Global Real Estate & Mortgage News from Propertyshowrooms.com

South African mortgage market 'improving'

Fri, 11 May 2012 00:00:00 GMT

South Africa's mortgage market has been given a boost by an influx of applications from younger property buyers.

The latest figures from BetterBond show more people aged between 30 and 50 are looking to purchase real estate in South Africa, resulting in the total number of requests for a home loan rising 45 per cent in the past year, BusinessDay reports.

BetterBond is the country's biggest mortgage originator and its chief executive Rudi Botha was quoted by the news source as saying the dip in loans to people aged over 50 is due to this demographic either delaying moving home or using equity to pay cash when downsizing.

However, it seems older expats are bucking the trend, as SA Commercial Prop News noted British expats are increasingly turning to South Africa when they retire as the country offers a better standard of living than the UK for those relying on a pension.

"The percentage of loans being granted to buyers between the ages of 20 and 30 - who are typically first-time buyers - has gone up substantially, from about 16.5 per cent to almost 21 per cent," Mr Botha remarked.

French mortgage market 'attractive for Brits'

Thu, 3 May 2012 00:00:00 GMT

The level of finance available for property purchases in France makes the market very attractive to British purchasers.

Writing for My Introducer, Clare Nessling explained the nation's banking system has not been hit as hard as those in other countries, because its financial institutions exercised more caution than some of their counterparts elsewhere on the continent.

She stated the French market "currently offers the widest range of finance options and best available rates in Europe for UK buyers, and it's in a relatively secure situation".

It is also possible to take out a high loan-to-value mortgage on a property in France, with some providers continuing to lend up to 90 per cent of the purchase price.

A recent survey by HiFX revealed France is a top choice for British buyers overseas, with 35 per cent of people seeking foreign real estate hoping to buy in the country. This was more than double the number of purchasers considering Spain - which attracted 16 per cent of those surveyed - making it the second most popular destination for property deals, the Press Association reported.

Santander announces further losses from Spanish property

Tue, 1 May 2012 00:00:00 GMT

Santander saw its first quarter profits fall by 24 per cent, compared to a year earlier, largely due to an increase in its provisions to service bad real estate loans.

The banking group announced it has now set aside €3.1 billion (£2.5 billion) to cover losses on Spanish property assets and other non-performing loans - an increase of 51 per cent from the first three months of 2011.

According to the firm, these provisions were "charged entirely against ordinary profit", while the organisation's loan-loss coverage grew by one point to stand at 62 per cent.

Earlier this month, Santander-controlled Banco Espanol de Credito SA (Banesto) announced an 88 per cent year-on-year decline in profits, which was largely attributed to the bank's €475 million in provisions for bad real estate loans.

This figure is approximately half the amount the financial services organisation is required to set aside by the end of 2012 to help cover its exposure to the Spanish property market.

Distressed Spanish property falls in value

Tue, 24 Apr 2012 00:00:00 GMT

The value of repossessed properties in Spain has fallen by an average of 48 per cent since the finance on the home was issued.

This is the finding of a new report published by Fitch Ratings, which revealed the majority of the mortgages associated with real estate assets included in the study had a loan-to-value ratio of 80 per cent or higher.

Juan David Garcia, senior director and head of the company's structured finance team in Spain, commented: "Fitch expects property prices to continue falling, due to the recessionary environment and severe dislocation of the Spanish property market."

He added the rate at which the price correction occurs will depend on how the banks manage their portfolios of distressed Spanish real estate.

According to the latest data published by Tinsa, average property values in the country dropped by 11.5 per cent between March this year and the same month in 2011. The organisation added the price of homes has declined by 28.6 per cent since its peak in December 2007.

Property in Dubai 'showing recovery signs'

Mon, 23 Apr 2012 00:00:00 GMT

Applications for mortgages to buy property in Dubai have risen, according to Cluttons Middle East.

Director of the firm Ron Hinchey said it is small-scale property where the improvement in the market has been seen, stating that local banks are "acting with moderate caution and are offering introduction interest rates of around four to five per cent".

He said these tend to be initial offers with the rate rising to six to seven per cent after a year, while most banks ask purchasers to provide 20 per cent of equity at the outset.

However, Mr Hinchley noted: "Plenty of buyers are now taking up these offers and this is indeed helping the residential sales market to become more fluid."

With the market potentially in the early stages of recovery, it may be larger purchases will follow later on.

Figures from Reidin have indicated March saw a two per cent rise in property prices in Dubai, the fourth successive month of price growth.

Low-cost mortgages 'drawing in Spanish buyers'

Wed, 11 Apr 2012 00:00:00 GMT

An increasing number of people are being attracted to property in Spain by the low mortgage rates and high loan-to-value ratios offered by the country's banks.

Reuters reported on a deal provided recently by Santander in Sesena, a town outside Madrid, where two-bedroom apartments were on sale for €65,000 (£53,623) with a 100 per cent mortgage over 40 years. As a result, monthly payments on such a loan could be as low as €242.

Speaking to the news provider, Carlos Ferrer-Bonsoms, from Jones Lang LaSalle, commented these low monthly payments are attracting buyers.

"Many promotions that we see are advertising what the cost of the mortgage will be per month, not the price of the property," he explained.

Financial institutions with exposure to the Spanish real estate market are increasingly offering such deals in a bid to clear some of these assets from their balance sheets.

Earlier this month, research firm RR de Acuna & Associados predicted the value of homes in the nation will fall by a further 12 to 14 per cent by the end of 2012.

Is France's property market set to cool?

Thu, 5 Apr 2012 00:00:00 GMT

There are indications the French property market may slowdown as the year progresses, with a number of factors helping to cool the sector.

According to a Global Property Guide report, the threat of a recession in the eurozone and the forthcoming presidential elections - which are due to be held in April and May - have made purchasers "more cautious".

