Property News - February 2007
Welcome to our property investment newsletter. The aim of which is to keep you up to date and informed as to the most recent property trends.
This month we have also included an article on British Country Houses courtesy of Kinight Frank. We believe that solid growth in this sector to be a good indication of the state of the UK economy and property market in general. Despite the interest rate hikes, I think we are in for another good year across all segments of the UK property market.
Should you be interested in investing in UK Property please feel free to email [email protected]
Thanks and Enjoy
Portfolio Property Investments News Team
In December 2006 nominal house price growth of 13,5% year-on-year was recorded in the middle segment of the market (see explanatory notes), down from a revised growth rate of 14% in November. This brought the average price of a house in this segment of the market to about R857 400 at the end of last year. House prices were up by 15,2% in nominal terms in 2006 compared with 22,7% in 2005 and 32,2% in 2004.
The National Government passed the Rental Housing Act No 50 of 1999 and this came into force on the 1 August 2000. In terms of this Act, the various Provincial Legislatures were authorised and empowered to enact Infair Practices Regulation and the Gauteng Provincial Government had these regulations passed in July 2001. It appears that most of the other provinces had enacted their respective Unfair Practices Regulation and established Rental Housing Tribunals.
According to data released by the South African Reserve Bank, mortgage advances by the monetary sector increased by 30% year-on-year last month after growth rates of 30,9% and 30,4% respectively were recorded in October and November. The total amount of mortgage advances by the monetary sector came to R684,6 billion at the end of 2006.
The Gautrain project involves a modern state-of-the-art rail connection, linking Sandton, Johannesburg, Pretoria and the Johannesburg International Airport (JIA). The network, which will consist of approximately 80 kilometres of railway line and which may be extended in the future, will be made up of two links one between Pretoria and Johannesburg for daily commuters and another from JIA to Sandton for business tourists.
With the City economy performing well and the prime Central London housing market going from strength to strength, London buyers have taken advantage of continued high price growth and have taken their money out to the country. The strength of demand over the past 12 months price growth in the country market rise to its highest level since mid 2004.