Posts with tag: demand for property

UK residential property prices up by 5.1% year-on-year

Published On: March 7, 2017 at 12:55 pm

Author:

Categories: Property News

Tags: ,,,,

Property price growth in the UK rose by 0.1% in February to reach an average of £219,949, according to the latest figures released by the Halifax.

Year-on-year, values are 5.1% greater, however this rate is down from the 5.7% seen in January. It is also the slowest year-on-year growth recorded since July 2013.

Demand/Supply Imbalance

Martin Ellis, housing economist at the Halifax, believes that prices will continue to move upwards if the current supply/demand imbalance carries on. He suggests that housing demand is being supported by an improving economy and increased employment.

Ellis noted: ‘Meanwhile, the supply of both new homes and existing properties available for sale remains low. This combination is pushing up prices.’[1]

Alex Gosling, Chief Executive Officer of online estate agents HouseSimple, noted that despite annual house price growth slowing, this could be due to the rush to purchase before Stamp Duty changes twelve months ago.

‘The continued supply shortage is still playing a significant role in price stability. The general consensus is that price growth will be low digits in 2017, but the critical Spring market often sets the tone for the rest of the year,’ Gosling observed.[1]

‘Early indicators suggest that we could see a healthy Spring as buyers as starting to make offers rather than simply window shopping and stock levels are creeping up. Also, the Chancellor may want to play a strong hand tomorrow and if he announces further changes to Stamp Duty, this could breathe new life into the market,’ he added.[1]

UK residential property prices up by 5.1% year-on-year

UK residential property prices up by 5.1% year-on-year

Price is right

A number of buyers are committed to purchasing property, but only at the right price, according to Jonathan Hopper, Managing Director of Garrington Property Finders: ‘The ongoing chronic lack of supply is a significant factor currently underpinning prices. Despite renewed focus on house building by the Government, there doesn’t appear to be a quick fix solution that will change the demand/supply imbalance any time soon, although tomorrow’s budget announcements may help make a step towards this.’[1]

‘Despite total UK home sales continuing to push up, we anticipate more sedate price growth in 2017, as rising house price to earnings ratios start to bite in parts of the country and restrict overall affordability. On the ground, there is a pervasive sense of caution. Astute vendors are increasingly prepared to reduce their asking price in exchange for the guarantee of a sale,’ he explained.[1]

Rob Weaver, director of Investments at property crowdfunding platform Property Partner, believes record low interest rates, coupled with the supply/demand imbalance, will put upwards pressure on prices.

‘If the UK is to fix its broken housing market, it needs radical solutions. There was a lukewarm reception for the recent housing white paper so all ears will now be on tomorrow’s Spring Budget in eager anticipation of any incentives to get Britain building affordable homes,’ Weaver said.[1]

[1] http://www.propertywire.com/news/uk/prices-uk-residential-market-continue-upward-trend-5-1-year-ago/

 

Demand for property in PCL slows in April

Published On: May 16, 2016 at 11:47 am

Author:

Categories: Property News

Tags: ,,,

Demand for property in some the capitals’ most high-value locations has fallen, just weeks after the additional 3% stamp duty charge on buy-to-let accommodation was introduced.

In the prime central London sector, demand currently stands at 10% on average, falling by 23% since the changes were introduced, according to the PCL index from eMoov.

Lows

The Index shows that demand is now at its lowest level since records were first taken over one year ago. This indicates a significant change between supply and demand for property valued at £1m or more across London’s most prestigious regions.

During the run up to the stamp duty deadline, eMoov found that the rush to complete transactions had breathed new life into the top end of the market. Demand changed prime central London’s downward spiral and saw increases for the first time since May 2015 during the period.

However, it appears that this increase was superficial, with demand dropping so substantially just one month after the changes.

Demands

Only one region of prime central London, Fitzrovia, had maintained March’s increase in demand. Year-on-year, Belsize Park, Maida Vale, Primrose Hill, Holland Park and Marylebone were the only other regions to see an increase in demand.

Presently, Islington is the most in demand area, with 21%. Belsize Park is next with 19%, followed by Chiswick at 18%, Maida Vale at 16% and Notting Hill with 12%.

At the other end of the scale, St Johns Wood and Mayfair are suffering from the lowest demand levels on record, with just 4%.

Demand for property in PCL slows in April

Demand for property in PCL slows in April

Artificial

eMoov chief executive officer Russell Quirk, noted, ‘it’s now abundantly clear that the brief resurrection of London’s prime central London market witnessed in March, was an artificial skew as many scrambled to complete a sale before April’s stamp duty deadline.’[1]

‘It seems the extra 3% levy has slowed London’s top end market and this will inevitably lead to further, sizeable reductions in property values,’ Mr Quirk continued. [1]

[1] http://www.propertywire.com/news/europe/prime-central-london-demand-2016051311911.html

UK house price growth at 11 month high

Published On: July 9, 2015 at 3:27 pm

Author:

Categories: Finance News

Tags: ,,

UK property prices rose again during June and as a result reached an eleven month high, according to latest research from the Royal Institution of Chartered Surveyors (RICS).

