ISG Lands £20m High-End London Resi Scheme

This article by Iain Withers of building.co.uk on October 30th, 2013 speaks about contractor that will restore the three grade ll-listed buildings into luxury homes.

ISG has won a £20m job to restore three 19^th century London buildings into luxury homes.
The Grade II-listed buildings – 92-96 Portland Place, 98 Portland Place and 10-12 Park Crescent – are part of London’s Nash Terrace overlooking Regent’s Park, designed by architect John Nash.

The project is ISG’s fifth development for Amazon Property in 12 months, including luxury apartment schemes at the former Paramount Studios in Soho, as well as in Bayswater and Westminster.

The three buildings were originally constructed as upmarket London residences, but have been used as commercial office space in recent years.

They will be converted into 15 luxury apartments.

Alan McCarthy-Wyper, managing director of ISG’s construction business, said: “Amazon Property has built an enviable reputation for acquiring prestige properties in landmark London locations and refurbishing them to the very highest standards that appeal to a global residential market.

“I am delighted to be able to support Amazon Property return these buildings back to the use originally intended by John Nash in the early 1800s.”

Article Source: http://www.building.co.uk/news/isg-lands-%C2%A320m-high-end-london-resi-scheme/5062871.article







 
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U.K. House Prices Rise to Record as First Timers Drive Demand

This article by Eshe Nelson of Bloomberg on October 11th, 2013 tells us the rise of house prices in UK last month that influences first-time buyers back to the market.

U.K. house prices rose to a record last month as easier access to credit drove first-time buyers back to the market, Acadametrics said.

Values increased 0.5 percent from August to an average 235,534 pounds ($376,000), the London-based real-estate researcher and LSL Property Services Plc (LSL) said in a report today. London is leading the property-market recovery, with annual house-price growth in the past three months more than double any other region in England and Wales.

The second phase of the government’s Help to Buy program was introduced this week, providing government-guaranteed mortgages to buyers with smaller deposits. The acceleration has fueled further concerns that the initiative may stoke a bubble. Mortgage approvals rose to the highest in more than five years in August, the Bank of England said last week.

“We’ve seen banks ease criteria on mortgages for people with small deposits, which has opened the door to new buyers who have spent years on the outside looking in,” said David Newnes, director of LSL Property Services. “Demand has increased significantly in a short space of time, and raced ahead of the supply of homes.”

Nine of the 10 regions tracked by LSL recorded price gains in the latest three months compared with a year earlier, according to the report. London price growth was 8.5 percent, compared with an average of 3.5 percent. In Wales, the pace of the decline eased.

Nationally, house prices rose 3.8 percent, or 8,526 pounds, in September compared with a year earlier.

House sales rose 12 percent this year compared to 2012, with the increase in transactions predominantly in the first-time buyer sector of the market, Acadametrics said.

LSL said concerns about a housing bubble developing are overblown. While prices are rising, it is only a “fledgling recovery,” Newnes said. “It is not a boom or a bubble. It is a market correction, albeit a fairly quick one.”

The whole country will benefit from Help to Buy because it supports buyers in the southeast, where prices are higher, and in the north, where wage growth is slower, Newnes said. He added that the program must be complimented by more house building so supply keeps pace with demand.

Article Source: http://www.bloomberg.com/news/2013-10-10/u-k-house-prices-rise-to-record-as-first-timers-drive-demand.html

Adding Property Stocks to the Real Estate Investment Mix Strongly Boosts Returns

According to this article by Property Magazine International on September 6th, 2013 suggests that blending property stocks with real estate portfolios with non-listed investments generated yields for over the past decade compared with those with no listed property sector.

Real estate portfolios that blended stocks with non-listed investments generated 50% superior returns over the past decade compared with those with no listed property sector allocation, new research presented at the European Public Real Estate Association’s (EPRA) annual conference in Paris on Thursday showed.

A real estate investor with a 30% allocation to the international listed sector had a total return of 91% from June 2003 to June 2013, according to fund performance data compiled by consultants Consilia Capital. That compares with a 61% total return from U.K. non-listed real estate over the same decade, the study showed.

