Posts with tag: house prices

Property price growth remains stagnant

Published On: May 8, 2017 at 9:23 am

Tags: Halifax,house prices,landlords,property prices

The most recent analysis released by the Halifax has indicated that property prices in the UK rose by 3.8% in the three months to April. This is unchanged from March, remaining the lowest annual rate since May 2013.

In addition, the report shows that house prices during the period were 0.2% down on the previous three months-the first quarterly fall since November 2012.

Stagnant

Martin Ellis, Housing Economist at the Halifax, observed: ‘House prices have stagnated over the past three months. Overall, prices in the three months to April were marginally lower than in the preceding three months; the first quarterly decline since November 2012. The annual rate of growth remained at 3.8% in April, the lowest rate since May 2013.’[1]

‘Housing demand appears to have been curbed in recent months due to a deterioration in housing affordability driven by the sustained period of rapid house price growth during 2014-16. Signs of a decline in the pace of job creation, and the beginnings of a squeeze on households’ finances as a result of increasing inflation, may also be constraining the demand for homes. A continued low mortgage rate environment, combined with an ongoing acute shortage of properties for sale, should nonetheless help continue to underpin house prices over the coming months,’ he continued.[1]

Adjustment

Russell Quirk, founder and CEO of eMoov.co.uk, noted: ‘Another slight decline in the rate of house price growth on a monthly basis would suggest that the UK market has begun to naturally adjust after a long period of sustained inflation.’[1]

‘We’ve seen an abundance of buyer demand and a lack of sufficient stock heat the market and it would seem that it is finally beginning to level out. This slow may also be due to a number of other influential factors such as the uncertain political landscape and, it will be interesting to see if the market bounces back over the coming months. That said, sellers are still seeing the price of their property increase annually and this slow in price growth will no doubt be welcomed by those on the other side of the fence, who are struggling to get on the ladder.’[1]

Property price growth remains stagnant

Encouragement

Jeremy Leaf, former residential chairman at RICS, acknowledged: ‘Low mortgage rates and a shortage of property haven’t been enough to support prices.’ However, he went on to say he is, ‘encouraged that the annual level is still above where it was this time last year, bearing in mind the huge increase in demand ahead of the introduction of the 3% stamp duty surcharge last April.’[1]

Concluding, Mr Leaf said: ‘Looking forward, we are finding the market to be relatively balanced between supply and demand and still expect those people who recognise current market conditions to take advantage. The market does seem to be finding a new, slightly lower, level and we are certainly seeing no signs of a more substantial fall.’[1]

[1] http://www.propertyreporter.co.uk/property/house-price-growth-stagnates-at-four-year-low.html

Asking Prices Hit Record High, Particularly for First Time Buyers

Published On: April 24, 2017 at 9:38 am

Author: Em Morley

Categories: Property News

Tags: asking prices,average house price,first time buyers,house price growth,house prices

Asking prices hit a record high in April, with homes targeted at first time buyers driving growth, according to the latest House Price Index from Rightmove.

Asking Prices Hit Record High, Particularly for First Time Buyers

Figures from the property portal show that the average new asking price reached a record high of £313,655 in April, up by 2.2% on an annual basis and exceeding the previous peak of £310,471 recorded in June 2016.

Typical first time buyer asking prices surged by 6.5% in the 12 months to April, reaching an average of £194,881.

Second stepper properties rose in value by an average of 3.1% over the year, to hit £265,940, while those at the top of the ladder increased by 1.8%, to an average of £555,963.

Rightmove also reports that sales agreed – based on properties listed as sold subject to completion – rose by 10% year-on-year, which is the highest level at this time of year since 2007.

This helped average time on the market drop from 71 days in February to 65 in March, while stock increased from 52 to 65 over the same period.

The Director of Rightmove, Miles Shipside, comments: “High buyer demand in most parts of the country has helped to propel the price of newly marketed property to record highs.

“There are signs of a strong spring market, with the number of sales agreed achieved at this time of year being the highest since 2007.”

He continues: “It remains to be seen what effect the run-up to the snap election will have, though any slowdown in activity will be counterbalanced by the market’s current fast pace. Indeed, in locations where choice of suitable property is limited, hesitation could mean losing out to others who still decide to act.”

Shipside predicts that stretched buyer affordability will continue to be a price moderator for vendors who are over-ambitious with their pricing, alleviating the pace of price growth.

He adds: “Strong buyer activity this month has led to 10% higher number of sales agreed than in the same period in 2016. This large year-on-year disparity should be viewed cautiously, as the comparable timespan in 2016 saw a drop in buy-to-let activity with the additional second home Stamp Duty.

“However, they are also up by 3.8% when compared to 2015. With the growth in household numbers and new build supply struggling to keep pace, demand is strong and has led to the highest sales agreed numbers at this time of year since the heady pre-credit crunch levels.”

