Posts with tag: average house price

Number of Property Transactions Up by 80% in March

Published On: May 9, 2016 at 11:01 am

Tags: average house price,house prices,housing stock,property transactions

Number of Property Transactions Up by 80% in March

A huge surge in residential property transactions in March caused an 80% increase over the past year, according to data analysed by the latest Homes & Communities Agency report.

In March, 141,310 property sales were recorded, up by 80.6% on the same month last year. The Government agency believes that this sharp rise could be the result of a rush of buy-to-let landlords hoping to beat the 1^st April Stamp Duty deadline.

As of 1^st April, buy-to-let landlords and second homebuyers are charged an extra 3% in Stamp Duty.

On an annual basis, there were 1,135,830 property transactions in the year to the end of March, up by 9.9% on the previous 12 months.

However, the total stock of property for sale remains at a historically low level. In England and Wales, the number of homes entering the market was down by 6% compared to March last year.

The West Midlands and South West are suffering the most from a shortage of stock, with levels falling by 12% and 11% respectively over the past year.

Greater London is the only region in England where the amount of homes coming onto the market has increased, up by 6% on the same month in 2015.

The Homes & Communities Agency reports that house price growth has returned to all regions across England. However, the house price divide between the southeastern regions and the rest of the country has widened further since the start of the year.

The report compares annual house price growth from several indices for the past year:

[table id=10 /]

Last week, we released the HomeOwners Alliance’s review of house price data for the year: /homeowners-alliance-reviews-house-price-data-year/

HomeOwners Alliance Reviews House Price Data for the Year

Published On: May 5, 2016 at 10:35 am

Author: Em Morley

Categories: Property News

Tags: average house price,house prices,second homes,Stamp Duty

Five-year fixed rate mortgages could bring good news for buy-to-let investors

HomeOwners Alliance Reviews House Price Data for the Year

As the major house price indices often report conflicting data, the HomeOwners Alliance has reviewed the figures to determine exactly what is happening in the property market.

Its May 2016 House Price Watch shows that house prices have risen by 0.7% in the past month and are up by 7.2% over the last year. These figures were calculated by finding the averages of house price growth data from other indices.

The average monthly change in house prices varies across the major indices, from a low of -0.5% reported by Land Registry to a high of 2.6% from Halifax.

It is believed that property sales surged between February and March, as buy-to-let landlords and second homebuyers rushed to beat the 1^st April Stamp Duty deadline. On a monthly basis, there were 41.5% more property transactions, while there was an increase of 69.7% reported over the year.

The Council of Mortgage Lenders (CML) estimates that gross mortgage lending reached £25.7 billion in March, up by 43% on February and 59% on an annual basis. Again, it is believed that this was driven by a rush of landlords hoping to beat the 3% Stamp Duty surcharge.

Looking forward to the rest of the year, fewer transactions are expected. The HomeOwners Alliance reports that the distortion caused by the Stamp Duty change appears to be much larger than any previous tax revision.

The CML expects to see around 10,000 fewer mortgaged transactions each month in the second quarter of the year than would otherwise have been the case.

It is also forecast that house prices will slow in the near term, as uncertainty surrounds the forthcoming EU referendum and regional elections.

The Research Director of the HomeOwners Alliance, Katherine Binns, comments: “The Stamp Duty on second homes from 1^st April 2016 has brought a rush of activity to the market ahead of the change. Looking forward, fewer transactions are expected later in the year to offset the early surge in the market. House prices, too, are likely to settle in the near term with the current climate of uncertainty around the European referendum and local elections.”

UK House Prices Down, but London Still Powers Ahead

Published On: April 28, 2016 at 11:05 am

Author: Em Morley

Categories: Property News

Tags: average house price,house prices,housing crisis,London,Mayor of London

The average house price in the UK dropped slightly in March, but prices are still rising in London, according to the latest house price index from Land Registry.

House prices fell by an average of 0.5% last month, while they were up by 0.2% in London on a monthly basis.

UK House Prices Down, but London Still Powers Ahead

Annually, house price growth now stands at 6.7%, taking the average property value to £189,901 in England and Wales.

The amount of property transactions has also increased over the last year. From October 2014 to January 2015, Land Registry recorded an average of 73,744 sales per month. In the same period a year later, the figure was 74,374. It has been claimed that this rise is a result of landlords rushing into the property market to avoid the 3% Stamp Duty surcharge.