Alex Moss, Consilia Capital Managing Director said: “Our findings show how investors are missing out on superior returns by having no exposure to the listed sector. It is surprising that many institutions and investors treat the listed property sector as part of their equity allocation and that so few take an integrated approach for their real estate portfolio. We found plenty of evidence, however, to make us confident that significant changes are afoot.”

A separate survey compiled by Consilia and Andrew Baum of Property Funds Research showed that 46% of respondents treat the listed property sector separately from their real estate portfolio. Just 14% have an integrated team spanning listed and non-listed or direct real estate investments, while 39% outsource management of their listed property allocation.

The survey’s respondents said their annual performance reviews discourage investment in the listed property sector because of short-term share price volatility, which may be correlated with other equities. This is the biggest obstacle to using quoted companies in building a real estate portfolio, even though these securities generate long-term returns that match their objectives, the survey showed.

The parallel study’s breakdown of the performance of the different fund types revealed, however, a surprisingly marginal diminution in returns from a listed property exposure during the height of the market dislocation of the Global Financial Crisis.

A combination of UK non-listed real estate funds with a 30% international listed real estate allocation returned 2.2% less than pure non-listed property funds from July 2007-June 2009. During the four preceding years this same approach delivered an outperformance of 22%, while from August 2009 to June 2013, it would have enhanced returns by 13%.

Respondents to the survey, notably defined contribution pension schemes, are warming to listed real estate because of the liquidity that stocks provide. Other attractions of the sector are much easier portfolio diversification, either by property sector, country or globally, while investing in quoted companies also involves lower transaction costs, the survey showed.

Consilia’s Moss said: “Using listed real estate as part of a broader property allocation strategy is gaining momentum. Most significantly, the U.K.’s National Employment Savings Trust has made a landmark decision that promises to channel billions of pounds of fresh investment into the listed property sector in coming years.”

NEST will earmark one fifth of total investment to Legal & General’s Hybrid Property Fund, which currently invests 30% of its assets in a global real estate equity fund. Established as part of reforms introducing automatic enrolment to U.K. workplace defined contribution pension schemes, NEST indicates that its assets under management will swell to £150 billion by 2030.

Article Source: http://www.property-magazine.eu/adding-property-stocks-to-the-real-estate-investment-mix-strongly-boosts-returns-25968.html

Noisy Neighbours are a Turn Off for UK Home Buyers

According to research home buyers in the UK are most turned off or pissed to noisy neighbors rather than hearing noises coming from train and traffic as revealed in this August 26, 2013 article by the Property Wire.

Noisy neighbours rather than trains and traffic noise put off people from buying a home in the UK the most even if the price was reduced, according to research.
 
Over half, some 54% of home buyers wouldn’t buy a home next door to party animal neighbours while 32% would be put off by a train line, 31% by traffic noise from a motorway and 29% by frequent DIY.

Other noise also puts people off, including 33% who wouldn’t buy because of dogs barking or cockerels crowing and 26% put off motorbikes or diesel vans starting up immediately outside the front of the house every morning.

The research by estate agents haart also found that women are more concerned by troublesome neighbours than men, with nearly two thirds, 58%, of female respondents opposed to living next to a party house compared to 46% of men.

The older generation are also particularly apprehensive, with 74% of those aged 65 and over unwilling to put up with party animals next door. Young adults aged 16 to 25 proved to be the least cautious.

Other noises that affect the desirability of a property include close proximity to an airport which would put 39% of people off buying.

Some would buy if there was a generous discount offered with the highest reduction required to put up with neighbours having regular parties, where people would want an average of 22% off the cost of the property.

Being near an airport would merit a discount of 21%, next to a very busy main road or motorway a 19% discount and being next to commuter trains running regularly an 18% discount. While dogs barking daily would need a price drop of 16%, loud DIY also 16% and noisy vehicle start up 15%.

‘Brits are renowned for our prudent behaviour, and this survey highlights just how significant this mind set is when it comes to buying a home. It is usually quite simple to scope out whether a property is affected by noise from nearby traffic, train lines or motorways, however, it’s not so easy to spot the livelier neighbours in just a handful of visits,’ said Paul Smith, chief executive officer of haart estate agents.

