Posts with tag: average house price

Average house prices in the UK were still rising by 4.9% on an annual basis in June 2017, according to the latest official data from the Office for National Statistics (ONS) and Land Registry.

However, this is slightly down on the previous month’s average growth rate, of 5.0%. Although the annual growth rate has slowed since mid-2016, it has remained broadly around the 5% mark in 2017.

The average UK house price was £223,000 in June – £10,000 higher than in June last year and £2,000 higher than in May.

The main contributor to the increase in average UK house prices was England, where property values rose by an average of 5.2% over the year to June, to reach £240,000.

Wales saw house prices grow by an average of 3.6% over the 12 months to June, taking the average to £152,000.

In Scotland, the average property value was up by 2.9% over the year, to stand at £144,000.

The average house price in Northern Ireland was £129,000 in June, after rising by 4.4%.

On a regional basis, London continues to boast the highest average house price, at £482,000, followed by the South East and East of England, at £320,000 and £287,000 respectively. The lowest average prices continue to be found in the North East, at £130,000.

The East of England recorded the highest annual growth, with prices rising by an average of 7.2% in the year to June. The East Midlands followed, at 7.1%. The lowest annual growth was seen in the North East, where prices increased by 2.5% over the year, followed by London, at 2.9%.

By local authority, the Orkney Islands showed the largest annual growth, with average prices up by 27.9% to £148,000.

Low numbers of sales transactions in some local authorities and London boroughs, such as the Orkney Islands, City of London and Na h-Eileanan Siar, can lead to volatility in the series. While efforts are made to account for this volatility, the change in prices in these areas can be influenced by the type and number of properties sold in any given period.

The lowest annual growth rate was recorded in the City of London, where prices dropped by an average of 20.3% to sit at £724,000.

House Prices Still Increasing by 4.9% Annually, Shows Official Data

In June 2017, the most expensive borough to buy a property in was Kensington and Chelsea, where the average house price was £1.4m. In contrast, the cheapest place to purchase a property was Blaenau Gwent, where a typical home costs £80,000.

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The Founder and CEO of online estate agent eMoov.co.uk, Russell Quirk, says: “It may seem a long time ago now, but many believe the market is still shaking off a degree of Brexit uncertainty – a stance that has been bolstered by the less than convincing political landscape that followed.

“Ironically, it has been those that prophesied the rapture of the UK market that have actually been the most detrimental to it. Those closest to the action, such as George Osborne and his outlandish claims of an inevitable 18% crash in house prices, have seen an air of uncertainty slow the market, albeit a tiny blip on an otherwise impeccable current medical record for UK property.

“A year on and, in contrast to gloomy predictions, an anticipative Schadenfreude even, we see that, in fact, house prices are nearly 5% higher annually, with the monthly decline in growth reversing and the market remaining one of the most robust in the world.

“The attempt by Osborne, Hammond and many others to talk the puff out of the UK economy and its related housing market were grossly exaggerated and in fact completely wrong.”

Shaun Church, the Director of mortgage broker Private Finance, also comments: “The property market remains above water, although prices are rising more slowly compared to recent years. The subdued market is partly due to a lack of new homes for sale and rising inflation squeezing household finances. However, fundamentals remain strong and there are few signs of the kind of drastic price correction some have predicted.

“That said, areas with a higher concentration of properties at the upper-end of the market, particularly parts of central London, have been hit hard by the changes to Stamp Duty and are experiencing sluggish or even negative price growth. Until the Government reconsiders its stance, the prime market will continue to struggle.

“Another significant factor in slower house price growth is the reduced demand from buy-to-let investors, who have been deterred by the recent raft of punitive tax measures. However, the fall in buy-to-let investment has been partially offset by the increasingly buoyant first time buyer market, as young professionals take advantage of the record low interest rates and softer price rises.”

The Director of Property at property stock exchange Property Partner, Rob Weaver, adds: “Against a backdrop of political and economic uncertainty, once again Britain’s housing market has demonstrated its resilience, with a monthly price rise of 0.8%.

‘’Despite a slight fall in prices in London, rises across every other English region acted as a cushion – painting a broadly positive picture for landlords, particularly those who diversify by owning property in different parts of the country.