Alongside the monthly increase recorded in March, London has also seen the highest annual house price growth of all regions, at 13.9%. The average property in the capital is now worth £534,785.

The East of England is the only other region to record monthly house price growth, of 0.2%.

The London borough with the highest annual price rise is Lewisham, at a huge 19.9%, while the greatest monthly increase was seen in Brent, at 2.8%.

Kensington and Chelsea experienced the smallest annual increase of 4.2%, amid claims that the prime London property market is running out of steam.

Prices were down the most in Hammersmith & Fulham, by 1.3%.

The Managing Director of estate agent Stirling Ackroyd, Andrew Bridges, comments on the data: “House prices across the country may be coasting in neutral, but the capital is speeding ahead. London’s lead is getting larger and the demand for life in the fast lane shows no sign of letting up.

“Such momentum in London also comes despite a few road bumps. Stamp Duty surcharges have caused a slight slowdown at the top end of the market and particularly in the west of the capital. Gears are grinding in old prime areas, such as Kensington and Chelsea and Hammersmith & Fulham. The new champions of the London property market are areas further east and further out.”

The London property market looks set to face changes in the near future, as the London mayoral election takes place next week. Online estate agent eMoov has analysed what each candidate can do for the housing crisis: /london-mayor-candidate-best-housing-market/

House Prices Still Struggling to Recover in Half of UK Towns and Cities

Published On: April 26, 2016 at 9:25 am

Author: Em Morley

Categories: Property News

Tags: average house price,house prices,property market,recession

Average house prices in half of UK towns and cities are still struggling to recover to their pre-financial crash levels of 2007, according to new research.

Data from Land Registry analysed by online estate agent HouseSimple shows that property prices in 53% of towns and cities in the UK had still failed to recover between February 2007 and 2016, particularly in the north. This means that many homeowners with a mortgage could be in negative equity.

House Prices Still Struggling to Recover in Half of UK Towns and Cities

HouseSimple examined 75 major towns and cities across England and Wales, finding that 17 of the 20 most affected areas are in the north of England. The region most hit by post-recession negative equity is the North West, with four in ten of the top 20 towns and cities in this part of the country.

The worst hit towns are Blackpool and Middlesbrough, where house prices are now almost 30% lower than their pre-crash levels, at £77,317 and £77,024 respectively.

Blackburn and Liverpool are also in the top five worst affected areas, with house prices still 25% and 23% lower than before the crisis.

The top 20 worst affected towns and cities are as follows:

[table id=9 /]

Yorkshire and the Humber was also badly affected, with a quarter of towns in the top 20 list in that region. The average price in Middlesbrough is 28% below its pre-2007 peak, while in Bradford and Hull, values are 20% and 19% lower.

Contrastingly, the average London property price has soared by 52% over the same period, from £339,511 to £530,368.

Homeowners in Winchester have also seen substantial growth, with prices up by 44.2% since 2007, from £310,089 to £447,046.

HouseSimple’s Alex Gosling comments on the figures: “London homeowners have watched as their properties have risen in value substantially since 2008, but thousands of people around the country have had to put their lives on hold, unable to move because they are trapped in negative equity.

“Unfortunately, the north of England has been slower to recover losses suffered during and after 2008. And anyone wanting to relocate for work or family reasons faces a less than appealing choice, either making a loss on the sale of their property, or staying put and waiting until the price of their house at least recovers to the price they paid.”¹

¹http://www.whatmortgage.co.uk/news/hundreds-thousands-home-owners-still-stuck-negative-equity/

UK House Prices Up by 1751% Since the Last European Referendum

Published On: April 24, 2016 at 8:43 am

Author: Em Morley

Categories: Property News

Tags: average house price,EU referendum,house price growth,house prices

In 1975, Britain decided to remain in Europe after the UK’s first ever European referendum. On 23^rd June, the country will vote again on whether we should stay in the EU. So how have house prices changed since the first vote?

UK House Prices Up by 1751% Since the Last European Referendum

Since the second quarter (Q2) of 1975, just 30 out of 164 quarters have recorded decreases in house price growth, according to property crowdfunding platform Property Partner.

The firm has found that house prices in the UK have gone up more than 18-fold, 1751%, since the last time Britons were asked whether we should stay in or out of Europe.

