UK property values in monthly and yearly record rises

With the curtain coming down on 2015, a new report shows that UK property values saw record monthly and annual increases during November.

Data from a report by Haart indicates that UK property values rose 13.4% annually and by 3.7% in the month to go past the £230,000 mark for the first time. British house prices now stand at an average of £231,857.

Rise and Falls

There has been an annual increase of 7.5% in the number of new buyers but supply has dipped by 3.1% in the last month. Viewings too slipped by 4.5% during November. Sales though were more positive, rising by 0.5% over the same period.

In addition, first-time buyer house prices increased by 1.1% in the month and by 0.2% annually to hit £166,581.

However, first-time buyer numbers fell by 7% over the last month as a result of increased competition with buy-to-let investors. As a percentage of all mortgages written, the number of first-time buyers slipped from 42.5% in October to 40.4% in the last month.

More positively, the average deposit for a starter home has fallen by 2% in November and by 2.3% in the last year.

UK property values in monthly and yearly record rises

Record-breaking

‘UK house prices rose 13.4% annually and 3.7% on the month to break records again in November,’ observed Paul Smith, CEO of Haart. ‘This is the steepest monthly and annual increase on record and follows a surge in registrations from buy-to-let investors since the Autumn Statement in anticipation of the 3% stamp duty surcharge which is effective from the 1^st of April of 2016. This could mean the stamp duty payable on a property worth £275,000 could rise from £3,750 to £12,000.’[1]

Smith went on to say that, ‘although first-time buyer house prices have remained relatively stable, up just 1.1% in the last month, I expect these to shoot up over the coming months as first-time buyers face fierce competition from buy-to-let investors.’ He also believes that, ‘The pressure is already being felt by many with demand among first-time-buyers already down 7% in the last month alone. While first-time buyers may face a tough couple of months, once the stamp duty changes come into effect in April, demand from buy-to-let investors is likely to recede so we should see a recovery in prices at this level.’[1]

[1] http://www.propertyreporter.co.uk/property/average-uk-house-see-steepest-monthly-and-annual-increase-on-record.html