The publication cited figures from the National Association of Real Estate Agents in France, which revealed price growth in the final quarter of 2011 was considerably weaker than the previous three-month period.

Between October and December last year, the value of property climbed by 1.04 per cent annually, while in the third quarter, prices rose by 7.1 per cent compared to the same period in 2010.

Last month, Clare Nessling, director at Conti, revealed the French mortgage market offers the most attractive rates in Europe for British buyers. She explained it is "in a relatively secure situation and loan-to-value ratios are still high".

Mortgage lending in Spain falls

Wed, 28 Mar 2012 00:00:00 GMT

The number of mortgages issued in Spain, as well as the collective value of the loans, fell in January, according to new figures.

Data published by the Instituto Nacional de Estadistica revealed the volume of mortgaged properties in Spain slid by 37.1 per cent between January this year and the same month in 2011, while the overall value of lending declined by 34 per cent.

However, the average amount borrowed by individuals climbed by five per cent on an annual basis - and by 10.6 per cent month-on-month.

Banks still provide the bulk of the home loans in the nation, both in terms of value and number, although the organisation noted savings banks generally offer slightly lower interest rates than their mainstream counterparts.

Earlier this month, director at Conti Clare Nessling pointed out that, while the average loan-to-value ratio in Spain is 65 to 70 per cent, this can be higher in areas where the real estate market has been "more resilient", such as the Canary and Balearic Islands or Madrid and Barcelona.

French property market 'a good target for UK buyers'

Mon, 26 Mar 2012 00:00:00 GMT

British buyers are able to get a more favourable mortgage rate in France than in any other European country.

This is the assertion of Clare Nessling, director at Conti, who explained purchasing real estate in France and elsewhere overseas has become "much more affordable" due to the predominantly low interest rate environment in Europe and the falling value of property in many nations.

She went on to point out that the French mortgage market has fared better than the majority of its counterparts in Europe because it has historically taken a more cautious approach to lending.

"It currently offers the widest range of finance options and best-available rates in Europe for UK buyers. It is in a relatively secure situation and loan-to-value ratios are still high," Ms Nessling stated.

The attractive mortgage terms provided in France may be one reason behind its popularity as a retirement destination.

Earlier this month, managing director of The Villages Group Danny Silver drew attention to a survey by the National Association of Pension Funds, which found 34 per cent of people nearing retirement age would consider moving abroad to enjoy a lower cost of living. Mr Silver highlighted France as the ideal country to choose due to its food, culture and proximity to the UK.

Spain proposes mortgage changes

Tue, 13 Mar 2012 00:00:00 GMT

The Spanish government unveiled a new voluntary code of conduct on Friday (March 9th) for the nation's banks to follow in relation to foreclosed properties.

Under the new guidelines, homeowners who are struggling to pay their mortgage will be given extra support by financial institutions to help prevent repossessions.

In order to qualify for assistance, which can involve restructuring the loan for a period of up to 40 years, every member of the family in question must be unemployed and the cost of repaying the mortgage needs to equate to at least 60 per cent of their income.

The aim is to allow Spanish property owners to remain in their homes, with the country's deputy prime minister Soraya Saenz de Santamaria pointing out over 1.5 million families in the nation are currently out of work.

At present, evicted homeowners can still be saddled with debt even after losing their property, as banks can demand further payment if the value of the house in question has fallen below the amount remaining on the mortgage.

Since the Spanish real estate market started to decline in December 2007, an average of 25 per cent has been wiped off the value of properties in the country, Tinsa revealed in its January General IMIE Index.

Using an overseas mortgage specialist 'advisable when buying property abroad'

Tue, 13 Mar 2012 00:00:00 GMT

Investors seeking a property overseas should enlist the assistance of a specialist in foreign mortgages if they need to raise funding for their transaction.

This is the advice of Clare Nessling, director at Conti, who explained this type of firm can help buyers negotiate planning and legal conditions, as well as offer assistance with currency exchange processes.

She noted that, for real estate in the US, it is possible to acquire a mortgage for between 65 per cent and 70 per cent of the property's value, depending on where it is located.

Ms Nessling pointed out potential purchasers should be aware of rules within the US home loan industry and highlighted some important things to consider.

"The maximum term of any mortgage is 30 years, the minimum loan amount is $100,000 (£63,300) and total mortgage payments and other financial commitments must not exceed 38 per cent of the buyer's gross monthly income," she stated.

Earlier this month, the National Association of Realtors (NAR) revealed housing affordability in the US has reached record levels. According to the organisation's figures, the average family now has roughly double the amount of income it requires to buy a "median-priced home".

Moe Veissi, NAR president, commented: "For buyers who can qualify for a mortgage, now is a very good time to become a homeowner."

Mortgage availability "surprisingly good" in Spain

Thu, 9 Feb 2012 00:00:00 GMT

There is still finance on offer for buyers who are keen to own a property in Spain.

Operations director at Conti, an overseas mortgage specialist, Clare Nessling told Mortgage Introducer that the availability of home loans in the nation is "surprisingly good, despite the negative reports about its property market".

She explained the maximum loan-to-value still sits between 65 per cent and 70 per cent, but noted this can be higher in regions where the real estate market is considered to be more resilient, such as the Canary Islands and Madrid.

Ms Nessling also pointed out that Spain remains a popular target among overseas property buyers thanks to its accessibility and strong rental potential.

Last month, sales and marketing manager at Taylor Wimpey de Espana Marc Pritchard highlighted Spain's enduring appeal among holidaymakers, noting a predicted influx of tourists in 2012 is good news for the country's real estate industry.

He singled out Alicante as one area to watch, thanks to the growing number of airlines flying into and out of its airport.

Bulgaria property prices fall in 2011

Thu, 26 Jan 2012 00:00:00 GMT

New research has revealed the value of Bulgarian property fell by between five and ten per cent in 2011, compared to 2010.

Propertywire reported on the data, which was gathered from brokers operating in the nation, noting that the situation is not expected to change over the course of the next 12 months.

