Posts with tag: average uk house price

Only Way is Up for House Prices

Published On: November 12, 2015 at 1:11 pm

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Categories: Property News

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House prices are continuing to soar and are expected to grow further.

Only Way is Up for House Prices

Only Way is Up for House Prices

The Royal Institution of Chartered Surveyors (RICS) and LSL Property Services/Acadata have reported on the property market. LSL found that the average house price is edging closer to £300,000 after the most recent increase.

Another firm, Home, says that the number of homes for sale has dropped to a new record low. There are now 45% fewer homes on the market than in November 2007.

However, while demand is surpassing supply and driving up prices, the prime central London market is experiencing a slowdown in sales, as Stamp Duty is now considerably more expensive on homes costing £1m or more.

Estate agent Winkworth reports that its profits will be “slightly below”1 market expectations this year, due to slow sales in the capital.

It blames Stamp Duty reform for “undermining demand for more expensive properties”, but adds that “this will still be the second best ever year for Winkworth, despite transactions still being 26% off their historic peak”1.

Simon Rubinsohn, Chief Economist at the RICS, comments: “Property is set to become even more unaffordable going forward, making the Government’s focus of boosting the delivery of new homes absolutely critical.”

He says it is “hard to get away from the issue of supply when it comes to the current state of the housing market”1.

The RICS reports that house prices have increased across all parts of the UK. Meanwhile, new listings have fallen since the start of the year.

The LSL/Acadata study found that house prices grew by an average of £2,500 in October, equivalent to £80 per day, reaching a tenth record high this year.

It believes that prices continue to be fuelled by London, where price rises averaged £24,636 in the past year, equivalent to 75% of the typical Londoner’s salary.

It also reports that last month was the strongest October for sales since 2007.

The LSL/Acadata index says that the average house price in England is Wales is now £288,421, up 0.9% on the previous month and 5.2% on October last year.

When London and the South East are excluded, the average house price rise in the rest of England and Wales was 3.9% over the past year.

1 http://www.propertyindustryeye.com/only-one-way-for-house-prices-to-go-and-thats-inexorably-up/

Sales Drop by 13% in a Year, Reports Land Registry

Published On: September 29, 2015 at 12:56 pm

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Categories: Landlord News

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The amount of homes sold in England and Wales has dropped by 13% over the last year, reports the Land Registry.

The Land Registry’s market trend data report, containing its latest figures, reveals that there were just 70,404 completed house sales in June, compared with 80,823 in June last year.

The data also shows that the average house price has risen annually to August, by 4.2%, making the average property price in England and Wales £184,682. Prices grew by 0.5% between July and August.

Sales Drop by 13% in a Year, Reports Land Registry

Sales Drop by 13% in a Year, Reports Land Registry

Group Managing Director for Mortgages at Aldermore Bank, Charles Haresnape, comments on the findings: “While the annual price increase of 4.2% in the average house price will bring positive news for homeowners, the 13% decrease in completed house sales in England and Wales compared to June 2014 is worrying news.

“The fall may in some part reflect the impact of tighter lending criteria, but price rises are likely to prove a constraint on the number of first time buyers.”1

The highest price rise over the past year was experienced in the East of England, with homes now costing an average of 8.4% more than they did in August 2014. London witnessed the greatest monthly growth, of 1.7%.

The highest annual price increase in the capital was seen in Newham, East London, at 15.5%.

Chairman of national agents Jackson-Stops & Staff, Nicholas Leeming, explains: “Buyers are seeking areas offering the best value and proximity to work, which reflects not only the performance in the East of England, where the Cambridge effect and regional investment are bearing fruit, but also in boroughs such as Newham and Barking and Dagenham.

“On the wider front, we are seeing a continuing trend of higher property values for reported sales, but of more concern is the reducing numbers of properties coming to the market.

“However, this supply constraint in the middle markets is not being matched in the higher value sector, where many properties are struggling to find buyers at their current guide prices, mainly because of the effect that the Stamp Duty increase last year has had.”1 

Property prices in the North West rose by the lowest amount, 0.2%, while the region also experienced the greatest monthly decline, of 1.4%.

Prices also dropped in Yorkshire and the Humber at 0.3% and the East Midlands at 0.2%.

The South East saw annual house price growth of 7.6% and London’s average price is now 6.6% higher than last year.

The data also reveals that semi-detached house prices increased more than any other property type. Annual growth of 4.7% for these properties compares to a 4.5% rise for detached homes.

The price of flats and maisonettes is now 4% higher than in August 2014 and terraced houses cost 3.7% more.

