Posts with tag: house prices

91% feel the value of their property has increased since buying

Published On: February 15, 2017 at 3:23 pm

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New research from Co-op Insurance has found that 91% of homeowners believe that the value of their property has risen since they purchased, by an average of £33,125.

The study quizzed 1,000 UK homeowners and found that 31% of homeowners purchased their home solely with making money on investment in mind. 62% said that they were confident in house price rises being able to let them achieve this.

Location Location Location

Location was another key factors, with 34% of purchasers buying in a desirable region. 32% purchased in areas that were thought to be up and coming.

Interestingly, 29% brought a property in clear need of renovation work.

76% of those asked said that they had made changes to their property since they had moved in. Of these, 60% feel the renovation works they have completed have led to an increase in values.

On average, renovation and decorative work that homeowners have completed on their property totalled £18,224. This means, typically, homeowners are seeing a £14,900 profit as a result of these works.

London Pride

Homeowners in the capital have seen the largest average rise in profit as a result of renovation and decorative improvements. 94% said that they were confident that there property had risen in value.

In Northern Ireland, 78% believe the property of their home has increased but not as a result of renovation work.

For those trying to lure new buyers, the kitchen was found to be the most important room, with 56% believing this is the room that really sells the home. The living room is the second most desirable according to those questioned, while bathrooms were important to only 4%.

76% of respondents said that they have made renovations to their home since they purchased.

91% feel the value of their property has increased since buying

91% feel the value of their property has increased since buying

Value

Caroline Hunter, Head of Home Insurance at the Co-Op, noted: ‘Our study shows that homeowners believe by investing in décor and bigger renovation works they are adding value to their homes for future years.

Kitchens have long been lauded as the heart of the home and our study continues to solidify this, with over half of homeowners believing that this is the room of the house that could make, or break, a sale.’[1]

‘Whilst they are a big draw for prospective buyers, they can be expensive, therefore it’s important to revisit your home insurance policy to ensure you have the right level of cover in place during the building works, to protect you from additional risks during the work. Don’t assume your builder will have insurance in place that covers you in every eventuality,’ she added.[1]

[1] http://www.propertyreporter.co.uk/property/are-renovations-the-doorway-to-profit.html

 

The Best Counties in the Country to Start a Family

Published On: February 14, 2017 at 11:10 am

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As it’s Valentine’s Day, online estate agent eMoov.co.uk has found the best counties in the country for property buyers to start a family.

Based on the number of births in each county and the affordability of property in the area, the agent has found the most popular parts of England for loved up homebuyers to make a love nest – they may also be great areas for landlords to invest if they want to let to families.

The Best Counties in the Country to Start a Family

The Best Counties in the Country to Start a Family

eMoov has assessed the total number of births across each county to find the areas with the highest levels, before finding the locations with an average house price below the English average of £234,278.

The West Midlands came out on top, with 19,005 registered births in 2015 (for which the latest data is available). Although this is second to London, the West Midland’s average house price of £163,162 takes it storming into first place. With the birth of babies often spurring a move to a larger property, the lower average house price in the region is no doubt what makes it a popular choice for those starting or extending a family.

Greater Manchester would seem the next best option, with an average house price of just £152,747 and 18,446 births recorded there – the third highest in the nation.

West Yorkshire (14,595), Merseyside (10,333), and South Yorkshire (9,394) are home to the next highest number of births across England, and all offer an average house price between £131,000-£146,828.

Lancashire (7,048), Tyne and Wear (6,995), and Cheshire (5,846) all saw more than 5,000 new additions in 2015, and, furthermore, buyers in Lancashire and Tyne and Wear can purchase a property for less than £137,000, with the average house price in Cheshire also affordable, at £176,495.

Norfolk and Nottinghamshire complete the top ten, with an average house price of £212,509 and £161,508 respectively, and both seeing the number of births in a year stand just below 5,000.

On top of these counties, there are an additional 15 locations where the average house price is lower than the national average, making them more affordable for potential buyers starting a family.

In the City of London, where the average house price is a huge £790,439, just 16 births were registered, proving that high property values are perhaps the biggest barrier to starting a family.

