Posts with tag: average uk house price

House Prices Rise £3,000 in a Month

Published On: August 19, 2015 at 2:55 pm

Author:

Categories: Finance News

Tags: ,,

The average price of a home in the UK has risen by £3,000 in just one month, according to the latest data from the Office for National Statistics (ONS).

The ONS revealed that the annual rate of house price growth increased slightly to 5.7% in June, but this covers up huge regional differences. Prices grew by 9% in Northern Ireland over the past 12 months, but dropped by 0.6% in Scotland.

House Prices Rise £3,000 in a Month

House Prices Rise £3,000 in a Month

Annual growth in London is now 5.3%, but just a year ago, in August 2014, it was just under 20%.

The average price of a home in the UK is now £277,000, compared to £274,000 in May. However, the typical London homes costs £513,000, which is over three times the average price in the North East of England, at £156,000.

The ONS claimed its index reached a new record in June, surpassing the previous month’s high. The average house price is now £290,000 in England, £169,000 in Wales, £154,000 in Northern Ireland and £192,000 in Scotland. This was the first annual fall in Scottish prices for around two years.

The ONS states: “Following relatively strong growth during much of 2014, the rate of house price growth appears to have moderated in recent months.

“Despite this moderation, house price growth remains high relative to the movement of prices in general, likely reflecting a mismatch between strong demand and relatively weak supply throughout much of the UK.”1

Shelter’s Director of Campaigns, Roger Harding, explains the charity’s viewpoint: “From families trapped in expensive and insecure private renting, to young people stuck in their childhood bedrooms, a stable future is spiralling further and further out of reach for millions.

“Piecemeal schemes may help a lucky few, but the only way for the Government to turn this crisis around is to urgently invest in the genuinely affordable homes we need. The autumn spending review is their last chance to put real money towards this, and show they’re serious.”1 

Head of Lending at the Mortgage Advice Bureau (MAB), Brian Murphy, says: “In June, there were no shocks or surprises for homebuyers with annual house price growth increasing by just 0.1 percentage point from the 5.6% seen in April and May. Compared to this time last year, when buyers were faced with annual house price rises of 10.2%, conditions are looking far more affordable.

“Growth is also no longer restricted to the south, with a 9.2% annual rise in the East of England being the main driving force behind these figures. At the same time, price pressure in the capital has eased remarkably since last year.”1

1 http://www.theguardian.com/money/2015/aug/18/uk-house-prices-up-3000-in-one-month-ons

 

House Prices Rising Further

Published On: August 19, 2015 at 9:55 am

Author:

Categories: Finance News

Tags: ,,,

House prices grew by 5.7% in the year to June, standing at a UK average of £277,000.

House Prices Rising Further

House Prices Rising Further

The average price in England was £290,000, £169,000 in Wales, £154,000 in Northern Ireland and £192,000 in Scotland.

The highest price within England was in London, at £513,000. The lowest average price in England was found in the North East at £156,000.

Excluding the capital and the South East, the average UK house price was £211,000.

Although average UK house price inflation was 5.6% annually, there are great differences between countries. Inflation was 6.1% in England, 9% in Northern Ireland, but just 0.8% in Wales. House prices dropped by an average of 0.6% in Scotland.

The average first time buyer in the UK paid 5.1% more for their starter home this June than last year.

Chief Executive of Spicerhaart, Paul Smith, says: “In a drastic reversal of regional trends, it is not London driving national house price growth, but other areas such as the East of England and Northern Ireland, which have seen price increases of 9.2% and 9% respectively.

“This demonstrates that the supply shortage is now a far-reaching problem that needs to be tackled imminently.

“The new All-Party Parliamentary Group for Housing and Planning needs to drive national action from the centre and it needs to think innovatively to effect real change in the UK’s housing market, which may include decisions that aren’t universally popular.”1 

1 http://www.propertyindustryeye.com/house-prices-on-the-up-but-london-no-longer-in-driving-seat/

House Prices Fell in July

Published On: August 7, 2015 at 1:01 pm

Author:

Categories: Finance News

Tags: ,,,

House Prices Fell in July

House Prices Fell in July

House prices fell by 0.6% in July, according to the Halifax.