Chief Executive of housing charity Shelter, Campbell Robb, says continuing price growth is “pushing the dream of a stable home out of reach for millions”.

He continues: “Piecemeal Government schemes like Help to Buy or Starter Homes just aren’t helping the ordinary families who are completely priced out of a home of their own and left to face the huge costs and instability of private renting.

“The autumn spending review is the Government’s last chance to show they’re serious about giving millions of people a fair shot at a stable future by investing in the genuinely affordable homes they desperately need.”1

1 http://www.propertyindustryeye.com/land-registry-says-sales-fall-by-13-in-year/

 

Interest Rate Rise Would Cause Decline in Property Markets

Published On: September 16, 2015 at 10:58 am

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Categories: Landlord News

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The property markets in the North of England and Wales would experience substantial declines if the Bank of England (BoE) increases interest rates in the near future, believes an industry expert.

The Director of Home.co.uk, Doug Shephard, announced this warning following the release of the firm’s Asking Price Index, which highlights the widening gap between prices in the north and south of the country.

The index revealed that the average asking price of a home in England and Wales is now £282,744, a 0.4% rise on August and up 6.5% over the year.

Interest Rate Rise Would Cause Decline in Property Markets

Interest Rate Rise Would Cause Decline in Property Markets

The report also states that buyer demand and a lack of supply in London and the South of England are continuing to push up the national average prices across most of the country.

However, it reveals a significant difference between the overall finances of the north and south. While prices in the capital are up by more than 50% over the past five years, they have dropped in the North East over the same period.

The price of a home in Greater London has risen by 12.8%, or £60,000, over the past year.

This is partly caused by the supply of stock continuing to drop, with record lows in August, down 59% since August 2007 and a 10% annual fall.

House price growth in the South East is outperforming even Greater London, rising by 6.1% in the last six months.

Shephard observes: “With prices in London up 53.3% and the North East down 0.4% over the last five years, it is clear that the northern and southern property markets are poles apart.

“We maintain that, in view of such diversity of fortunes across the country, it is near impossible how the BoE can realistically raise interest rates any time soon.

“Property markets in the north and Wales remain very fragile and would suffer significant declines should the cost of borrowing rise, causing negative equity and devastation of mortgage lenders’ balance sheets.”1

The average house price in the North East is now £153,776, a slight increase of 0.4% on August, but down 0.2% on this time last year.

In Yorkshire and the Humber, prices were up by 0.5% monthly and by 0.3% in Scotland.

Prices grew by just 0.1% in the North West, similarly to the West Midlands. In the East Midlands, they were up by 0.2%.

However, in the East of England and the South East, prices increased by 0.9% on the month. In Greater London, they rose by 0.2% and by 0.3% in the South West.

1 http://www.propertyindustryeye.com/interest-rate-rise-would-mean-significant-decline-for-north-and-wales/

 

House Prices Up by 5.2% Annually

Published On: September 16, 2015 at 9:57 am

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Categories: Finance News

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The Office for National Statistics (ONS) has released its latest house price figures, showing a monthly increase of 1.8% in July.

In the year to July, prices rose by 5.2%, down from growth of 5.7% in the year to June.

Around the UK, prices increased by 5.6% yearly in England, by 0.3% in Wales and by 7.4% in Northern Ireland.

House Prices Up by 5.2% Annually

House Prices Up by 5.2% Annually

However, prices dropped by 1.3% annually in Scotland.

Prices in London rose by 5.5% in the year to July, up from 5.3% in the year to June, but down on the national average.

Excluding London and the South East, prices grew by 4.4%.

The ONS reports that the increases in England were fuelled by an annual rise in the East, of 8.3% and in the South East, of 6.7%.

In the capital, the average house price was £525,000 in July, contrasting to the average price in the North East of £156,000.

The average mix-adjusted house price in England was £295,000, £173,000 in Wales, £154,000 in Northern Ireland and £196,000 in Scotland.

The average UK mix-adjusted price excluding London and the South East was £215,000.

Chief Executive of housing charity Shelter, Campbell Robb, states: “Not addressing our dramatic shortage of homes is pushing house prices higher and higher, and a stable home further out of reach for millions of young people and families. Instead, they’re trapped in expensive and insecure private renting, or stuck in childhood bedrooms.

“Current Government schemes, like Help to Buy or Starter Homes, don’t help the ordinary families on average wages who are struggling to keep up with sky-high housing costs.

“The autumn spending review is the Government’s last chance to show they’re serious about turning around the housing crisis, by investing in the genuinely affordable homes we desperately need.”1

However, the ONS data, taken from mortgage figures, continues to differ from Land Registry statistics, which put the average house price at £183,861 – more than £100,000 less than the ONS mix-adjusted average.

