Posts with tag: house prices

UK house prices increase by 1.3% according to latest Government report

Published On: November 14, 2019 at 9:54 am

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uk house price

The latest House Price Index from the Office for National Statistics (ONS) has been released, showing an increase in average house prices in the UK by 1.3% in the year to September 2019.

This shows no change to UK house prices from August 2019.

The highlights of the September 2019 report also include:

  • The average price of a property in the UK was £234,370.
  • The monthly change in price for a property in the UK was -0.2%.
  • The lowest annual growth was in London at -0.4%. This was followed by the East of England at -0.2%.

John Goodall, CEO and Co-founder of buy-to-let specialist Landbay, comments: “Against a backdrop of a general slowdown in house prices, it is disappointing yet unsurprising to see that these figures don’t provide much-needed respite for the property market. In all reality, in light of the uncertainty caused by yet another Brexit extension and next month’s election, we are now unlikely to see significant growth in the market until the New Year.

“All eyes are now on the General Election. It’s good news for landlords that the housing secretary has spoken out against rent controls, a measure which would impact investment in buy-to-let and punish renters rather than help them.

“The government must address the affordable housing shortage and lack of support for a professional and thriving private rental sector as a priority in order to boost the sector in 2020.”

Lucy Pendleton, founder director of independent estate agents James Pendleton, says: “London house prices may have fallen for the 19th consecutive month in a row but the capital’s growth rate has staged a dramatic fightback. The annual growth rate has climbed 1% in only a month.

“It’s the polar opposite performance of the North East where the annual rate of growth has slumped 1.3% in a rapid reversal of fortunes. 

“A north-south divide is still broadly visible and London remains the poor relation but chaotic price patterns in the capital in recent months appear to have been the precursor to a period of recovery. Two London boroughs have climbed back into the black on an annual basis in the past month, while 20 remain in decline.

“At a granular level, years of national indecision mean the direction of travel for individual boroughs remains more chaos theory than conventional economics.

“As a general rule of thumb, it is just about possible to see a distinction between the fortunes of more expensive areas and those offering better value per square foot but it’s not at all clear and neighbouring boroughs are still experiencing vastly different fortunes.

“At some point, these boroughs will have to come together and a general election potentially followed by a rapid Brexit will decide whether there’s a sharp recovery all around.

“The only discernible trend being seen on the doorstep continues to be that realistic starting prices are leading to quicker sales at better prices.

“Property that comes with seven figures attached continues to struggle in premium areas if not priced correctly. However, homes up to around the million-pound mark are seeing less drastic reductions.”

Simon Checkley, Managing Director at Private Finance, comments: “The UK property market continues to trade at a discount as annual house price growth remains comparatively low. Brexit uncertainty has taken its toll on the market, providing welcome relief for new buyers who were long buffeted by rapid price increases. 

“With London experiencing the most notable decline in annual growth, followed by the East of England, first-time buyers’ dreams of homeownership is becoming just that bit more attainable.

“Given the uncertainty around when house prices might spring back and the availability of historically low mortgage rates, buyers should take full advantage of what might be a limited window of opportunity of competitive prices.

“Many homeowners have adopted a wait-and-see approach, sitting on their properties and postponing moving until some political clarity has been achieved. This pent up demand could well result in a swell of activity in 2020, potentially returning house prices to a stronger upwards trajectory.”

Halifax House Price Index reaction: ‘Market’s biggest problem is lack of confidence’

Published On: November 8, 2019 at 9:42 am

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UK property values fell for first time in 13 months in November 2022

Halifax’s October House Price Index is now out, showing that annual house price growth has slowed to 0.9%.

The highlights of the latest index include:

  • House prices in October were 0.9% higher than in the same month a year earlier
  • House prices have fallen by 0.1% on a monthly basis
  • From August to October, house prices were 0.2% higher than in May to July

Russell Galley, Managing Director of Halifax, said: “Average house prices continued to slow in October, with a modest rise of 0.9% over the past year. While this is the lowest growth seen in 2019, it again extends the largely flat trend which has taken hold over recent months. 

“A number of underlying factors such as mortgage affordability and wage growth continue to support prices. However, there is evidence of consumers erring on the side of caution. 

“We remain unchanged from our view that activity levels and price growth will remain subdued while the UK navigates political and economic uncertainty.” 

