Newly listed asking prices back near record highs
Posted by The Oracle Group on 18th June 2019 -
INDUSTRY
Newly listed asking prices back near record highs
The national average price of a newly marketed property has been pushed up by 0.3%, thanks to buoyant property markets in the north according to Rightmove’s latest measure of online asking prices. Despite Brexit uncertainty weighing down house price growth over the past year, the average price of a property coming on to the market was £309,348, close to June 2018's record high of £309,439. Miles Shipside, director at Rightmove said that resilient markets in the north and Midlands are helping to boost average prices due to the “relentless strength of buyer demand”. “Buyers in four regions are seeing higher new seller asking prices on average than ever before,” he added.
Over half of older homeowners would consider equity release
More than 6.7m UK homeowners aged 45 and over (51%) would consider using property wealth as part of their later life financial plans, according to a report from the Equity Release Council, as the UK’s housing wealth tops £4tn for the first time. The equity release trade body said that older homeowners – particularly those aged 45 to 64 – are reassessing the traditional role of property and are less likely than their older counterparts to see property as something to leave behind as an inheritance, for example. Instead, over half (56%) feel they can benefit from its financial value while they still live there. They are more likely to think of it as a multi-purpose financial tool that can support their own financial plans (55%), be used as a nest egg to meet unexpected expenses (49%) or help family members (25%).
Why baby boomers are joining generation rent
In an analysis for the Telegraph, Marianna Hunt considers the reasons behind the increase in over-50s living in rented accommodation. “Some retirees, hoping to keep their wealth out of the hands of the taxman, are choosing to gift their home to their children, while moving into rented accommodation themselves,” she writes. Some retirees, she adds, are also taking advantage of record high-rents, by renting out their home to growing families in need of the extra space while moving to a smaller rented property themselves. Ms Hunt also suggests that a lack of downsizing options is leaving older people with no option but to rent rather than buy a smaller home.
FIRMS
Kier to cut 1,200 jobs
Kier Group is to sell its homebuilding business and axe 1,200 jobs and as it attempts to save £55m a year. Around 650 jobs are expected to go by the end of June, with the remaining posts to go next year. Shares in the contractor plunged almost 14% after the news, adding to an 85% fall over the past year. As part of the renewed strategic focus, Kier will sell off housebuilding business Kier Living, its property-development arm and its facilities management and environmental services. The company said it had already received a number of expressions of interest for Kier Living.
Hammerson on high after analysts decide to buy
Shopping centre landlords received some welcome news this week, as Peel Hunt upgraded Hammerson to "add" from "hold". The broker’s analyst commented that it was “the first time in years” that it had been positive on a prime shopping centre real estate investment trust. "Investor sentiment is likely to remain negative and we still foresee a material rebasing of prime retail rents over the long term," Peel Hunt said. Despite this, they calculated that at the present share price, Hammerson could withstand a near-30% decline in UK rents, could rebuild the balance sheet and could still trade at a 40% discount to net asset value.
Metro Bank scraps ‘no DSS’ terms
Metro Bank has become the latest lender to scrap terms that ban landlords from renting to benefit claimants. The move follows a similar one made by Natwest in March, with both banks having now withdrawn any discriminatory terms that ban landlords from taking on Universal Credit claimants.Daily Mirror
RENTAL
UK-wide research fund to improve standards in rental sector
TDS Charitable Foundation (TDSCF) and the SafeDeposits Scotland Charitable Trust (SDSCT) have jointly awarding £300,000 in funding to a consortium of 14 institutions tasked with improving standards in the private rented sector. The UK Collaborative Centre for Housing Evidence (CaCHE), led by the University of Glasgow, will assess dispute resolution, low standards and deposits, with the aim of advancing education on housing rights and obligations. “Debate continues over how policy can most effectively respond to changes in the private rented sector and this TDSCF/SDSCT-funded research programme will produce findings that are relevant to the challenges, policy responses and nature of the PRS across the UK,” said Dr Jennifer Harris, Senior Research Associate for CaCHE.
HOUSING
Brokers: Brexit has stalled plans to tackle housing shortage
A poll from United Trust Bank has revealed that almost two thirds (63%) of property finance brokers believe that plans to deal with the UK housing shortage have been derailed by Brexit. The poll of over 100 brokers showed 16% believe plans have been set back by more than three years. “As well as creating considerable uncertainty for house builders, businesses and individuals, many believe that the government’s efforts to navigate Brexit have caused it to divert attention away from some very important issues,” said Paul Turton, head of sales – property development at United Trust Bank.
INTERNATIONAL
US homebuilder confidence falls for first time this year
US homebuilder confidence dropped in June for the first time this year amid trade concerns and rising construction costs. The market index fell to 64 from 66 the previous month.
SOCIAL
Removal of homeless camps trebles
Councils across the UK are removing three times the number of homeless camps than they were five years ago, new figures have revealed, while charities say the camp clearances are a symptom of an acute homelessness problem, driven by welfare changes and a lack of appropriate housing. “Our government’s history of enforcing an acceptable annual construction number of affordable social housing is well documented; with demand more than outstripping supply with a resultant lack of homes for people experiencing homelessness,” commented Stephen Robertson, chief executive at the Big Issue Foundation.
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