Posts with tag: house prices

House Prices Still Increasing by 4.9% Annually, Shows Official Data

Published On: August 15, 2017 at 9:55 am

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Average house prices in the UK were still rising by 4.9% on an annual basis in June 2017, according to the latest official data from the Office for National Statistics (ONS) and Land Registry.

However, this is slightly down on the previous month’s average growth rate, of 5.0%. Although the annual growth rate has slowed since mid-2016, it has remained broadly around the 5% mark in 2017.

The average UK house price was £223,000 in June – £10,000 higher than in June last year and £2,000 higher than in May.

The main contributor to the increase in average UK house prices was England, where property values rose by an average of 5.2% over the year to June, to reach £240,000.

Wales saw house prices grow by an average of 3.6% over the 12 months to June, taking the average to £152,000.

In Scotland, the average property value was up by 2.9% over the year, to stand at £144,000.

The average house price in Northern Ireland was £129,000 in June, after rising by 4.4%.

On a regional basis, London continues to boast the highest average house price, at £482,000, followed by the South East and East of England, at £320,000 and £287,000 respectively. The lowest average prices continue to be found in the North East, at £130,000.

The East of England recorded the highest annual growth, with prices rising by an average of 7.2% in the year to June. The East Midlands followed, at 7.1%. The lowest annual growth was seen in the North East, where prices increased by 2.5% over the year, followed by London, at 2.9%.

By local authority, the Orkney Islands showed the largest annual growth, with average prices up by 27.9% to £148,000.

Low numbers of sales transactions in some local authorities and London boroughs, such as the Orkney Islands, City of London and Na h-Eileanan Siar, can lead to volatility in the series. While efforts are made to account for this volatility, the change in prices in these areas can be influenced by the type and number of properties sold in any given period.

The lowest annual growth rate was recorded in the City of London, where prices dropped by an average of 20.3% to sit at £724,000.

House Prices Still Increasing by 4.9% Annually, Shows Official Data

House Prices Still Increasing by 4.9% Annually, Shows Official Data

In June 2017, the most expensive borough to buy a property in was Kensington and Chelsea, where the average house price was £1.4m. In contrast, the cheapest place to purchase a property was Blaenau Gwent, where a typical home costs £80,000.

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The Founder and CEO of online estate agent eMoov.co.uk, Russell Quirk, says: It may seem a long time ago now, but many believe the market is still shaking off a degree of Brexit uncertainty – a stance that has been bolstered by the less than convincing political landscape that followed.

“Ironically, it has been those that prophesied the rapture of the UK market that have actually been the most detrimental to it. Those closest to the action, such as George Osborne and his outlandish claims of an inevitable 18% crash in house prices, have seen an air of uncertainty slow the market, albeit a tiny blip on an otherwise impeccable current medical record for UK property.

“A year on and, in contrast to gloomy predictions, an anticipative Schadenfreude even, we see that, in fact, house prices are nearly 5% higher annually, with the monthly decline in growth reversing and the market remaining one of the most robust in the world.

“The attempt by Osborne, Hammond and many others to talk the puff out of the UK economy and its related housing market were grossly exaggerated and in fact completely wrong.”

Shaun Church, the Director of mortgage broker Private Finance, also comments: “The property market remains above water, although prices are rising more slowly compared to recent years. The subdued market is partly due to a lack of new homes for sale and rising inflation squeezing household finances. However, fundamentals remain strong and there are few signs of the kind of drastic price correction some have predicted.

“That said, areas with a higher concentration of properties at the upper-end of the market, particularly parts of central London, have been hit hard by the changes to Stamp Duty and are experiencing sluggish or even negative price growth. Until the Government reconsiders its stance, the prime market will continue to struggle.

“Another significant factor in slower house price growth is the reduced demand from buy-to-let investors, who have been deterred by the recent raft of punitive tax measures. However, the fall in buy-to-let investment has been partially offset by the increasingly buoyant first time buyer market, as young professionals take advantage of the record low interest rates and softer price rises.”