Milton Rodosthenous, director of online auction service LetsBid Property, comments: “It’s no surprise to see that annual house price growth slowed again in October, adding to the overall flat trend recorded over the last few months.

“That said, the market has remained stable and resilient in the face of an unprecedented political situation and a period of uncertainty that has stretched to over three years now.

“It’s likely that activity in the market will stay at the same subdued pace over the next couple of months. However, the outcome of the General Election in December combined with the traditional market boost in January should provide the property industry with renewed optimism for the New Year.”

“The market’s biggest problem in recent times has been a lack of confidence, but certainty surrounding the outcome of Brexit and the government alongside the positivity a fresh year brings, will encourage buyers and sellers to return to the market in volume.”

“With consumer confidence in the property market restored, there’s no reason why 2020 can’t be a great year for house price growth and transactions.”

Lucy Pendleton, founder director of independent estate agents James Pendleton, says: “The market is hovering around six-year lows and is unlikely to move off the rocks until there is some certainty for buyers but London is already roaring back to life. 

“October produced a general election date so hopes are growing that certainty could be just around the corner but the situation isn’t without its risks for house hunters. 

“Buyers will have that date of December 12 firmly in mind as they enter negotiations and this will undoubtedly lead some to put off exchanging contracts until the outcome is known.”

Best areas in UK for renters saving property deposits revealed by MoneySuperMarket

Published On: October 21, 2019 at 8:58 am

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renters saving property deposits

MoneySuperMarket, the UK price comparison website, has revealed data that shows which locations provide the best financial opportunities for renters looking to save up and become a property owner in the UK.

This research took into account take-home salary and deducts the cost of living in order to identify just how long it would take renters saving property deposits, based on a variable deposit. It also looked at different locations around the UK.

MoneySuperMarket has highlighted that 57% of Brits feel like getting on the property ladder is out of their reach according to a survey from OnePoll. As such, it has created an interactive tool that shows you where you can simultaneously rent and save for a deposit, without feeling like you need to save for the next ten years.

MoneySuperMarket has provided the following table of top locations looking to get onto the property ladder:

LocationAverage House Price Average Annual Salary Median Monthly Rent Monthly Saving (per two adults)
1.     Paisley£120,754£24,996£351£1,855.93
2.     East Kilbride£129,340£24,592£385£1,776.14
3.     Stoke-on-Trent£113,191£22,082£418£1,462.05
4.     Hartlepool£115,696£22,297£377.00£1,470.28
5.     Armagh£120,699£22,083£475.00£1,522.07

Rachel Wait, consumer affairs spokesperson at MoneySuperMarket, commented: “While Paisley has proven to be the fastest place to raise a deposit, there are options across the country that won’t take a lifetime to save up for – even in London, where Croydon couples can buy a house within seven years of saving.

“Saving money for a home can be daunting, even where mortgages are more affordable. But you can take control of your finances more easily than you might think, by planning out how to save and looking at ways to cut back – as well as considering whether you could save up faster by moving somewhere with a higher salary or a lower cost of living.”

Urban green spaces increase house prices in England and Wales

Published On: October 15, 2019 at 8:10 am

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green spaces

Urban green spaces have increased nearby house prices by an average of £2,500, according to the latest report from the Office for National Statistics (ONS).

Public green spaces have apparently boosted the prices of detached houses the most. Such properties attract a 1.9% premium if they are within 100 metres of a public green space, according to the report.

ONS looked at the details of over one million property sales in England and Wales between 2009 and 2016 from Zoopla to collect this data. It then created an analysis using Ordnance Survey’s Open Greenspace data, which has been gathered using maps and aerial imagery.

It takes into account:

  • Public parks or gardens
  • Play spaces
  • Playing fields
  • Sports facilities
  • Golf courses
  • Allotments or community growing spaces
  • Religious grounds and cemeteries

However, it doesn’t include:

  • Woodlands
  • Heaths
  • Any other open spaces that might be used for recreation

David Westgate, Group Chief Executive at Andrews Property Group, has commented: “For urban properties close to open spaces, the grass really is greener when it comes to house prices.

“There is without doubt a correlation between property prices and a well-maintained green space.

