increasing expectation that interest rates will start to rise before the end of the year, and this, coupled with more downbeat economic news from Europe, has helped push sterling to near six year highs against a basket of currencies. Indeed, the UK’s economic growth is looking fairly solid on the global stage. The size of the UK economy will overtake that of France before…

One in five people in Briton is planning or considering a property purchase in the next two years and 77% will share the purchase with a partner, relative or friend, according to new research.

Affordability is the main reason for a joint purchase cited by one in four, the research by Santander Insurance has found. It also found that 39% of these transactions will be between friends, family members, and unmarried couples.

Some 22% of those who are planning or considering a joint purchase in the next two years are doing so with their unmarried partner while 13% will share the purchase with their parents and 4% expect their home purchase to be made jointly with someone else such as a friend or other relative.

This contrasts with current figures where just 7% of people own a home with an unmarried partner, 3% with their parents and 2% with a friend or other relative.

Santander’s study highlights that almost half, some 44% of existing joint home owners have no life insurance cover and a further 27% of those who are planning or considering joint home ownership have no plans to buy it.

The research also shows that of those planning a joint purchase, unmarried couples are almost twice as likely as married couples, 39% versus 21%, to do so without life insurance.

Santander is reminding all joint home owners, regardless of their relationship, of the importance of life cover, to ensure co-owners, family and dependents are protected, should something happen to either party.

The main reason for buying jointly, cited by 23%, was that shared ownership is the only way they can get a foot on the ladder. Only a fifth, 21%, of those planning a joint purchase will do so simply because they want to live with the other person and 16% will buy jointly because it will leave them less financially stretched.

Also, some 15% will do so in order to afford a bigger property and 9% of those hoping to buy jointly in the next two years say their main motivation is taking advantage of a good investment opportunity.

‘Sharing the purchase of a property, whether that’s with friends, family or a partner, is a great way to spread the financial burden of home ownership. Most people entering into a home purchase will be looking to keep costs down, but we’d urge people not to cut corners when it comes to life cover, as it provides a vital safety net for those around you,’ said Alan Mathewson, head of Santander Insurance.

When asked how they would cover the remaining financial commitments in the event that the person they own a home with was unable to make them, only 38% said they would do so through their own financial means. A quarter say they would rely on the other person’s life insurance, 17% would be forced to sell the property and 9% would seek financial help from family and friends while 6% of those questioned…

The proportion of part time UK landlords who supplement their day job with rental income has reached its highest ever level according to new research.

The National Landlords Association, (NLA) says that part time landlords now make up more than 70% of the sector.

A fifth of these landlords are so encouraged by the current rental market that they intend to add to their property portfolio this year.

A typical part time landlord has on average four properties and generates an annual gross rental income of £31,000. However, a quarter of this income is spent on property or portfolio related maintenance costs.

More than four in 10 of these landlords have used buy to let finance to fund their lettings portfolio, and almost 40% of all landlords agree that it’s getting easier to access buy to let mortgages.

However, four in five landlords agree that the market would benefit from more buy to let lenders and greater competition.
The NLA has launched new guidance to support the growing number of part time or amateur landlords who are considering a new investment or planning to expand their portfolio.

‘Private landlords put an estimated £20 billion into providing homes the UK and we know that more and more people are looking to buy to let as an alternative means of saving for the future,’ said Carolyn Uphill, chairman of the NLA.

‘Being a landlord can be very rewarding but it’s vital that anyone considering a move in to buy to let, or indeed looking to expand their portfolio, is thoroughly researched and aware of what it involves. A part time landlord typically has a day job so it can be a very challenging task to keep on top of managing and maintaining homes for people whilst juggling the demands of daily life,’ she explained.

‘As the leading landlord association we have a duty to ensure that new and prospective investors identify as landlords and know they can rely on us as a source of valuable information and advice. Our new guidance does just that and will provide everything you need to consider when looking for a new investment or expanding your portfolio, as well as tips on how to run your lettings business effectively and profitably,’ she added.

Major mortgage lenders in the UK have today published details for the first time of their total outstanding residential mortgage lending according to over 9,000 post code sectors across the country.

The data includes most buy to let lending as well as home owner lending worth around £855 billion and is compiled by the Council of Mortgage Lenders, covers Barclays, HSBC, Lloyds Banking Group, Nationwide Building Society, Santander UK, RBS, and Clydesdale and Yorkshire Bank, who together represent about 73% of the total mortgage market.

These lenders are also publishing their own lending data by postcode on an individual basis and the British Bankers' Association is simultaneously publishing a similar breakdown of SME lending and personal loans.

Out of the 10,834 sector postcodes in Great Britain data is being published on 9,030 sector postcodes. In addition, there are 1,770 sector postcodes where, according to 2011 Census results, nobody lives and there are 32 sector postcodes where people do live and where participating lenders have mortgages, but aggregate data cannot be reported because it might compromise individuals' data privacy.

There are just two sectors where people live but where participating lenders do not have mortgages. However, 2011 census data suggests that in both localities there were households with mortgages, which could well be provided by non-participating lenders.

The CML says that when interpreting these detailed figures, it is important to bear in mind that this postcode reporting exercise initially only covers lenders accounting for around three quarters of the overall mortgage market. With more than 100 active lenders, the mortgage market is fiercely competitive, and this means that local markets may display different market share characteristics.