“We favour a steady market, and we have been saying this for a long time now. Long-term, steady growth is far healthier than the significant increases of recent years.”

‘’At Property Partner, we are seeing many investors take a slightly longer-term view of the market, by focusing on properties that deliver a higher yield, rather than necessarily targeting high capital growth.

‘’Considering the housing market is in the middle of the usual summer slowdown, today’s figures are encouraging, and current and potential landlords should feel reassured.’’

Ishaan Malhi, the CEO and Founder of online mortgage broker Trussle, also reacts: “Homeowners worried about the prospect of slipping into negative equity will be happy to see a second consecutive month of house price growth. Hopeful first time buyers looking to get onto the property ladder will naturally be less enthusiastic. Despite interest rates remaining at rock bottom, younger buyers still face the gruelling prospect of having to raise a deposit of around £30,000, which is higher than the average UK salary.

“The surest way to boost homeownership among the younger generation is to build more homes, but aspiring homeowners could be waiting a while for that supply to arrive. In the meantime, the best bet is to make the most of Government schemes like Help to Buy and Starter Homes, while shared ownership could also help realise the homeownership dream for those struggling to find a way in.”

The CEO of buy-to-let specialist Landbay, John Goodall, continues: “Against expectations, inflation has held steady today, stealing the limelight from housing figures, which suggest that house price growth has now returned. Supply and demand remain severely out of kilter, meaning that housing affordability remains one of the most pressing issues facing UK society over the medium to long-term.

“The roots of the affordability crisis can be traced back to insufficient construction over the past decade, but a number of other macroeconomic factors are now also playing a part. Wage growth is struggling to keep pace with rocketing inflation, which is hitting people’s pockets and making it harder for aspiring homeowners to afford their first property, as well as discouraging existing homeowners from moving. This is pushing more and more people toward the private rental sector to house them while they save, so construction needs to focus not only on more affordable homes for first time buyers, but for the rental sector as well.”

We also have comment from Jonathan Hopper, the Managing Director of Garrington Property Finders: “After the previous month’s data showed a decline in London’s house prices, it’s concerning but not surprising to see a further – and more pronounced – fall in the capital’s prices in June.

“For years, London’s property market seemed to know no bounds, but, for two consecutive months, the capital has seen a deceleration in prices, forcing sellers to adjust their pricing in keeping with a new reality.

“There is a degree of inevitability about prices cooling, as house price inflation in the capital raced ahead of wage inflation for several years, but, ultimately, this situation was always going to be unsustainable.

“Across the country as a whole, house prices remained largely flat, although a few regions outside of London also experienced a slowdown in property price growth.

“Although the ongoing lack of supply has continued to prop up prices, in practice, there are many buyers closely watching these movements in the market and managing to secure weighty discounts.

“Sellers who are conscious of this, and are both pragmatic and flexible in their approach to pricing, are most likely to guarantee a sale in today’s market.”

Lucy Pendleton, the Founder Director of independent estate agents James Pendleton, also responds: “There’s the slightest hint of a two-speed housing market here, with the UK upping the pace of growth annually and monthly, while London touched the brakes.

“Perhaps it’s not surprising to see the London market, after such strong gains, buck the national trend and slow down a little more in a General Election month.

“However, the market is not lurching and there is still strong demand. The trailblaising East of England posting annual growth of more than 7% is an obvious sign of confidence outside the capital.

“There are headwinds, but it’s important to remember interest rates have not yet gone up, we still have the Help To Buy scheme and the more hazardous economic effects of Brexit have not begun to materialise.

“That’s why this isn’t yet a nerve-jangling tightrope walk between buyers and sellers attempting to face off against each other. Armies in both camps are dancing arm in arm and seem content with where the market is right now.”

Housing transactions have paused for the summer holidays, while house prices also stopped for breath in July, according to the latest House Price Index from Your Move and Reeds Rains.

House prices dipped by 0.2% over the month, taking the annual rate of house price growth to 2.9% – the lowest level since July 2013.

Annually, the average property value in England and Wales rose by £8,433, taking prices to £298,906.

Housing transactions slowed, dropping by an estimated 9% in July on the previous month.