Operations director at a Bulgarian real estate firm Polina Stoikova told the publication that the greatest demand is for properties in a low price bracket that are located in major cities.

Bansko, a ski resort, is one of the places that has experienced some of the biggest falls, with real estate values there sliding by 25 per cent during 2011, the news provider revealed.

In addition, an article in Focus earlier this month cited a study published by Presa Daily, which found home loans in Bulgaria have become more accessible.

According to the research, last year it was possible to obtain finance of between 80 per cent and 90 per cent of a residential property's value, while interest rates on mortgages have fallen and are now close to their 2008 level.

Rise in Dubai property transactions positive for UAE real estate?

Fri, 6 Jan 2012 00:00:00 GMT

Investors interested in the UAE property market may take heart from new figures revealing a 20 per cent rise in Dubai real estate transaction values in 2011 compared with the previous year.

The Dubai land department said it recorded the completion of 35,297 deals - including mortgages and property sales - worth 143 billion UAE dirhams (£25 billion) last year and attributed this to local government's efforts to support the real estate market.

Mortgage activity increased by 12 per cent, with flat sales reaching 27 billion UAE dirhams and villa sales standing at 4 billion UAE dirhams.

According to the Dubai land department, the figures point to a return to normality for the Dubai real estate sector. Director-general Sultan Butti bin Mejrin predicted this will lead to a robust recovery in the near future.

Despite this, it is likely Dubai property prices will continue to fall, according to some experts. Speaking to the Wall Street Journal, Ronald Hinchey of Cluttons Dubai said while the sector experienced a certain level of stability last year with values rising in some prime areas, "prices are seen further softening over the next five years or more as the global economic decline continues and more units come online".

Portugal property sales see fall in demand

Wed, 4 Jan 2012 00:00:00 GMT

Property for sale in Portugal has seen a fall in demand, prices and supply, the November Royal Institution of Chartered Surveyors (Rics)/Ci Portuguese Housing Market Survey (PHMS) has revealed.

The survey showed that November experienced the fastest decline in sales activity since the report began in September 2010.

In particular, the survey notes that new property in Portugal is undergoing a change, with prices falling more rapidly than they were prior to September.

During November, prices for new homes dropped faster than those for existing domiciles.

Commenting on the findings, Rics senior economist Josh Miller states: "The lettings market is likely to continue experiencing high volumes of activity for the time being."

Indeed, he explains that as sales volumes are declining, lettings are increasing, with tenant demand growing as more people fail to qualify for mortgages.

This trend was previously seen in October's PHMS, which suggested that demand for lettings would increase due to consumers' lack of mortgage finance.

Investors planning to purchase Lisboa property or residential buildings elsewhere in Portugal may therefore have the opportunity to take advantage of these market developments.

Australian house prices 'expected to fall in 2012'

Thu, 15 Dec 2011 00:00:00 GMT

The Australian residential real estate market is likely to see price falls of between five and ten per cent next year, it has been claimed.

Professor from the University of Western Sydney Steve Keen told the Sydney Morning Herald people should expect to see the sector decline in 2012.

"The main force that will drive prices down is precisely the same force that drove them up: the acceleration of mortgage debt," he asserted.

His predictions appear to be backed up by the latest data published by ANZ, with The Economy News citing figures from the financial institution that show the Australian property market is slowing down.

The report claims the country's cooling economy will be reflected in the housing market, noting investors remain cautious.

However, the ANZ study did point to a slight increase in the number of first-time buyers entering the market, which David Cannington, a representative for the firm, attributed to improved affordability following interest rate cuts and falling house prices.

Number of Australian mortgages up

Fri, 9 Dec 2011 00:00:00 GMT

The number of mortgages processed in November for those buying property in Australia increased by 18 per cent compared with October.

This is according to mortgage broker AFG, which found that the number pushed through in Victoria climbed by 26.7 per cent - the biggest growth recorded in the country. In addition, Queensland reported hikes of 20.8 per cent and New South Wales saw increases of 16.4 per cent.

In all, real estate investors accounted for nearly two out of every five products sold during the month - the highest amount on record since the AFG Mortgage Index began six years ago.

"We're experiencing the paradox that weaker global economic conditions and lower rates is good news for Australian property buyers - at least for now," general manager of sales and operations Mark Hewitt remarked.

This news comes after the cash rate in Australia was lowered by 25 basis points to 4.25 per cent, which came into force yesterday (December 7th).

French property market 'has potential'

Fri, 18 Nov 2011 00:00:00 GMT

Investors looking for a property abroad may want to consider France, one expert has claimed.

Tim Harvey, from euro mortgage specialists Offshoreonline.org, explained that it is currently easier to arrange a high loan-to-value mortgage in France than it is in the UK.

He added that mortgages for up to 85 per cent of a French property's sale price are "widely available", with rates of around 3.45 per cent.

Mr Harvey also made some suggestions about where to buy real estate in the country.

"High -quality areas such as the Cote d'Azur and towns such as Nice and Cannes will always have a special appeal as second homes, but also as rental propositions, as the area has such strong leisure and business traditions," he stated.

Another part of the country that may attract investors due to its robust tourism industry is the French Alps.

The Savills Alpine Property Market Spotlight highlighted the resorts of Val d'Isere, Courcheval and Megeve as being among the most expensive in the region.

Turkey a "hotspot" for British property investors

Thu, 10 Nov 2011 00:00:00 GMT

Brits looking for a property overseas are increasingly considering Turkey, it has been claimed.

Writing for Mortgage Strategy, director of Conti Clare Nessling explained that in many locations around Europe purchasing a home "has probably never been so affordable".

One of the countries that is attracting British buyers is Turkey, she noted, pointing out that mortgage availability is "generally good".

"Turkey offers great property prices and as tourism has risen dramatically over the past few years, rental yields are lucrative," Ms Nessling commented.