The detailed local statistics at sector postcode level provide for the maximum transparency possible without compromising data privacy. However, interpreting them is less straightforward, especially given the significant variation in such factors as house price values, population size and tenure patterns at a local level.

So the CML is also supplying higher level postal area data covering the 120 postal areas of Great Britain. ‘On this basis, we are able to report £891 billion of mortgage lending by the participating lenders, since we are able to include some of the lending that had to be excluded for data privacy purposes from the more detailed sector breakdown, as well as some lending that could not be attributed to a specific sector postcode,’ explained CML director general Paul Smee.

‘As you would expect, strong levels of mortgage lending are broadly correlated with those areas where there is a strong resident population. While the dataset covers only three quarters of the mortgage lending market, it certainly shows that there are reassuringly few surprises in the postcode distribution of mortgage lending,’ he added.

Lenders have taken care to strike a balance between the desire for transparency and the need to protect customer confidentiality. To protect the privacy of business and personal customers, a set of parameters were agreed with the government to ensure customer confidentiality is protected…

House prices in England and Wales have seen their highest annual rise in four years, but the rate of growth is slowing, according to the latest monthly index figures to be published.

Average house prices climbed £23,443 or 9.6% in the past year and even if London is excluded then it is still a substantial rise of 5.2%, according to the LSL/Acadata index.

On a monthly basis property prices increased by 0.7% in June, and just 0.1% if London and the South East is excluded.
The data also shows that London house prices are up 15.6% annually, but prices are falling in Westminster and the City.
The recovery has been strengthened by first time buyers with new peak prices set in South East and East Anglia.

David Newnes, director of Reeds Rains and Your Move estate agents, owned by LSL Property Services, said that 12 months of solid house price increases have driven up average property values by a total of £23,443, setting a new record high of £268,637.

‘But if you exclude London and the South East from the picture, average house prices across England and Wales have risen a far more sustainable 5.2% over the last year. There are also new signs that growth is beginning to slow as we move into summer, and following the changes brought about by the Mortgage Market Review implemented at the end of April,’ he explained.

He also pointed out that the 0.7% monthly change witnessed in June, amounting to £1,900, is below the average 0.8% increase per month recorded over the last year, as house price inflation starts to moderate. And if you remove London and the South East from the equation, house prices are up only 0.1% in the month to June.

‘With new affordability regulations and stress tests tightening mortgage approvals, the Help to Buy scheme remains a crucial link in bolstering first time buyer demand and fuelling activity outside of London,’ said Newnes.

‘Flats, the typical property type of first time buyers making their first step onto the property ladder, have seen the biggest boost in sales across the country. During March to May 2014, sales were up 37% on the same period last year,’ he explained.

‘The Help to Buy scheme may not be making a difference in London, where prices often exceed the upper eligibility limit, but it is a vital aid for aspiring homebuyers in parts of the country where prices are still regaining ground lost during the recession. Places like Lancashire and York are still experiencing annual growth below 1%,’ he added.

The index report says that the housing market recovery continues to seep across the country beyond the capital. In fact, as Londoners migrate out of the city in search of more affordable homes in the surrounding regions, average prices in the South East and East Anglia have been pushed to new peaks in May.

‘Consumer confidence is travelling further afield still, and house price records have also been set in Cambridgeshire, Northamptonshire and…

House prices in South Africa have generally seen some growth in the first quarter of 2014 but in the popular middle sector of the market it is nominal, according to the latest real estate report from Absa bank.

It shows that nominal and real year on year price growth in the middle segment of the housing market was marginally lower in the first quarter of 2014 compared with the fourth quarter of 2013.

In both the categories of affordable and luxury housing nominal price growth continued in the first quarter of the year.
The bank says that house prices continued to be driven by property market conditions and related factors which were affected by a combination of macroeconomic developments, the state of household finances and the level of consumer confidence.

Based on the current trends in and prospects for economic and household sector related factors, continued single digit nominal house price growth is forecast for 2014 and 2015.

‘Real house price growth will be the result of the combined effect of nominal price trends and inflation, with some real price deflation projected for this year and next year,’ the report says.

In the first quarter of 2014, the average price of affordable homes of 40 square meters to 79 square meter and priced up to R545,000 increased by 3,1% year on year after rising by 4,2% in the fourth quarter of last year quarter.

Some real price deflation of 2.6% year on year was recorded in the affordable segment in the first quarter compared with a fall of 1.2% year on year in the final quarter of 2013.

The average nominal price of a home in the middle segment of the market for homes of 80 square meters to 400 square meters and priced at R4 million or less increased by 8.5% year on year compared with 8.8% in the fourth quarter of 2013.

In the luxury housing market homes priced at between R4 million and R14.6 million saw prices increase by 7.7% year on year following a 7.5% rise in the fourth quarter of last year.

In real terms, the average price in this category of housing was up by 1.7% year on year in the first quarter of the year compared with 1.9% year on year in the fourth quarter of last year.

At a provincial, metropolitan and coastal level, house prices performed relatively well in most regions on a nominal and real basis in the first quarter of 2014.