Housing Transactions Pause for Summer Holidays, Your Move Shows

Although there has been a slight slowdown in monthly housing transactions, yearly activity shows that regions such as London and the East of England are continuing to grow strongly.

Every region across England and Wales recorded annual growth, as demand for affordable property continues to rise. Traditionally, lower priced boroughs of London and cities outside of the commuter belt are beginning to see increased activity and transactions from first time buyers.

Every region in the UK still shows annual price growth, however, they all slowed in June. The greatest declines in annual growth were in Wales, down by 1.5% to just 0.2% for the year, the West Midlands, down 1.3% to 3.3%, and Yorkshire and the Humber and the South East, dropping by 1.2% in both to 1.5% and 3.5% respectively.

A slowdown in the South East means that it looks significantly less buoyant than its three neighbours. In the South West, prices rose by 4.2% annually, the East Midlands saw an increase of 4.1%, and the East of England, which continues to lead the way in England and Wales, recorded growth of 5.1%.

Nevertheless, something of the re-emerging north-south divide continues to be apparent, with the North East (1.1%), Yorkshire and the Humber (1.5%), Wales (0.2%) and, to a lesser extent, the North West and West Midlands (both up by 3.3%), recording weaker growth than the southern regions. Greater London, with 2.4% annual growth, remains an exception.

The East of England continues to perform strongly, with all of its unitary authority areas showing solid annual price growth, led by Southend-on-Sea, where values rose by 10.2%, and Luton and Bedfordshire (both up by 8%). The former two, along with Peterborough, also recorded new peak prices in the month.

Aside from Southend-on-Sea, four other areas recorded double-digit growth in prices on an annual basis: Rutland in the East Midlands, with the highest annual increase (12.9%), albeit on low transaction levels; Poole (10.8%) in the South West, which shows strong overall growth, with Bournemouth (9%) also particularly strong; and Pembrokeshire (10.8%) and Blaenau Gwent (10.7%) both bucking the trend in Wales.

Wales also bucks the trend when it comes to housing transactions. Looking at an increase in transaction volumes between the second quarter (Q2) of 2015 and Q2 2017 across all 108 unitary authorities in England and Wales, the top five are all in Wales: Torfaen (28%), Caerphilly (26%), the Isle of Anglesey (26%), Ceredigion (22%) and Wrexham (19%).

House prices in London dropped for the third consecutive month in June, by 1.5% – the second largest drop in over six years – but still remain up by £14,244 on last year.

This decline takes £8,913 off the average property value in the capital, but this still remains double the national average, at £602,849. The trend in London is a mixed picture, with 17 boroughs seeing prices fall last month and the other 16 seeing prices rise.

The top three boroughs in London still show solid annual growth, led by Kensington and Chelsea – the most expensive borough. Average prices in the district are £1,954,735, which is up by 17.3% on last year.

Of the top third most expensive London boroughs, eight saw prices drop last month, including all of the top five. The City of Westminster, with the second highest average property value in the capital, experienced the greatest decline – 11.6% – while the City of London, fifth in the table, saw the second largest – 8.2%. More significantly, the latter also recorded the biggest decrease on an annual basis, with prices down by 17.6%.

At the other end of the market, of the cheapest 11 London boroughs, six saw prices rise in June and only one (Greenwich) has experienced a decline on an annual basis. Just outside the cheapest 11, Lewisham also saw the greatest increase of the month – up by 2.4%. With the average value in Lewisham now £469,709, it was also the only borough during June to record a new peak price.

The Managing Director of Your Move and Reeds Rains, Oliver Blake, comments on the index: “Annual prices are still
 rising positively and regions continue to perform strongly, despite the slowdown in transaction numbers over the summer months.

“Whilst, as a business, we often see this at this time of year, the cause of the dip may also be down to the buy-to-let slowdown as a result of tax changes.”

Annual house price growth was little changed from June in July, down from 3.1% to 2.9%, reports Nationwide in its latest House Price Index.

House prices also saw a modest increase of 0.3% over the month – down from 1.1% in June. This takes the average house price to £211,671, which is up slightly from June’s £211,301.

The Chief Economist at Nationwide, Robert Gardener, comments on the figures: “The annual pace of house price growth remained broadly stable in July, at 2.9%, only a touch lower than the 3.1% recorded in June.

