Posts with tag: average house price

House Price Growth Continues to Slow, According to Halifax

Published On: October 7, 2016 at 9:33 am

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House price growth has slowed to just 0.1% on a monthly basis, according to the latest House Price Index from Halifax.

House Price Growth Continues to Slow, According to Halifax

House Price Growth Continues to Slow, According to Halifax

Although annual house price growth still stands at 5.8%, prices have only risen by 0.1% over the past month. Additionally, on a quarterly basis, house prices have dropped by an average of 0.1%.

At present, the average house price in the UK is £214,024.

The Founder and CEO of eMoov.co.uk, Russell Quirk, comments on the data: “Halifax’s figures show the market has continued to slow, with growth almost stalling month-on-month, and down marginally over the last quarter.

“Although there may be a small few still walking on EU eggshells when it comes to the sale or purchase of a property, the leave decision continues to have a very minute influence on the UK market at present, as, at this point, we are a member of the EU. This slowdown is undoubtedly seasonal, and looking at this time last year, prices were on a much steeper month-on-month downturn.

“Those small few should remain reassured that until Article 50 is triggered, the UK market will remain in good health when compared to previous years, albeit cooling slightly, and endure no sudden or lasting impact as a direct result of the referendum vote. When Article 50 is implemented, we could see a market wobble, however, the extent of this is likely to be minor.”

He looks ahead: “We are heading into what is seasonally a very busy time in the UK property market in the lead up to Christmas, with many looking to get their sale or purchase over the line before the festive season starts. I’m confident that over the coming three months, we will witness the usual winter flu shot to the market, with the scramble to complete helping to push prices up again.

“Our advice for those on the Brexit fence would be to keep faith in what remains to be a strong UK market, as indecision at this point is based on nothing but empty rhetoric from both sides of the Brexit camps.”

Ian Thomas, the Co-Founder and Director of online mortgage lender LendInvest, also responds to the figures: “Recent months have seen a number of external factors chipping away at demand, such as Brexit, the additional Stamp Duty charge on second homes and the traditionally slow summer.

“The confirmation that the Help to Buy scheme will end later this year is another one. The initiative has been extremely popular, so it will be interesting to see if its conclusion will drive down demand, and therefore sales, of new build properties.

“It is good that the Government has made housebuilding such a significant part of their party conference over the last week, with new measures designed to improve the rate at which we build new homes. The time for talking about the housing shortage must end – we need action, not words.”

Asking Prices Up, Particularly for First Time Buyers

Published On: September 19, 2016 at 8:28 am

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Average asking prices are on the up following the Brexit vote, particularly for first time buyers, according to the latest house price index from Rightmove.

Asking Prices Up, Particularly for First Time Buyers

Asking Prices Up, Particularly for First Time Buyers

The property portal’s September data shows that the average asking price of new properties on the market rose by 0.7% over the month (or £2,277) to reach £306,499, following a 3% decline in the previous two months.

Asking prices are up by 4% annually, down on August’s 4.1% growth.

First time buyer properties, those with two bedrooms or less, showed particularly strong growth, rising by 3.3% on a monthly basis (or £6,240) to hit an average of £194,477. Year-on-year, asking prices increased by 10.5%.

Second stepper properties recorded growth of 0.5% on the month and 5.2% annually, reaching an average of £258,836.

However, properties at the top of the ladder continue to struggle, with asking prices up by just 1.2% on August and 2.7% on last year. The average asking price is now £545,387.

Rightmove also found that properties are staying on the market for an average of 62 days – down on last year’s average of 66 days.

Although eight regions saw falls in asking prices in August, just two recorded declines in September – the North West and Yorkshire and the Humber, where prices dropped by 0.1% and 0.7% respectively.

The Director and Housing Market Analyst at Rightmove, Miles Shipside, comments on the data: “Some of those trying to get onto the property ladder may have wistfully listened to speculation of lower prices in a post-Brexit Britain.

“While the referendum result has created additional downwards price pressure in some upper segments of the market that were already slowing, those who do not own a home and arguably have the greatest housing need are now finding it harder to achieve their goal in the post-Brexit vote aftermath.

“In their favoured target sector with two bedrooms or fewer, average asking prices have jumped by over £6,000 in the last month as we enter the typically active autumn market.”