She added that these factors have made the Turkish real estate market one of the largest "hotspots" for British buyers looking for a property overseas.

Potential investors may be encouraged by figures published last month by the Turkish Statistical Institute, which showed that income derived from tourism increased during the third quarter of 2011, compared to the same period in 2010.

According to the organisation, the amount generated by holidaymakers in the country rose by 8.9 per cent during this three-month timeframe, with 78 per cent of this revenue coming from foreign travellers.

US housing market 'remains stable'

Mon, 24 Oct 2011 00:00:00 GMT

Despite month-on-month fluctuations, the US housing market has remained broadly stable so far this year, it has been asserted.

The latest data from the National Association of Realtors (NAR) noted that although the rate of transactions of existing homes fell back in September compared to August, they are still 11.3 per cent higher than the figures recorded in the same month in 2010.

Lawrence Yun, chief economist at NAR, commented: "Existing home sales have bounced around this year, staying relatively close to the current level in most months."

He explained that one of the biggest challenges for the US residential real estate sector at the moment is the availability of credit.

Mr Yun pointed out that many potential buyers are unable to take advantage of the affordability of properties on the market because they are being denied a mortgage, adding that the annual rise in the number of sales "speaks to an unfulfilled demand".

One US market that appears to be recovering is Manhattan, with senior vice-president and director of Brown Harris Stevens Glenn Minnick recently writing for Global Property Guide that both sales figures and prices in the New York borough gained ground during the third quarter of the year.

France top choice for Brits buying abroad

Thu, 29 Sep 2011 00:00:00 GMT

Britons looking to purchase property abroad should consider homes in France.

This is because the country has been picked out as the best option at the moment by a Savills report for the Daily Telegraph.

The range of dwellings on offer is among the best in the world, while certain parts of the country - such as Brittany and Normandy - are easily accessible from the UK.

"French banks have continued to lend on second homes, stimulating the market," the report stated.

Prices are bouncing back after taking a 20 per cent drop in the cost of a dwelling between 2007 and 2009.

Other countries that fared well in the study are the US, Portugal and Italy.

The French ski resort of Megeve recently recorded a 4.3 per cent growth in real estate prices in the year to June 2011, according to the Knight Frank Ski Resort Property Index.

Meanwhile, US locations Telluride and South Lake Tahoe saw prices fall annually.

Spanish mortgage approvals fall

Tue, 27 Sep 2011 00:00:00 GMT

Mortgages issued in Spain plummeted to their lowest level on record in July, according to the country's National Statistics Institute.

Bloomberg reported that the number of finance packages offered to homeowners during the month dropped by 47 per cent compared to the same time in 2010, while the total amount of capital borrowed also declined by 48.3 per cent.

Meanwhile, the news provider pointed out that there are more than 700,000 properties in Spain that remain unsold, while defaults on existing mortgages are currently high.

Figures published by the National Statistics Institute earlier this month revealed that sales of residential real estate were 34.8 per cent lower in July than a year earlier, while a monthly drop of 8.6 per cent was also noted.

The majority of sales that took place over this period were in urban areas, the organisation added.

However, buyers may be encouraged by an incentive to purchase new-build properties, with the government cutting value-added tax on such dwellings by half until the end of this year.

Spain 'a top choice' for those thinking of moving abroad

Sat, 24 Sep 2011 00:00:00 GMT

Spain has been named among the top five destinations that people would consider moving to if they were going to leave the UK, new research has found.

A survey conducted by Post Office International Payments revealed that the European nation, which was the fourth most popular location named in the poll, was a possible choice for ten per cent of those questioned.

The firm also pointed out that it was the highest-placed nation where English is not the first language.

One of the top reasons given for buying a property in Spain or elsewhere in the world is the chance to have a better quality of life, while other reasons to move included warmer weather, discovering a new culture and the adventure of emigrating.

Mortgage provider Conti published figures earlier this month showing that it has received seven per cent more enquiries about relocating to Spain so far in 2011 than last year.

Overall, the country accounts for 31 per cent of all queries handled by the organisation, with only France garnering more interest.

Portuguese property market 'on the road to recovery'

Fri, 23 Sep 2011 00:00:00 GMT

The Portuguese property market is beginning its recovery, with one expert in the sector noting that the Algarve in particular has seen a rise in buyer activity.

Managing director at Infinito Real Stephen Anderson explained that a busy summer has helped boost sales, although he cautioned that, while there is room for negotiation over house prices, investors need to be aware that these assets are often already heavily discounted.

He added that one of the key issues is the availability of finance, which means cash buyers are more likely to be able to capitalise on the low market.

"Significantly, once the banks do start to lend again, the Algarve will be best positioned for a quick recovery, which provides a window for investors to make the most of property prices at the lowest they are likely to be," Mr Anderson commented.

At the end of last month, Global Property Guide reported on statistics from the Instituto Nacional de Estatistica, which revealed that the Algarve was the only region in Portugal to see its residential real estate values rise in the second quarter of the year, compared to the first three months.

However, the research also showed that values in the area remain 5.45 per cent below their peak levels.

Increased activity reported in Bulgarian real estate

Fri, 12 Aug 2011 00:00:00 GMT

There has been a significant rise in the number of new mortgages issued in Bulgaria, it has been revealed.

According to research from Credit Center, a consultancy based in Sofia, the number of home loans awarded in the second quarter of the year was 18 per cent higher than in the first three months of 2011, the Sofia News Agency reported.

Chief executive officer of Credit Center Tihomir Toshev told the press organisation that this bodes well for the Bulgarian real estate sector.

He explained that buyers and sellers have been active in all areas of the market, although the most popular kind of property is currently a two-bedroom apartment.

Mr Toshev added that "receiving credit is becoming easier and easier", which has enabled more people to purchase a home in Bulgaria.

Last month, the Sofia Echo noted that there was a 27 per cent annual rise in the number of real estate transactions in the country during the first half of the year.

