Written By Em

The annual rate of house price growth in UK cities has risen to an average of 6.3% – up from 4.9% a year ago, according to the latest UK Cities House Price Index from Hometrack.

The rate of house price growth has accelerated over the last six months, with robust demand for housing recorded in regional cities outside of southern England.

Housing market activity across Scotland has picked up over 2017, resulting in Glasgow recording the highest rate of house price growth of the year (7.9%), followed by Edinburgh (7.6%). Leicester and Birmingham have also recorded house price growth over 7.0%. Aberdeen continues to register price falls, with the average value down by 3.7% over the past 12 months.

The highest annual growth rates are being recorded in cities where house prices are at or below their 2007 levels in nominal terms. Housing affordability remains attractive in these cities compared to the long-term average.

House Price Growth in UK Cities Up to 6.3%, Reports Hometrack

Changes in the level of housing turnover provide important context for the underlying health of city-level housing markets, Hometrack explains. Its provisional estimates for turnover in 2017 reveal an increase in turnover in Scottish cities over 2017.

Despite headline price falls since 2014, Aberdeen is set to register higher property sales over 2017.

The change in city-level property turnover over the past three years has varied widely, reflecting differing strength in underlying demand. Eight regional cities have recorded growth in turnover exceeding 5% per year over the last three years, led by Liverpool, Manchester, Glasgow and Birmingham. These cities are where there has been sustained price inflation over the last year, as underlying demand for housing improves.

At the other end of the spectrum, housing turnover has fallen across cities in southeastern England over the last thee years, including London, Oxford and Cambridge. Record high affordability levels have priced growing numbers of households out of the market, which has reduced turnover. This, in turn, has created an element of scarcity, which has supported prices in the absence of forced sellers. Hometrack expects levels of turnover to continue to decline further in these southern cities over 2018.

A year ago, the firm predicted that UK city house price growth would stand at 4%, as a continued recovery in regional city house prices would offset very low nominal growth in London. Hometrack expects 2018 to follow a similar pattern.

For London, it expects the rate of house price growth to remain in low, single digits over the course of next year, as the capital is facing a drawn-out period where house prices and earnings need to re-align. The firm’s view is that this will be achieved through single-digit real house price falls over several years, on lower sales volumes. London’s homeowning households have a significant equity buffer against which to absorb price reductions, but the willingness to accept lower prices take time to feed through into agreed sales prices, it explains.

Just seven of the 45 local authorities that comprise the London city index are registering year-on-year price falls in nominal terms.

Russell Quirk, the Founder and CEO of online estate agent eMoov.co.uk, comments on the latest index: “A strong end to the year for city price growth, and particularly positive for homeowners seeing a strong uplift in prices across those cities that have struggled to recover since 2009.

“A 5% growth forecast for 2018 is probably realistic, but the UK market is a mixed bag and there is a drastic difference even between cities within a fairly close proximity to each other, with the likes of Glasgow and Birmingham performing far better than Aberdeen and London, for example.”

He continues: “A 5% growth forecast is perhaps a little optimistic for those at the bottom end of the table, especially homeowners in London. A 3% increase across the capital is probably the best we will see in 2018, but positive signs for the market as a whole and momentum that will no doubt continue to build over the coming year.”

As temperatures drop, more household pests are pushed towards the warmth of our homes. But how does this affect homebuyers when viewing a property?

Hybrid estate agent eMoov.co.uk has looked at the impact of unwanted houseguests on the potential sale of a property.

The agent surveyed over 1,000 people to find out what impact the presence of household pests would have on their decision to buy a home.

Despite the shortage of housing stock available on the market, a notable 60% of people would be deterred from buying a property due to the presence of household pests.

An additional 31% would submit a lower offer than the listed asking price, with just 10% not being bothered about the extra roommates.

eMoov then asked if a persistent pest would force homeowners to sell their properties, with 58% of those asked stating that they would put their home on the market to get rid of the issue.

The agent went on to ask respondents to rank which household pests people would be most worried about having in their homes: rats were by far the most feared, with 74% of people ranking them top of the list; cockroaches were second, at 46%; with a perhaps surprising 39% stating Japanese Knotweed.

Bed bugs/fleas and mice ranked similarly, at 35% and 33% respectively, while nosey neighbours (18%) ranked higher than wasps/bees (9%), spiders (7%), squirrels (5%), ants (5%), and finally moths, at just 2%.

Finally, eMoov asked if, when selling a property, homeowners would make potential buyers aware of a pest problem. While 41% said that they would, a worrying 23% would not, with a further 36% basing the decision on whether they liked the buyer or not.

Russell Quirk, the Founder and CEO of eMoov, says: “At this time of year, it isn’t just the in-laws that invade our homes and cause additional levels of worry and stress. The presence of an unwanted household pest can be a nightmare for those looking to sell and, if left unresolved, these various pests can not only cause a serious amount of damage, but can also jeopardise a sale.

“A proactive approach is the way to go, making sure they can’t gain access to your home, that you keep the garden in check and so on. But if they do find a way in, it’s much better to pay a professional to sort the problem immediately than lose out considerably via a collapsed sale.”

He adds: “This research also highlights the importance of a thorough approach when viewing a property, as you never know what might be lurking in the garden or attic and, once the keys are exchanged, it becomes your problem to solve.”

Landlords, don’t ignore the problem of pests when looking to purchase a property!