The Director of Property at property stock exchange Property Partner, Rob Weaver, adds: “Against a backdrop of political and economic uncertainty, once again Britain’s housing market has demonstrated its resilience, with a monthly price rise of 0.8%.

‘’Despite a slight fall in prices in London, rises across every other English region acted as a cushion – painting a broadly positive picture for landlords, particularly those who diversify by owning property in different parts of the country.

“We favour a steady market, and we have been saying this for a long time now. Long-term, steady growth is far healthier than the significant increases of recent years.”

‘’At Property Partner, we are seeing many investors take a slightly longer-term view of the market, by focusing on properties that deliver a higher yield, rather than necessarily targeting high capital growth.

‘’Considering the housing market is in the middle of the usual summer slowdown, today’s figures are encouraging, and current and potential landlords should feel reassured.’’

Ishaan Malhi, the CEO and Founder of online mortgage broker Trussle, also reacts: “Homeowners worried about the prospect of slipping into negative equity will be happy to see a second consecutive month of house price growth. Hopeful first time buyers looking to get onto the property ladder will naturally be less enthusiastic. Despite interest rates remaining at rock bottom, younger buyers still face the gruelling prospect of having to raise a deposit of around £30,000, which is higher than the average UK salary.

“The surest way to boost homeownership among the younger generation is to build more homes, but aspiring homeowners could be waiting a while for that supply to arrive. In the meantime, the best bet is to make the most of Government schemes like Help to Buy and Starter Homes, while shared ownership could also help realise the homeownership dream for those struggling to find a way in.”

The CEO of buy-to-let specialist Landbay, John Goodall, continues: “Against expectations, inflation has held steady today, stealing the limelight from housing figures, which suggest that house price growth has now returned. Supply and demand remain severely out of kilter, meaning that housing affordability remains one of the most pressing issues facing UK society over the medium to long-term.

“The roots of the affordability crisis can be traced back to insufficient construction over the past decade, but a number of other macroeconomic factors are now also playing a part. Wage growth is struggling to keep pace with rocketing inflation, which is hitting people’s pockets and making it harder for aspiring homeowners to afford their first property, as well as discouraging existing homeowners from moving. This is pushing more and more people toward the private rental sector to house them while they save, so construction needs to focus not only on more affordable homes for first time buyers, but for the rental sector as well.”

We also have comment from Jonathan Hopper, the Managing Director of Garrington Property Finders: “After the previous month’s data showed a decline in London’s house prices, it’s concerning but not surprising to see a further – and more pronounced – fall in the capital’s prices in June.

“For years, London’s property market seemed to know no bounds, but, for two consecutive months, the capital has seen a deceleration in prices, forcing sellers to adjust their pricing in keeping with a new reality.

“There is a degree of inevitability about prices cooling, as house price inflation in the capital raced ahead of wage inflation for several years, but, ultimately, this situation was always going to be unsustainable.

“Across the country as a whole, house prices remained largely flat, although a few regions outside of London also experienced a slowdown in property price growth.

“Although the ongoing lack of supply has continued to prop up prices, in practice, there are many buyers closely watching these movements in the market and managing to secure weighty discounts.

“Sellers who are conscious of this, and are both pragmatic and flexible in their approach to pricing, are most likely to guarantee a sale in today’s market.”

Lucy Pendleton, the Founder Director of independent estate agents James Pendleton, also responds: “There’s the slightest hint of a two-speed housing market here, with the UK upping the pace of growth annually and monthly, while London touched the brakes.

“Perhaps it’s not surprising to see the London market, after such strong gains, buck the national trend and slow down a little more in a General Election month.

“However, the market is not lurching and there is still strong demand. The trailblaising East of England posting annual growth of more than 7% is an obvious sign of confidence outside the capital.

“There are headwinds, but it’s important to remember interest rates have not yet gone up, we still have the Help To Buy scheme and the more hazardous economic effects of Brexit have not begun to materialise.

“That’s why this isn’t yet a nerve-jangling tightrope walk between buyers and sellers attempting to face off against each other. Armies in both camps are dancing arm in arm and seem content with where the market is right now.”