“It may not quite have the impact on prices that proximity to a tube station has, but being close to an open space does push up values, all the more so if a property overlooks them.

“Add a café and a meeting place and the premium families place on the green space becomes even greater. 

“While people in detached houses may have less practical need of a green space than those in flats, proximity to one adds to the cachet of their home and boosts its price accordingly. 

“It goes without saying that where most nearby properties have been converted into flats that lack gardens, the local park becomes even more important, and that too can drive up prices.

“Town planners 120 years ago got it right and the creation of open green spaces continues to have huge appeal for local people and exert a material influence on values.”

The cost of living near London’s 342 ‘outstanding’ primary schools

Published On: October 10, 2019 at 9:43 am

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Portico’s latest research reveals exactly how much more you’re likely to spend on a home near top-rated schools.

The report shows that there are 342 state-funded primary schools rated as ‘outstanding’ by Ofsted in London. This means that the capital has the highest number of top-rated primary schools out of all the regions in the UK.

The top boroughs in London for choice of ‘outstanding’ state-funded primary schools include:

  • Barnet (24 ‘outstanding’ schools)
  • Lambeth (22)
  • Richmond upon Thames (20)
  • Wandsworth (17)
  • Hackney (17)
  • Lewisham (16)

House prices across London’s outstanding schools compared

Portico has also analysed the property prices of areas surrounding all 342 ‘outstanding’ primary schools in the 32 London boroughs:

  • Barking and Dagenham in east London offers the best value for money, with average property prices at £307,463. There are three ‘outstanding’ primary schools in the borough.
  • Kensington and Chelsea ranks as the most expensive borough, with an average property price of £1,739,268. There are fourteen ‘outstanding’ primary schools in this borough.

Portico London estate agents table below shows the number of ‘outstanding’ state-funded primary schools per London borough, plus the average cost of living near an ‘outstanding’ school in the area:

BoroughNo. of Outstanding SchoolsAverage Property Price
Barking and Dagenham3307,463
Sutton5353,204
Greenwich10397,479
Bexley3398,017
Havering7415,911
Hillingdon10433,120
Croydon7468,428
Tower Hamlets13474,745
Newham7484,118
Redbridge14484,118
Brent10487,698
Hounslow11494,833
Waltham Forest5506,362
Harrow13525,431
Lewisham16553,360
Southwark13586,632
Ealing8617,561
Hackney17634,465
Enfield7645,961
Barnet24649,793
Lambeth22670,706
Kingston upon Thames8680,501
Islington7709,883
Haringey11710,286
Richmond upon Thames20826,340
Wandsworth17846,967
Hammersmith and Fulham11878,433
Merton8881,883
Camden14995,966
Westminster61,723,120
Kensington and Chelsea141,739,269

Drilling down to specific schools and areas within the London boroughs

Portico has also looked at individual ‘outstanding’ schools to find the best local bargains. The results show: 

  • The winner is Hounslow in Greater London, which is home to ‘outstanding’ Edward Pauling Primary school. The average price of a house here is just £233,615.
  • A close second was Beavers Community Primary School in Hounslow, which has an average price-tag of £247,571.
  • Third was St Stephen’s Catholic Primary School in Bexley, where the average property price is £269,453.

On the other end of the scale, London’s most expensive catchments ranked as:

1. Westminster’s St Peters Eaton Square Corn Primary School on Lower Belgrave Street – £3,184,794.

2. Kensington and Chelsea’s Christ Church CofE Primary School on Robinson St, Chelsea – £2,589,755.

3. Camden’s Primrose Hill School on Princess Rd in Primrose Hill – £2,573,738.

Fiona Veitch, Portico’s Marketing Director, says: “Each year, parents across the nation fight to get their children into the right school, and we see many families moving purely to be in the catchment area of a specific school.

“According to our research, the average property price of a London home in the neighbouring area of an ‘outstanding’ state-funded primary school costs £693,849. Compared to the average London property price of £618,587, this means parents will pay a huge premium of £75,262 to give their kids the best start in life.

“Living near a state-funded primary school with an Ofsted ‘needs improvement’ rating costs even less. In fact, the average property price near a school that ‘needs improvement’ costs £540,638 – which is over 22% cheaper, or over £150,000, less than an ‘outstanding’ school area.