The average UK house price is now £198,883 on a seasonally adjusted basis, down from £200,280 in June.

This takes annual house price inflation down to 7.9%.

Managing Director of Retail Customer Products at the Halifax, Stephen Noakes, says: “The underlying pace of house price growth remains robust notwithstanding the easing in July.

“Continuing economic recovery, earnings growth in excess of consumer price inflation and very low mortgage rates all underpin housing demand.

“Supply is highly restricted, with the stock of homes available for sale falling further to new record lows.

“This combination of well-supported demand and tight supply is likely to ensure that house price growth remains relatively strong in the near term.”1

1 http://www.propertyindustryeye.com/house-prices-topple-but-still-average-almost-200000/

 

 

 

 

 

 

 

 

 

 

Annual Property Price Growth at Two-Year Low

Published On: July 3, 2015 at 5:06 pm

Author:

Categories: Finance News

Tags: ,,,

The annual rate of property price growth dropped to a two-year low in June, revealed Nationwide.

Annual Property Price Growth at Two-Year Low

Annual Property Price Growth at Two-Year Low

The building society found that annual house price inflation fell to 3.3% last month from 4.6% in May. A year ago, prices were increasing by 11.8%.

Property prices in Wales and Scotland have even fallen in the past year, according to Nationwide.

Between May and June, prices around the UK decreased by 0.2%, making the average UK house price now £195,055.

Nationwide’s Chief Economist, Robert Gardner, says: “House price growth continues to outpace earnings, but the gap is closing, helped by a pick-up in annual wage growth, which moved up to 2.7% in the three months to April from 1.9% at the start of the year.

“The slowdown in house price growth is not confined to, nor does it appear to be driven primarily by, developments in London.”1

Last month, a study by LSL Property Services revealed that prices in parts of central London have declined by up to 22% since last autumn.

Some economists did not expect house price inflation to drop so continuously.

Chief UK and European Economist at IHS Global Insight, Howard Archer, comments: “While we are slightly surprised by June’s dip in house prices, it does not fundamentally change our view that house prices are likely to be firmer over the second half of the year.”1 

Archer still predicts price rises of 6% this year and 5% next year.

Capital Economics’ Matthew Pointon says the monthly price drop does not mean the market is cooling: “On an underlying basis, prices are still rising, and with active housing demand finally recovering, annual house price gains have bottomed out.”1 

Regionally, the area with the fastest price growth is now Northern Ireland, with increases of 8% over the year between the second quarter (Q2) of 2014 and Q2 2015, found Nationwide.

In London, prices rose by 7.3%.

In Scotland, prices dropped by 1% in 12 months and Wales experienced price decreases of 0.8%.

Regional house price changes between Q2 2014-Q2 2015

Region Annual change Average price
Northern Ireland 8% £126,525
London 7.3% £429,711
Outer London 6.8% £315, 620
South East 6% £244,119
East Anglia 5.2% £198,826
East Midlands 4.1% £160,482
South West 3.8% £215,363
West Midlands 3.4% £165,873
Yorkshire and the Humber 3.3% £147,387
North West 1.4% £146,908
North 0.1% £125,189
Wales -0.8% £144,701
Scotland -1% £140,512

However, within these regions, there were large variations between prices in individual cities.

In property hotspots, Reading saw prices rise 13%, Oxford experienced price growth of 12% and in Edinburgh, prices increased by 11%.

Prices fell in areas including Sunderland, at 4% and Nottingham, the Highlands and Islands, and West Yorkshire at 2%.

1 http://www.bbc.co.uk/news/business-33359468

Property Price Growth No Longer Strongest in London

Published On: April 15, 2015 at 9:33 am

Author:

Categories: Finance News

Tags: ,,

Property prices in the UK rose by 7.2% in the year to February 2015, an Office for National Statistics (ONS) report reveals. This is another indication that the market is steadying.

