Posts with tag: average house price

House Prices End 15 Consecutive Months of Growth

Published On: November 3, 2016 at 10:15 am

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House prices remained flat in October, ending 15 consecutive months of growth, according to Nationwide’s latest House Price Index.

The building society’s report shows that house prices stayed steady last month, after rising by 0.3% in September.

House Prices End 15 Consecutive Months of Growth

House Prices End 15 Consecutive Months of Growth

On an annual basis, house price growth dropped from 5.3% in September to 4.6% in October.

The average house price in the UK now stands at £205,904.

Robert Gardner, the Chief Economist at Nationwide, reassures the property industry that last month’s decrease in growth rates is in line with the trends recorded since early 2015.

As a comparison, annual house price growth stood at 3.9% in October 2015.

Gardner comments: “After 15 successive monthly increases, UK house prices were unchanged in October (after taking account of seasonal factors).

“Measures of housing market activity remain fairly subdued, with the number of residential property transactions circa 10% below the levels recorded in the same period of 2015 in recent months.

“However, this weakness may still in part reflect the after-effects of the introduction of Stamp Duty on second homes introduced in April, where buyers brought forward transactions to avoid additional Stamp Duty liabilities. Policy changes impacting the buy-to-let market may also be playing a role in dampening activity.”

Jonathan Hopper, the Managing Director of Garrington Property Finders, insists that buyers now have the upper hand.

He explains: “Prices in the immediate aftermath of the referendum were flattered by an injection of pent-up demand, as buyers who had sat on the fence in the run-up to the referendum finally got off it.

“But with the impact of that temporary prop now fading, the buyers who remain frequently hold the whip hand – with many feeling empowered to ask for a substantial discount in return for the certainty of a sale.

“Yet pragmatism rather than panic prevails among sellers, which has so far prevented wholesale price cutting.”

He adds: “Prices are also being supported by a chronic shortage of supply in many areas, but the shift in the balance of power from seller to buyer is palpable.

“Reassured by rock bottom interest rates, a robust labour market, and an economy that continues to grow steadfastly, intent remains strong among domestic buyers.”

Does this news encourage you to push forward with a property purchase?

The UK’s Scariest Locations for Property Owners

Published On: October 31, 2016 at 10:22 am

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Although house prices in the UK have risen by an average of 7.22% over the year since last Halloween, online estate agent eMoov.co.uk has found the scariest locations for property owners, based on how values have plummeted over the past 12 months.

The research found that there were 19 parts of the UK where homeowners will have received a fright, with the value of their property falling since 31st October 2015.

Of the scariest locations, ten can be found in England, five in Scotland and four in Wales.

England

The most frightening place to own a property in England is Teignbridge in Devon. Since last Halloween, the average house price in the area has dropped by a huge 18.22%, or more than £75,000!

The second scariest location for UK homeowners is Ryedale in North Yorkshire, with a fall of 6.32%, or over £18,000.

Hartlepool placed 6th across the UK, with a decline of 3.48%, while West Somerset was in 7th place, at 2.93%, Copeland in 9th, at 1.72%, South Hams in 14th, at 0.89%, and Bolsover in 16th, at 0.62%. Last on the list was Eden in Cumbria, where prices fell by just 0.03%.

The UK's Scariest Locations for Property Owners

The UK’s Scariest Locations for Property Owners

London 

Although property owners in the capital have experienced a relatively scare-free year, there are two boroughs that have recorded price decreases since last Halloween. Both Westminster and Camden have seen the average property value drop, by 5.06% and 4.15% respectively. They placed 3rd and 4th across the UK as a whole.

However, what’s even more worrying for homeowners in these boroughs is that house prices in London rose by 9.75% over the same timeframe.

Scotland

Aberdeen’s poor performing property market, as a result of the declining oil industry, continues to spook homeowners in the area, with the City of Aberdeen recording the largest decrease of all Scottish entries since last Halloween – the 5th largest drop in the UK.

