Survey show first rise in home sales for two years
Posted by The Oracle Group on 11th July 2019 -
INDUSTRY
Survey show first rise in home sales for two years
A monthly survey of estate agents by the Royal Institution of Chartered Surveyors reveals the number of newly agreed residential sales has increased for the first time since February 2017. The survey polled more than 300 estate agents in more than 600 branches last month. For the first time since November 2016, the survey indicated a rise in new buyer inquiries at a national level, while the volume of new instructions was higher for the first time in a year. The majority of the estate agents surveyed also expect the number of agreed sales to rise over the next year. All parts of the country were showing house price growth, except for London, the South East and the East of England. The majority of estate agents also said that newly built houses were selling for between 5% and 10% more than older properties, however, stock levels remain at near-record lows and appraisals were down on the previous year.
FIRMS
Barratt to turn in another record-breaking performance
Barratt Homes is on track for another year of record profits. The housebuilder put up 17,856 homes in the year to June, marking a 1.6% rise in completions, and expects to make pre-tax profits of about £910m, up from £834m last year and well above City forecasts of £884m. Its average selling price was £274,000, down from £288,900 a year earlier, which it put down to a change in its product mix. Barratt’s operating margin, which rose from 17.7% to 18.9% in the year, was boosted by one-off features. The firm also has a forward order book of £2.6bn, up from £2.2bn last year, while net cash stood at £765m, driven by "overall strong trading".
HOUSING
London mayor’s housing plans falling behind
Sadiq Khan is on course to miss one of his key housing targets, critics have claimed. In May 2016, Transport for London said it had set a target to build 10,000 homes by 2020 – later extended to 2021. However, new figures revealed by the London mayor in May show that only 322 homes have been built on TfL land since he took office in 2016. Andrew Boff, Conservative housing spokesperson in the London Assembly, said: “Three years into a five-year programme, this mayor has started a pathetic 3% of the overall number of homes he promised to build on TfL land.” But a spokesperson for Mr Khan said: “The mayor is delivering record numbers of new social and affordable homes… TfL continues to work at pace towards the ambitious target of starting on sites with capacity for 10,000 homes by 2021.”
Labour’s housing proposals recipe for disaster
David Alexander, MD of DJ Alexander, argues that Labour's housing plan would crash the market. The report believes that taxing financial gains individuals make on their "main or only" homes would re-align high prices. But applying capital gains tax on the sale of privately-owned homes will result in a collapse of engagement in owner-occupation, while reducing lending by banks, Mr Alexander believes. Additionally, he argues, proposals to replace the private rented sector with social/affordable housing is “based more on ideology than practicalities”, as lending to the PRS is restricted and controlled while legislation giving greater protection to tenants is to be introduced.
West Midlands to redefine ‘affordable’ housing
The West Midlands Combined Authority (WMCA) is to redefine the definition of 'affordable' housing in the region after new figures revealed that the average house price in the West Midlands is almost seven times as much as the average annual salary. Earlier this year, the WMCA's Housing and Land Delivery Board made the decision to come up with its own definition of affordable housing, separate from the Government's.
COMMERCIAL
Commercial sector fares well in 2018
Commercial property sales topped £5.5bn in Yorkshire and North Lincolnshire last year. Search Acumen's analysis of HM Land Registry data for 2018 shows that transactions across 20 local authority districts in the region were up 5% on the previous year. At £1.65bn, Leeds saw the highest amount of investment, making it the third highest area in the country behind London and Manchester. Leeds also recorded the biggest volume of sales at 2,072. Calderdale saw the highest growth of investment over the past two years, up from £198m to £294m, while the biggest transaction was in Sheffield for £173.8m.
Lack of supply holding back hot London market
Property deals in the City of London have jumped this month, according to research. More than £400m was exchanged in the first week of the month, overtaking the £318m exchanged in the entire month of June, figures published by Savills show. However, a lack of supply is hindering the market. At the start of July there were only 19 buildings being openly marketed, worth £928.9m compared to a value of £2.99bn at the same time last year. "There continues to be huge amounts of money targeting London with activity only being held up by the lack of available opportunities," said Savills’ Stephen Down.
TAX
Jesse Norman defends business rates system
Jesse Norman, financial secretary to the Treasury, has rejected claims by MPs on the Treasury select committee that the business rates system was “inconsistent, inaccurate and unfit for purpose” arguing instead that the tax on commercial property “has the good qualities of a tax system you want” and that the appeals system was “very straightforward”. Nicky Morgan, chairwoman of the committee, said the “situation is deeply, deeply unsatisfactory” and accused the Treasury of not taking businesses’ concerns seriously enough.
Online property portals quietly fear digital tax
Property websites have reportedly joined tech giants in voicing fears over plans for a digital services tax. According to the Telegraph, a number of British marketplace-style companies, including “one well-known online estate agent”, have been privately speaking over the pitfalls of the tax, but have been unwilling to come out publicly against it. The paper notes that property portals do not generate enough revenue to have to pay the additional 2% tax imposed on revenue under the proposals, but could do so in future.
LEGAL
Regulators to act on forgeries claim
The Financial Conduct Authority and the National Crime Agency have said they will investigate alleged bank signature forgeries. It comes after Treasury Committee chair Nicky Morgan asked the regulators to analyse claims that home repossessions and other documents may not have been signed by the authorised signatory.
Asylum seeker wins lock change appeal
An asylum seeker has been granted an appeal against the lock change evictions that threaten hundreds of people with homelessness in Glasgow. Private contractor Serco is planning to change locks and evict asylum seekers before they hand back properties when the firm's contract with the Home Office ends. Lord Drummond Young granted the motion for appeal by a Ms Ali, represented by Govan Law Centre, on the legality of lock change evictions, due to be heard on August 28 at the Court of Session.
RETAIL
Landlord Intu finds itself at centre of retail storm
Analysis in the FT looks at how the retail crisis is impacting Intu. While footfall is down by less than the UK average, rents have been hit hard by CVAs.
ECONOMY
UK economy returns to growth
The UK economy grew by 0.3% in the three months to the end of May, according to the Office for National Statistics (ONS). Manufacturing rebounded by 1.4% in May compared to a 4.2% drop the previous month. However, the National Institute of Economic and Social Research said it still expected a fall in GDP of 0.1% in the three months to June as Brexit-related uncertainty takes its toll.
OTHER
Sir James Dyson buys Singapore's 'biggest penthouse flat'
Sir James Dyson has bought what is thought to be Singapore's biggest and most expensive penthouse flat. According to marketing documents, the property at the heart of the city's business district spans three floors and has five bedrooms, its own swimming pool, jacuzzi room and bar facilities. Sir James reportedly paid $73.8m Singapore dollars ($54m, £43m) for the "super penthouse".
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