The London Marathon House Price Map for 2017

Published On: April 21, 2017 at 8:10 am

Author: Em Morley

Categories: Property News

Tags: average house price,house prices,London,London marathon

Ahead of this Sunday’s London Marathon, online estate agent eMoov.co.uk has updated its London Marathon Property Price Map for 2017.

The map looks at the difference in average house prices across some of the 26-mile markers in this weekend’s London Marathon.

Across the 16 locations, the average house price is £695,255 – up significantly from last year’s £530,368.

The cheapest option for property buyers this year is at mile four in Woolwich, at an average of £328,866. The most expensive, unsurprisingly, is the final mile market at St James’s Park, with an average house price of £1.6m.

If you’re not too keen on running this Sunday’s race, you can instead take a look through the London Marathon Property Price Map for 2017:

The London Marathon House Price Map for 2017

The race starts in Blackheath, where the average house price is £559,107. It then drops to £450,958 in Charlton, before dropping further to £328,866 in Woolwich. At mile seven, in Greenwich, the average property value rises to £544,899, but falls to £418,949 in Deptford.

It stays just below £500,000 in Rotherhithe and Bermondsey (£496,099 and £497,560 respectively), before soaring to £842,687 in Wapping, at mile 13. However, prices come down to £506,343 in the Isle of Dogs, £526,781 in Canary Wharf, £528,694 in Limehouse and £418,475 in Shadwell.

Towards the end of the route, prices really start to pick up. At Monument, mile 23, average prices are a hefty £949,720. In the City of London, however, they drop to £844,356, before soaring to £1,546,448 in Embankment, at the end of the course.

The Founder and CEO of eMoov, Russell Quirk, says: “The London Marathon is a celebration of London itself and, with the route spanning far and wide across the capital, runners will take in the very best of what the city has to offer. This includes the type of property on the market, and our research shows how the price of London homeownership varies across the route, as well as where aspiring buyers can still find a bargain that offers a good view of Sunday’s race.”

Top 20 Homes Hotspots for Young Buyers Revealed

Published On: April 20, 2017 at 10:01 am

Author: Em Morley

Categories: Property News

Tags: homebuyers,house prices,property hotspots,young professionals

The popular seaside town of Hove has been named the top area in the UK for young buyers to purchase a home, according to a ranking of the top 20 homes hotspots for young professionals.

Landlords can use the list to choose their next property investment location, based on the fact that many buyers will choose to rent a home in their ideal hotspots before purchasing.

The East Sussex town on the south coast of England has an idyllic seaside location, good-sized homes and a family-friendly vibe.

While the average house price in the BN3 postcode is £380,000, three-bedroom houses priced between £700,000-£1m are the most sought-after, according to the Associate Director of Hamptons International’s Brighton and Hove branch, Paul Taggart.

Top 20 Homes Hotspots for Young Buyers Revealed

He says: “Generally speaking, these requests are coming from Londoners looking for a lifestyle change. People are looking for a less populated area than Brighton, with a more laidback vibe. Properties in Hove have a slower turnover because people put down roots.”

Hove also benefits from fewer tourists than neighbouring Brighton, plus there’s a good gastro-pub scene, and great state and private schools. Hove also offers direct train links to Victoria in just over an hour.

Nevertheless, Brighton’s BN1 postcode district, which stretches from the sea into the South Downs national park, is the seventh most popular area with young professionals aged 25-44, thanks to its buzzing nightlife, forward-thinking cultural scene and direct train links to London in under an hour.

Homes in Brighton are just £4,000 more expensive than in Hove, reveals the report from Lloyds Bank, which based its figures on Land Registry transaction data for the 12 months to February this year.

How does London compare?

Southwest London is particularly popular with young professionals, with nine areas in this part of the capital making the top 20 homes hotspots.

With average house prices of £763,000, Wandsworth’s SW18 is the most popular postcode area within Greater London, and the second most popular in England and Wales.

SW16 in fast-rising Streatham is the cheapest of the SW postcodes on the list, with average values of £468,000. Meanwhile, SW6 in Fulham is the most expensive, with prices just topping £1m.

Hampstead’s NW3 postcode is the most expensive district in the capital to make the list.

Kilburn, Paddington, Hammersmith & Fulham, and Chiswick, all in west London, also appear in the top 20.

Tower Hamlets is the sole representative of east London, with the E14 postcode ranking as the sixth most popular area in the country, in part due to its £526,000 average house price, which is significantly cheaper than the majority of the capital’s most popular postcodes.

The rest of the country

Reading in Berkshire and Didsbury in Manchester are the only two other locations outside of London to make the top 20.

In 18^th place, Reading offers 30-minute direct trains into the capital and an average house price of £265,000. With Crossrail due to connect the city to central and east London from next year, it’s also increasingly popular with Londoners looking for more space and better value for money.