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Housing Transactions Pause for Summer Holidays, Your Move Shows

Published On: August 14, 2017 at 9:42 am

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Housing transactions have paused for the summer holidays, while house prices also stopped for breath in July, according to the latest House Price Index from Your Move and Reeds Rains.

House prices dipped by 0.2% over the month, taking the annual rate of house price growth to 2.9% – the lowest level since July 2013.

Annually, the average property value in England and Wales rose by £8,433, taking prices to £298,906.

Housing transactions slowed, dropping by an estimated 9% in July on the previous month.

Housing Transactions Pause for Summer Holidays, Your Move Shows

Housing Transactions Pause for Summer Holidays, Your Move Shows

Although there has been a slight slowdown in monthly housing transactions, yearly activity shows that regions such as London and the East of England are continuing to grow strongly.

Every region across England and Wales recorded annual growth, as demand for affordable property continues to rise. Traditionally, lower priced boroughs of London and cities outside of the commuter belt are beginning to see increased activity and transactions from first time buyers.

Every region in the UK still shows annual price growth, however, they all slowed in June. The greatest declines in annual growth were in Wales, down by 1.5% to just 0.2% for the year, the West Midlands, down 1.3% to 3.3%, and Yorkshire and the Humber and the South East, dropping by 1.2% in both to 1.5% and 3.5% respectively.

A slowdown in the South East means that it looks significantly less buoyant than its three neighbours. In the South West, prices rose by 4.2% annually, the East Midlands saw an increase of 4.1%, and the East of England, which continues to lead the way in England and Wales, recorded growth of 5.1%.

Nevertheless, something of the re-emerging north-south divide continues to be apparent, with the North East (1.1%), Yorkshire and the Humber (1.5%), Wales (0.2%) and, to a lesser extent, the North West and West Midlands (both up by 3.3%), recording weaker growth than the southern regions. Greater London, with 2.4% annual growth, remains an exception.

The East of England continues to perform strongly, with all of its unitary authority areas showing solid annual price growth, led by Southend-on-Sea, where values rose by 10.2%, and Luton and Bedfordshire (both up by 8%). The former two, along with Peterborough, also recorded new peak prices in the month.

Aside from Southend-on-Sea, four other areas recorded double-digit growth in prices on an annual basis: Rutland in the East Midlands, with the highest annual increase (12.9%), albeit on low transaction levels; Poole (10.8%) in the South West, which shows strong overall growth, with Bournemouth (9%) also particularly strong; and Pembrokeshire (10.8%) and Blaenau Gwent (10.7%) both bucking the trend in Wales.

Wales also bucks the trend when it comes to housing transactions. Looking at an increase in transaction volumes between the second quarter (Q2) of 2015 and Q2 2017 across all 108 unitary authorities in England and Wales, the top five are all in Wales: Torfaen (28%), Caerphilly (26%), the Isle of Anglesey (26%), Ceredigion (22%) and Wrexham (19%).

House prices in London dropped for the third consecutive month in June, by 1.5% – the second largest drop in over six years – but still remain up by £14,244 on last year.

This decline takes £8,913 off the average property value in the capital, but this still remains double the national average, at £602,849. The trend in London is a mixed picture, with 17 boroughs seeing prices fall last month and the other 16 seeing prices rise.

The top three boroughs in London still show solid annual growth, led by Kensington and Chelsea – the most expensive borough. Average prices in the district are £1,954,735, which is up by 17.3% on last year.

Of the top third most expensive London boroughs, eight saw prices drop last month, including all of the top five. The City of Westminster, with the second highest average property value in the capital, experienced the greatest decline – 11.6% – while the City of London, fifth in the table, saw the second largest – 8.2%. More significantly, the latter also recorded the biggest decrease on an annual basis, with prices down by 17.6%.

At the other end of the market, of the cheapest 11 London boroughs, six saw prices rise in June and only one (Greenwich) has experienced a decline on an annual basis. Just outside the cheapest 11, Lewisham also saw the greatest increase of the month – up by 2.4%. With the average value in Lewisham now £469,709, it was also the only borough during June to record a new peak price.