“On the surface, this appears at odds with recent signs of cooling in the housing market. The number of housing transactions dipped to their lowest level for eight months in June, while in the same month, the number of mortgages approved for house purchase moderated to a nine-month low of c.65,000.”

House Price Growth was Broadly Stable in July, Reports Nationwide

However, he continues: “But a lack of homes on the market appears to be providing support, with annual house price growth remaining only just outside the 3-6% range that has been prevailing for most of the past two years.

“This pattern looks set to be maintained in the near term; survey data points to relatively sluggish levels of new buyer enquiries, but, at the same time, surveyors report that relatively few properties are coming onto the market (and at a time when the number of homes on estate agents’ books is already close to 30-year lows.”

Gardner explains what the future holds for the property market: “Ultimately, housing market developments will depend on wider economic performance. The UK economy slowed noticeably in the first half of the year and there has been little to suggest a significant departure from recent trends in the quarters ahead.

“While employment growth has remained relatively robust, household budgets are coming under pressure, as wage growth is failing to keep up with the rising cost of living.

“This suggests that housing market activity is likely to remain subdued, with the balance in the market shifting a little further towards buyers in the quarters ahead.”

He adds: “Nevertheless, constrained supply is likely to continue to provide support for house prices and, as a result, we continue to expect prices to rise by c.2% over 2017 as a whole – only modestly lower than the levels recorded in recent months.”

The Founder Director of estate agent James Pendleton, Lucy Pendleton, says: “Market conditions just beneath the surface are keeping this ball in the air, despite much talk recently of the market starting to roll over.

“The big question is, where is support for house price growth coming from? Supply and demand is always a supportive factor, but this kind of market behaviour shows just how imbalanced it has become. Prices seem to be finding any excuse to hold their ground and exploiting it.”

She believes: “The cause has to be lack of supply placing a squeeze on the number of homes coming to market, helped in June by mortgage approvals slumping to a nine-month low, with transactions levels also depressed.

“First time buyers may have also played their part in mopping up over the last few months, spying opportunities as prices dipped. Prices fell for three straight months between March and May but, before that, you would have to go back to June 2015 to find the previous monthly fall.”

Pendleton continues: “These slight contractions were not dramatic however, particularly when you consider the traditionally slower summer months have often begun with more severe falls than this.

“Given there are other factors at play, including a squeeze in consumer spending, this could be seen as a sign of confidence among buyers.”

Russell Quirk, the Founder and CEO of online estate agent eMoov.co.uk, has also responded to the latest House Price Index: “UK homeowners will have their fingers crossed that this turnaround in price growth will be more consistent than the British summertime.

“At a glance, it looks as if the dark clouds of buyer and seller uncertainty are finally starting to lift from the UK housing market, with welcome signs of positive property price growth beginning to shine through. The summer months can generally be a slower time of year, with many taking a break from their sale to go away, so it is promising that the market has bounced back, despite the slump in transactions and mortgage approvals witnessed in June.”

He concludes: “Although buyer demand may take some time to return to normal levels, a sustained shortage of stock should continue to stimulate an upward price trend.”

The Land Registry and Office for National Statistics (ONS) have released their latest House Price Index, for May 2017, showing that property values are still rising by over 25% in some parts of the country.

On an annual basis, the Orkney Islands recorded the largest growth of all areas, at a whopping 25.16%, followed by 17.09% in Kensington and Chelsea, and 15.64% in Maldon.

Month-on-month, the greatest increase in house prices was recorded in Scarborough, where values were up by 6.63% between April and May. East Ayrshire (6.44%) and Kensington and Chelsea (6.02%) were close behind.

However, some areas are recording notable decreases in property values, with average house prices in the Western Isles down by 17.96% on May 2016, while the Shetland Islands (14.68%) and the City of Aberdeen (7.77%) also saw significant declines.

On a monthly basis, the Shetland Islands again recorded substantial drops, at an average of 6.79%, followed by Pendle (5.52%) and the Isle of Anglesey (5.38%).