Property Market Cools But Won’t Crash, Claim Experts

Published On: September 13, 2016 at 11:35 am

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The latest UK House Price Index from the Land Registry/Office for National Statistics (ONS) shows that the property market has cooled over recent months, but experts believe it will not crash following the Brexit vote.

As of July 2016, the average house price in the UK is £216,750, after values rose by 0.4% over the month. Although this marks a slowdown in the market, prices are up by 8.3% on an annual basis.

Analysis has found that although property sales are down, low supply is keeping house prices high.

Property Market Cools But Won't Crash, Claim Experts

Property Market Cools But Won’t Crash, Claim Experts

House price growth remained strong over July, rising by 12.3% year-on-year and 1% on the previous month.

Thomas Fisher, an Economist at PwC, comments on the figures: “Today’s data from the ONS shows a moderation in house price growth from 9.7% in the year to June to 8.3% in the year to July. But house prices still edged up by 0.4% between June and July.

“This suggests that market demand remained relatively resilient after the Brexit vote, despite some slowdown in mortgage lending. However, as many of these transactions will have been in motion since before the referendum, more data will be needed to make a proper assessment of how the referendum result is affecting the housing market.”

He predicts: “Our own expectation is that the UK housing market will cool not crash. In our main scenario, average UK house price growth is projected to decelerate to around 5% in 2016 and around 1% in 2017.”

The founder and CEO of eMoov.co.uk, Russell Quirk, is also pleased to see some positive figures. He says: “Another index and another positive outlook where the post-Brexit property market is concerned. [This] shows that there has been no immediate impact on the market in England since Britain’s decision to leave the EU.

“Although this isn’t news as such, this data from the Land Registry acts as a more concrete confirmation compared to the likes of Halifax and Nationwide, who base their figures on mortgage data.”

However, Katherine Binns, of the HomeOwners Alliance, has witnessed a cooling in the market from property buyers and vendors.

She explains: “We are seeing signs of hesitancy among both buyers and sellers at the moment. We expect this to continue in the short term until there’s greater certainty around the economic impact of Brexit. Time will tell whether the recent Bank of England cut in interest rates will help to boost confidence and generate an increase in buyer and seller numbers in the autumn. However, despite this slowing in activity, tight supply is likely to keep upward pressure on house prices. So we’re not expecting a drop in the short term.”

Finally, the CEO of estate agent Marsh & Parsons, David Brown, looks at the data from a London point of view.

He says: “It’s been nearly three months since the referendum and London, which voted overwhelmingly to remain, seemed to approach the market with more caution. However, it is extremely pleasing to see that the definitive UK House Price Index clearly indicates that London is shrugging off any negative sentiment about Brexit.

“The ONS data shows that London is again leading the way, with a yearly uplift of house prices in the capital of 12.3% to July, only surpassed by the Eastern region, where values are much lower. The prime end of the market has undoubtedly seen challenges as a result of George Osborne’s considerable Stamp Duty hikes, but we hope that we may see these reversed in the upcoming Autumn Statement.”

He concludes: “The general picture is that the property market in London is returning to normal, and that has to be positive for buyers and sellers alike.”

Annual House Price Growth Slows to 6.9%, Reports Halifax

Published On: September 7, 2016 at 8:40 am

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Annual house price growth slowed to 6.9% in the three months to August, down from 8.4% in July, according to the latest report from Halifax.

On a quarterly basis, the bank’s House Price Index shows that house prices have risen by 0.7% to stand at an average of £213,930. However, this is down from July’s 1.5% figure and the lowest quarterly rate since December 2014 (0.5%). Halifax reports that the quarterly rate of growth has been on a downward trend over the past six months, after peaking at 3% in February.

The annual rate of growth has also been on a downward trend since March, when it reached 10%. August’s 6.9% rate is the lowest year-on-year increase since October 2013 (6.9%).

Over the month, house prices dropped slightly, by 0.2%, on July’s figure. This modest decrease was the lowest of the four monthly declines recorded so far this year. Halifax adds that the quarterly change is a more reliable indicator of the underlying trend.