The report says that the performance of the residential property market at a geographical level is affected by economic trends in general, but these regional markets may react differently to these developments as a result of various area specific factors, such as location, physical infrastructure and the level and extent of economic development and growth.
‘These factors may affect property demand and supply conditions, market activity, buying patterns, transaction volumes and price levels and growth,’ it points out.

The report also states that headline consumer price inflation averaged…

The number of eligible properties under the government’s Help to Buy scheme in England and Wales has fallen, while average prices have risen since the launch of the second phase of the scheme, a new analysis shows.

The study by property website Zoopla of properties available for sale up to a value of £600,000 shows that Help to Buy has done little to encourage sellers into the market since in October 2013.

Since the launch of the mortgage guarantee, the number of properties eligible under the scheme has actually fallen 1.9%. The supply squeeze has pushed up the average price of properties eligible under Help to Buy by 2.2%, from £222,168 in October to £227,010 today.

The South East of England has seen the biggest falls in stock levels since October with the number of eligible properties down 7.4%, whilst average prices have risen 3.6% over the same period and now stand at £274,464.

London has also seen a significant drop in the number of properties eligible under Help to Buy which has fallen by 6.7% since October. Wales and the Midlands are the only regions to have seen increases in the number of Help to Buy eligible properties available.

The biggest fall in properties eligible for Help to Buy over the last six months has been in Brighton where there are now 15.8% fewer properties for sale that meet the criteria than there were in October. Walsall and Stockport have also seen large drops in eligible stock with 14.9% and 14.7% fewer properties for sale respectively.

In contrast, Middlesbrough, Wirral and Newport have seen the largest increases in the number of properties that qualify for the scheme coming onto the market with rises of 38.7%, 37.4% and 25.5% respectively.

‘The Help to Buy scheme was introduced to help grease the wheels for buyers locked out of the market. But fuelling demand was also expected to spark sellers into action and increase the supply of properties available on the market,’ said Lawrence Hall of Zoopla.

‘That spark seems yet to ignite as the overall level of properties eligible under Help to Buy has actually fallen over the last six months. Unless stock levels increase, the supply shortage will continue to put upward pressure on prices as more buyers enter the market,’ he added.

House prices increased by 1% in the European Union in the first quarter of this year compared with the fourth quarter of 2013.

But they fell by 0.3% in the Eurozone area, according to the latest House Price Index from Eurostat, the statistical office of the EU.

Among the EU Member States for which data are available, the largest annual falls in house prices in the first quarter of 2014 were recorded in Croatia with a decline of 9.7% while in Slovenia prices fell by 6.6% and Cyprus by 5.7%.

The highest increases were in Estonia with annual growth of 17.5%, followed by Latvia where prices increased by 10.4% and the United Kingdom where they were up by 8%.

The largest quarterly falls were recorded in Croatia where prices were down 2.7%, Luxembourg with a fall of 2.3%, and Slovenia where prices were down 1.7%.

Estonia also saw the highest quarterly price growth at 4.8%, followed by Sweden where prices increased by 2.4% and the UK with growth of 2.2% in the first quarter of 2014.

There was good news for some of the property markets that have been hardest hit by the economic downturn. For example, in Spain the quarterly decline in prices is down to just 0.3% and in Ireland the fall is down to 1.2% while Portugal recorded a quarter on quarter increase of 1.3%.

Compared with the first quarter of 2013 prices in Spain are down 1.6%, in Ireland they are up 7.8% and in Portugal up 4%.

Meanwhile, a separate report suggests that the highest growth rates among European metropolitan areas are likely to be recorded by those who have experienced deep downturns since the global financial crisis.

According to the report released by Moody's Analytics the best growth areas will be places such as Milan, Rome, Madrid and Manchester. Smaller cities like Dublin and Copenhagen that also suffered deep recessions during the financial crisis will offer good growth opportunities as well.

According to the report, the three year outlook is positive for most Tier 1 metro areas with a population of more than 2.5 million. Peripheral cities such as Madrid and Lisbon are finally beginning to see some labour market recovery.

'Thanks to a combination of wage cuts with other structural changes, labour markets in Spain and Portugal are now quite competitive and should enjoy strong job growth in coming years as the economy improves,' said Steve Cochrane, managing director at Moody’s Analytics, and author of the report.

But he added that in London and German metro areas growth will slow in 2015 and 2016 as they edge back from the recovery years toward longer term potential rates of growth.

Moody’s Analytics notes that Tier 1 metro areas with the most complex industrial structures have seen some of the greatest volatility over the past 10 years due to their exposure to office using industries as well the cyclical construction industries. Though large metro areas without extraordinary exposure to office-using industries, such as Rome and Katowice,…

Bank of England rhetoric surrounding interest rate rises and lending caps appears to be moderating parts of the UK's housing market, according to the Royal Institution of Chartered Surveyors (RICS).

Overall house prices in June remained positive across the UK but the Mortgage Market Review (MMR) and the bank’s rhetoric are having a drag on activity, RICS says in its latest monthly survey report.

The report points out that demand for property stands at its slowest pace since the beginning of 2013, with the London market particularly affected by the increased air of caution, where buyer demand fell for the second consecutive month in June. However, this follows 15 successive monthly increases.

Nationwide, a net balance of 53% of respondents reported an increase in prices in June, down from 56% in May and prices rose in each of the 12 areas represented.