Spanish banks 'struggling to cope' with real estate losses

Mon, 25 Jul 2011 00:00:00 GMT

Falling property values and rising numbers of foreclosures in Spain are among the factors putting pressure on the country's financial system.

Speaking to Time World, Santiago Nino Becerra, an economist at the University of Ramon Llull, explained that Spain's mortgage market is comparatively small compared to other nations, such as the US.

"With housing values dropping, the banks here simply can't withstand those kinds of losses," he stated.

Mr Nino Bercerra went on to add that because unemployment in Spain is continuing to rise, "when it comes to foreclosures, we're going to see some unbearable statistics".

The country's financial institutions have been under the spotlight of late, due to the economic difficulties being experienced by several members of the European Union - most notably Greece.

Meanwhile, after three major Spanish financial establishments - Caixabank, Bankinter and Popular - published their first half 2011 results today (July 22nd), banks analyst at Nomura in London Daragh Quinn told Reuters that the figures were better than expected.

Zapatero announces plans to prevent foreclosures

Thu, 30 Jun 2011 00:00:00 GMT

Spanish prime minister Jose Luis Rodriguez Zapatero has announced that he will introduce measures to help families avoid losing their homes.

Bloomberg reported that the country's premier has promised to take steps to ease the burden on those at risk of foreclosure, adding that any action will be "compatible with the imperatives of financial institutions' solvency and legal security".

There have been calls for homeowners to be able to cancel their debts by handing over the property to the lender. Under current Spanish law, if a dwelling is repossessed and sold for less than the value of the mortgage, the bank can claim back the difference from other assets and even future earnings.

Meanwhile, an article in The Olive Press on June 24th 2011 published figures from the Bank of Spain, which show that after inflation, house prices have dropped by 20 per cent since the first quarter of 2008.

And the institution predicted that further falls in value across the Spanish property market are likely before the sector turns a corner and begins to recover.

Number of Spanish mortgages falls

Fri, 24 Jun 2011 00:00:00 GMT

The number of mortgages taken out on properties in Spain fell in April by 38.2 per cent, compared with the same period a year earlier - and registered a month-on-month drop of 27.4 per cent.

Data published by the National Statistics Institute also revealed that the average value of mortgages for residential property in Spain decreased by 6.1 per cent in April compared to a year earlier and now stands at €106,889 (£95,327).

Average interest rates on mortgages in Spain had also risen to 4.04 per cent, up by 2.5 per cent over March this year.

In addition, 94.2 per cent of the home loans set up in April were on variable rates of interest.

Speaking to Bloomberg, Javier Diaz-Gimenez, an economics professor at Madrid's IESE Business School, said: "This addition to a long series of negative data confirms Spain's growth is weak, but it is still too early to tell whether the real estate sector is actually worsening."

Buyers 'turning to Spain for property investments'

Thu, 23 Jun 2011 00:00:00 GMT

Buyers looking for foreign property investments are returning to tried and tested markets such as Spain and are hoping to pick up some bargains in the process, it has been claimed.

Speaking to Mortgage Strategy, overseas property and finance consultant Simon Conn explained that people still want to buy houses in familiar markets, adding that, since the economic downturn, only those who are seriously interested in making a purchase are contacting agents.

Claire Nessling, operations director at overseas mortgage advisor Conti, pointed out that low mortgage rates could help attract buyers to the Spanish market, with loan-to-value products of up to 80 per cent available in some cases and rates typically starting from around three per cent.

"In the current economic climate, purchasers are sticking to the more traditional overseas locations, especially those places with a history of providing good rental returns," she told the publication.

Data published by Conti in December revealed that enquiries about property in Spain comprised 24 per cent of the total enquiries the company received last year, with the French, Spanish and Turkish markets collectively accounting for 85 per cent of all queries during 2010.

Quiet summer forecast for UK property market

Fri, 17 Jun 2011 00:00:00 GMT

The UK property market is forecast to have a quiet summer, as bank lending remains subdued and the country's economic forecast is uncertain.

According to the Council of Mortgage Lenders (CML), there was a slight increase in mortgage lending in April, although this was twinned with a decline in property purchase approvals.

The firm explained that there were 40,900 loans, worth £5.9 billion, advanced for house purchase in April, up from 37,900, worth £5.5 billion, in March and down from 41,900, worth £6 billion, a year earlier.

Michael Coogan, CML director general, commented on the news, stating that overall the market continues on a stable footing and the increase in house purchase lending is a good sign that the stability will continue throughout 2011.

"The economic outlook, coupled with Bank of England subdued approvals data for April, suggests a muted summer for mortgage completions so we do not expect further increases in lending over the coming months," he added.

Short-term UK property investments 'no longer viable'

Thu, 9 Jun 2011 00:00:00 GMT

Average house prices in the UK have fallen by around 4.2 per cent over the past year, figures from Halifax have revealed.

The decrease forms part of a growing trend in which investors can no longer simply purchase a property, sit back and watch it rise in value.

As such, Peter Mindenhall, researcher at IPINGlobal.com, noted that buying a UK property without a long-term plan is no longer viable due to variations between localised markets.

"Short-term investors attempting to 'flip' property will obviously be having a tough time," he explained.

Mr Mindenhall added that although some investors with high loan-to-value mortgages will currently be fearful of experiencing negative equity, others will feel more comfortable about their situation.

"Long-term investors with low loan-to-value mortgages or that have paid cash are likely to be less concerned, [because] even if and when interest rates rise they will still have a reasonable comfort zone," he said.

French mortgage rates set to rise, firm warns

Thu, 5 May 2011 00:00:00 GMT

Individuals looking to buy property in France may be interested to learn that higher eurozone inflation could lead to an increase in mortgage rates in the country.

This is according to Athena Mortgages, which claimed that the rise will come on the back of the European Central Bank's (ECB) decision to raise the main interest rate to 1.25 per cent in April.