Prices in the area have fallen by 4.02% since October last year, in stark contrast to the rest of Scotland, which has seen prices rise by 4.40%.

Scotland also accounts for the 10th, 11th, 12th and 13th scariest locations in the UK, with Midlothian prices down by 1.35%, Western Isles by 1.25%, Argyle and Bute by 1.19%, and Edinburgh by 1.17%.

Wales 

Spots in Wales account for the rest of the UK’s scariest locations for property owners, despite a nationwide increase in prices of 2.51%.

The Isle of Anglesey saw the great fall, of 2.90%.

Caerphilly, at -0.69%, Pembrokeshire, at -0.27%, and Denbighshire, at -0.22%, complete the 19 worst locations for house prices in the UK.

The Founder and CEO of eMoov, Russell Quirk, comments on the data: “Despite the current myth of a Brexit monster terrorising the UK housing market, recent surveys by the Council of Mortgage Lenders and a number of house price indices show that, for the large part, the market is in good health.

“Until Article 50 is triggered, this is likely to remain the case, and the Brexit monster remains an urban myth like the Boogey Man. Either that, or it’s David Cameron in a mask and he would have got away with it too if it wasn’t for those pesky market reports.”

But he adds: “However, these figures do show that despite one of the strongest property markets in the world, there are still areas across the nation being haunted by a fall in house prices. These homeowners will be in for a real shock when they realise they are one of a very small few that has seen their property depreciate since Halloween last year.”

London House Price Growth Drops to 20-Month Low

Published On: October 21, 2016 at 10:55 am

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London house price growth has dropped to a 20-month low, according to the latest UK Cities House Price Index from Hometrack.

City level house price growth is currently running at 8.5%, but growth in London has slowed rapidly over the last quarter to the lowest level of growth for 20 months. 11 cities are registering higher growth than at the start of 2016, while nine are slowing.

City house price growth outstrips UK 

House price inflation recorded across UK cities by Hometrack is holding steady, at 8.5% per year – higher than the 5.7% growth recorded 12 months ago. House prices in the UK’s major cities are experiencing a higher rate of growth than the overall UK market, where property value growth stands at 7.2% per year.

House price growth continues to run more than three times faster than growth in earnings, as household confidence improves, earnings rise ahead of inflation and low mortgage rates make housing affordable for those with equity.

London House Price Growth Drops to 20-Month Low

London House Price Growth Drops to 20-Month Low

Growth rates increasing in 11 cities

11 cities in the UK are recording higher rates of capital growth than in January 2016. The majority of these are large, regional cities outside of the South East, including Liverpool, Manchester, Cardiff and Birmingham. These cities have attractive affordability in terms of house prices to earnings ratio. Annual house price growth currently ranges from 6.6% in Liverpool to 8.0% in Birmingham.

Growth slower across nine cities 

Nine cities have seen lower house price growth than at the start of the year, with the greatest slowdown led by Cambridge, Oxford, London and Aberdeen. Hometrack puts slower growth down to affordability, economic and market confidence factors.

London house price growth slowest for 20 months 

In the last quarter, London house price growth has dropped to the lowest rate since January 2015. Fears of a potential housing bubble, tightening credit terms and concerns over a mansion tax have impacted demand for housing in London over recent months.

On a quarterly basis, house prices in London have risen by 0.9%, compared to an average of 3.0% over the last three years. This recent slowdown is yet to impact the annual rate of growth, which currently stands at 10%, but is expected to drop towards 5% by the end of the year.

Supply/demand balance across cities

Hometrack’s study of supply and demand relative to house price growth is re-enforced by an analysis of property listings and sales data over the past three years. Sales rates are close to matching the number of new properties onto the market, which creates scarcity and supports house price growth.

In contrast, London has the weakest market conditions, with the supply of new homes on the market growing faster than sales, which have dropped back in recent months due to weaker demand. The ratio of sales to new supply is at its highest level for three years, further emphasising the outlook for a continued slowdown in the rate of London house price growth over the coming months.