The South East and Northern Ireland experienced the strongest price gains for the second consecutive month, meanwhile, the rate of price growth in the London market appears to be easing.

The slower trend in demand has also been reflected in the newly agreed sales balance, a good indicator of market activity, which is showing the most subdued pace of increase since autumn 2012. Meanwhile, new instructions increased for the first time since December 2013.

In the month that saw the Band of England introduce a 15% cap on high mortgages, respondents also perceived banks to be lending less, with average Loan to Value (LTV) ratios among first time buyers dropping for the second consecutive month to 85.1% compared with 85.3% in April.

Looking ahead, as a result of the change in demand and increased supply, the number of respondents expecting prices to rise, rather than fall, over the next three months, dropped to 26%, well down from 46% in May.

‘The Bank of England's recent introduction of a ceiling on high loan to income lending and a 3% interest rate stress test is unlikely on its own to have an immediate influence on the market. However, rhetoric from key officials at the Bank, including Mark Carney, alongside the consequences of the introduction of the MMR are already slowing momentum particularly in London,’ said Simon Rubinsohn, RICS chief economist.

‘Buyer enquiries in the capital are now slipping back which suggests that the very sharp upward move in prices will flatten over the coming months. Elsewhere around the country we believe the more hard fought recovery should remain intact,’ he added.

Peter Rollings, chief executive officer of Marsh & Parsons, said that it is notable that national house prices are increasing faster than rates recorded in London for the first time since the recession.

‘This is proof that the rest of the country is back on track in terms of housing growth and that we’re moving into a new stage of the housing recovery,’ he pointed out, adding that RICS market data for London reflects his firm’s own knowledge into current trends, with demand for property in the capital easing and supply…

New mortgage rules in the UK have had a subtle effect on lending rather than the dramatic change some had predicted, new figures from the Council of Mortgage Lenders suggest.

The number of loans to first time buyers rose by 9% in May compared to April, and was 19% higher than in May 2013. By value, lending to first time buyers was up 11% on April and 30% higher than in May last year.

Both the number and value of loans to home movers increased month on month in May by 8%. Compared with May 2013, growth was up 9% by volume and 21% in value.

Reflecting these trends, overall home owner house purchase lending in May rose 9% on April by both volume and value, with year on year growth in number of loans up 13% and 25% by value.

Remortgage lending dipped in May, down 18% in number and value compared to April. Compared to May 2013, remortgage lending declined 26% in volume and 15% by value.

The monthly number of buy to let loans was up 4% in May with value up by 5%. Compared to April 2013, there was a 14% increase in number of loans and a 22% increase in overall value.

First time buyers took out 26,800 loans in May, up 9% compared to April and 19% more than in May 2013. The total value of these loans was £3.9 billion, which was up 11% on April and 30% on May last year.

The data also shows that first time buyer affordability changed fractionally, with first time buyers typically borrowing 3.43 times their gross income, compared to 3.42 in April. The typical loan size for first time buyers was £123,200 in May, up from £121,500 in April. The typical gross income of a first time buyer household remained unchanged at £37,000 compared to April.

The CML report says that the relatively low level of interest rates means borrowers' payment burden remains relatively low at 19.5% of gross income being spent to cover capital and interest payments, this remained unchanged from April but up from 19.3% in May 2013.

‘With May lending figures, we get our first glimpse at the effect the Mortgage Market Review has had on lending trends and, at least so far, the impact appears subtle, rather than dramatic,’ said Paul Smee, director general of the CML.

‘First time buyers and home movers continue to be key drivers in market growth and their activity does not seem to have been noticeably disrupted. There was no cliff edge. Lenders and intermediaries had been methodically working towards applying MMR changes for months leading up to implementation and the figures appear to reflect this,’ he added.

It’s a major boost to see first time buyer numbers rising with just a fractional change in affordability, despite the continuing pressure of soaring house prices, according to Simon Crone, vice president of Mortgage Insurance Europe for Genworth.

'May was the first month where the new mortgage rules (MMR)…

Over the last four years the Scottish private rental sector has experienced average rent increases considerably below inflation, according to the latest quarterly report and analysis from Lettingweb.

It shows that the cost of private renting from 2010 to 2014 has risen by an average of 6.9% against a rate of inflation over the period of 12.8% and the picture of the Scottish private rented sector is a healthy one.

‘Average rent increases are considerably below inflation across the country. The cost of private renting over the four years from 2010 to 2014 has risen significantly less than the rate of inflation, the report says.

It adds that while it is clear private rental is good value in the markets where there is good supply, a detailed analysis shows that cities such as Aberdeen are facing particular pressures due to lack of supply.

Overall the average monthly rent for a two bed property in Scotland was £606 in the Spring of 2010 and if rents had risen at the same rate as inflation that figure would now be £683 but the actual figure for Spring 2014 is considerably less at £648.

The data also shows that from 2010 to 2014 average two bed rents have risen by 6.9% and while the annual rise of 4.6% is above inflation, this is still considerably less than the rent rises seen in the social rented sector.

However, Aberdeen is an exception to the rule that rents are generally rising at below the rate of inflation. A two bed property now costs an average of £1,007 per month, up 14.7% on the year, and the firm says this is due to enormous demand from flexible high income workers when there is very low housing supply within the city.