It comes after two years of the ECB leaving the rate at one per cent and is an attempt by the finance house to ward off inflation.

However, Athena Mortgages noted that there has not been much change in the rates on offer for mortgages in France since the announcement of the increase.

"Markets and banks had in fact already priced in this increase. We have seen an average increase of about 0.20 per cent in the cost of variable rate mortgages, with some banks opting to further increase their margins," said director of the firm John Busby.

But the organisation added that further increases are on the way.

"We should expect further increases to the lowest rates on offer and a flatter market overall as it becomes more expensive for banks to refinance and maintain market beating rates," Mr Busby said.

UK mortgage lending increases in March

Wed, 27 Apr 2011 00:00:00 GMT

UK mortgage lending increased by 21 per cent in March, reaching £11.3 billion compared to the £9.3 billion seen in February, the Council of Mortgage Lenders (CML) has revealed.

However, despite the rise last month, the level of lending was down two per cent on March 2010.

"The housing market has emerged hesitantly from hibernation. Household finances are under a lot of pressure," said CML chief economist Bob Pannell.

"Lenders expect mortgage credit availability to improve this quarter, and this should help to underpin house purchase activity albeit at pretty low levels."

Meanwhile, the latest mortgage index from brokers John Charcol has revealed that the trend of more borrowers choosing a fixed rate to buy property in the UK has been reversed.

The firm noted that there is now virtually a 50-50 split between fixed and variable rates. It follows news that estate agents in the UK have reported a surge in demand for new property ahead of the Easter Holidays.

Slow growth predicted for Australian housing market

Wed, 6 Apr 2011 00:00:00 GMT

House prices in Australia are forecast to grow by just 0.6 per cent over the course of this year, a survey by National Australia Bank has said.

According to the research, access to credit was the "biggest impediment" stopping people from buying homes and pushing prices up.

Most respondents to the survey expected the strongest growth in values to occur in Western Australia (up 1.1 per cent) and New South Wales and the ACT (up 0.9 per cent). The weakest area is expected to be South Australia and the Northern Territory, with respondents expecting a 0.2 per cent decline in home prices over the next year.

However, while prices are expected to remain fairly stable, investors and agents are more optimistic about the rental market.

They noted that the year will see higher rents, with survey respondents predicting an average 3.5 per cent increase in residential rents.

Western Australia, New South Wales and the ACT were again expected to see the biggest rent rises of 4.6 and 4.3 per cent respectively, while Queensland rents are only tipped to rise 2.5 per cent.

US homes sales fell in February

Wed, 23 Mar 2011 00:00:00 GMT

Existing home sales in the US fell in February, following three consecutive month's worth of increases.

This is according to the latest data released by the National Association of Realtors (NAR), who noted that transactions dropped 9.6 per cent month-on-month and 2.8 per cent compared to the previous year.

"Housing affordability conditions have been at record levels and the economy has been improving, but home sales are being constrained," Lawrence Yun, NAR chief economist, said.

The industry expert warned that those looking to buy property in the US could expect recovery to be unsteady, especially as a result of the tighter lending market.

NAR added that the decrease in sales was accompanied by an increase in supply. Inventory rose 3.5 per cent to 3.49 million units.

Meanwhile, recent research from the University of Florida found that sales of single family homes and condominiums are increasing, as well as investments in land are increasing.

And speaking to Overseas Property Professional, the organisation forecast that 2011 will see a greater number of potential buyers making house purchases in the US.

Australia tops Brits' wish list

Tue, 22 Mar 2011 00:00:00 GMT

Demand for property in Australia could be set to rise following the release of the latest search statistics from Rightmove.

The real estate portal revealed that the number of enquiries for real estate down under increased by 114 per cent over the course of the past two months.

Robin Wilson, head of overseas for Rightmove explained that the rise is in line with common trends seen at the start of the year, with Brits dreaming about starting a new life abroad.

"But nothing on this scale before ... people seem to be moving towards wanting more authentic destinations," he added. "I suspect when we review this month's figures searches ... those for Australia may well be up again after a series of TV programmes on relocating there."

However, those looking to buy property in the country may be interested to learn that mortgage delinquencies in Australia rose in the fourth quarter of 2010 and are expected to increase again in the first quarter of 2011.

This is according to research conducted by Fitch Ratings, which noted that more home borrowers were one or two months behind on payments over the course of the quarter.

Developers still after new land in Thailand

Fri, 18 Mar 2011 00:00:00 GMT

Property developers in Thailand are continuing to acquire land for new residential projects, new research has found.

The news comes despite recent announcements from the Bank of Thailand that it would be decreasing LTV’s for condominiums to 90 per cent and the LTV's for houses to 95 per cent to cool the property market, according to CB Richard Ellis (CBRE).

It could lead to an increase in the number of individuals looking to buy property in Thailand, with a number of new homes due to enter the market.

Over the past year, there has been growing concern about the level of foreign investment heading into the country, which has resulted in the national bank raising interest rates.

However, CBRE noted that yield for property investment did not change significantly and money is still being driven into the market.

"There have been significant foreign inflows into the Thai bond and stock markets but virtually no significant foreign investment into the Thai property market," the consultancy said.

Property auctions double in Bulgaria

Wed, 16 Mar 2011 00:00:00 GMT

The number of property auctions taking place in Bulgaria during the first few months of 2011 was double that of a year previous, it has been reported.

Data provided by the Bulgarian Chamber of Private Enforcement Agents (BCPEA) and targ.bg shows that numbers hit between 1,500 and 1,600 in January and February this year.

This is compared to an average of between 700 and 800 a month in 2010, the Sofia Echo reports.

The news could result in lower prices for a number of individuals looking to buy property in Bulgaria.

According to agents, the increase in property auctions was attributed to the growth of non-performing mortgage loans, as well as to the accumulation of old tenders that found no buyers.