House Prices still Rising by over 25% in Parts of the Country, Show Official Figures

Thanks to another month of strong growth, Kensington and Chelsea remains the most expensive place in the country to buy a property, at an average price of £1,501,966.

Outside of London, South Buckinghamshire takes the crown, with an average property value of £617,252.

Unsurprisingly, Burnley is the cheapest place to purchase a home in the country, at just £77,525.

Russell Quirk, the Founder and CEO of online estate agent eMoov.co.uk, has commented on the figures: “The latest Government figures show that where actual property sale completions are concerned, the market maintained a slight upward trend in May, up 0.5%, ahead of June’s election, whereas mortgage approval data from the likes of Nationwide and Halifax showed a slow in pace in the same time period.

“Although this provides two slightly contrasting views of the UK market, it makes sense that those in the middle of the sale would move quickly to push it through before any detrimental election impact on their property value occurs, whilst those looking to buy a property would put their mortgage application on ice until the political storm clouds had passed.”

He looks ahead: “The UK property market at present is as unpredictable as the economic and political landscapes that are influencing its buyer and seller demand.

“But whilst these top line figures paint a picture of a marginally declining market, it is important to note that annual growth is still up and there are still areas of the nation performing very well where property price growth is concerned.

“In the current UK property raffle, homeowners in the Shetland Islands, Pendle and the Isle of Anglesey will be going home rather annoyed that their property has seen the largest monthly fall in value. However, those in Scarborough, East Ayrshire, and Kensington and Chelsea will be delighted that their purchase has materialised into first place property price growth.”

The Senior Economist at PwC, Richard Snook, also responds to the data: “Today’s housing market data from the ONS and Land Registry shows a gradual slowdown of house price growth, in line with our expectations that growth in 2017 will be around half that of 2016.

“House price inflation fell back to 4.7% in the year to May, from a downwardly revised 5.3% in April (initially reported as 5.6%), taking May’s average UK price to £220,700.”

He continues: “Today’s figures are the first to be released since we published our latest housing market projections in the UK Economic Outlook. Our main scenario anticipates a softening of the market over the year, with house price inflation falling from 7% in 2016 to 3.7% in 2017. We expect London to be one of the UK’s worst performing regions, achieving price growth of just 2.8% in 2017. The key drivers of this slowdown are uncertainty related to Brexit and a softening in the economic outlook.

“The latest regional data is showing the strongest performance in East Anglia and the East Midlands, which registered annual growth of 7.5% and 7.2% in May respectively.”

And finally, the CEO and Co-Founder of buy-to-let specialist lender Landbay, John Goodall, concludes: “Against a backdrop of increased political and economic uncertainty, house prices have slowed in their march upwards, suggesting that buyers are starting to feel the pressure of falling real wages and entering the market in fewer numbers. But demand is only half of the story; insufficient housebuilding continues to restrict the number of available homes for sale, which may not be creating house price pressure at the moment, but will when demand begins to pick up again.

“While the pace of house price growth may have slowed, house prices still continue to rise, ultimately meaning that fewer people can afford to buy, which can only place greater pressure on the UK’s rental sector. For that reason, it’s essential that new construction is planned across all tenures, so that rents don’t escalate to the point where they’re inhibiting aspiring homeowners’ ability to save for a deposit. Quite simply, we need to build more purpose-built rental homes to support those hoping to take their first steps onto the property ladder.”

House prices were down by 0.2% on a monthly basis in June, according to the latest report from Your Move and Reeds Rains.

The estate agents have found that prices fell for the third consecutive month in June, with average values down by £2,358 in the past quarter. More than half of the unitary authority areas in England and Wales – 60 of 108 – reported a decline in house prices over the month. The average house price in June was recorded as £301,114.

Despite this, the broad trend over the past year remains a modest rise, with prices up by 3.8%, or £11,037, on June 2016. The East of England, in particular, continues to record strong annual growth, regaining the top spot among the regions. In London, the City of Westminster set a new peak price of £1,865,843, after rising by 19.7% over the last 12 months.

The slide in house prices has coincided with the period since the calling of the snap General Election in April, but Your Move and Reeds Rains don’t believe this to be the sole cause. For starters, they explain, the announcement in April was mid-month, which is too late to have any real impact on property sales. In addition, the result of the election looked in little doubt during this period.