Edinburgh is Scotland’s largest private rental market, and it has seen its private rented sector population more than double in the last decade. Rents are up 6.8% year on year, with two bed rents now averaging £785. This is due to rising demand and competition for property caused by an improving economy, growing population and very limited new supply.

At 13.9% from 2010 to 2014, Edinburgh is the only local authority other than Aberdeen to record a rise above the rate of inflation.

The report points out that a significant increase in sales, along with insufficient investment in new build are likely to have been contributing factors.

The analysis also shows that Glasgow is beginning to trend closer to the Scottish average than it has historically with the cost of a two bed rental now averaging £642 compared to the Scottish average of £648.

Rents in Glasgow have now increased 8.1% year on year and the report suggests this may be related to a substantial increase in sales of flats which may have reduced the supply of rental stock. Glasgow’s marketing period has reduced from 32 days to 28 days year on year, and the report says this is another indicator of rising demand.

The postcode…

The UK housing market has leapt back into life with prices across all regions accelerating and set to rise by around 8% this year, according to a new report.

This is in stark contrast to the generally weak price rises experienced 12 to 18 months ago everywhere outside of London, says the UK Economic Outlook report from PwC.

It projects that the average UK house prices could rise by around 8% this year, with prices increasing by around 13% in London. However, the pace of growth is set to moderate over the next two to three years.

This means that by the end of 2015, the average property in the UK could be worth around £276,000, up from £242,000 at the end of 2013. By 2020, the average UK house could be worth close to £330,000 in cash terms.

It also says that the housing market is not yet overheating at national level, but evidence of a bubble is stronger in London, where borrowers are more stretched on average.

PwC described the recent recommendations from the Financial Policy Committee (FPC) focused on restricting the proportion of new mortgages at high loan to income ratios as ‘sensible’.

It also says that concerns about a possible house price bubble could also be one factor causing interest rates to rise sooner rather than later. In the longer term, however, measures to boost housing supply more directly should be the priority.

‘House prices across the UK are accelerating. We do, however, expect the pace to moderate, slowing to around 3.5 per cent between 2016 and 202o,’ said William Zimmern, a PwC senior economist.

‘We don't believe the housing market is overheating at a national level yet, although evidence of a bubble in London is stronger,’ he added.

Zimmern raised the prospect of the Bank of England increasing interest rates eightfold when the shift does eventually come, to put a dampener on the housing market.

‘They could rise to around 4% but in the longer term, measures to boost housing supply more directly should be the priority,’ he concluded.

A property described as one of the most magnificent Arts and Craft mansions in London has been put on the market for £45 million.

Number seven Balfour Place in Mayfair was built as a trophy property within the historic Grosvenor Estate in 1892. It was designed by Eustace Balfour, the estate’s chief surveyor and architect and is Grade II listed with a five storey brick façade.

Balfour, a Fellow of the RIBA, was incredibly ambitious and well connected. His mother was the daughter of the second Marquess of Salisbury and his brother Arthur was Prime Minister. His wife, Lady Frances Campbell, was the daughter of the Duke of Argyll and favourite niece of the first Duke of Westminster and it was she who got him his job of chief surveyor to the Grosvenor Estate.

Balfour knew that the Duke liked the domestic revival style of architecture so to please him he designed eight mansions on the site of Balfour Place with the aim of creating the grandest Arts and Craft style homes ever built in London.

The completed mansion was hailed as magnificent. There was an extensive lower ground floor for kitchens and staff, a vast entrance hall and three grand reception rooms. The first floor had another three large entertaining rooms, with eight family bedrooms on the second and third floors, and staff accommodation and storage on the fourth and top fifth floor.

The site of the new mansions was originally known as Portugal Street as a tribute to the Portuguese wife of King Charles II, but the Grosvenor family renamed the street Balfour Place in honour of their chief surveyor.

Over the years number seven has had a variety of owners including several industrialists, a Dowager Countess and a City of London metal trader magnate. The most famous person to covet the property was shipping heiress Christina Onassis although she was never able to buy it.

In 1991 number seven was converted into six apartments and it now has flats ranging from 1.255 square feet to 2,583 square feet with two to four bedrooms. The property is currently income producing and is for sale on a freehold basis. It could be acquired as a rental investment, refurbished to provide luxury apartments or reinstated as a single residence, subject to the usual planning consents.

According to agents Wetherell it benefits from a prestigious address, elegant architecture and rooms with princely proportions. The firm’s chief executive Peter Wetherell said that if it was changed back into single residence, designed and specified to a luxurious ultra-prime finish, and interior designed and presented to sell to an international market it could be worth anything from £52 million to £65 million.

‘It could create one of London’s finest mega mansions, an outstanding home of world class quality and refined provenance Such a transformation has the potential to generate a lucrative return for a discerning purchaser acquiring the property in its current configuration,’ he added.

House prices in the UK fell by 0.6% in June, the fourth monthly fall since December last year, according to the latest index from the Halifax.

It takes the average property price to £183,462 but Stephen Noakes, mortgages director at the Halifax, pointed out that monthly data can be volatile and quarterly figures are more reliable.

The quarterly data shows that in the three months to the end of June prices were 2.3% higher than in the preceding three months. ‘House price change on this measure has now remained steady in a narrow range of 2% to 2.3% since June 2013,’ he said.

