Posts with tag: house prices

Rightmove releases first House Price Index report of 2022

Published On: January 17, 2022 at 10:29 am

Author:

Categories: Property News

Tags: ,,,,,

Treasury loses £1.5 billion since hike in rented housing tax

According to its latest House Price Index, Rightmove found the average asking price of a property was £341,019 this month (January 2022).

This is 7.6% higher than in January 2021, the highest annual rate of price growth recorded by Rightmove since May 2016.

The report also highlights:

  • First-time buyer asking prices hit a new record of £214,176 after a monthly jump of 1.4%
  • Strong demand and continuing low numbers of available homes for sale set up the housing market frenzy to continue into the start of 2022, with early-bird sellers benefitting from increased buyer competition:
  • The number of buyers enquiring about homes is 15% higher than the same time last year
  • The number of available homes for sale per estate agency branch drops again to a new record low of just 12
  • As a result, competition among buyers is almost double what it was at this time last year
  • However, there are early signs that more property choice is on its way, with the first working week of 2022 being the busiest start of the year ever for people requesting agents to come out and value their homes:
  • The number of home valuation requests in the first working week of 2022 is 44% up on the same period last year, and 48% up on the same period in 2020

The full report can be read on the Rightmove website.

Walid Koudmani, market analyst at financial brokerage XTB, comments: “Falling supply continues to increase pressure on house prices as buyers begin to run out of options while prices continue to steadily increase.

“Today’s HPI report highlights the ongoing trend we have seen with house prices rising once again as less properties become available on the market due to an increase in sales seen at the beginning of the year. Unless the supply situation is alleviated, we could continue to see an increase in prices for average buyers while a slight rebound is expected moving forward as more properties are expected to be listed in the coming months.”

Chris Hodgkinson, Managing Director of HBB Solutions, comments: “There’s certainly been no New Year’s change where the UK property market is concerned, and homebuyers are still swamping the market while house prices continue to defy the ‘what goes up must come down’ mantra.

“In fact, with stock levels remaining low, this fresh wave of demand is pushing asking prices even higher than the stamp duty fuelled thresholds of last year. 

“When you also consider that the cost of borrowing is still very low, we can expect more of the same where property market performance is concerned in 2022.”

Marc von Grundherr, Director of Benham and Reeves, comments: “There have been no signs of a sluggish start to the year for the property market and not only are we seeing a very strong level of buyer activity, but we’ve also been inundated with requests from potential sellers keen to make the most of these buoyant market conditions. 

“We’re now seeing a strong level of activity returning to the London market and the capital’s forecast is far brighter for the year ahead, having been uncharacteristically left in the shadows during the pandemic house price boom. 

“Overseas buyers are returning in their number and the capital is hotting up as the time to sell a home reduces and stock availability comes under pressure. 

“If buyers are quick there is still an element of ‘old stock’ that has been stuck on the market and these opportunities can potentially be snapped up at relatively decent price levels – for now.”

Colby Short, Founder and CEO of GetAgent.co.uk, comments: “Many home sellers will have listed their home prior to the festive break in anticipation of a fast start to the year and this proactive approach is now paying off as many are already accepting offers on their homes. 

“However, for those buyers who are struggling to find their ideal home, there is hope for the year ahead. Now that the dust has settled following the final stamp duty holiday deadline, we’re seeing a significant increase in the number of sellers heading to market.

“So, we can expect to see a good level of fresh stock materialise over the coming months, bringing greater choice to buyers and adding yet further fuel to the house price growth furnace.”

Halifax publishes final house price data for 2021, reporting record high

Published On: January 12, 2022 at 10:33 am

Author:

Categories: Property News

Tags: ,,,

Average UK house price rises again, Halifax House Price Index reports

Halifax’s final House Price Index for 2021 shows house prices were up 9.8% last year.

The report also states that the average price of a UK property hit a record high of £276,091 in December.

Halifax expects house price growth to slow in 2022.