Elsewhere, the news provider reports that the number of residential and administrative building permits issued in Bulgaria during the final quarter of 2010 decreased.

Municipal authorities granted 1,152 housing permits between October and December 2010, down 12.1 per cent against the previous quarter, data from the National Statistics Institute revealed.

Fall in UK mortgage lending in January

Tue, 15 Mar 2011 00:00:00 GMT

Government spending cuts, rising inflation and cuts and extreme winter weather conditions led to a fall of 26 per cent in house purchase lending in the UK during January.

According to new data from the Council of Mortgage Lenders (CML), there were 28,500 loans for residential property purchases over the course of the month.

The organisation said that the fall will ensure that the UK real estate market remains flat, although it added that one month's data is not conclusive of the overall trend.

CML director general Michael Coogan, said that monetary pressures faced by homeowners in the country meant that the fall in lending was to be expected early in the year.

"The bad winter weather and uncertainty over interest rate rises will have exacerbated the fall in lending in January, so it would be premature to draw any firm conclusions about activity levels over the next few months," he noted.

A recent report by the Royal Institution of Chartered Surveyors revealed that a total of 40 per cent of industry professionals claim that rents have increased in the three months to January.

Prices falls look set to continue in Spain

Tue, 8 Mar 2011 00:00:00 GMT

Overseas and domestic buyers looking to buy property in Spain may be interested in the recent predictions offered by the Bank of Spain.

According to the financial institution, the current fluctuation in home values in the country could be set to continue.

The bank explained that the Spanish economy could be held back for years as a result of the high mortgage debt burden. House prices have fallen 17 per cent since late 2007, the Bank of Spain said.

Additional reports suggest that there are over one million unsold homes currently in the country.

"Looking at previous cycles, the experience of other countries, and indicators of affordability, the adjustment in housing prices could continue," the central bank said in its monthly report in December.

However, a number of real estate portal have reported that enquiries for property in Spain have risen over the past few months, suggesting that cash-rich buyers are looking to take advantage of the current low prices.

UAE house prices to continue to fall

Thu, 3 Feb 2011 00:00:00 GMT

House prices in Dubai will continue to fall this year, albeit at a slower pace then previously, Jones Lang LaSalle has forecast.

The news may interest those looking to buy property in the UAE, with real estate values unlikely to bottom out in the short-term.

Over the course of 2010, the property consultancy revealed that house prices in Dubai fell by 12 per cent, while in 2009 they dropped by 25 per cent compared to the previous year.

And any expected pick-up in activity and transactions in the country in 2011 is expected to be offset by a continued oversupply of housing in the city, the report added.

"25,000 new units are expected to come online in Dubai this year, compared with 7,800 last year," Jones Lang LaSalle said.

Craig Plumb, the head of research for Jones Lang LaSalles's Dubai office, commented: "The key to transaction levels is going to be liquidity and the availability of mortgages. Clearly we're getting closer to the bottom, but in our view we are not at the bottom."

Banks still offering 'good deals' in France

Tue, 1 Feb 2011 00:00:00 GMT

Despite an increase in perceived risk causing a slowdown in property lending by banks, those looking to buy property in France can still get a good deal.

Athena Mortgages has highlighted the fact that not all banks in the country have decided to increase their margins, meaning that there is still an opportunity to capitalise on competitive lending rates.

"It is interesting that the market is increasing the prices for long term interest rates, indicating a belief in growth and inflation in the medium term," John Busby, director of Athena Mortgages, said.

"The demand for loans for purchases in France is certainly there and it will be interesting to see what effect if any these increases have."

It comes after a report from the European Central Bank claimed that a large number of banks across Europe have steadily declined and tightened procedures relating to property lending.

This is despite many euro-based banks reporting an increased demand for mortgage loans in the last quarter of 2010.

Banks to control Spanish property market in 2011

Thu, 27 Jan 2011 00:00:00 GMT

Banks are expected to be the main driving force behind the Spanish property market in 2011, it has been claimed.

Giving his views on the Property Secrets blog, market commentator Daniel Talavera explained that the fact that banks are currently holding the largest property portfolios is likely to work in their favour.

It is generally expected that banks will begin to flood the market with below market value distressed property in order to balance their books.

"Despite the fact that banks portfolios do not seem to be good, generally, they are ready to lend money to reduce their stock as long as the buyer has some payment guarantees. Banks are the easiest option," Mr Talavera said.

The expert added that those looking to buy property in Spain in the coming year should also expect to benefit from reduced prices.

Mr Talavera explained: "Property prices and land prices have dropped in 2010, an average of five per cent to ten per cent in cities; whereas the fall was between 30 per cent and 50 per cent in coastal and second residences."

Property predictions 2011: Family Fortunes

Wed, 26 Jan 2011 00:00:00 GMT

The property market, like many other markets, has always generally favoured those with more collateral, equating to a two tiered system where those at the top end benefit more than those at the bottom end – and the property market in 2011 will be no different.

A UK valuation surveyor has just announced that the average loan-to-value (LTV) reached a two year peak in December - LTVs have increased by up to 14% for homes valued in excess of GBP 500K, whilst those purchasing property up to the value of GBP 125K have only seen an increase of 6%.

Mortgage lenders continue with caution when it comes to first time buyers, with the market shifting radically since the heady property days during the peak of 2007 – rather than 110% mortgages to first time and self-certified buyers, lenders require sizeable deposits and in return are offering good rates and low or non-existent lender fees.

As industry rumours suggest that interest rates will start to climb back to normal levels during the course of the next couple of years, the market looks set to become even more difficult for first time buyers, who, generally located at the bottom end of the market, face tough lending criteria, expensive rents and competitive prices. Conversely, industry experts and estate agents suggest that those with collateral in above average valued homes have remained virtually untouched by the mortgage slump.