The data also shows that prices in the three months to June were 8.8% higher than in the same three months a year earlier and this was marginally higher than in May when it was 8.7%.

‘Housing demand continues to be supported by an economic recovery that is gathering pace, with employment levels growing and rising consumer confidence, although real earnings growth remains sluggish,’ added Noakes.

There has been a lot of talk about house price growth slowing both this year and next. According to the Economic Research Council the decline will become more obvious from 2015 onwards, with property prices beginning to plateau from 2019.

According to Gráinne Gilmore of Knight Frank interest rate rises will start to impact on the rate of price growth as mortgages become more expensive. The Bank of England has already signalled that an interest rate rise is likely before the end of the year.

Retired home owners in the UK cashed in more than £641 million in property wealth during the first half of the year as the equity release market continued to grow strongly.

The average loan taken increased by 17% to nearly £65,000, according to an analysis from over 55s specialist adviser Key Retirement Solutions.

The firm’s latest Equity Release Market Monitor, which covers the first half of 2014, says this demonstrates that there is a growing confidence in using property wealth to improve standards of living in retirement and this is driven by the strength of the housing market.

Total equity released in the six months to 30 June increased by 26% to £641.8 million from £508.4 million in the first half of 2013, while plan sales rose 5% to 10,013 from 9,540 in the same period last year.

The report says that the money released is increasingly being used to improve standards of living, with 66% of customers using some or all of the cash to fund home or garden improvements compared with 55% last year. Some 35% used the cash to pay for holidays, compared with 32% in 2013.

The analysis also shows the importance equity release plays in easing the burden of debt in retirement, with substantial numbers of retired home owners clearing debts. Some 20% used some or all of the money to pay off mortgages, while 30% are clearing credit cards or loans.

‘Equity release is making a major contribution to retirement planning for thousands of home owners and that is underlined by the growth in the average loan size of nearly £10,000,’ said group director Dean Mirfin.

‘The massive changes on the way people fund and save for retirement highlight the increasing role that property wealth will play and the equity release market is ideally suited to the new retirement flexibility,’ he added.

The data also shows that the total amounts released rose in 11 out of 12 regions across the country, while plan sales rose in eight out of 12 regions. But growth in Northern Ireland was particularly strong where plan sales and total value released increased by nearly one and a half times.

London recorded growth in total value released of nearly 60%, while the South West and South East rose by 30% plus.

Residential building approvals in Australia rebounded in May after falling back during the first few months of 2014, according to the latest figures from the Australian Bureau of Statistics.

Overall there were 16,425 dwellings approved in May, an increase of 9.9%. According to the Housing Industry Association (HIA), the voice of Australia’s residential building industry, the rise takes approval numbers closer to the peak levels of the end of 2013 and January 2014.

‘The three consecutive months of declining approval numbers following the peak in January this year had caused some observers to start questioning the longevity of the home building recovery,’ said Geordan Murray, HIA economist.

‘This result gives us confidence that the recovery has a way to run yet,’ he commented, adding that 2014 should see a very strong level of new home building activity.

‘Residential building approvals reached a peak in January this year when over 17,700 dwelling approvals were recorded. To get to the record level in January it took a situation where all the ducks were sitting in a row. We had the five largest states all recording strong approval numbers at the same time,’ explained Murray.

‘Since then, the characteristic volatility in multi-unit approvals has meant that we haven’t revisited the January high but the volume of approvals still points to a very strong level of new home building activity throughout 2014,’ he added.

He also pointed out that the housing recovery, which was initially confined to New South Wales and Western Australia, appears to be gaining broader momentum. Approvals in the three months to May are markedly higher than the same time last year in all jurisdictions, ACT is the only exception.

The data shows that in seasonally adjusted terms, the volume of detached dwelling approvals was steady at 9,426, up by 0.6% in the month. There were 6,998 multi-unit dwellings approved, which represents an increase of 25.5% in the month.

A rebound in multi-unit approvals in New South Wales with growth of 47% and a rise of 150% in Queensland drove the increase in multi-unit approvals after both posted particularly weak results in April.

All other major markets recorded falls in multi-unit approvals in May, most notably in Victoria, where a decline of 19% was recorded.

Looking around the states more broadly, total building approvals in seasonally adjusted terms increased in May by 18.7% in New South Wales , by 45% in Queensland, by 0.4% in Western Australia and by 9.8% in Tasmania. They fell by 8.5% in Victoria and by 6.7% in South Australia.

In trend terms, building approvals increased by 8.7% in the Northern Territory but fell by 9.6% in the ACT.

The UK government’s flagship Help to Buy scheme has provided less than half the funding for new homes as bridging since the equity loan scheme was launched in April 2013, it is claimed.

Government equity loans amounted to £941 million compared to £2.38 billion in property bridging loans, according to the latest West One Bridging index.

The data also shows that there has been a 32% rise in the number of completed bridging loans over the course of 12 months.

‘New homes are the fundamental fuel of a healthy property market so the government and Bank of England are right to highlight the dangerous squeeze in the supply of property. But there are other ways to supply new homes. We need to make far better use of the buildings we already have,’ said Duncan Kreeger, director of West One Loans.

‘Help to Buy has a critical role to play in kick-starting brand new building sites, yet ground-up development is only one part of the finance that property professionals need in order to supply raging demand,’ he pointed out.