The Managing Director of Your Move and Reeds Rains, Oliver Blake, comments on the index: “Annual prices are still
 rising positively and regions continue to perform strongly, despite the slowdown in transaction numbers over the summer months.

“Whilst, as a business, we often see this at this time of year, the cause of the dip may also be down to the buy-to-let slowdown as a result of tax changes.”

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Generation Rent Reveals the Other Waitrose Effect Hitting Tenants

Published On: August 14, 2017 at 8:13 am

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Lobby group Generation Rent has uncovered the “Other Waitrose Effect”, which shows how the opening of a new Waitrose is closely linked to a rise in evictions of private tenants in the local area.

The analysis, conducted by Oxford University academic David Adler for Generation Rent, found that the arrival of a new Waitrose was associated with an increase in the number of evictions of between 25-50%.

This is the Other Waitrose Effect – in addition to a rise in prices, which is good news for property owners, comes the increased threat of a no-fault eviction for local private tenants, as landlords look to achieve higher rents.

Adler, a post-graduate student in the Department of Politics and International Relations at the University of Oxford, says: “The Other Waitrose Effect illustrates the hidden costs of gentrification. On the one hand, local homeowners both enjoy new local amenities like Waitrose and the increase in house prices they bring with them. On the other, private renters face increasing insecurity in their homes and the possibility of being priced out of their neighbourhoods.”

The traditional Waitrose effect, whereby the stores add a premium to local house prices, is a well-established phenomenon, quantified originally by Lloyds Bank in 2016. The arrival of a Waitrose branch is both a reaction to signs that an area is becoming wealthier, and a magnet for further investment by local businesses and demand by wealthy homebuyers.

Generation Rent Reveals the Other Waitrose Effect Hitting Tenants

Generation Rent Reveals the Other Waitrose Effect Hitting Tenants

The Other Waitrose Effect on evictions follows the same trend:

According to the Generation Rent report, Causes and Consequences of Evictions in Britain, published in October 2016, rising house prices encourage landlords to evict their tenants in order to free up their property for sale or to hike rents.

Waitrose is both attracted to areas where these trends are underway, and a cause for their intensification.

Private landlords can evict tenants without needing to give a reason using Section 21 of the Housing Act 1988. Tenants served with a valid Section 21 notice to quit have no defence, and will often move out within the two-month notice period, without the landlord taking further action.

The Waitrose Effect analysis examined Ministry of Justice data on accelerated evictions – the nearest measure of Section 21 evictions that the Government publishes – and opening dates of Waitrose stores between 2005 and 2015. It found that there were 70 Waitrose stores nationwide in 2005 and 162 by the end of the period in 2015.

During the 2008-09 recession, evictions dipped as house prices fell and landlords lost confidence. After house prices started to recover in 2010, evictions picked up again, but increased significantly more in the 92 local council areas that acquired a Waitrose.

In one example, the rate of evictions in the London Borough of Lambeth spiked as the area gentrified. In just one year, from 2009 to 2010, house prices in Lambeth rose from an average of £247,238 to £290,340 – an increase of 17%. Quarterly evictions tripled the following year. In the course of this rapid transformation, Waitrose opened on Clapham High Street in spring 2013, and evictions in the borough have continued to grow.

By the first quarter (Q1) of 2015, areas with a Waitrose had nearly twice as many Section 21 evictions on average than areas without one. The data covers only those cases where bailiffs were involved; because tenants cannot appeal against a Section 21 eviction, many more leave without the process even reaching court and are therefore not recorded.

Generation Rent is calling for greater protections from eviction for tenants caught up in rapid economic change in their local areas. Where landlords want to evict tenants who have not broken their tenancy agreements, the group suggests that they should be reimbursed for the inconvenience. This would help to cover the cost of finding a new home and encourage landlords to sell with sitting tenants instead, it claims.

Adler comments: “When house prices rise, landlords feel more confident about their investment and more willing either to take a risk by replacing their tenants, or to realise the value of their asset through sale. The arrival of a Waitrose is one of the most visible signs of gentrification, which reinforces this confidence and sustains both higher prices and higher evictions.”