Instead, the election and its outcome have merely exacerbated a slowdown in price growth that has been recorded since the beginning of the year, the agents claim.

House Prices Down in June on a Monthly Basis, Report Your Move and Reeds Rains

However, they insist that predictions of a sustained correction still look premature. Firstly, they have seen before that the market can rally, as it did after remaining flat for three months following last year’s EU referendum. Second, mortgage rates remain low, which is helping buyers. And, finally, transaction levels in June were encouraging, with an estimated 72,500 sales – up by 10% on May, which is marginally ahead of the increase expected, albeit with levels lower than last year.

On an annual basis, house price growth continues to be broad-based, with 87 of the 108 unitary authority areas in England and Wales recording price rises over the year to May 2017. Six out of ten regions have also seen an increase in annual rates from the previous month, with one recording no change.

Price growth was led by the East of England, which has regained the top spot for annual increases that it held earlier this year and for much of last year. Prices in the region rose by 0.3% over the month and are up by 6% annually, driven by strong growth in Norfolk (+10%), Luton (+7%) and Bedfordshire (+8%) – the latter being one of the 12 authorities to record a new peak in the month.

The East is also the area that has recorded the greatest increase in property transactions over the last two years. Sales in the city of Peterborough were up by 31% for the three months from March to May compared with the same period in the previous year.

The West Midlands, which led growth over the last quarter, has now fallen back into third place, with prices up by 4.9% annually – below both the East and South West. Annual growth in the latter now stands at 5.4%, with Bath and North East Somerset (+11.5%), Cornwall (+8.1%) and Devon (+7.7%) showing particularly strong growth.

The fastest growing area annually, however, was the Isle of Anglesey – up by 14.1%. While Pembrokeshire also recorded strong growth (+10.9%), Wales generally has fared less well, with prices up by just 2% year-on-year. Of the 21 areas where prices have dropped, Wales – with six – has the highest number.

Overall, annual house price growth in May across England and Wales stood at 4.3%, but a north-south divide seems to have re-emerged. Annual growth in the Midlands and south, excluding London, is above average, while the north and Wales are seeing below average growth.

In central London, prime property is back at the forefront of growth. While the slowdown in the overall market is reflected in Greater London, the capital’s prime property sector continues to show solid annual increases.

Average house prices in the capital decreased for the second consecutive month in May – down by £3,101, or 0.5%, to £613,650. In total, 25 out of London’s 33 boroughs saw prices fall. However, on an annual basis, it’s a different story. Over two thirds of London’s boroughs continue to show growth, with the average yearly increase standing at 3.4%.

It is prime property that now looks to be making the running in London, Your Move and Reeds Rains report. The City of Westminster reached a new peak in May (one of only three boroughs to do so) – up by 6.1% on a monthly basis and 19.7% year-on-year. It continues to close the gap with the highest priced borough – Kensington and Chelsea – despite it seeing the second strongest annual growth in London – up by 9.9%. Camden now completes the top three, with annual house price growth of 6.8% having pushed the average value up to £1,039,135.

The City of London, which Camden has replaced in third place over the last year, shows that growth is not consistent at the top of the market, however. Prices in the borough have dropped by 6.2% annually, while Hammersmith & Fulham – just below it in the table – is down by 5.4%. Islington, too, has recorded a substantial fall, with prices losing over £60,000, or 7.9%, in the year – the greatest annual decline in the capital.

On the other hand, Haringey, which is just inside the top third of the London market – with an average house price of £637,652 – has seen the strongest growth after Kensington and Chelsea, at 9.4%.

By contrast, London’s cheapest boroughs show more modest but consistent growth. The six cheapest boroughs have all seen annual house price growth, with Croydon (+5.2%) above the national average of 3.8%.

The Managing Director of Your Move and Reeds Rains, Oliver Blake, says: “Don’t write the market off just yet. We’ve seen three months of falls, but it’s far too early to panic. Mortgage rates are still affordable and the slowdown we have seen will already have helped some buyers struggling with affordability.

“We’re still seeing strong growth in the East and in prime London. We’re also seeing a return to the north-south divide in terms of price growth. In many ways, it feels like we’ve been here before.”