‘Thousands of under loved and under occupied properties are still left waiting for refurbishment or conversion. Property developers and potential landlords just need the right sort of finance to get these empty offices or dilapidated blocks of flats to a decent standard and on the market. Flexibility is king and government schemes can only do so much,’ he added.

The data also shows that over the 12 months ending at the beginning of May, the bridging industry provided annual gross lending of £2.06 billion. This represents growth of 17.9% compared to the previous 12 months.

However, recently this growth appears to have moderated. Lending has grown at an average rate of 0.8% per month since 1st March when industry gross lending totalled £2.02 billion. If this latest expansion continues for a full 12 months it would represent an annualised rate of growth of 10%.

‘Meteoric expansion in recent years is only the start of a new era. This reinvigorated industry has built a solid foundation for further growth. Certainly, as with all industries, such transformational progress must gradually steady and bridging is already maturing, consolidating its enormous expansion,’ explained Kreeger.

‘Bridging is not suffering from any of the latest challenges afflicting the mainstream mortgage market. While the high street gets the jitters as incomes struggle to keep up with house prices, the best bridging lenders are in the business of solving this problem. Our loans always aim to add value to property by actually increasing capacity in the right places. It’s a system that grows the pool of winnings, rather than just splitting the wealth of property in a different way,’ he added.

Regarding trends in the bridging industry, bridging loans are growing in terms of both size and number. The average loan size now averages £457,000 over the 12 months to May. This is 10.7% larger than the average loan in the previous 12 months when it was £404,000.

However the most…

There are further signs that the central London prime property market is slowing with the latest report from agents showing viewings and registrations falling.

Sandfords called the top of the London market several weeks ago as signs of a slowdown in buyer activity appeared, and now they report further evidence, declaring that viewing levels and applicant registrations have descended.

‘Following a sustained period of rapid growth, signs of a slowdown in the prime central London market are becoming progressively evident and price levels have topped for the time being,’ said director Andrew Ellinas.

‘In May, the average number of viewings declined, demonstrating an ease in demand levels and, although prices have not yet fallen, they have stalled,’ he added.

A yearly picture shows that things have, in actual fact, changed quite considerably with a 45% decline in viewing figures. Applicant registrations have also fallen and, compared to this time last year, a 40% decrease has been reported by Sandfords.

Ellinas believes that the cause responsible for the slowdown is simple; buyers are refusing to pay the current asking prices for properties in central London, after they rocketed out of control.

‘Prices surged to unbelievable levels and it is only now that buyers are putting a stop to such premiums. We estimate that 45% of the properties we are instructed to sell are now over priced by 10% and an additional 25% of properties by as much as 20%,’ he pointed out.

‘A small percentage of our current stock has recently been reduced in price as some vendors recognise this recent change in the market, but all vendors need to be willing to follow suit if they want to sell their property in what has become an uncertain market,’ he explained.

‘When the market presents its challenges, as it is doing now, my advice for vendors is to instruct the local specialist who can make things happen when they are more difficult. Not all agents can perform when things get tough,’ he concluded.

The UK government is lending £60 million to local councils so that they can build affordable homes over the next two years.

Housing Minister Kris Hopkins said that 15 councils will be able to borrow funds to build over 1,000 homes in their area and he also launched a second round of bidding to ensure councils make full use of this opportunity.

‘Councils asked for extra borrowing powers and we have delivered. Now 15 authorities from across the country will get a share of £60 million of borrowing to deliver over 1,000 affordable homes,’ said Hopkins.

He pointed out that another £240 million borrowing power is still available. ‘There’s £300 million extra borrowing up for grabs for the next two years. Council house building starts are now at a 23 year high and more council housing has been built since 2010 than in the previous 13 years,’ he explained.

‘But we can go further and with these new borrowing powers available I want authorities to act, and build the affordable homes their communities want,’ he added.

He also pointed out that house building is a key part of the government’s long term economic plan.
The new money is available for councils who can put in bids that meet a simple criteria; ensuring taxpayers get the value for money they rightly expect.

The councils that have successfully applied for borrowing include: Birmingham Council seeking £10.6 million to build 186 new affordable homes, Wiltshire Council for £2.7 million to build 90 affordable homes and Cheshire West and Chester Council for £7.5 million to build 23 affordable homes.

Hackney Council has applied for £2.7 million to build 74 affordable homes and Dudley Council for £6.2 million to build 123 affordable homes.

Over half of landlords in the UK say that damage to property is the top cause of disputes with tenants followed by decoration and then rent arrears.

New research from the Online Letting Agents found that 58% cited damage, 50% redecoration and 42% rent arrears and cleaning.

It also found that two thirds of landlords went to court to settle disputes and for 20% of landlords, the disputed amount was over £1,000.

The majority of landlords who experienced a dispute over rent arrears say that the average time of late payment was six weeks, while 20% had to wait over four months for payment of outstanding rent.

The research also shows that despite the importance of inventories in helping to solve disputes, a fifth of landlords admit to failing to carry out check-in and check-outs.

‘Our research shows that damage to property is a major problem for landlords during, or at the end of a tenancy and rent arrears remain a big problem,’ said Eleanor Carroll, director of the Online Letting Agents.