The Director of Generation Rent, Dan Wilson Craw, adds: “Renters already fear they won’t be able to settle down in their local area thanks to rising house prices. The last thing they need is the threat of losing their own home. New businesses providing job opportunities and a greater choice for shoppers in a local area should be welcomed, but because evicting tenants is so easy, too many people are losing out.

“Waitrose would agree that a strong community relies on local people investing their time in it, but they can only do that if they have the confidence they’ll still be around in a year’s time. Proper protection from eviction will do that.”

Estate agent Marsh & Parsons recently found that independent shops have replaced the Waitrose effect: /independent-shops-waitrose-effect/

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House Price Growth Grinds to a Halt, Reports RICS

Published On: August 10, 2017 at 9:19 am

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The July 2017 Residential Market Survey from the Royal Institution of Chartered Surveyors (RICS) shows that house price growth is grinding to a halt at the national level.

However, the organisation does note that regional patterns once again display a mixed picture. Alongside this, sales activity continues to lack momentum, with the number of new buyer enquiries and agreed sales remaining slightly down.

For now at least, the expectations of the country’s surveyors suggest that this subdued backdrop is unlikely to change significantly.

House prices

The average house price growth level slipped from +7% to just +1% in July, suggesting that prices were unchanged over the period. This is the softest reading since early 2013.

Nevertheless, this national figure conceals diverging trends across parts of the UK. Indeed, house prices remain quite firmly on an upward trend in some locations, led by Northern Ireland, the West Midlands and the South West.

In contrast, prices continue to drop in London, with the rate of decline broadly matching that of the previous three months. At the same time, house prices in the South East fell further, recording the weakest level of growth for this region since 2011.

House Price Growth Grinds to a Halt, Reports RICS

House Price Growth Grinds to a Halt, Reports RICS

Looking ahead, near-term price expectations continue to signal a flat trend over the coming three months. Over the next 12 months, 28% of surveyors expect to see a rise in prices, although this is the lowest reading since last July. Again, London continues to see the most cautious 12-month projections relative to all other parts of the UK.

Sales prices vs. asking prices

In an extra question included in July’s survey, respondents were asked to compare sales prices to asking prices over the past two months.

Nationally, for homes marketed at more than £1m, 68% of surveyors reported sales prices coming in below asking prices, with 33% responding in the up to 5% below category, and 26% answering between 5% to 10% below.

For homes listed at between £0.5m and £1m, a combined 57% of contributors noted that sales prices were coming in lower than asking prices, with the most popular answer being up to 5% below (37%).

Finally, for homes marketed at less than £0.5m, the largest share of respondents (49%) said that sales and asking prices were at the same level, although a still substantial 37% stated that sales prices were under.

Housing market activity 

New buyer enquiries were very slightly down in July compared with the previous month, by 4%. This extends a trend of which buyer demand has failed to see any meaningful growth going back to November 2016.

In line with this, newly agreed sales dropped again (although only marginally), meaning that this indicator has now been negative for five consecutive months. That said, reasonable growth in property transactions has been seen in the South West over the last two months.

A sustained deterioration in the flow of fresh property listings coming onto the market continues to hamper activity, with new instructions dwindling for the 17th consecutive month in July.

Consequently, average stock levels on estate agents’ books remain close to record lows, limiting choice for potential buyers. The lack of stock is once again a dominant theme mentioned by surveyors to be holding back the market (with political uncertainty also cited frequently).

Going forward, respondents are not anticipating activity in the sales market to gain impetus at this point in time, with both three and 12-month expectations virtually flat. Notwithstanding this, the outlook seems a little more positive for some parts of the UK.

Lettings market

In the private rental sector, the quarterly (seasonally adjusted) figures are also consistent with a somewhat subdued picture.

Indeed, although tenant demand continued to edge higher, it did so at the slowest quarterly pace going back almost 20 years.

Meanwhile, landlord instructions declined, with 8% more surveyors noting a drop (rather than a rise) in listings.