‘Home buyers should make sure they check out a property at different times of day and week if possible and speak to the neighbours and get their view of the street and area before you decide to buy,’ he added.

Article Source: http://www.propertywire.com/news/europe/uk-buyers-homes-neighbours-201308268158.html

Management No Longer Main Hurdle to Institutional Resi Investment

IP Real Estate published this article on August 6, 2013 by Richard Lowe showing that management issues are no longer concern of the investors in the residential sector, but rather low income returns according to the research from IPF.

UK – The latest research from the Investment Property Forum (IPF) suggests that 'management issues' are no longer seen as the main obstacle to institutional investment in UK housing.

The IPF has published its latest survey of institutional investors on the topic and found that low income yields were the principal concern for investors considering the residential sector.

The study also highlighted the four main reasons to invest: the 'return profile', 'development potential', 'stability of income' and 'low correlation with other asset classes'.

UK pension funds, insurers, property companies, local authorities and other institutions took part in the survey, and it has been estimated that the 44 institutions could generate net investment of £3.39bn in the sector over the next three years.

Pam Craddock, research director at IPF, said the findings were "hugely encouraging" and evidence of the early signs of a maturing market.

When the IPF launched the survey in 2012, management difficulties were highlighted as the main obstacle, but this year only two survey respondents cited the issue.

When asked whether the change could be attributed to a change in perception that better reflected reality, Craddock speculated that it could be a "reflection of the fact that [institutional investors] are beginning to look more closely at it".

Robin Martin, research director at Legal & General Property, recently told a property conference that "management intensity" had been "rather overestimated", and that the two major challenges were low yields and a lack of suitable stock. He argued that the issue round income yields could be mitigated through development.
 
David Skinner, CIO for real estate at Aviva Investors, told IP Real Estate today that the issue of low income yields could be "mitigated" through the construction of "residential investments that can be managed efficiently".

He explained: "If you have large-scale residential holdings that can be managed efficiently then you are obviously going to have a higher income yield than if the holdings are difficult to manage or inefficient. So in one sense they are two sides of the same coin, in my opinion."

Skinner highlighted the factor of 'low correlation with other assets' as the main attraction of residential investments for institutions.

"Because of the low correlation there is quite a lot of value to adding it to a commercial property portfolio or a multi-asset portfolio, in terms of the diversification benefits and the reduction in risk," he said.

"I think that does come through in the survey. But it means that investors shouldn't necessarily be seeking the same return that they seek from commercial property."
The London Pension Fund Authority (LPFA) is one UK institution considering moving into the residential sector.

CIO Alex Gracian told IP Real Estate that the LPFA was "currently looking at residential property, particularly within London, as one of the ways of capturing the illiquidity premium and maximising its ability as a long-term investor."

Article Source:  http://www.ipe.com/realestate/management-no-longer-main-hurdle-to-institutional-resi-investment_55354.php#.UgHTpW3tYh8

Prime Property Buyers in the UK More Cost Conscious

According to the latest analysis from real estate firm Savills, buyers of prime property in the UK are more cost conscious with regional markets more subdued than London as shown in this recent article by the Property Wire on August 5, 2013.


Its new report says that at the end of last year it was anticipated that 2013 would mark a turning point in the prime markets. On the one hand, price growth in the prime London markets was widely expected to slow in response to the changes in stamp duty and associated taxes. On the other, the gap between prices in London and the country, which has widened substantially since 2009, was expected to draw demand into, and consequently revive, the prime markets beyond the capital.

However, the experience of the first six months suggests that these expectations were premature. Despite political posturing regarding mansion taxes in February and March, prices for prime property in London have risen by an average of 4.8% in the first half of the year.

Over the same period £2.6 billion has been spent on £5 million plus properties in the capital, up by 23% on the same period last year.

By contrast, the prime regional markets have remained relatively subdued. Overall prices have risen by just 0.3% on average in the past six months. Whilst transactions have been more buoyant than in the mainstream markets, there have been few signs of a discernible improvement.