“Despite there being such a strong correlation between house prices and top-rated schools, we hope our research will help the parents who are looking to move to an ‘affordable’ area near a top-rated school see what options are available to them.”

Portico’s table below shows the top 20 most affordable areas surrounding London’s ‘outstanding’ primary schools:

Local Authority AreaProvider NameSchool addressAverage property price
HounslowEdward Pauling Primary SchoolRedford Cl, Feltham TW13 4TQ233,615
HounslowBeavers Community Primary SchoolArundel Rd, Hounslow TW4 6HR247,571
BexleySt Stephen’s Catholic Primary SchoolRuskin Ave, Welling DA16 3QG269,453
GreenwichCardwell Primary School118 Frances St, Woolwich, London SE18 5LP276,786
EalingGifford Primary SchoolGreenhill Gardens, Northolt UB5 6BU277,079
SuttonSt Elphege’s RC Infants’ SchoolMollison Dr, Roundshaw, Wallington SM6 9HY281,000
SuttonSt Elphege’s RC Junior SchoolMollison Dr, Roundshaw, Wallington SM6 9HY281,000
GreenwichHeronsgate Primary SchoolWhinchat Rd, London SE28 0EA285,143
GreenwichHawksmoor SchoolBentham Rd, Thamesmead, London SE28 8AS293,172
Barking and DagenhamWilliam Ford CofE Junior SchoolFord Rd, Dagenham RM10 9JS299,900
HaveringSt Ursula’s Catholic Junior SchoolStraight Rd, Romford RM3 7JS301,678
Barking and DagenhamThe St Teresa Catholic Primary SchoolBowes Road, Dagenham, Essex, RM8 2XJ301,739
HounslowFeltham Hill Infant and Nursery SchoolBedfont Rd, Feltham TW13 4LZ309,675
Tower HamletsBonner Primary SchoolStainsbury Street, Bethnal Green, London E2 0NF312,825
Barking and DagenhamWarren Junior SchoolGordon Rd, Dagenham, Romford RM6 6DA320,750
BrentSt Joseph’s RC Infant SchoolWaverley Avenue, Wembley, HA9 6TA328,972
Richmond upon ThamesSt James’s Roman Catholic Primary School260 Stanley Rd, Twickenham TW2 5NP329,475
SouthwarkPhoenix Primary SchoolMarlborough Grove, London SE1 5JT330,675
LewishamDownderry Primary SchoolDownderry Road Bromley BR1 5QL332,795
Tower HamletsOld Palace Primary SchoolSt Leonard’s St, Bromley By Bow, London E3 3BT335,190

Slow in house price growth reported by Halifax House Price Index

Published On: October 9, 2019 at 8:30 am

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Halifax House Price Index

Yet another report confirms a slow in house price growth for the UK, as the latest Halifax House Price Index shows annual growth to now be at 1.1%.

The highlights for this latest report from Halifax include:

  • House prices in September were 1.1% higher than in the same month a year earlier 
  • On a monthly basis, house prices fell by 0.4% 
  • In the latest quarter (July to September) house prices were 0.4% higher than in the preceding three months (April to June) 

Russell Galley, Managing Director, Halifax, said: “Annual house price growth slowed somewhat in September, rising by just 1.1% over the last year. Whilst this is lowest level of growth since April 2013, it remains in keeping with the predominantly flat trend we’ve seen in recent months. 

“Underlying market indicators, including completed sales and mortgages approvals, continue to be broadly stable. Meanwhile for buyers, important affordability measures – such as wage growth and interest rates – still look favourable. 

“Looking ahead, we expect activity levels and price growth to remain subdued while the current period of economic uncertainty persists.” 

Lucy Pendleton, founder director of independent estate agents James Pendleton, comments: “The housing market’s game of musical statues continues. The only problem is that a rowdy bunch of competitive parents have been jostling for control of the off button for months and the music never actually stops.

“Annual growth is now at a six and a half year low and any fuel injection provided by buyer incentives and low mortgage borrowing rates has long gone. The fumes of uncertainty are all that enter now, and the housing market’s engine must take what sustenance it can until the UK’s political future is more assured.

“This index has gone from gazelle to sloth in only a matter of months, although some tinkering with the methodology has now removed the astoundingly high year on year figures we saw in the first half of the year from the index.”