She found out that rising numbers of landlords are using the courts to resolve their disputes with recent figures from the Ministry of Justice showing that between January and March 2014, landlords in England and Wales went to court to make 47,220 claims to repossess property, the equivalent of 525 a day.

‘To help avoid disputes, it is vital that landlords carry out a professional inventory with a check-in and check-out at the start and end of a tenancy, to protect their property and deposit. What’s more, landlords should make regular visits to check for damage during the tenancy,’ added Carroll.

But going to court is not as simple as it might seem. Separate research shows that 62% of legal notices served by landlords on tenants were incorrect.

According to the study by Landlord Action trying to save costs by doing it yourself can be counterproductive as it means the action is at risk of being thrown out by the courts if it is not correct.

Paul Shamplina, managing director of Landlord Action, said that mistakes in eviction notices are among the most common reasons for delays and increased costs when a landlord tries to recover possession from a tenant who has an Assured Shorthold Tenancy (AST).

‘I understand the need for landlords to consider every cost but I can’t stress enough that the notice is the most important part of a possession court case and the slightest mistake can end up costing a landlord significantly more than the cost savings in extra legal fees, delays and lost rent,’ he pointed out.

The study found the top five reasons for notices being invalidated are incorrect expiry dates, failure to comply with deposit legislation, inaccurate accompanying rent arrears schedules, the method used to serve the notice and typing errors.

‘Over the last year, we have encountered an increasing number of problems with notices served by landlords and agents. As a result, our legal department has carried out a…

The Canadian Real Estate Association (CREA) has updated its forecast for home sales activity and prices for 2014 and 2015.

Little is expected to change on the sales front but nationally average home prices are expected to increase by 5.7% in 2014 but by such 0.7% in 2015.

The CREA report says that an extraordinarily bleak winter resulted in slow start to 2014 national sales activity. As the first quarter ended, sales momentum heading into spring was constrained by a continuing shortage of listings in a number of local markets. However, the rise in newly listed properties in April and May supported an increase in sales activity.

Overall, the deferral of sales and listings reflects a delayed start to the spring home buying season, with combined sales for the period from March to May coming in largely as anticipated and at average levels. These deferrals are now likely to have been largely depleted, which suggests that the strength of sales momentum heading into the summer may be transient.

CREA’s forecast for sales activity in 2014 is largely unchanged from its previous forecast published in March. At that time, interest rates had been expected to start to edge higher in the second half of the year. However, it now appears that interest rates may not begin to rise until closer to the end of the year, which remains supportive for home ownership affordability over the balance of 2014.

Sales are forecast to reach 463,400 units in 2014, representing an increase of 1.2% compared to 2013. This is little changed from CREA’s forecast of 463,700 sales, a rise of 1.3%, published in March.

Activity is still expected to remain in line with its 10 year average and to hold within fairly short reach of 450,000 units for the seventh consecutive year.

British Columbia is forecast to post the largest year on year increase in activity at 8.3% and make the biggest contribution to the increase in national sales activity. B.C.’s projected increase in sales this year largely reflects a slow start to 2013.

Alberta’s annual sales are projected to rise by 3.8% in 2014, while activity in Saskatchewan, Manitoba, and Ontario is expected to be roughly in line with 2013 levels. Sales are forecast to fall by 1.7% in Quebec, by 4.2% in New Brunswick, by 5.1% in Nova Scotia, and by 2.6% in Newfoundland and Labrador.

In 2015, the outlook for the economy, jobs and incomes is one of further improvement, accompanied by a slow and gradual increase in fixed and variable mortgage interest rates.

On balance, these two opposing factors should most benefit housing markets where sales are currently softer but prices remain more affordable. Sales in relatively less affordable housing markets are likely to be more sensitive to higher fixed mortgage rates, whether from the standpoint of higher monthly mortgage payments or qualification for mortgage financing based on the posted five year mortgage interest rate.

As such, provinces east of Ontario are expected to post the largest gains in activity in…

Consumers and firms in the UK are to be asked for their views on how fairness should be assessed when lenders make changes to the terms of mortgage contracts and whether the Financial Conduct Authority (FCA) needs to make changes to its rules or guidance.

In a discussion paper published today, the FCA sets out some of the factors that are considered relevant when assessing changes to mortgages contracts and asks for views on its current approach to fairness.

‘Consumers have a right to be treated fairly if their lender changes a term of their mortgage contract,’ said Clive Adamson, director of supervision at the FCA.

‘It isn't always clear though to consumers how lenders and the FCA assess fairness in this area. This paper gives an opportunity for firms and consumers to give their views on what fairness means when changes are made in the terms of this very important financial product,’ he added.

As well as inviting discussion about the operation of the current regulatory framework. There are several options for potential further action. These include providing clarity and transparency about the FCA approach to fairness and further guidance on current rules but with no changes to the current regulatory framework.

Other options include introducing new rules, for example, around the information that firms must provide to a consumer or restricting the changes that a lender could apply to mortgage contracts.

This debate will also form part of the wider work the FCA is undertaking to understand consumer expectations and how the industry can better meet the information needs of consumers.

The FCA is keen to engage with both the mortgage industry and consumers during the discussion period. Interested parties can send their views directly to the FCA. The FCA intends to have face to face meetings with consumer groups, firms and trade bodies.