Posts with tag: house price growth

Average London home to hit £1m by 2020?

Published On: September 22, 2015 at 11:17 am

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A new investigation has left would-be property purchasers in the capital concerned, with experts suggesting that prices could rise to hit an average of £1m by 2020.

The report from online portal Rightmove revealed that asking prices of houses coming onto the market have risen by 2.2%-more than £13,000-over the last month.

Rises

After a summer lull, this rise means that those looking for a new property in London can expect to pay an average of £620,003. Figures from the report indicate that this is an all-time high figure and represents a 08% on the former record set in July.[1]

‘This month’s 2.2% rise more than reverses the seasonal slowdown over the last two months when the average price of property coming to market fell by 0.6%,’ observed Miles Shipside.’[1]

He went on to say that, ‘it’s a volatile time of year for average prices however, as potential sellers of higher-priced properties tend to refrain from coming to market in the holiday period, but then get on with their home moving plans again in September partly influenced by children going back to school.’[1]

‘The back-to-normal service has resulted in new seller asking prices reaching another milestone, with a new record high,’ he added.[1]

Average London home to hit £1m by 2020?

Average London home to hit £1m by 2020?

Annual increase

In addition, the annual rate of property price increase has risen sharply to 9.5%, further widening the gap between supply and demand. The capital is now facing a desperate need for more homes.

However, there could be good news for those looking to buy in the boroughs of Newham and Tower Hamelets. In Newham, prices actually fell by 2.8% over the month, while in Tower Hamlets, prices dropped by 4.4%.[1]

This meant in Newham, average prices currently stand at £361, 557, while in Tower Hamlets, this figure is £566, 497.[1]

[1] http://www.wharf.co.uk/news/property/average-london-property-prices-could-10098242

 

 

Average Asking Price Hits Record High

Published On: September 21, 2015 at 3:55 pm

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Categories: Landlord News

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Average Asking Price Hits Record High

Average Asking Price Hits Record High

Property asking prices in England and Wales have soared to a record high of £295,000, reveals research by Rightmove.

If house prices in London continue to rise at the current pace, the average home in the capital could cost £1m by 2020, adds the property portal.

Head of Rightmove, Miles Shipside, comments on the findings: “High demand, lack of suitable supply and increasingly stretched affordability are leading to some extremes in market forces in different sectors and parts of the country.”

The average increase of 0.9%, or £2,550, this month was the highest for September since 2002.

Outside London, the average asking price is £294,834. In the capital, which has experienced a 9.5% rise over the last year, the typical property has an asking price of £620,003.

Shipside says this “illustrates the desperate need for more building and more affordable housing in and around the capital”1.

Some counties in the south, such as Hertfordshire, Berkshire, Cambridgeshire and Essex, witnessed greater growth than London.

However, the North East, North West, Yorkshire and the Humber, the West Midlands, East Midlands and Wales saw monthly declines.

1 Shaw, V. (2015) ‘Asking price of average home hits a record £295k’, Metro, 21 September, p.32

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UK households positive about property growth

Published On: September 21, 2015 at 11:00 am

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House price sentiment in the UK is still at a high level, with households across all regions thinking that property prices increased during September.

According to the latest index from Knight Frank and Markit Economics, some 22.5% of British households questioned said the value of their home had increased over the last month.[1]

Rises

The index serves as an indication for house price movements across Britain. Any figure over 50 suggests that house prices are rising and the higher the figure, the stronger the increase. In the last month, the reading stood at 59.3.[1]

There is a substantial north-south divide, with the average reading for the north of England standing at 54.9, while in the south, this figure is 64.1. This represents the second largest gap between the two readings this year.[1]

Households across Britain believe that prices rose during the last month, with those in London perceiving the largest rate of growth. The East of England recorded the second highest level of indicated price rises.

However, in Yorkshire and the Humber, perceptions of house price growth slowed in the last month, after a growth during the last three months to reach 60.4. Households in the region still believe that prices are growing, but at a reduced rate, with a reading of just 54 for September.[1]

Expectations

According to the index, households across Britain believe price will rise during the next year. 5.9% of households said they expected to buy another property in the coming 12 months, with another 6.4% saying they would purchase a home in the next one-two years.

‘UK price sentiment remains in positive territory and has stayed broadly stable since the election in May,’ said Grainne Gilmore, head of residential research at Knight Frank. ‘However the north-south divide is evident, with the average reading for the north of England in September at 54.9 and the south of England at 64.1.’[1]

‘This is the second widest gap between the two readings this year,’ she continued. ‘Overall, households expect prices to rise over the next 12 months, with eight times as many households anticipating a rise in the value of their home as anticipating a decline.’[1]

UK households positive about property growth

UK households positive about property growth

Gilmore believes that, ‘sentiment is being underpinned by the improving economy, with positive employment data as well as wage growth boosting buyer confidence. She feels that, ‘at the same time a shortage of stock on the market is serving, in some cases, to put upward pressure on prices. Again, the north-south divide is evident in the outlook for prices, with the average future house price index for the south of England at 76, compared to 63.9 for the north.’[1]

Recovery

Tim Moore, senior economist at Markit, noted that September’s large house price sentiment shows two and half years of sustained recovery. ‘While perceptions of rising property values peaked in the first half of 2014, the index is still consistent with sustained house price growth across all UK regions,’ he stated.[1]

‘Rising wage rates, sustained economic growth and an element of pent-up demand have combined with greater mortgage availability and stretched housing supply to support UK property prices this summer,’ he continued.[1]

Concluding, Mr Moore said that, ‘households appear relatively positive about future property values, despite the prospect of a Bank of England rate hike in the first half of 2016, with almost half expecting rise in their house prices over the next 12 months and only 6% anticipating a fall.’[1]

[1] http://www.propertywire.com/news/europe/uk-property-market-sentiment-2015092111001.html

 

 

Properties Near Stately Homes See Prices Soar

Published On: September 18, 2015 at 2:51 pm

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Properties near stately homes have experienced a surge in prices over the past decade.

The average price of a house in the same postal district as a stately home is £319,203 – £41,213 more than a property in the surrounding area.

This is known as the Downton effect, after the ITV drama series Downton Abbey.

Halifax revealed that the average price of properties near stately homes has increased by £89,506, or 39%, since 2005 – twice the growth of the national average.

Interest Rate Rise Would Cause Decline in Property Markets

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

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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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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/