With all sorts of cost cutting legislation due to bite in the year ahead, David Cameron has waged into the property debate with continued demands on banks and building societies to ease up on lending restrictions, in a bid to get the entire market moving again. However, with unemployment figures recorded at 2.5 million in December 2010, a New Year VAT increase and rising food and fuel prices, the availability to first time buyers may not be dictated simply by lenders, but primarily by disposable income.

This article was written and supplied by Winkworth estate agents. Specialised in selling and letting prime residential property across London and throughout the UK.

Unemployment concerns slowing Spanish property market

Sat, 22 Jan 2011 00:00:00 GMT

Concerns over unemployment in Spain have been cited as the reason for declining house sales in the country during November, Bloomberg has reported.

Transactions declined by 6.2 per cent compared to the previous year making it the third consecutive month that sales have fallen.

According to the news provider, the sudden drop in sales also comes as banks slow down their levels of mortgage lending, with many individuals holding off buying a home in Spain until the outlook for employment improves.

"Spain's economy stagnated in the third quarter, leaving the unemployment rate at more than 20 per cent, the highest in Europe," the article stated.

However, the overall economic recovery may be further destabilized by the introduction of the most stringent austerity measures in around 30 years as the government in the country looks to cut its deficit.

Since the market's peak in 2007, a recent survey from real-estate website Fotocasa.es and IESE Business School has found that prices have fallen by 22.5 per cent.

Lending to determine UK property market's future

Wed, 19 Jan 2011 00:00:00 GMT

Demand from individuals looking to buy property in the UK fell over the three months to November 2010, it has been claimed.

According to a new report from consultants Winkworth, the drop was a result of falling confidence in the sector and mortgage availability remaining tight.

Despite this, the overall number of homes for sale in the UK market remained stable and higher than the amount registered over the same period a year previous.

Commenting, Dominic Agace, chief executive officer of Winkworth, explained that lending from banks will play an important role in determining the outlook for the real estate market in 2011.

"There is much debate concerning the timing and extent of interest rate rises in 2011, but the consensus is clearly that the cycle in now bottoming out," he added.

"While this will have an impact on owners and buyers, particularly those keen to lock in fixed rate products …. It is the availability of finance which remains a key determinant of the level of activity in the housing market in 2011."

Prices begin to rise in French property market

Wed, 12 Jan 2011 00:00:00 GMT

House prices in France have increased for the first time in eight quarters, new figures have revealed.

Research conducted by the Federation National de L'immobilier (FNAIM) has found that home values in the destination have started to rise once more following a period of stabilisation in 2010.

Speaking to Overseas Property Professional, Tracey Hudson, sales manager at local agency Leggett Immobilier, said that current historically low mortgage rates in the country will prove to be beneficial for the real estate market.

The expert believes that the French property sector will see "a modest rise in prices throughout 2011 with substantial growth in some hot spots".

Indeed, Ms Hudson also thinks that some UK buyers will choose to buy property in France rather than at home so that they do not risk entering the British housing market too soon.

According to the Global Real Estate Trends report, during 2010 France was singled out as one of the top-performing markets - alongside Canada, Australia, Sweden, Switzerland and the UK.

Prices to rise in France this year

Tue, 11 Jan 2011 00:00:00 GMT

Average property values in France are expected to experience modest rises throughout 2011, while some regions will see significant increases.

This is the forecast from Leggett Immobilier and the FNAIM, which also noted that mortgage rates in the country are at their lowest levels since World War II.

Real estate in the country has had its ups and downs over the past few years, with considerable falls occurring in 2009 - in some areas by as much as 20 per cent - followed by a period of stability last year.

With this increased stabilisation and with prices now standing at more realistic levels, there has been a rekindled interest in these sectors, Leggett Immobilier added.

Trevor Leggett, chairman of the French-based estate agents, believes that the market lows of 2009 are now a thing of the past.

"I have been selling houses in France for over 18 years now and am confident that the worst of the market is behind us," he confirmed.

Mortgage payments expected to rise in Spain

Thu, 6 Jan 2011 00:00:00 GMT

A large number of homeowners in Spain are expected to see their mortgage payments rise, it has been claimed.

According to a summary of the latest Euribor and Spanish mortgages by Spanish Property Insight, the move could place further pressure on the country's beleaguered housing market.

Indeed, those looking to buy real estate in Spain could find that the increased mortgage costs lead to further bargain homes coming onto the market, A Place in the Sun reported.

Mark Stucklin of Spanish Property Insight commented: "This is the sixth month in a row that new mortgage lending has fallen, a clear sign of trouble for the market. New mortgage lending has been falling since July and the latest fall comes on top of a slump of 16 per cent in September.

"Significantly fewer, smaller loans means a lot less money chasing property, putting further pressure on prices."

New mortgage lending in October fell by 24 per cent year on year to 39,542 home loans, and by 25 per cent compared to September, according to data supplied by the INE.

Algarve homes increasingly popular with Brits

Mon, 3 Jan 2011 00:00:00 GMT

An increasing number of buyers are looking to buy property in Portugal's Algarve region.

That is according to Santander Totta, a leading provider of mortgages for people buying real estate in Portugal.

It says that, after the economic crisis saw a sharp fall in the cost of homes, many people are looking to take advantage of the cheaper prices.

Speaking to aplaceinthesun.com, Simon Perks, the bank's general manager, said: "In the last three to four months we have seen more interest from those looking to buy at the top end of the market as the Algarve continues to attract mainly lifestyle buyers."

Nigel Salmon of Portuguese property agency Girasol Homes, supported his comments, saying that Brits in particular are looking to buy retirement or second homes in the area.

"Most people buy for the right reasons and the opportunity of lots of properties to choose from and buying for genuine retirement or a quality second home is the main catalyst. There may be more needy sellers and builders which may offer some additional opportunity, but on the whole, the [Algarve property] market looks reasonable for 2011," he said.

A recent survey by the National Statistics Institute found that property prices in the Algarve climbed by an average of 0.8 per cent during October.