Posts with tag: house price increases

UK house market stirring, says CML

Published On: July 14, 2015 at 2:11 pm

Tags: house price increases,mortgage loans,property values

The UK housing market is beginning to stir from its slumber, according to new research from the Council of Mortgage Lenders.

Growth

Following a quiet period during the Spring months, the firm said that homeowners took out 49,000 loans during May. This was the largest number recorded since December of last year and is up from the 48,300 loans taken out during April.[1]

In addition, separate figures from the Office for National Statistics indicate that annual UK house price growth rose to 5.7% in May, rising from 5.5% in April.[1]

The report from the Office for National Statistics also indicated that lending levels remain lower than they were twelve months ago

‘House purchase lending in May was slightly up on the previous month, suggesting the market might be waking up after a subdued first quarter,’ commented Paul Smee, director general of the CML.[1]

UK house market stirring, says CML

Regional rises

Figures indicate that in the year to May, house prices in England increased by 5.8% and in Scotland they rose by 2.9%. Property prices in Wales also climbed, albeit by a smaller 2.5%.[1]

However, the largest increase was recorded in Northern Ireland, where property values climbed by 10.5%.[1]

[1] http://www.bbc.co.uk/news/business-33519370

HMRC Reveal House Sales Drop

Published On: February 24, 2015 at 2:27 pm

Author: Em Morley

Categories: Property News

Tags: house price increases,property sales drop

Property sales in the UK dropped in January, falling by 6% compared to last year, however, estate agents’ opinions on the significance of the matter differ.

January saw a total of 97,320 transactions, revealed the latest figures from HM Revenue & Customs (HMRC).¹

HMRC Reveal House Sales Drop

This is the lowest amount since October 2013, and the fourth consecutive monthly decrease in sales.

Experts are predicting property price increases of 4% in 2015.¹

Estate agent views

In 2014, house sales were at their highest level since the start of the financial crisis, with 1.2m properties being sold.¹

Despite this, sales have started to decline in recent months.

Peter Rollings, from Marsh and Parsons estate agents described buyer demand as “still rosy”, and expects activity to pick up again.

He says: “January has seen a boost in agreed sales, which has firmly set the ball rolling for 2015, and this will only gather faster momentum during the spring, typically one of the most popular times to move house, when these completions come to fruition.”¹

Nevertheless, estate agent Jeremy Leaf believes that stricter mortgage rules and doubt caused by the upcoming general election would halt activity.

Leaf explains: “The slowdown has come with a thud. At the beginning of the year, we were seeing movement, but over the last few weeks there has been a change in the mood.”¹

The outlook depends on local housing markets around the UK; however, recent figures reveal that prices are increasing to some extent in every county and region of the UK.

Annual house price inflation was at 10.2% in England, 4% in Wales, 5.5% in Scotland, and 4.9% in Northern Ireland in 2014.¹

To look specifically at house prices across the country, use the BBC’s property price calculator.

¹http://m.bbc.co.uk/news/business-31605848

House Prices Increased by About 8.5% in 2014

Published On: December 28, 2014 at 4:22 pm

Author: Em Morley

Categories: Finance News

Tags: house price increases

Mortgage provider Halifax says that house prices in the UK increased by an average of 8.5%, or £16,000, in 2014.

Halifax compiled its data from its own lending, and found that property prices in Greenwich, southeast London rose by around 25%.

House Prices Increased by About 8.5% in 2014

Officials have concerns over another housing bubble developing.

The Government believes that the Bank of England (BoE) has the tools it needs to avoid this issue.

Halifax also announced that the average price of a UK home is now £209,428, however, other lenders and official sources say differently.

Nine of the ten areas with the highest growths are in London, according to the Halifax.

The only area in the top ten that is not within London is Crawley, West Sussex.

Out of southern England, properties in Sheffield saw the biggest surges, with a 13.7% increase.

Mortgage Director at Halifax, Craig McKinlay, says: “Continuing improvements in the economy, rising employment, and low mortgage rates will no doubt have supported housing demand and, combined with a shortage of homes coming on to the market, will have contributed to rising property values.

At the opposite end of the scale, towns and cities in the north of England, the West Midlands, Wales, and Scotland have seen drops.

House prices in Bury, Greater Manchester, declined by 4.8%.

Area	Annual rise¹
Top
Greenwich	24.6%
Ealing	24.5%
Crawley	22.4%
Tower Hamlets	22%
Kingston upon Thames	21.4%
Bottom
Bury	-4.8%
Keighley	-4.4%
Nuneaton	-3.2%
Newport, Gwent	-2.9%
Stoke on Trent	-2.6%

McKinlay continues: “Several of the towns experiencing price falls in the past year are still suffering from relatively weak employment conditions, which may have had an adverse impact on their local housing markets.”1

Recently, Business Secretary Vince Cable described property prices as “getting out of control.”1

BoE governor Mark Carney also stressed to MPs in September that “we do need to be vigilant”1 on house prices.

Chancellor George Osborne has also noted that the BoE does have the power to prevent a boom and bust in the property sector.

Recent figures imply that rises in house prices have been slowing down in the last few months.2

The Royal Institute of Chartered Surveyors expects property prices to increase by an average of 3% in 2015, with no rises in London.

¹http://m.bbc.co.uk/news/30610781

²http://m.bbc.co.uk/news/business-30325762