Compared to other investments, residential property has surpassed all other asset classes over the same period, including stocks and shares – up by 9.5 times since 1975 – and gold – up by 12 times.

Unsurprisingly, property prices in London have soared the most, increasing by 3200% – almost double the annual UK average – since Q2 1975.

Currently, with just over two months to go until the second European referendum, the average UK house price is now £198,564. Back in June 1975, homebuyers were faced with paying £10,728 for a property. In real terms today (taking inflation into account), this would be just £99,949.

Property Partner has analysed quarterly house price data dating back to just before the referendum in June 1975. Out of the 164 quarters since then, just 30 (18.3%) have seen decreases in house prices. From Q2 1990 to Q3 1993, there were 14 consecutive quarters of negative growth – the longest stretch in the last 40 years.

Just before the last European referendum, quarterly price growth slowed significantly to 7%, a year after reaching 18.2%, and two-and-a-half years after recording the highest ever quarterly house price growth of 42%. Average price growth didn’t fall as low as 7% again until Q4 1980 – more than five years after the referendum.

Change in house prices since the last European referendum

[table id=7 /]

The CEO of Property Partner, Dan Gandesha, comments: “With all the nervousness and uncertainty around whether Britain is going to stay in or out, our research shows that although average house prices softened in the run up to the last referendum in 1975, they have risen a staggering 18-fold since, leaving all other asset classes in the shade.

“There is never any guarantee that prices will continue to rise, but even taking into account factors which may put a brake on growth, such as the recent 3% Stamp Duty hike on second homes and buy-to-lets, if the past is any indication, property will remain a strong long-term investment. London in particular has been consistently the star performer, although the capital has been transformed in the past four decades, attracting huge inward investment. Whatever the result on June 23^rd, London will remain a truly global city.”¹

A recent report from the Royal Institution of Chartered Surveyors indicates that house prices and sales will fall ahead of the EU referendum.

¹http://www.propertyreporter.co.uk/property/how-much-have-house-prices-risen-since-the-last-european-referendum.html

House Prices Increasing at Fastest Rate for 12 Years

Published On: April 22, 2016 at 8:36 am

Author: Em Morley

Categories: Property News

Tags: average house price,buy to let investors,house price growth,house prices

Over the first quarter of the year, house prices increased at the fastest quarterly rate for 12 years, according to the latest data from Hometrack.

The valuation firm believes that buy-to-let landlords have driven prices up as they seek cheap properties in high yielding cities.

House Prices Increasing at Fastest Rate for 12 Years

The UK Cities Index for March reveals that average house prices rose by 4.2% in Q1 2016 – the fastest quarterly growth rate in 12 years.

The greatest quarterly increase of any city in the UK was in Liverpool, at 4.1%, taking the average house price to £113,100. Hometrack has found that many landlords have looked to the city for high yields in order to accommodate forthcoming tax changes.

A quarterly boost of 3.5% was also recorded in Cardiff, where the average property now costs £191,300.

The Insight Director at Hometrack, Richard Donnell, explains: “The acceleration in growth in the last quarter has, in part, been down to stronger demand from investors, especially those searching for higher yielding property and seeking to beat the Stamp Duty deadline.”

As of 1^st April, buy-to-let landlords and second homebuyers are now charged an extra 3% in Stamp Duty. Ahead of the deadline, there was considerable evidence that landlords were fuelling a rush in the housing market.

The greatest annual increase in average house prices was in Cambridge, where values rose by 15.6% to £403,500. London was close behind, at 14.2%, taking the average property price to £468,100. However, recent research suggests that the London property market is finally running out of steam.

House prices in Bristol have also recorded double-digit growth for the year, at 13.5%, to £248,800.

Donnell adds: “In the recent past, periods of accelerating house price growth have coincided with changes in market sentiment and demand, notably following the introduction of Help to Buy in 2013 and after the 2015 general election.

“We believe house prices will continue to rise, but a moderation in investor demand and greater caution in the run-up to the EU referendum will limit further acceleration in prices.

“Most likely, the rate of growth will slow more rapidly in high value, low yielding cities such as London, where prices will be more responsive to weaker investor demand.”¹

Indeed, the Royal Institution of Chartered Surveyors believes that the Stamp Duty changes and the forthcoming EU referendum will cause a dip in house prices and sales.

¹http://www.propertyindustryeye.com/house-prices-rising-at-their-fastest-rate-for-12-years/