Russell Galley, Managing Director of Halifax, comments within the report: “UK house prices climbed again in December for the sixth consecutive month in a row, up 1.1%. The average price for a property now stands at £276,091, an increase of more than £24,500 compared to December 2020, marking the strongest year-on-year cash rise since March 2003.”

Iain McKenzie, CEO of The Guild of Property Professionals, comments: “After an incredible year, the average UK property costs a record-breaking £275,000, with the last six months of 2021 showing unbroken growth.

“The average home rose £24,000 in a year – the largest annual cash rise since 2003, flying in the face of the economic uncertainty faced by many prospective buyers and the scaling down of government incentives.

“The housing market starts 2022 in a very strong position. Valuation requests from homeowners are a fifth higher than the year before, mortgage approvals are the highest they’ve been for years, and the pandemic appears to be on the wane. 

“Further interest rate rises are likely this year, but while demand outstrips housing, we expect that prices will continue to rise this year, albeit at a much slower pace than we saw in 2021.”

Walid Koudmani, market analyst at financial brokerage XTB, comments: “Today’s (7th January 2022) Halifax HPI data showed an increase in house price of 9.8% in 2021 and continues to show the ongoing trend the Bank of England has been striving to contain by adjusting its policy.

“While a lack of available homes for sale and historically low mortgage rates have helped drive annual house price inflation to its highest level since July 2007, today’s report indicated a slight slowdown in price growth which could bring some optimism as markets remain concerned about more aggressive measures taken by central banks to contain inflation.”

Rental sector home values have driven property value growth in England

Published On: January 6, 2022 at 10:58 am

Author:

Categories: Landlord News,Property News

Tags: ,

SpareRoom says data indicates rental market in crisis

The values of homes in England have increased by 80% over the last decade, according to research from property platform Boomin.

The platform found that this growth has predominantly been driven by the value of homes in the rental market more so than an increase in value of homes owned.

Boomin analysed the residential property market across England, looking at the total number of owner-occupied and privately rented properties, the total value of each market, and how this has changed over the last 10 years. 

Its research shows that the combined markets currently total a value of £7.4trn, with the entire market having increased by 80% in value over the last decade. The housing market is the largest when it comes to total market value at £4.6trn versus a total rental market value of £1.5trn.

When analysing the growth of each market, the housing market increased by 75% in value over the last 10 years, while homes in the rental sector increased 105% in market value.

Regional breakdown

On a regional level, London is home to the most valuable combined market at £1.8trn. However, the capital doesn’t rank top when it comes to the total value of the housing market alone.

While London has the most valuable rental market (£529bn), South East England is home to the most valuable housing market with a total value of just over £1trn. 

However, Boomin has found London ranks top where the 10-year value change is concerned. The total market increased by 97% in the last 10 years, while the rental market grew by 124% and the housing market by 90%, beating all other regions across the board.

Michael Bruce, CEO and Founder of Boomin, comments: “We are a nation obsessed by property and home-ownership is one of the key milestones that we all strive to achieve in life. So it’s hardly surprising that the total value of the nation’s ownership market is over three times that of the rental market and home-ownership remains the predominant style of living for the vast majority.

“An increase in both property stock and in house prices has also seen this value increase notably over the last decade, but the latter has also spurred a far greater increase across the private rental market. 

“Many are now opting to rent for longer periods and until much later in life as the ever-escalating cost of buying prices them out of the market. So, while the housing market still reigns supreme in terms of total size and value, there has been a far greater level of value growth across the private rental sector to accommodate this new way of living and this trend is apparent across all regions of the nation.

“So those investing in property over the past decade have won hands down, but property investors and landlords especially it seems. London too is the big winner. Despite the stalled market in the capital of late, its overall momentum as a property market powerhouse means that it has seen the biggest value improvements in the last decade regardless.” 