The Founder and CEO of eMoov.co.uk, Russell Quirk, comments on the figures: “Whether you believe that Brexit has had an impact on the property market or not, this latest data by Hometrack shows that, in the last quarter, price growth has slowed to a 20-month low in the capital. It’s clear that the European limbo that the country as a whole is currently stuck in, until Article 50 is triggered, has led to an air of panic, with the ratio of sales hitting a three-year high.

“This imbalance of supply outstripping demand is somewhat of an anomaly for those selling in London, and so the resulting fall in prices has probably come as more of a shock than it actually is.

“This supply-demand seesaw is the basic premise on which the UK market and the value of property is decided on. It just so happens that London is currently sitting at the bottom end of this seesaw, along with eight other major UK cities.”

However, he adds: “This said, it’s still home to the highest average house price in the country and, year-on-year, is just one of two cities to have enjoyed double-digit price growth.

“It is important to note that more than half of the cities monitored in the Hometrack index are recording higher annual growth rates than they were in January, so whilst London is cooling, the UK market as a whole doesn’t seem to be feeling the chill.”

Little Change in House Prices Recorded by Land Registry

Published On: October 18, 2016 at 10:46 am

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The UK House Price Index for August from the Land Registry and Office for National Statistics (ONS) shows little change in house prices over the most recent month for which data is available.

In August, house prices rose by an average of 8.4% on an annual basis, taking the typical property value in the UK to £218,964. Month-on-month, house prices rose by 1.3%.

House prices across the country

In England, prices rose by 9.2% over the last 12 months to an average of £235,573. On a monthly basis, prices were up by 1.4% on July.

Wales experienced an annual price increase of 2.7%, taking the average property value to £144,514. However, prices dropped by an average of 0.6% over the month.

Prices in London rose by 12.1% over the past year, putting the average property value in the capital at £488,908. Over the month, prices increased by 1.3%.

Regionally, the House Price Index found that the East of England experienced the greatest increase in house prices over the last 12 months, at 13.35%. Month-on-month, the South West recorded the highest growth, of 2.3%.

The lowest annual price growth was seen in the North East, at 3%, while the region was the only area to record a monthly drop in prices, of 0.2%.

UK property sales

Property sales across the UK rose by 8.4% in the year to August, up slightly from 8.0% in July. Although demand and supply were broadly unchanged on the previous month, the indicators remained

Little Change in House Prices Recorded by Land Registry

Little Change in House Prices Recorded by Land Registry

somewhat weaker than in 2015 and early 2016, according to the report.

Data for June 2016 – for which the most recent Land Registry figures are available – shows that the number of completed home sales in England dropped by 32.2% to 57,637, compared with 85,020 in the previous year.

The amount of property sales in Wales fell by 27.1% to 3,046, compared to 4,181 in June 2015.

In London, the number of completed home sales also dropped, by a huge 46.7%, to 5,966, from 11,202 in the same month last year.

There were a total of 526 repossession sales in England during June, with just 55 in Wales. The lowest number of repossession sales in England and Wales was in the East of England.

Little change in house prices 

Katherine Binns, of the HomeOwners Alliance, responds to the figures: “The latest house price data released by Land Registry shows little change in house price growth in August. Since the referendum result, both house sales and house price growth have eased. However, low mortgage rates and a shortage of homes available for sale should sustain house prices.

“As the economy and employment have held up following the Brexit vote, it will be interesting to see whether confidence returns and begins to unfold in autumn housing market activity, as buyers take advantage of attractive mortgage rates.”

Seasonally acceptable picture of the market

The CEO of eMoov, Russell Quirk, also comments on the findings: “Today’s figures from the Land Registry portray a pretty seasonally acceptable picture of the UK market during late summer, but with prices up 8.4% annually and still up 1.3% over the slower holiday months, homeowners have a lot to be reassured by.