Annual House Price Growth Slows to 6.9%, Reports Halifax

Annual House Price Growth Slows to 6.9%, Reports Halifax

The Housing Economist at Halifax, Martin Ellis, comments on the figures: “House price growth continued the trend of the past few months in August with a further moderation in both the annual and quarterly rates of increase. There are also signs of a softening in sales activity.

“The slowdown in the rate of house price growth is consistent with the forecast that we made at the end of 2015. Increasing difficulties in purchasing a home, as house prices continued to increase more quickly than earnings, were expected to constrain demand, curbing house price growth.”

Property sales declined marginally between June and July, by 1%, following successive growth in the two previous months. However, Halifax notes that sales have been heavily distorted in recent months by April’s introduction of higher Stamp Duty rates for buy-to-let landlords and second homebuyers.

The Stamp Duty change has also affected mortgage approvals data since the start of the year. The number of mortgage approvals for house purchases – a leading indicator of completed sales – was down by 5% between June and July. At 60,912, it is the lowest level since January 2015.

Additionally, new instructions by vendors fell for the fifth consecutive month in July. This contributed to a further drop in the number of homes on the market, which remains close to record low levels.

Responding to the data, the co-founder and Director of online mortgage lender LendInvest, Ian Thomas, says: “There have been a number of external factors that have chipped away at the property market in recent months, from the additional Stamp Duty charge to Brexit, with the traditional summer slowdown weighing in as well. While transactions have certainly slowed in central London as a result, the sentiment we get from buyers around the rest of the country is that it is close to business as usual.

“September will be a useful barometer for what comes next for the property market, as transactions tend to pick up once the holiday period is over. Nonetheless, the fundamentals of the property market are unchanged – we do not have enough homes, and we aren’t building enough homes to address that shortage. That will act as a brake on any house price softening in the months to come.”

The founder and CEO of eMoov.co.uk, Russell Quirk, also comments: “Today’s figures from Halifax show house prices have cooled a further 0.2% from the 0.1% drop seen in July. Although on the face of it, this may seem like validation of the Brexit-inspired blues that have plagued the media over recent months, this decrease is nothing more than a seasonal adjustment due to the slower pace of the market during the summer months.

“It may seem like Britain’s decision to leave the EU is starting to take its toll on the UK property market, but in reality, the timing of the referendum vote is just coincidental with the type of market movement traditionally experienced during July and August.”

He continues: “The annual change provides us with a much clearer diagnosis of the current market and shows that prices are still up 6.9% when compared to August last year. This annual calculation is based on the last three months of data when compared to the same three months of 2015, which provides a more honest portrayal of the underlying condition of the market and adjusts for any short-term fluctuations, such as this marginal month-to-month drop.”

House Price Growth Slows, as the North Outpaces London

Published On: August 27, 2016 at 8:51 am

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The last three months have seen house price growth slow down, as the north of England outpaces London and the south, according to the latest Hometrack UK Cities House Price Index.

House Price Growth Slows, as the North Outpaces London

House Price Growth Slows, as the North Outpaces London

The annual rate of house price growth across the 20 cities included in the study slowed to 9.5% in July, after 12 months of higher inflation. This shift in momentum was due to growth stalling across a number of cities in southern England over the past quarter, says Hometrack.

In the three months to July, house prices in London rose by just 2.1% – the lowest quarterly rate of growth since February 2015. Additionally, growth in Bristol, which was the fastest growing city over the last year, slowed to 2.6% from a recent high of 5% in May. Prices in Cambridge dropped by 1% in the last quarter, although prices are 7.1% higher than 12 months ago.

However, Hometrack has also found that house price growth in many large regional cities in the north of England and Scotland shows no signs of slowing down. The rate of annual house price inflation in Leeds, Manchester, Birmingham, Liverpool and Nottingham continues to stand between 7-8%.

Focusing on activity over the past quarter, Hometrack revealed that the highest rates of growth were recorded in lower value, high yielding cities, such as Glasgow (5.2%), Liverpool (4.4%), Manchester and Nottingham (3.4%).

In Aberdeen, the annual rate of house price growth fell at a slower rate of 8% in July, as prices rose by 2% in the last quarter, a sign that the housing market may have adjusted to the impact of falling oil prices on demand over the past year.