Rent price expectations are now only very modestly positive for the coming three months. Over the next 12 months, rents are projected to increase by a little under 2% across the UK. Expectations remain firmer for the coming five years, with surveyors forecasting rent price growth to average just over 3% per year.

The Managing Director of West One Loans, Stephen Wasserman, comments on the latest survey: “Political and economic upheaval, alongside the ongoing supply versus demand issue, is continuing to plague the property market, damping buyer and investor demand. Despite today’s figures painting another downcast picture of activity, the housing market is resilient, and we’re optimistic that while we may continue to see a few stutters in due course, the overall market will grow in time.

“The bridging sector in particular has been flourishing in recent months, as those looking to capitalise on quick sales can do so with the flexibility and speed that this unique type of financing offers, and we expect this trend to continue.”

The RICS’ June 2017 report can be read here: /uncertainty-housing-market-sentiment/ 

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The Premier League of House Price Growth

Published On: August 10, 2017 at 8:15 am

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With the Premier League returning this weekend and turning 25 next Tuesday, online estate agent eMoov.co.uk has ranked the teams based on annual house price growth in their local area.

The alternative league tables also look at how some of the biggest footballing rivalries match up head-to-head where the property market is concerned.

The last 25 years

Over the past 25 years, the average UK house price has soared by 302%.

Across the 20 teams in the Premier League this year, the average house price stands at £272,447, having risen by 4.55% since the last season.

Although homes in Premier League locations cost over £50,000 more than the UK average (£220,713), the higher price of property means that growth rates are marginally trailing the UK over the last year (4.67%).

Premier League table 

When looking at this year’s 20 Premier League teams where house price growth is concerned, it’s Manchester United that returns to its former glory, with the highest increase in the league, at 8.58%, and an average property value of £262,997.

Although Burnley struggled to stay up after promotion last year, the Lancashire team is flying high where house price growth is concerned. The team lost out to the top spot by the smallest of margins, with prices having risen by 8.57% in the last year. Despite this, Burnley is home to the most affordable property value in the league, at just £77,525.

The North West also takes third place in the league, with Manchester City seeing prices climb by 8.08%. Leicester flies the flag for the East Midlands, with an increase of 7.76%, and newly promoted Brighton performs well, as the best team in the south, after prices rose by 7.12% annually.

The Premier League of House Price Growth

The Premier League of House Price Growth

Coincidentally, the two teams to open the footballing season in last week’s charity shield are also home to the lowest rate of price growth. A tough year for the London property market means that Chelsea and Arsenal are the only two teams to see annual house price growth slump below 1% (0.40%), with Newcastle heading straight back down into the third relegation spot (1.39%).

Footballing rivalries 

Arsenal vs. Tottenham

Despite Arsenal seeing the lowest level of price growth in the Premier League, its rival Tottenham has seen prices rise by 4.5% in the past year.

But with its temporary move to Wembley this year, it could be a different story at the end of the season, with Brent – home of Wembley Stadium – having seen growth of just 0.90% annually.

Elsewhere in London, West Ham’s new home at the London Stadium means that it’s enjoyed the second highest rate of growth of all the teams from the capital, at 4.11%.

Crystal Palace vs. Brighton 

Crystal Palace has also enjoyed better growth than both Chelsea and Arsenal (3.46%), however, Brighton’s promotion revives one of the stranger footballing rivalries, and the Seagulls come out on top, with prices growing more than double that of Crystal Palace in the past year (7.12%).

Man United vs. Liverpool 

As already stated, although Man City is home to the cheaper average house price (£161,611) in the Manchester derby, United enjoys the higher rate of growth (8.58% to City’s 8.08%) – enough to also beat bitter rival Liverpool, where annual growth stands at just 3.55%.

South Coast 

Bournemouth and Southampton will face off in the Premier League again this season, having drawn in their last encounter. It’s a fairly close run where house price is concerned too, with Bournemouth edging it at 5.26%, to Southampton’s 4.18%.

But, despite their fall from footballing grace, it’s Southampton’s traditional rival Portsmouth that has enjoyed the best performance in property terms, with prices up by 7.40% in the last year.