“Looking annually, it’s a pretty familiar picture with London, the South East and East of England all seeing double-digit growth in house prices. Perhaps a little more unusual when looking at monthly growth is London, seemingly rocked by the leave vote, with an increase of just 1.3%.”

He continues: “Although the East of England and South East both enjoyed strong monthly growth, there are a few unusual front-runners placing well in the regional house price race. Both the East and West Midlands enjoyed strong monthly growth, at 1.6% each, but perhaps the real standout story is the South West, as the only area seeing monthly growth tip over 2%.

“Who knows, this uncharacteristic rise to the top could be a result of South West holiday goers making some snap decisions whilst down in the likes of Devon and Cornwall over the summer.

“Regardless, we’ve just seen one of our strongest months performance wise, with sales and listings both well up on previous months. So any current myths of the UK market on its knees on either side of the fence at present are myths indeed.”

Uncertainty following Brexit

Additionally, the Co-Founder and Director of online mortgage lender LendInvest, Ian Thomas, reacts to the House Price Index: “August was a tricky month for the housing market, with the uncertainty following the Brexit vote adding to the traditional summer slowdown. It has been a feature of this year that the housing market has had to deal with a succession of external factors denting demand. The conclusion of the Help to Buy scheme at the end of 2016 will be another one, which may particularly affect the sale of new build properties.”

Average House Price is Eight Times the Typical Wage in the UK

Published On: October 11, 2016 at 9:22 am

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The average house price in the UK is eight times the typical wage, according to online estate agent eMoov.co.uk.

The agent has found the most unaffordable parts of the UK where house price to wage ratio is concerned. It has compiled data for all London boroughs, and each area across England, Scotland and Wales, calculating the most expensive and cheapest areas for buying property when compared to income.

Unsurprisingly, the majority of the most expensive areas are in London, where the average house price climbs to 14 times the typical wage.

Average House Price is Eight Times the Typical Wage in the UK

Average House Price is Eight Times the Typical Wage in the UK

The Royal Borough of Kensington and Chelsea tops the list, with an average house price of £1,212,375, despite suffering the greatest decline in property values in the capital over the past year, of 6%. The cost of buying a home in the borough is now 46 times the average wage, of £26,624, and the nation’s greatest gap in property prices to wages by far.

The City of Westminster is second on the list for the most expensive property price to income, where the typical property costs £1,028,617, up by 11% annually. With an average wage of £33,020, house prices in the borough are 31 times higher than earnings.

Richmond upon Thames, also in London, placed fourth on the list, with the average house price (£659,636) a huge 26 times the typical wage (£25,636).

Looking at England as a whole, the average house price is nine times the typical wage on offer. The most expensive city outside of London and third place overall is St Albans in Hertfordshire, where the average house price (£522,716) is 28 times higher than typical earnings (£18,928).

The second most expensive location outside the capital is South Bucks in Buckinghamshire, where the house price to wage ratio is 25. Workers on an average income of £23,192 are faced with the challenge of buying a property costing £587,645 in the area.

Chiltern, close behind South Bucks, has a wage to house price ratio of 24, with a typical property value of £512,910.

In Wales, the lower average property value means that the gap between prices and wages is just six times. Monmouthshire is home to the highest average house price to wage ratio in Wales (12), but is only ranked 153rd overall in the UK, with a typical property price of £221,345.

With house prices also lower in Scotland, the price to wage ratio is just five. The most expensive Scottish region is East Renfrewshire, despite placing 113th in the whole of the UK. The average wage in the area is 13 times lower than the typical house price.

The City of Edinburgh placed second in a three-way tie (along with East Dunbartonshire and East Lothian) for unaffordability in Scotland, but is ranked just 210th throughout the UK. It would take ten times the average wage in the Scottish capital to buy a home there.

In contrast, Copeland in western Cumbria is the most affordable part of the UK, with a property price to wage ratio of just three. Blaenau Gwent in Wales follows closely behind, at four times, with Burnley in Lancashire also at four.

