New figures released by NHBC have revealed a widening divide between public and private sector registrations in January 2012, with the total number of new homes registered throughout the month only marginally higher (7,831), compared to the same period last year (7,788).
Private sector registrations increased by 9 per cent (5,977, compared with 5,484), whereas, as in previous months, public sector registrations contracted year-on-year, with a 20 per cent decrease in January 2012 (1,854 compared with 2,304).
For the rolling quarter November - January 2012 the number of registrations across all sectors was 21,110 - 16 per cent lower than the same period last year (25,022) but some areas of the country bucked the trend. In the North West and North East of England, registrations levels increased 12 per cent and 39 per cent respectively.
Richard Tamayo, Commercial Director of NHBC, said:
"January 2012 volumes are, in aggregate, marginally up on January 2011 levels but with a slowing of activity in the public and social housing sectors.
A variety of economic headwinds such as consumer uncertainty and restricted access to both development and mortgage finance have combined to restrain the growth in new home production that the country desperately needs. Government has targeted measures at stimulating and supporting both private and public housing supply; the next few months should begin to give us an indication of how effective those measures will be.
Property News Magazine
Tuesday, 28 February 2012
Friday, 10 February 2012
London SW9 Investment Property For Sale, "Little Portugal"
South London Investment Property With Planning
Stockwell
Clapham Road
London
Greater London
SW9
Net Saleable: 5478 sq/ft*
£ 1,700,000 + VAT
Freehold
The development is situated in the heart of "Little Portugal" on the Clapham Road at its junction with Dorset Road. The location offers easy to the bars, clubs and shopping facilities in Vauxhall and Clapham High Street.The Oval Cricket Ground, as well as the open spaces of Vauxhall and Larkhall Parks are also close by.
Local transport links include Stockwell Underground Station (Victoria and Northern lines) and Vauxhall Bus, Railway, and Underground Stations (National Rail and Victoria Line) for connections into and out of Central London.
Planning permission has been granteed subject to the S.106 being signed for the part conversion part extension of the existing building to create 9 luxury apartments (5,478sq.ft)On the ground floor is an established seafood restaurant sold on a long lease.
London Property Investment For Sale
Battersea Benefits from The Northern Line Extensio...
Battersea Flats & Houses For Sale & Rent: Battersea Benefits from The Northern Line Extensio...: Batteresea is finally going to have its place on the Tube Map.The Northern Line Extension (NLE) will improve transport capacity throughout ...
Saturday, 4 February 2012
London Rents Remain Higher Than London Mortgages
Purchasing a property is on average more than £100 a month cheaper than renting one, according to new figures from the Halifax.
According to the bank, the cost of buying a three bedroom home in the UK stood at £600 per month while renting the same type of property would be 16 per cent higher at £716.It’s a considerable difference from when the Halifax looked at the market in 2008. Back then the cost of buying was an astounding 29 per cent greater.
In the main this has been driven by mortgage rate dropping to lower than expected levels. Currently the average rate paid by a property buyer stands at 3.63 per cent, compared to 5.75 per cent four years ago.At the same time, the average cost of renting has risen by nine per cent due to an increased demand for rental properties.
Londoners appear to be ones who would most benefit from buying as currently the cost of renting works out 10.2 per cent higher than the average mortgage repayment, even after the cost of funding a deposit.Indeed, out of all the regions in the UK only Wales has cheaper rental than purchase figures (£474 opposed to £479).
Martin Ellis, housing economist at Halifax, stated: “The affordability gains for buyers relative to renters in the last three years have been significant.The average mortgage payment has fallen dramatically over recent years as a result of falling house prices and mortgage rates. At the same time, rents have risen due to strong demand for rented accommodation
It seems that this year may be when many people take the plunge by their first home.A recent survey conducted by MyIntroducer.com and Virgin Money found that 24.78 per cent of mortgage and financial advisers expected to see more first-time property buyers pass through their doors during 2012.