Didsbury just makes it onto the list, in 20^th place. Averaging £260,000, homes in the area are the cheapest on the list, with young professionals drawn to its independent shops, and trendy bars and restaurants.

Landlords, do any of these homes hotspots appeal to you? Investing in these areas may open you up to a wide range of potential tenants looking for idyllic places to put down roots.

House Prices are Still Growing, but at a Crawl

Published On: April 18, 2017 at 9:56 am

Author: Em Morley

Categories: Property News

Tags: average house price,house price growth,house prices,property market

House prices are still growing annually, but growth is now three times less than 12 months ago, thanks to last year’s rush to beat Stamp Duty changes.

House Prices are Still Growing, but at a Crawl

The latest England & Wales House Price Index from Your Move and Reeds Rains estate agents shows that house prices returned to growth in March, rising by 3.3% annually to an average of £301,278. Monthly price growth stood at 0.5%.

In comparison, house price growth in March last year was 9.1%, although this was most likely skewed by the number of second homebuyers and buy-to-let landlords rushing to beat the 3% Stamp Duty surcharge.

The March 2017 index does, however, show that house prices have now returned to growth, after inflation slipped from 5.8% in November to 5.3% in December, before dropping to 4.7% in January and 3.1% in February.

Meanwhile, house prices in Birmingham recorded the greatest gains of all UK regions in March for the first time in 21 years.

Property prices in the West Midlands grew by 4.8% in March, to reach an average of £212,706, compared with growth of 1.3% in London and 3.5% in the South East.

The Managing Director of Your Move and Reeds Rains, Oliver Blake, comments: “There is little in the short to medium-term that will disrupt the market greatly, with interest rate increases seemingly on hold, mortgage supply and pricing remaining favourable, and consumer confidence strong. In addition, first time buyer numbers are up, not least as a consequence of Government schemes and the bank of mum and dad.

“However, with supply still tight, rising house prices remain a problem. We therefore cannot afford to overlook the ongoing housing shortage in the UK, which continues to dampen the hopes of many would-be homeowners.”

He continues: “The RICS [Royal Institution of Chartered Surveyors] indicated in its February UK Residential Market Survey that ‘tight supply conditions’ across most regions, along with flat sales in that month, resulted in ‘a further erosion of available stock for sale, with the average stock per surveyor just shy of a record low’. Our data shows that March has seen a pick-up on this.”

UK house prices rise by 5.8% in year to February- ONS

Published On: April 11, 2017 at 1:56 pm

Author: Em Morley

Categories: Property News

Tags: house prices,landlords,property,property price growth

The latest figures from the Office of National Statistics reveal that average house prices in Britain rose by 5.8% in the year to February 2017. This took the average value of a property in the UK to £217,502.

This was up from the 5.3% year-on-year growth seen in year to January 2017, but is still below the average house price growth of 7.3% seen in 2016.

Regional Rates

Further analysis of the figures indicate that prices by country in the UK rose by:

England- 5.8%
Wales- 1.8%
Scotland- 3.1%
Northern Ireland- 5.7%

As such, the average value in these countries stands at:

England- £234,466
Wales- £145,293
Scotland- £139,000
Northern Ireland- £125,000

The East of England saw the highest annual growth, with values rising by 10.3% year-on-year to February. This was followed by the East Midlands with 7.5% and West Midlands with 7%. On the other hand, the lowest annual growth was seen in the North East, where prices rose by 2.2%.

UK house prices rise by 5.8% in year to February- ONS

Supply

Nicholas Finn, executive director of Garrington Property Finders, feels that the gently increasing rate of price growth is welcome but it should not be confused with robust health in the property market.

He notes that this is, ‘symptom of the chronic lack of supply,’ with, ‘the number of homes for sale still very limited in many areas.’[1]

‘Although there are increasing numbers of committed and motivated buyers coming to market, they remain deeply price sensitive and will happily walk away from properties they feel are overpriced,’ he explained.[1]

Competition

Mr Finn also pointed out that mid-priced properties are attracting fierce competition, with not enough stock to appease all would-be buyers. However, at the top end of the market, buyers can enjoy substantial discounts.

‘With consumer price inflation holding steady in March, the Bank of England will continue to delay any interest rate rise for as long as possible, leaving the way clear for the property market to continue its slow upward progress,’ he added.[1]

Doug Crawford, chief executive officer of My Home Move, observed: ‘There is a bit of regional variation at play, with the areas that have seen substantial house price growth in recent years cooling off, notably London and the South East. Arguably this is needed to counteract some of the rapid growth over recent years.’[1]

‘The fact is that the fundamentals are in place for a solid year for the housing market, with robust levels of demand significantly outstripping supply. The biggest obstacle for a happy housing market remains the access to the first step of the housing ladder for first time buyers, even in areas where the market is cooler,’ he added.[1]

[1] http://www.propertywire.com/news/uk/average-house-prices-uk-5-8-year-year-led-east-england/