Average price for UK houses on roads with Christmas names

Published On: December 20, 2021 at 9:49 am

Author:

Categories: Property News

Tags: ,,,

Average price for UK houses on roads with Christmas names

The cost of buying a property on roads with Christmas names has been found by GetAgent.co.uk.

It analysed price paid data from the Land Registry over the last 12 months for various roads with Christmas names. On average, it found that a property on one of these roads would cost £320,000, which is 19% more than the current national average.

Properties are most expensive on roads including ‘Rudolph’ in their name. With an average sold price of £527,500, properties on roads called Rudolph are 95% above the national average.

The second most expensive is ‘Lights’. At £363,000, this is 34% above the national average. ‘Mistletoe’ also commands a festive premium at 33%, with the average property costing £360,000.

Buying on roads called ‘Merry’ (£331,250), ‘Turkey’ (£330,000), ‘Tree’ (£328,750), ‘Christmas’ (£325,000), ‘Pudding’ (£325,000), ‘Chimney’ (321,495), ‘Chestnuts’ (£320,000), ‘Joy’ (£315,000), ‘Sleigh’ (£311,000) and ‘Stocking’ (£285,000) will also cost you a property price premium of between 6% and 23% versus the national average.

At £266,498, homes on roads called ‘Star’ come in around the national average, while ‘Snow’ (£250,000), ‘Holly’ (£247,000), ‘Bells’ (£230,000), ‘Reindeer’ (£205,000) and ‘Toy’ (£180,000) are also considerably more affordable.

Colby Short, Founder and CEO of GetAgent.co.uk, comments: “We all know that one Christmas nut, usually an aunty, that starts Christmas shopping in May and has Mariah Carey blaring out from the start of October. So, what better place for them to live than on Rudolph Road or Mistletoe Drive.

“Unfortunately, if you do want to go full Christmas 365 days a year, at least where your road name is concerned, it’s likely to cost you a fair bit more than the average property.

“Of course, the fragmented nature of the property market means there’s always a more affordable option and so you could opt for Reindeer Road over Rudolph Road and save yourself over £320,000 in the process.”

The median sold price across roads with Christmas names and how they compare to the England and Wales average

Christmas Road NameMedian Sold PriceVersus National Average
Rudolph£527,50095%
Lights£363,00034%
Mistletoe£360,00033%
Merry£331,25023%
Turkey£330,0022%
Tree£328,75022%
Christmas£325,00020%
Pudding£325,00020%
Chimney£321,49519%
Chestnuts£320,00019%
Joy£315,00017%
Sleigh£311,00015%
Stocking£285,0006%
Star£266,498-1%
Snow£250,000-7%
Holly£247,000-8%
Bells£230,000-15%
Reindeer£205,000-24%
Toy£180,000-33%
Average£320,00019%
England and Wales£269,945N/A

UK house prices see ‘marginal decline’ in October 2021

Published On: December 16, 2021 at 9:21 am

Author:

Categories: Property News

Tags: ,,,,

UK house prices see ‘marginal decline’ in October 2021

The latest Government House Price Index states that the average price of a property in the UK was £268,349 in October 2021.

The report states that this is an annual increase of 10.2%, down from 12.3% in September 2021. The monthly price change was -1.1%.

James Forrester, Managing Director of Barrows and Forrester, comments: “A marginal decline following the final curtain of the Stamp Duty holiday was always on the cards but a 1% monthly drop is far from the market collapse that many have been expecting.

“The real proof in the pudding is the annual rate of appreciation and this is the third consecutive month where house prices have climbed by more than 10% year-on-year.

“Based on the market trends seen following the initial Stamp Duty holiday deadline, we can expect house prices to bounce back on a monthly basis ahead of the Christmas break, as many push to complete before Santa comes to visit.”

Craig Tonkin, Head of Sales at Bective, comments: “While we’re now starting to see signs of the market cooling across some areas of the UK, London continues to build momentum with one of the strongest rates of monthly house price growth of all regions.

“This has been driven by an influx of foreign interest at the top end of the market and we’re seeing larger family homes, in particular, go under offer at pace due to a severe shortage of supply.