The Insight Director at Hometrack, Richard Donnell, comments: “In the absence of adverse economic trends impacting employment and mortgage rates, the near term outlook is for a continued slowdown in London towards mid-single digit growth. The slowdown in London is being seen across the market, but is not accounted for by seasonal factors, with weaker demand from homeowners and investors as supply grows. This analysis suggests London house price growth will continue to slow over the rest of the year.

“In contrast, northern regional cities will continue to register stable growth rates, as households benefit from record low mortgage rates and affordability remains attractive.”

Donnell adds: “We continue to believe that turnover will register the brunt of the slowdown in London. In the face of lower sales volumes, agents will look to re-price stock in line with what buyers are prepared, and can afford, to pay. Past experience shows that this process can run for as long as six months, and relies, in part, in how quickly sellers are willing to adjust to what buyers are prepared to pay.”

UK Property Market Resilient to Brexit Jitters, Reports ONS

Published On: August 16, 2016 at 10:45 am

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The UK property market proved resilient to Brexit jitters in the month of the vote, according to the latest House Price Index from the Office for National Statistics (ONS).

The average UK house price rose by 8.7% in the year to June 2016, up from 8.5% in the 12 months to May, continuing the strong growth recorded since the end of 2013, found the study.

The report, compiled using Land Registry data, reveals that the average UK house price in June – for which the most recent figures are available – was £214,000, up by £17,000 on June 2015 and £2,100 higher than the previous month.

UK Property Market Resilient to Brexit Jitters, Reports ONS

UK Property Market Resilient to Brexit Jitters, Reports ONS

The main contributor to the increase in UK property prices was England, where values rose by 9.3% in the 12 months to June. The average house price in England is now £229,000, compared to £145,000 in Wales, which saw an annual increase of 4.9%, and £143,000 in Scotland, where prices were up by 4.6% over the year. The average property value in Northern Ireland was just £123,000 in June.

Regionally, London continues to boast the highest average house price in England, at £472,000. Behind are the South East, at £309,000, and the East of England, at £270,000. The lowest average house price in England continues to be found in the North East, at £124,000.

However, the East of England has replaced London as the region with the highest annual house price growth, with values rising by 14.3% in the year to June. Despite this, growth in London remains high, at 12.6%, followed by the South East, at 12.3%. The lowest annual growth was seen in the North East, where prices were up by just 1.5% in the past year.

The most expensive place to live in England as of June was Kensington and Chelsea, where the average home costs a whopping £1.2m. Contrastingly, the cheapest area to buy a property was Burnley, at just £75,000.

The Senior Economist at PwC, Richard Snook, comments on the data: “These figures only capture one week of market activity after the vote to leave the EU on 23rd June, so it is too early to draw any firm conclusions from this set of data.

“Nevertheless, we expect that the vote to leave the EU will have a significant impact on the housing market. In our main scenario, average UK house price growth will decelerate to around 3% this year and around 1% in 2017. Cumulatively, our estimates suggest average UK house prices in 2018 could be 8% lower than if the UK had voted to stay in the EU.”

The founder and CEO of eMoov.co.uk, Russell Quirk, also looks at how the Brexit will affect the UK property market: “The latest data from the blended ONS and Land Registry indices shows no Brexit impact in June to the UK property market.

“Nationally, house prices are £17,000 higher than in June of last year and up more than £2,000 when compared to pre-Brexit. However, the two-month reporting lag of this particular indices means the drop in prices reported by Halifax at the start of the month is unlikely to come to the surface until July’s indices.

“Regionally, the capital is still king of UK house prices, at £472,204 on average, but it’s interesting to see the East of England has overtaken London with the highest rate of annual growth, of 14.3%, 1.7% higher than London.”

Quirk believes: “This could be an early indicator of foreign investment fleeing the capital pre and post-referendum result, although, that said, we’ve seen property demand in prime central London plummet to record lows over the last year. This is evidently becoming clear now in terms of property values, with both Kensington and Chelsea and Hammersmith & Fulham in the top five for the poorest performance in terms of annual growth, with values down 6.2% and 3.2% respectively.

“Newham still flies the flag for London as the fourth highest local authority district in terms of annual growth, up 21.4% over the year. So the capital and the UK as a whole are still looking rather robust where the state of the property market is concerned.”