‘This is not to say that the tax changes for £2 million plus property have not had an impact. The total amount spent in the market on £2 million property fell by 15% between 2011 and 2012 to £16.7 billion. Indeed, we saw some evidence of small price falls in some of the most expensive properties in the central London markets in the three months to the end of June,’ said Lucian Cook, director of residential research at Savills.

Overall, price growth has continued in prime central London but at half the levels in the prime South West London markets where prices have risen by 8.5% over the past year.
This has made some buyers, including non-UK buyers who nonetheless live and work full time in London, more cost conscious.

Whilst prices in Knightsbridge are further above their pre-crunch levels than in any other area, the greatest annual price growth has been seen in Fulham with an increase of 13%.
Here prices, at £980 per square feet, are roughly half of the average for prime central London. Our analysis of prices at ward level suggest that the average price of all property sold in Knightsbridge and Belgravia in the past five years has been over £2.6 million, the highest of any of the 9,800 or so wards in Great Britain,’ explained Cook.

He pointed out that the equivalent figure in Parsons Green, which at number 21 in the most expensive list, stands at £1.2 million. Such a flow of wealth has been similarly evident in similar markets such as Wandsworth, Richmond and Islington.

However, evidence of a more widespread ripple effect has been sporadic, causing the gap between prime London prices and those for prime properties in and beyond the commuter zone to widen further.

The few exceptions are wealthy wards such as Oxshott and Stoke D’Abernon and Cobham Fairmile where prices are back to their pre crunch levels and over the £1 million mark.
Beyond London and the Home Counties, the highest value ward is St Margaret’s sitting in central north Oxford, where over the past five years, prices across 497 sales that have been recorded by the Land Registry have averaged just over £700,000.

This is representative of a number of prime urban markets, including the likes of Newnham in Cambridge, Lansdown in Bath and Murrayfield in Edinburgh, that have outperformed their prime rural counterparts.

However, there has not been great evidence of price increases in 2013 beyond London. Equally neither has there been much evidence of price falls, with the exception of country houses in Scotland and some coastal properties for which second home buyers have been scarce. In the important second quarter, price movements in the prime regions have averaged between +1% and -1%.

Savills expects all regions of the UK will see house price growth this year but there will continue to be a distinct north/south divide in the speed of recovery according to its revised five year housing market forecasts.

The firm now expects UK house price growth to average 18.1% by the end of 2017, compared to the 11.5% anticipated when its forecasts were originally published in November 2012, though regional variations will range from 25.1% for the mainstream London average, slightly ahead of the 24.3% forecast for prime central London, to 12.5% for the North East.

While mainstream London values are now 4.8% above their previous peak, Savills says that the North of England and Yorkshire and the Humber will fail to return to peak 2007 values over the next five years, continuing to fall marginally in real terms over the five year forecast period.

‘Current measures such as repossession levels and transaction levels indicate that the regions of the Midlands and the North are not in a position to match the price growth anticipated further south. But towards the end of the five year period, when expected interest rate rises start having an impact, we would expect to see a convergence of house price growth before lagging markets should begin to play catch up,’ said Cook.

Article Source: http://www.propertywire.com/news/europe/uk-prime-property-analysis-201308058081.html

Property Investment 101 for Rookies

If you consider getting into a property or move up to the next rung of the property ladder, here's some words of advice by Michael Yardney. This article was posted on July 31, 2013 on Yahoo Finance.

Property investment is not something you should enter into lightly. But for some reason, that’s what a lot of people who have dreams of making millions with real estate do.

They think, "I can go out, buy a house somewhere, stick in some tenants to pay the mortgage and make a killing! How hard can it be?"

Fact is most property investors fail. Stats show that around 50 per cent of people who buy an investment property sell up in the first five years, and of those who stay in the game, 90 per cent never get past owning one or two properties.

So if you're looking to get into property or move up to the next rung of the property ladder, here are some words of advice:

Knowledge is property investment power

Firstly you need to understand what makes a good property investment and recognise that not just any old digs will do.

You can profit from real estate in one of four ways, and if you get the combination right you’ll make money from bricks and mortar. They are;

1. Capital Growth – to build yourself a sound asset base your properties will need to appreciate in value at wealth building rates (in other words above average capital growth.) This will come from strong demand from owner occupiers (who push up property values) and tenants (who help you pay your mortgage.)