“With growing demand for London homes, the capital looks set to enjoy a sustained level of house price growth throughout the remainder of the year and well into 2022.”

Nicholas Christofi, Managing Director of Sirius Property Finance, comments: “Although the end of the Stamp Duty holiday and a potential increase in interest rates is expected to cause a market slowdown early next year, we’re unlikely to see any notable reduction in buyer demand and therefore house price growth should remain steady, at the very least.

“A potential interest rates increase will cause many buyers to pause for thought before transacting. However, we’re already seeing measures to reduce this impact with the Bank of England removing the mortgage rates rise stress tests and a number of mortgage providers already starting to offer some very favourable deals.”

Nationwide records slight increase in house prices during November

Published On: December 2, 2021 at 9:33 am

Author:

Categories: Property News

Tags: ,,,,,

Nationwide records slight increase in house prices during November

The Nationwide House Price Index for November records a slight increase in annual house growth, now sitting at 10.0%. This is up from 9.9% in October.

Prices are also up 0.9% month-on-month.

Lucy Pendleton, property expert at independent estate agents James Pendleton, comments: “This market is still barrelling along, even at a time of year that traditionally sees a little energy taken out of it.

“Fewer people choose to move home at Christmas and that normally means you see buyers drop the pace, with many holding off their search until after the New Year. 

“That’s happening to a lesser degree this year but more so for buyers than sellers. This is worsening the supply crunch temporarily and that’s undoubtedly why we’re back in double digits.

“One obvious reason for this is the threat of inflation. With interest rate rises stealing plenty of headlines, everybody has become an armchair economist. It’s common knowledge that rates are historically low and are going to climb soon. The rush to beat rate rises is fuelling an unusually busy market. Mortgage approvals are still running hot as a result so we’re bracing ourselves for an unusually intense December.”

Iain McKenzie, CEO of The Guild of Property Professionals, says: “Britain’s year on the move continues, with more properties sold already this year than were sold in the whole of 2020.

“Prices are still climbing due to a shortage of stock available to prospective buyers, with many of those working from home still desperately hunting for a larger property and more space.

“There is still some uncertainty in the market, with the new Omicron variant warning people that it’s not business as usual. 

“As long as the labour market remains buoyant and mortgage approvals continue at their current levels, it is likely that the demand for property will remain steady as we move into 2022.”

Craig Tonkin, Bective’s Head of Sales, comments: “While the chances of a white Christmas are slim, property market momentum continues to snowball. As we head into the final stretch of 2021 it’s quite remarkable to not only see a sustained level of high transactional volume but yet another dose of double-digit house price growth.  

“There’s no doubt this is partly being driven by the returning health of the London market. While there are signs that the rest of the market is cooling, the region has gone from strength to strength in recent months. 

“This is not only due to an uplift in domestic activity but also from returning foreign demand across the top tier of the market. We’ve also seen a very strong uplift in rental demand and the combination of all of these factors is helping to push the dial.”

Colby Short, founder and CEO of GetAgent.co.uk, comments: “House prices continue to climb despite fears around an interest rates increase and it seems as though the only person that will be working harder than the nation’s estate agents this December is Father Christmas himself. 

“There’s been absolutely no let-up in buyer demand this year and this coupled with ongoing supply limitations has been the driving factor behind such a jolly level of house price appreciation.”

Nicky Stevenson, Managing Director at national estate agent group Fine & Country, says: “House prices remain stubbornly high despite transaction levels beginning to relax following the record surge in activity earlier in the year.

“A poor supply of housing stock has been insufficient to meet the scramble for bigger homes with more outdoor space, and it’s too early yet to predict whether the new strain of Covid will dampen price growth in the future.

“While there’s certainly no evidence that we may be about to move into lower gears, we could experience an easing off from double digit growth in the months ahead.

“For the time being, the market remains buoyant and prices continue to skyrocket.”