Newcastle vs. Sunderland

There was no Tyne-Wear derby last season, after Newcastle’s relegation to the Championship the season before. But, despite the Magpies winning promotion back to the top flight, the Black Cats were woeful last season and, as a result, will be applying their trade in the Championship this coming season.

House price growth in the two areas mirrors their respective performances, with Newcastle seeing prices creep up by 1.39%, while Sunderland has seen values drop by 3.30% year-on-year.

Burnley vs. Blackburn

Despite their fall to League One, Blackburn is still on top of Premier League rival Burnley, with prices up by a huge 11.47% in the last year, to Burnley’s 8.57%.

Cardiff vs. Swansea 

Although a league separates the two in footballing terms, Cardiff outperforms Swansea in the Welsh derby for property price growth, with prices up by 5.80%, compared to 4.46% in Swansea.

Oxford vs. Swindon 

Again, one league currently separates old-time rivals Oxford and Swindon, and, despite a price tag of £414,659 – nearly double that of Swindon’s £210,052 – Oxford comes out on top in both football and property terms, with prices up by 6.40% annually, to Swindon’s 6.05%.

The Founder and CEO of eMoov.co.uk, Russell Quirk, comments on the alternative Premier League: “Although it’s unlikely the table will look like this at the end of the season, it does demonstrate that, while there are pockets of the UK currently seeing a decline in price growth, there are also areas all over the nation enjoying very healthy increases in values.

“It’s also interesting to see how rival areas are performing differently, particularly those in close proximity to each other. Although neighbours, Liverpool and Manchester are seeing different rates of growth, the higher-end London clubs have seen prices stall whilst the capital’s peripheral teams are doing well, and Newcastle and Sunderland are seeing opposite fortunes in price growth terms.”

How is your team’s property market performing?

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North East property prices continue to decline

Published On: August 4, 2017 at 9:58 am

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The most recent data and analysis from KIS Housing has revealed that property prices in the North East have continued to decline.

During July, there was a 0.4% fall in prices, which has led to values slipping below those seen at the same period last year.

North-East Values

A typical property in the region is currently valued at £164,752, representing a month-on-month fall of £705 in cash terms. Prices are now 0.2% below the £165,039 seen in July 2016.

House prices in the region are now 1.8% down over the course of the year to date. The largest falls were seen in Durham City (-2.5%), Houghton-le-Spring (-1.5%) and Whitburn (-1.2%).

On the other hand, properties in Blyth, Jarrow and Whitburn have seen the strongest performances during the last 12 months. Prices in these regions have risen by 6%, 4.3% and 4.1% respectively.

Rents

Rents in the North East increased slightly during July, to £589 per calendar month.

Typical rental yields remain unchanged, with investors currently seeing an average return of 4.3%. North East property investors are continuing to see higher returns than lose investing in the capital, with the average yield in London at 3.2%.

Strong regions for rental yields include Gateshead (5.6%), Sunderland and Newcastle (5.1%).

Blyth is still the cheapest place to rent in the North East at £417pcm. This was followed by Seaham at £422pcm. At the other end of the scale, Tynemouth commanded the largest monthly rent, of £1,095pcm.

North East property prices continue to decline

North East property prices continue to decline

Growth Over?

Ajay Jagota, founder and Managing Director of Keep it Simple and Dlighted, observed: ‘These figures would suggest that the North East’s prolonged period of house price growth is over – for a month at least. It will be fascinating to see next month- with August a traditionally strong month for the housing market – whether this is a trend or a blip.’

‘The driving force for North East house prices reversing in slow motion like this. is the ‘wait and see’ outlook both buyers and sellers have adopted in light of ongoing economic and political uncertainty. Ironically, prices have become very stable as a result – if they are looking for certainty is exactly what they have created with yields unchanged over a month, rents unchanged over a year and house prices on a plateau – albeit one with a modest downward gradient. In the face of a good deal of upheaval, its extraordinarily impressive how strong house price growth has been in some areas over the past 12 months – noticeably Blyth and Jarrow.’[1]

[1] http://www.propertyreporter.co.uk/property/north-east-house-prices-continue-to-reverse.html