2. Cash Flow – in other words your rent.

3. Tax benefits – while you should never invest solely for this reason; a good tax strategy can help you manage your cash flow, decrease your tax obligations and increase your bottom line.

4. Accelerated Growth – getting your hands a little dirty (metaphorically speaking) by investing in a property that needs a bit of cosmetic TLC through renovations or a major facelift through property development, is a great way to manufacture capital growth.

Cycles

While timing the market is not the be all and end all, it certainly helps to understand how the property market moves in cycles.

Following the herd and buying when everyone else is on the property bandwagon doesn’t always work. That’s often when the market is near its peak.

On the other hand you have more chance of nabbing a good deal in a buyer’s market, when property is out of favour. That’s why Warren Buffet said “Be fearful when others are greedy and be greedy when others are fearful."

Currently many of the property markets in Australia are in the early upturn stage of their cycles, creating good medium term investment opportunities.

Location

Location can make or break a property investment. But what is the right location?

I look for areas that will have strong ongoing demand from a wealthy demographic of owner occupiers who can afford to and are prepared to pay a premium to live in good locations.

Some of the major drivers of this type of capital growth are:

• Proximity to the city


• Proximity to the sea

• Adjacent to a prime suburb

• Amenities such as proximity to a train station, large shopping centre, and within the zone of a highly sought-after public high school.

• Suburbs that contain period style homes e.g. Californian bungalows, Federation, Victorian, Edwardian style homes.

I also like buying in areas going through gentrification – a suburb that is relatively cheap now but has the potential for capital growth in the future as a wealthy demographic of people move in.

One way to find this type of location is to drive through the streets and look for some of the obvious indicators that people with money are moving in:

• Are people spending large amounts of money on renovating/extending their homes?

• Are there small black (or maybe now it's white - the new black) BMWs and Audis parked in the driveways or are they old Ford Falcons and Holden utes?

• Is the nature of the shops changing – more cafés and deli and lifestyle shops.

Money, money, money

A sound financial strategy is as important as a sound investment strategy when it comes to property.

Without a well rounded understanding of how to maximise your borrowing power, use equity as a leverage to build your portfolio and maintain a financial buffer to see you through the difficult times that we all ultimately face, you are setting yourself up to fail financially.

It's important to set aside a cash flow buffer in a facility such as an offset account or Line of Credit, to cover you for a rainy day.

Financial fluency

While you could make lots of money in through property investment you could also easily lose it.

If you are financially illiterate when it comes to managing money, budgeting and even balancing the books at home, how do you think you’ll go when it comes to a multi-million dollar property portfolio?

You may need to learn the ins and outs of taxation and the financial advantages you can enjoy as an investor, as well as the best structures to own your investments in, such as personal, company and trust set ups.

Rather than trying to learn it all yourself and wear numerous hats, it's worth surrounding yourself with a good team of professionals who can guide you with their knowledge and expertise.

An independent property strategist, a finance broker and an accountant should all be people you rely on to support you in the journey to real estate riches.

If you’re the smartest person on your team, you’re in trouble!

Some final words of advice (or warning) for investors

1. Formulate a plan – understand what you want to achieve and then make investment decisions accordingly.

2. Be cautious – You’ll find everyone is happy to give you advice. Rather than listening to well meaning friends, it’s important to only listen to people who have achieved the financial independence you’re looking for and who have maintained it for a period of time.

3. Understand the difference between a sales person and an advisor. Many sales people are cloaked as advisors and suggest they are representing you the buyer when in fact they are representing the seller or a property developer.

4. Be prepared to pay for advice – it’s much cheaper than learning from your mistakes.

5. Not everything that glitters is gold – often when you start out it can be tempting to see opportunities everywhere. The problem is you don’t yet have the perspective to decide what is a good investment and what is not.

Property doesn’t discriminate; it doesn’t care who owns it. Today the residential property market is worth 4.68 trillion dollars (according to RPData) and over the next decade it will increase in value by billions and billions of dollars.

If you get it right, you can have your share.