The ONS says that the difference is due to Land Registry using a repeat sales methodology and including cash sales.

A spokesperson claims that the ONS and Land Registry are working together to develop a joint house price index that will replace the current two in mid-2016.

1 http://www.propertyindustryeye.com/house-prices-rise-by-5-2-in-year/

 

 

 

 

House Price Growth at 2% in July

Published On: September 15, 2015 at 1:48 pm

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Categories: Finance News

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In July, house prices rose by 2%, according to the Office for National Statistics (ONS).

Surprisingly, the East and South East of England experienced the strongest growth, rather than London.

The average property price increased by over £1,000 per week, from £277,000 to £282,000 – a new record high and 16.7% above the pre-recession peak of 2007.

House Price Growth at 2% in July

House Price Growth at 2% in July

However, on a seasonally adjusted basis, average house price growth dropped to 5.2% from 5.7%, partly due to price falls in Scotland and the North East of England.

The ONS data corresponds with more recent figures from Halifax, which reveal a 2.7% increase in prices during August. The two sets of statistics will cause fresh concern regarding housing affordability.

The new shadow housing minister in Jeremy Corbyn’s cabinet, John Healey, tweeted on his appointment: “Housing is now a national crisis, so delighted housing now has full status in shadow cabinet and to take on job.”1

Labour’s new London mayoral candidate, Sadiq Khan, has also made housing a priority, putting “an affordable and secure home to rent or buy”1 as his main priority in his acceptance speech.

Affordability is currently worst in the East of England. The ONS found that the annual rate of house price inflation is at 8.3% in the region – the highest in the UK. Second, at 7.4%, is Northern Ireland, which is slowly recovering from a difficult period. The South East’s house prices are up 6.7% over the last year.

However, the figures also highlight a severe north-south divide, with the North East of England reporting its first annual price decrease since 2013. The average house price in the region dropped by 0.7% over the past 12 months.

Prices in Scotland also fell by 1.3%, while in Wales, prices rose only slightly, by 0.3%.

The ONS states that summer is usually an active time in the property market and if the figures are seasonally adjusted, the monthly pace of house price growth is 0.8%, not 2%.

Chief Executive of housing charity Shelter, Campbell Robb, says: “Not addressing our dramatic shortage of homes is pushing house prices higher and higher, and a stable home further out of reach for millions of young people and families.

“Instead, they’re trapped in expensive and insecure private renting, or stuck in childhood bedrooms.”1

1 http://www.theguardian.com/money/2015/sep/15/uk-house-prices-rise-2-per-cent-july-2015

Surprise Rise in House Prices, Says Halifax

Published On: September 10, 2015 at 1:34 pm

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House prices rose by 2.7% in August, the highest monthly increase since May 2014, according to the Halifax.

This surprise growth contributed to a 3% rise over three months and annual house price inflation of 9%. Halifax also reports that the average property price is now £204,674.

Housing Economist at the Halifax, Martin Ellis, says: “The shortage of second-hand properties for sale on the market is resulting in upward pressure on house prices.

Surprise Rise in House Prices, Says Halifax

Surprise Rise in House Prices, Says Halifax

“At the same time, economic recovery, real earnings growth and very low mortgage rates are supporting housing demand.”1

The data for August has surprised some analysts, causing the second group of leading economists in a week to change their house price predictions for 2015 onwards.

Chief Economist at IHS Global Insight, Howard Archer, called Halifax’s August figure a “real eye opener”, especially when compared to Nationwide’s statistics, which recently indicated that house prices increased by a smaller 0.3% in August.

Contrasting to the Halifax, Nationwide’s data indicates that the annual rate of house price growth was the weakest for two years in August.

IHS Global Insight has now revised its forecast on house price growth for 2015, raising it from 6% to 7%.

Archer explains: “Latest data and survey evidence largely indicate that housing market activity is on the up, and we suspect it will be supported over the coming months by largely helpful fundamentals, notably including stronger earnings growth, high employment, elevated consumer confidence and still very low mortgage interest rates.”1

The Royal Institution of Chartered Surveyors (RICS) also revealed that it has changed its UK house prices prediction, expecting prices at the end of the year to be 6% higher than at the start. Entering 2015, RICS forecast a 3% increase.

Chief Economist at RICS, Simon Rubinsohn, says: “House price inflation has now quickened in each of the last seven months following a sustained period of easing towards the latter half of 2014.

“And there is good reason for this trend to be sustained into 2016.”1

1 http://www.theguardian.com/money/2015/sep/10/uk-house-prices-for-august-though-the-roof-halifax