First Time Buyer News
According to the bank, the cost of buying a three bedroom home in the UK stood at £600 per month while renting the same type of property would be 16 per cent higher at £716.It’s a considerable difference from when the Halifax looked at the market in 2008. Back then the cost of buying was an astounding 29 per cent greater.
In the main this has been driven by mortgage rate dropping to lower than expected levels. Currently the average rate paid by a property buyer stands at 3.63 per cent, compared to 5.75 per cent four years ago.At the same time, the average cost of renting has risen by nine per cent due to an increased demand for rental properties.
Londoners appear to be ones who would most benefit from buying as currently the cost of renting works out 10.2 per cent higher than the average mortgage repayment, even after the cost of funding a deposit.Indeed, out of all the regions in the UK only Wales has cheaper rental than purchase figures (£474 opposed to £479).
Martin Ellis, housing economist at Halifax, stated: “The affordability gains for buyers relative to renters in the last three years have been significant.The average mortgage payment has fallen dramatically over recent years as a result of falling house prices and mortgage rates. At the same time, rents have risen due to strong demand for rented accommodation
It seems that this year may be when many people take the plunge by their first home.A recent survey conducted by MyIntroducer.com and Virgin Money found that 24.78 per cent of mortgage and financial advisers expected to see more first-time property buyers pass through their doors during 2012.
First Time Buyer News
Wednesday, 11 January 2012
Buy to Let Property Surge As Landlords Snap Up Bargain Rental Prospects
Reports in last weekend’s Financial Times have highlighted the surge in new buy-to-let purchases,with many areas in London likely to be the first to benefit, according to property search consultant Expatfindaproperty.com.
According to the Financial Times report, landlords are taking advantage of weaker house prices to snap up bargain rental prospects in premier locations. While some are cash purchasers, others are using cheap borrowing costs to expand their portfolios.
Expatfindaproperty.com’s own research suggests that rental yields in many parts of London, in particular, are starting to rise steeply, following many years of static, or only gently-rising, prices. In particular, demand for rental homes near to prime commuting transport links, such as those in the Clapham, Earlsfield, Wimbledon and Raynes Park areas of South West London, has seen agents arranging block viewings, with would-be tenants forced to bid against each other to secure a property.
Emboldened by the strength of the demand, says Expatfindaproperty, agents and landlords are now pushing rents higher, which means that new landlords can expect enhanced returns, as well as realistic prospects of capital growth, when capital prices eventually start to recover. Prospective tenants, however, will find this news less welcome.
Erica Evans, of Expatfindaproperty.com, comments, “Our straw poll of agents in South West London has revealed high levels of optimism for landlords. For those thinking of entering the market from abroad, providing they have a 30% deposit for an expatriate or international mortgage, now is an excellent time to be looking at the market, but location is absolutely critical.
“Strong rental yields are only available in quite specific areas around commuter infrastructure hotspots.”
According to the Financial Times report, landlords are taking advantage of weaker house prices to snap up bargain rental prospects in premier locations. While some are cash purchasers, others are using cheap borrowing costs to expand their portfolios.
Expatfindaproperty.com’s own research suggests that rental yields in many parts of London, in particular, are starting to rise steeply, following many years of static, or only gently-rising, prices. In particular, demand for rental homes near to prime commuting transport links, such as those in the Clapham, Earlsfield, Wimbledon and Raynes Park areas of South West London, has seen agents arranging block viewings, with would-be tenants forced to bid against each other to secure a property.
Emboldened by the strength of the demand, says Expatfindaproperty, agents and landlords are now pushing rents higher, which means that new landlords can expect enhanced returns, as well as realistic prospects of capital growth, when capital prices eventually start to recover. Prospective tenants, however, will find this news less welcome.
Erica Evans, of Expatfindaproperty.com, comments, “Our straw poll of agents in South West London has revealed high levels of optimism for landlords. For those thinking of entering the market from abroad, providing they have a 30% deposit for an expatriate or international mortgage, now is an excellent time to be looking at the market, but location is absolutely critical.
“Strong rental yields are only available in quite specific areas around commuter infrastructure hotspots.”