The Founder and CEO of eMoov, Russell Quirk, comments on the findings: “Property values in England are significantly higher than the rest of the UK, which is reflected in the wages offered. However, the wages are not always consistent with property prices, and have failed to increase at the same pace.

“It highlights the unaffordability of the market in England when you consider the difference in Wales, where the highest annual average wage is under £21,000 in Cardiff, yet the city’s property value is merely third in the country, behind regions with lower averages in annual incomes. Additionally, the average wage in Kensington and Chelsea would take almost a lifetime working to be able to afford a home, which is unrealistic for most, let alone the average buyer.”

He adds: “It is important to consider the wage you can earn when buying property, to understand the longevity of the investment, as a lower property price doesn’t always mean a better quality of living, as the wage will also reflect the local market and economy.”

Official Statistics Prove that Housing Crisis is Spreading

Published On: October 10, 2016 at 10:53 am

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New official statistics from the Office for National Statistics (ONS) prove that the housing crisis is spreading to many cities across the UK, not just London.

The ONS has used its house price statistics to explore the housing market across the UK. The most recent complete data ranges to the end of 2015.

The median price paid for residential property in England and Wales was £207,500 in 2015, up by £12,500 (6.4%) on 2014. This was largely driven by a 7% annual increase in England, while growth in Wales averaged just 2%. The median price paid for property ranged from around £77,000 in Blaenau Gwent to almost £1.2m in Kensington and Chelsea.

Official Statistics Prove that Housing Crisis is Spreading

Official Statistics Prove that Housing Crisis is Spreading

The majority of local authorities in England and Wales recorded an increase in median price between 2014-15. The median price decreased in eight local authorities, five of which were in the North West, two in Wales and one in London. There was just one London borough where the median price decreased over this period – Kensington and Chelsea. The ONS believes that this is likely the result of higher Stamp Duty rates on the most expensive properties from the end of 2014.

The data shows that the gap between the median price paid for properties in regions with the highest and lowest prices has become wider over time.

This gap is largely the result of the steeper increase of house prices in London, reports the ONS. Between 2014 and 2015, London recorded an average house price rise of 9.6%, while an average increase of just 5.5% was seen in the North East.

In 2015, Barking and Dagenham had the lowest median house price in London, at £245,000. Although this was the cheapest price paid in the capital, it was higher than two-thirds of all local authorities in England and Wales, reflecting generally higher housing costs in London and its surrounding areas.

Since 2007, the median price paid for properties in the most expensive 10% of England and Wales has soared by 37.6%. Over the same timeframe, there has been a decline in median house prices for properties in the least expensive areas, of 3.9%. ONS believes that there are many factors that may cause changes in house prices, including average earnings and the rate of population change. When there is higher demand for owner-occupied housing in a certain area, house prices tend to rise at a faster rate than in areas where demand is lower, says the report.

The ONS claims that local authorities in which the population has increased the most in one year typically have a larger increase in house prices the following year.

While the population of England and Wales has risen steadily over time, this is not the only factor that pushes up demand for housing. One factor that affects housing demand is the characteristics and composition of residents in households. In 2015, people living alone occupied 28.6% of all homes in the UK. This can contribute to rising house prices, which in turn makes it more difficult for young people to purchase homes.

Commenting on the recent report, the Senior Research and Policy Analyst at the Resolution Foundation, Lindsay Judge, says: “Today’s ONS figures confirm that the housing crisis facing Britain is about much more than the inability of younger people to buy their own home. Housing is becoming less affordable. Homeowners and renters alike are seeing more of their earnings eaten up by accommodation costs, undermining living standards for millions. And while London remains the outlier in terms of costs, this housing crisis has now spread to cities across the country.

“While there has been a slight uptick in the number of new houses built this year, we are still falling well short of the levels needed to make housing genuinely affordable again. It’s encouraging that the Prime Minister has put housing at the heart of her Government’s plans. We now need to see the Government roll up its sleeves to meet its target of one-million homes built this Parliament.”