Michael Yardney is a director of Metropole Property Strategists who create wealth for their clients through independent, unbiased property advice and advocacy. He is best-selling author, one of Australia's leading experts in wealth creation through property and writes the Property Update blog. Subscribe today and you'll receive a free video training - The Golden Rules of Property Investment.

Article Source: http://au.pfinance.yahoo.com/our-experts/michael-yardney/article/-/18221863/property-investment-101-for-rookies/

House Prices Hit Three-Year High

This article by Sarah O'Grady of the Express can be alarming to new home buyers because house prices are much higher than a year ago and have elevated year on year.

HOUSE prices are steaming ahead at their strongest annual growth rate in three years.

Values this month are 1.3 per cent higher than they were a year ago and have increased, year on year, for the sixth month in a row.

Depending on how far the market picks up again this autumn, 2013 could see the highest rise in prices since the economic downturn, according to property analyst Hometrack.

It says prices rose 0.3 per cent month-on-month in the traditionally slow month of July, down from rises of 0.4 per cent recorded in both May and June.

But across England and Wales, 29 per cent of postcode districts registered hikes over the month, falling back only slightly from 31 per cent in June which had been the biggest uplift recorded in almost six years.

Richard Donnell, director of research at Hometrack, said: “The year has got off to a strong start.”

Other indicators of the “health” of the market are still improving on the back of rising prices and sales.

Sellers are achieving 94.4 per cent of the asking price on average, equalling 2007 levels. Homes are taking just over eight weeks to sell, marking the shortest sales period in six years.

Also, the number of first-time buyers is on the up, said Britain’s biggest mortgage lender, Halifax. It estimates that there were 120,000 first-time buyers in the first six months of 2013.

This shows an increase of almost one fifth year-on-year and marking the biggest number since there were 181,500 buyers from this sector in the first half of 2007.

Prices increased more strongly during the first half of this year than many experts had predicted, boosted by Government schemes such as the £80billion Funding for Lending and Help To Buy.

Lenders report that their “risk appetite” is returning and have slashed mortgage rates on the back of the schemes. But some experts fear that these schemes could simply help to create another property bubble that is bound to burst.

Article Source: http://www.express.co.uk/news/property/418221/House-prices-hit-three-year-high

 

What is the Best Way to Judge the Value of your Property?: David Airey

In this article David Airey discusses important tips to consider to evaluate the value of your property.

When it comes to judging a property to get a reasonable indication of its value and probable sale price there are three options you might consider.

First, a real estate agent can give an appraisal which is largely an educated guess based on their current sales experience and local knowledge. This is informal but usually pretty helpful as an indication.

Second, an owner or buyer can hire a professional valuer to produce a more formal and authoritative report. These reports are based on sales information held at Landgate and from information obtained from real estate agents on recent sales not yet reflected in the government data. Usually these are the reports which banks and legal bodies will accept as valid for lending and legal purposes.

A professional valuation removes any perception that there might be a bias on the part of real estate agent appraising a property and is regarded as more independent.

Thirdly, the option to pay for a property report from one of the many private companies which are not valuers. However, people thinking of doing this should be aware there can be limitations to this.

Most of the companies which provide this service are based on the east coast of Australia and have few or no staff here.

This means that the reports are largely put together based on Landgate data showing the last sale price and then calibrated to place the property in the context of the current market.

While that might sound quite reasonable, such reports can only be based on the unimproved value of the property since its last transaction.

For example, if a property was purchased in 2005 and the owner demolished the old house and built a bigger one in its place, then this would not be known by a property group based in Sydney or Melbourne.

They would only know of the 2005 sale price, even though the site now has a completely different value. It’s a similar situation if an owner puts in a pool, adds a second story or patio, or maybe constructs a lock-up garage.

These things are not readily detectable through an arms-length report based on data rather than being produced by actually sighting the property and being familiar with its history.

If you solicit a property report from a company that deals in real estate data, make sure it can measure the current improved value of the property and not rely simply on historical sales information.

Better still, engage a local valuer if you need a formal, legal valuation or contact a REIWA agent for an appraisal if that’s all you require.

Either way, it pays to use the local services of those who know your neighbourhood.