In January, prices had increased by 8.4% yearly. There has been a slow decrease in annual house price growth since a peak of 12.1% in September last year.1

Fuelling this slowdown is the recent weakness in London. The report reveals that property prices in the capital are still 9.4% higher than the previous year, but this is the slowest yearly rise for a while. London prices are 2.4% off the record high seen in August 2014. Last month, the capital’s annual increase was 13%.1

Property Price Growth No Longer Strongest in London

Property Price Growth No Longer Strongest in London

Average prices in London dropped to £490,000 in February, a decline of £9,000 from January1. This could be a consequence of the slowdown of activity following a spree due to Stamp Duty changes in December. There are also concerns over the possibility of mansion tax on properties worth over £2m under a Labour government.

The East of England and Northern Ireland have surpassed London’s increases in the past 12 months, with 10.7% and 14.2% rises respectively.1

The differences between regions could be down to the huge increases that London experienced in January 2014, as this date is just out of the yearly comparison.

Prime London property is being sold at a slower pace due to the Stamp Duty reform. After the December changes, those buying a home for £937,000 or over face higher Stamp Duty. In the first quarter (Q1) of 2015, there were just 638 prime London sales, down from 949 in Q1 2014, found commercial property company DTZ. This is a drop of a third.1

The strongest growth in the UK was in Northern Ireland, where prices grew by a huge 14.2% annually to February. The East of England’s 10.7% increase was also ahead of London. This means that in this region, property prices have risen to record highs. No other region in England is at a record level.

Director at Legal & General Mortgage Club and Housing, Stephen Smith, says: “House price growth has slowed since the end of 2014. Although it might not seem like it, this is actually good news for the housing market, as price rises that are too sharp can prevent people from getting on the property ladder.

“Ideally, house prices would grow at roughly the same rate as inflation, so that prices don’t rise faster than potential buyers can save a deposit. One way to achieve this goal is to build more houses, so that demand keeps pace with supply.”1

Not including London and the South East, prices in the UK rose by 5.9% in the year to February 2015. Prices in England increased by 7.4%, 1.1% in Wales and 6.4% in Scotland. Overall, the average property value is £268,000, from £252,000 last year.1

The ONS report says: “Annual house price growth is showing signs of slowing across the majority of the UK.”1

1 http://www.thisismoney.co.uk/money/mortgageshome/article-3038168/House-price-growth-continues-slow-9-000-monthly-fall-London-means-capital-no-longer-boasts-highest-annual-rise.html

 

Halifax Find Property Prices Bouncing Back

Published On: February 5, 2015 at 8:23 am

Author:

Categories: Property News

Tags: ,

The Halifax has found that property prices around the UK bounced back in January, after they reported a 1.9% quarterly increase.

This figure was found by comparing prices in the three months to February with the previous quarter.

Halifax revealed that house prices in January rose by 2% compared with December. This was the highest January increase in six years.1

When compared in annual terms, property price growth increased to 8.5%, up from December’s 7.8% figure.1

Halifax Find Property Prices Bouncing Back

Halifax Find Property Prices Bouncing Back

The Halifax’s Chief Housing Economist, Martin Ellis, says: “This bounce back in house price growth in January coincides with reports of the first rise in mortgage approvals for six months in December.”

Recently, the Bank of England (BoE) revealed that mortgage approvals increased slightly between November and December. However, some experts do not find this data promising.

Chief UK and European Economist at IHS Global Insight, Howard Archer, says: “The 2% jump in house prices reported by the Halifax is hard to explain, and looks markedly at odds with other latest data and survey evidence.”1

The Halifax believes there is good reason for the unforeseen rise in house prices. It highlighted further drops in mortgage rates and the Stamp Duty changes that came into force in December.

The reform means that most people will pay less of the tax when they buy a property than they used to.

Halifax’s Martin Ellis also says that with wages now rising faster than inflation, prices will be boosted, although he mentions that property prices at this time of year can be very unpredictable.

He says: “The monthly figures in January can be particularly volatile due to the lower volumes of activity at this time of year, and there have been unusually large rises on occasion in the past, such as in 2007 [2.3%] and 2009 [2.4%].”1

Halifax found the average UK house price to be £193,130.1

The Nationwide Building Society found that prices in January increased by only 0.3% compared to December.1

1 http://www.bbc.co.uk/news/business-31144935