House Price Indices - October 2016
Absa - South Africa
Continued subdued middle-segment house price growth
October 2016 saw year-on-year growth in the average nominal value of middle-segment homes in the South African housing market remaining relatively low against the background of trends in and prospects for the economy and the household sector. On a month-on-month basis prices showed subdued growth of less than 0,5% in October. In real terms, i.e. after adjustment for the effect of consumer price inflation, house prices deflated further in September this year.
Nominal price growth in the middle-segment of the local housing market came to 4,4% year-on-year (y/y) in October this year, with real price deflation in September recorded at 1,7% y/y. The average price of a middle-segment home was in real terms about 12% lower in September this year compared with the peak in August 2007.
The average nominal value of homes in each of the middle-segment categories was as follows in October 2016:
- Small homes (80m²-140m²): R961 000
- Medium-sized homes (141m²-220 m²): R1 316 000
- Large homes (221m²-400m²): R2 008 000
Hard hitting report says UK conveyancing system is not fit for purpose
PropertyWire - UK The creation of a secure online portal for all communications needed during the home buying process in the UK would mean greater certainty far earlier in the moving process, it is claimed.
Such a move would be welcomed across the industry and by consumers as it would protect the conveyancer, estate agents, mortgage advisors, lenders and buyers and sellers, according to a white paper from the Conveyancing Association (CA) which says that the current way of operating is ‘not fit for purpose’.
It outlines how a future, more certain and transparent home buying process could operate and sets out its vision for a data sharing, collaborative, digital service and says that planning needs to take place now.
Clarity needed on old municipal debts
IolProperty - South Africa
It is still too early for estate agents to pop champagne corks to celebrate the ruling by the high court in Pretoria that new property owners may not be held liable for historic debts dating back three decades.
The ruling declared provisions of section 118(3) of the Local Government Municipal Systems Act, which allows municipalities to force new property owners to pay former owners' bad debts before reconnecting municipal services, as constitutionally invalid.
The judgment follows a verdict handed down by the Supreme Court of Appeal in January this year, which ruled that new property owners can be held liable for historic debts dating back 30 years. Conveyancing attorneys have warned that the high court declaration was "of no force or effect" until the Constitutional Court had confirmed the ruling.