David Airey is president of the Real Estate Institute of Western Australia. This article was originally published on reiwa.com.

Article Source:  http://www.propertyobserver.com.au/residential/what-is-the-best-way-to-judge-the-value-of-your-property-david-airey/2013072863556?utm_source=po&utm_medium=aida&utm_campaign=ourobservers:adviceandanalysisforreaders

Property Asking Prices up for Seventh Month in a row, says Rightmove

This article by Property Wire on July 16, 2013 shows the price of property coming onto the market in England and Wales has now risen for seven months in a row and asking pricess are now 4.8% above a year ago, figure according to the latest report from Rightmove.

 The latest monthly rise of 0.3% takes the average asking price to £253,658 and comes at a time when agents are experiencing more inquiries from buyers and all regions are showing price growth for the first time since September 2010.

Several factors suggest this is a broader based recovery, according to Miles Shipside, Rightmove director and housing market analyst. ‘The market is currently benefitting from the aggregation of marginal gains where incremental improvements across a range of key market drivers help to slowly but surely build momentum,’ he said.

‘Rightmove’s lead indicators show increasing enquiries to agents and developers, new sellers and marketing prices. An important signal for a broader based and sustainable recovery is that all regions of the country now have higher prices than a year ago firmly on the record,’ he added.

Early findings from Rightmove’s latest Consumer Confidence Survey of more than 25,000 home movers show that 62% of home movers expect property prices to be higher a year from now, double the 31% recorded a year ago.

‘Consumer confidence is key to the housing market and on this front there has finally been a year of minimal bad news, with a reasonable amount of good, after four years of pretty consistent doom and gloom. Barring a raft of bad economic news, we expect the positive impact of this on the property market to continue,’ explained Shipside.

Evidence of an increase in housing transactions suffer from a considerable time lag, but HMRC’s most recent year to date figures  are up by 5% on 2012, while Bank of England figures for mortgage approvals year to date are up 6% on last year. In a clear signal of new business building in the pipeline, Rightmove’s email enquiries to agents and developers are up 18% year to date compared with 2012.

‘Confidence and the ability to take on long-term mortgage commitments give more buyers the spur to enter the market or trade up. The route from property enquiry to trading onto or up the property ladder has been cleared of some obstacles, resulting in a partial unblocking of pent up demand,’ added Shipside.

He pointed out that markets don’t expect a base rate rise until the latter half of 2016 and the Funding for Lending Scheme (FLS) is now fulfilling its promise of creating competition that eases mortgage rates and increases availability. On top of that, Help to Buy, currently available for new build only until January 2014, is capturing prospective buyers’ interest.
‘The ability to borrow is increasing as the Funding for Lending Scheme starts to deliver, though it still favours those with better deposits. Lenders are squeezing their margins, and with the prospect of no base rate rise for three years consumers are increasingly aware of moving options rather than debt burden,’ Shipside said.

‘With the Help to Buy scheme already breathing more life and confidence into the new build market, and expected to have a similar impact on the resale market from January next year, the outlook for the second half of 2013 and beyond is increasingly positive,’ he added.
As a result of the positives Rightmove has doubled its 2013 price forecast from 2% to 4%. ‘Given what we’ve seen over the first half of this year, we expect the average asking price of property coming to the market in England and Wales will end 2013 around 4% higher,’ said Shipside.

‘While the current annual rate stands at 4.8%, in recent years the gains of the first half of the year have been eaten away in the second. Between June and December last year, asking prices fell by 7%. The signs are that prices in 2013 will not dissipate as they have in recent years,’ he explained.

However, he added that there will be significant underlying regional variations with some areas, primarily in the north, struggling to stay in positive territory for the year. ‘London will continue to outperform the rest of the country and we also expect the South East, the main beneficiary of the over spill from the capital, to maintain its strong momentum, both driven by an on going shortage of supply of property for sale. Asking prices in the capital are currently 29% higher than they were five years ago compared with 7% in the South East and just 5% nationally,’ he said.


Article by: Property Wire
Article Source: http://www.propertywire.com/news/europe/uk-asking-prices-recovery-201307168009.html