However, the survey also suggests that supply continues to fall, with the average stock of houses per surveyor falling to its lowest level since RICS began collating the data in 1978.

Rising demand

As supply drops, the investigation by RICS proves that demand increased in all areas of the UK with the exception of the South East. This increase comes despite a supposed cautious attitude from lenders.

What’s more the data suggests that 41% of surveyors expect house prices to increase within the next three months, the highest proportion since April 2014. 36% said that they expected sales to rise, despite the generally flat trend in new agreements.[1]

‘Although much of the discussion about supply shortages has focused on the owner occupier market, the survey demonstrates in no uncertain terms that the issue, at least at a headline level, is just as visible in the rental sector,’ said Simon Rubinsohn, RICS’s chief economist. ‘This is most clearly reflected in both the house price and rental projections over the medium term which comfortably exceeds the likely growth in wages,’ he continued.[1]

Rubinsohn went on to say, ‘there had been some hope that the removal of political uncertainty following the general election would encourage more properties onto the market but the initial indications are that this is not proving to be the case.’[1]

UK house price growth at 11 month high

UK house price growth at 11 month high

‘Additionally, the recent flat pattern of appraisals by respondents to the survey suggests this is not about to change anytime soon As a result, it is hardly surprising that prices across much of the country are continuing to be squeezed higher with property set to become ever more unaffordable,’ he added.[1]

Productivity

Head of policy at RICS Jeremy Blackburn said that the Government has a long term plan to drive up owner occupation and property purchasing, but the survey shows that there is more to be done to aid supply.

Just as significant is the pressure that is clearly building across the rental sector, through which a large part of our population is housed. It is particularly important for the younger more mobile workforce that it is central to improving our economic productivity,’ he said.[1]

Mr Blackburn also noted that the housing benefits cuts announced in the budget will lead to many tenants being pushed out of the private rented sector and into social housing.

[1] http://www.propertywire.com/news/europe/rics-house-market-survey-2015070910730.html

 

 

House Building Numbers are Improving

Published On: May 22, 2015 at 12:17 pm

Author:

Categories: Landlord News

Tags: ,,,

According to official figures, 40,340 new homes were started in England during the first quarter (Q1) of 2015. This is the highest quarterly figure since 2007.

The momentum seen in 2014 is improving, after 137,310 new homes were started last year, a 10% rise on 2013 and 60% more than was seen in 2009.

The Department for Communities and Local Government revealed that the amount of homes started in Q1 is 11% higher than Q1 2013, with 34,210 completed in the quarter, the highest figure since Q4 2008.

However, these numbers indicate that we are still far off the 230,000 new homes needed every year in England. The Home Builders Federation (HBF) is calling for the new Government to prioritise policies supporting the growth seen recently, by aiding the industry’s plans for investment in land and labour.

House Building Numbers are Improving

House Building Numbers are Improving

It is believed that the Government should extend the Help to Buy equity loan scheme to 2020, in order to boost demand. Launched in April 2013, the system has helped fuel the increase in private house building in the past two years. Developers were able to be confident about demand levels.

As build rates rise, builders are hoping to gain access to new sites soon. However, the Government must tackle the delays in the planning system, so that permissions are granted more quickly.

Local authorities also require better resources and the capacity to deal with the rising number of applications. They must push the production of local plans. Recent research found that just a quarter of authorities outside London and the National Parks have a plan in place since the National Planning Policy Framework (NPPF) was launched in 2012.

The Government should also focus on its various brownfield policies. The details of these measures are vital in driving housing delivery.

The latest data reflects research by the National House Building Council (NHBC) in April, which found that over 40,000 new homes were registered in the UK during Q1 2015, an increase of 18% on Q1 2014. There was a 26% rise in private sector registration.

The HBF’s Housing Pipeline reports also indicate steady growth in the amount of planning permissions being granted recently.

Director of Economic Affairs at the HBF, John Stewart, says: “These figures are yet another sign that the house building industry is responding to more positive market conditions, along with the added boost from the Help to Buy equity loan, to raise housing supply.

“The last Parliament saw the introduction of a range of positive policies that allowed supply to be increased. A combination of improving consumer confidence and the unequivocal success of the Help to Buy scheme has brought about an increase in the realisable demand for new homes, which in turn has allowed the industry to increase output. But despite these increases, we are still a long way from delivering the number of homes the country needs.

“Significant constraints remain and if the Government is to deliver on its manifesto commitment to further increase build rates we now need to see more action. Maintaining the Help to Buy scheme to 2020 is absolutely essential, as are policies to increase the speed at which land for housing comes forward through the planning system.

“Swift action by the new Government will allow the industry to maintain momentum and provide decent homes for thousands more people. Increasing house building will also create tens of thousands of jobs and lead to infrastructure and amenity improvements in every part of the country.”1 

The amount of homes started has been steadily rising since the lows seen in 2009, after the recession. However, the growth soared after the introduction of Help to Buy in April 2013.

1 http://www.propertyreporter.co.uk/property/housebuilding-recovery-gathers-momentum-hbf.html