Tuesday, 3 January 2012
Landlord and tenant news: Could 2012 be the year of the accidental landlord?
The new year could bring the kind of market that many accidental landlords have been waiting for.
With home values estimated to rise further in 2012, Alan Ward, chairman at the Residential Landlords Association (RLA), believes that the time to sell up as originally planned will have finally come.
An accidental landlord is someone who has opted to rent out their existing home when looking to move because trying to sell it would hold back their journey up the property ladder (officially termed let-to-buy in the mortgage industry).
"There is a sector of the market that is likely to come to sell as property values begin to increase - these are the accidental landlords who have been forced to rent because they can't sell for whatever reason," he said."Some people say there are 100,000 properties in that sector and, if that comes back on the market, then that is quite a big change."
The Association of Residential Lettings Agents recently advised anyone considering a move into the rental market to consider the benefits of using a professional letting agent.
Landlord and Tenant News
With home values estimated to rise further in 2012, Alan Ward, chairman at the Residential Landlords Association (RLA), believes that the time to sell up as originally planned will have finally come.
An accidental landlord is someone who has opted to rent out their existing home when looking to move because trying to sell it would hold back their journey up the property ladder (officially termed let-to-buy in the mortgage industry).
"There is a sector of the market that is likely to come to sell as property values begin to increase - these are the accidental landlords who have been forced to rent because they can't sell for whatever reason," he said."Some people say there are 100,000 properties in that sector and, if that comes back on the market, then that is quite a big change."
The Association of Residential Lettings Agents recently advised anyone considering a move into the rental market to consider the benefits of using a professional letting agent.
Landlord and Tenant News
Monday, 12 December 2011
Rent Rises Predicted By Landlord Panel Research
Increased demand and the rising cost of maintaining property mean private tenants in the UK are likely to face a rise in rental rates this winter, it is claimed.
One in five of landlords also claim their arrears have increased compared with the previous quarter, according to BDRC Continental’s quarterly Landlords Panel research.
It found that almost half, 45%, have increased rents in the last 12 months, while over a third, 34%, said they are likely to do so in the next six months. Landlords cite the strength of demand and the increased cost of running a property portfolio as the main drivers for rent rises.
Young couples, singles and Local Housing Allowance (LHA) claimants are the groups potentially most likely to be hit by rent rises in the private rental sector. When asked which groups of tenant they let to, landlords indicated that young couples and young singles account for the greatest proportion of their tenants, while LHA could also likely to be affected, as 37% of landlords cater for this segment of the market.
The potential rent rises are predicted at a time when almost half of landlords have experienced rental arrears in the last three months and almost three quarters, 72%, of those who have sought possession of their rental property were driven to do so by rent arrears. Other reasons for seeking possession include anti social behaviour, which contributed to nearly half of possessions.
However, one third of landlords have never sought possession of their rental property and landlords wait an average of almost four months to obtain possession and pay £866 in legal fees alone.
One in five of landlords also claim their arrears have increased compared with the previous quarter, according to BDRC Continental’s quarterly Landlords Panel research.
It found that almost half, 45%, have increased rents in the last 12 months, while over a third, 34%, said they are likely to do so in the next six months. Landlords cite the strength of demand and the increased cost of running a property portfolio as the main drivers for rent rises.
Young couples, singles and Local Housing Allowance (LHA) claimants are the groups potentially most likely to be hit by rent rises in the private rental sector. When asked which groups of tenant they let to, landlords indicated that young couples and young singles account for the greatest proportion of their tenants, while LHA could also likely to be affected, as 37% of landlords cater for this segment of the market.
The potential rent rises are predicted at a time when almost half of landlords have experienced rental arrears in the last three months and almost three quarters, 72%, of those who have sought possession of their rental property were driven to do so by rent arrears. Other reasons for seeking possession include anti social behaviour, which contributed to nearly half of possessions.
However, one third of landlords have never sought possession of their rental property and landlords wait an average of almost four months to obtain possession and pay £866 in legal fees alone.
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