The Founder and CEO of eMoov, Russell Quirk, says: “The birth of a child is always a big event, and often influences where we buy and, with raising a child becoming increasingly expensive, saving on the price of a property can make all the difference.

“So, it is no surprise that 70% of the top ten counties for the highest birth rates are home to a lower average house price, as expecting parents look to make their finances stretch as far as they can.

“Of course, it isn’t always like for like as London proves with the highest birth rate in England, but it highlights where is the best places to consider for potential parents and buyers.”

House Price Growth Strong at the End of Last Year

Published On: February 14, 2017 at 10:04 am

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House price growth across the UK was strong at the end of last year, according to the latest figures from the Office for National Statistics (ONS) and Land Registry.

The report shows that house prices rose by an average of 7.2% in the year to December, up from 6.1% in the previous month. This highlights the continuing strong growth recorded since the end of 2013.

However, annual growth was weaker in the second half of 2016 than in the first six months of the year, the ONS reports.

The average UK house price in December was £220,000. This is £15,000 higher than in December 2015, and £3,000 higher on a monthly basis.

House Price Growth Strong at the End of Last Year

House Price Growth Strong at the End of Last Year

The main contributor to the increase in UK house prices was England, where property values rose by 7.7% in the year to December, taking the average price to £236,000.

House prices in Wales increased by 4.7% over the same period, to stand at an average of £148,000. In Scotland, the average value grew by 3.5%, taking it to £142,000. The average price in Northern Ireland rose by 5.7%, to reach £125,000.

Regionally 

London continues to be the region with the highest average house price, at £484,000, followed by the South East and East of England, at £316,000 and £282,000 respectively. The lowest average price continues to be found in the North East, at £129,000.

The highest annual growth of December was recorded in the East of England, at 11.3%. Growth in the South East was second highest, at 8.5%, followed by London, at 7.5%. The lowest annual growth was seen in the North East, where prices rose by just 4.1% over the year.

By local authority 

The local authority showing the largest annual growth in the year to December was the Shetland Islands, where prices were up by 26.1% to stand at an average of £179,000. Low numbers of property sales in some local authorities, such as the Shetland Islands, can lead to volatility in the index, the ONS points out. The lowest annual growth was recorded in the City of Aberdeen, where prices fell by 9.8%, to an average of £168,000.

In December, the most expensive borough to live in was Kensington and Chelsea, where the average home cost £1.3m. In contrast, the cheapest place to buy a property was Burnley, at an average of £74,000.

Comments

The CEO and Co-Founder of LendInvest, Ian Thomas, responds to the figures: “As we head into 2017, we’ve seen slowing rises in property price rises. Despite this, reasonable growth should still be expected throughout 2017.

“We’ve seen from last week’s Housing White Paper that the Government is more committed than ever to fixing the broken housing market. Restoring confidence in the property market will require action by Government to get all parts of the housebuilding sector firing on all cylinders, especially the SME housebuilders, who Government promise to help grow.”

The Founder and CEO of eMoov.co.uk, Russell Quirk, also comments: “There has been a number of sceptics where the state of the housing market in 2016 is concerned and, although the likes of Halifax and Nationwide provide a snapshot of performance, the fact they are based on mortgage approval data, not cold hard completions, will always leave room for doubt.

“But today’s data from the Land Registry provides a concrete view of how the market performed during a testing year and, on the face of it, held up very well, all things considered.”

He explains: “Not only did prices see an increase of 7.2% annually, but, heading into what is a quiet time of year for the market, an increase of 1.4% in prices and an uplift of 0.2% in transaction volume month-on-month is a promising sign indeed for the year ahead.

“Not only did the London market see healthy growth despite the changes to second home Stamp Duty tax brackets, but there is also positive signs across the rest of the nation. The market in Wales, in particular, has really suffered of late, and so a 1% boost on November’s figures will be a welcome sign for Welsh homeowners.”

Quirk concludes: “This latest market insight should spur a renewed confidence in UK homeowners that we have very much weathered the storm and that UK property is an attractive proposition as it has ever been, whether you are buying or selling.”

January House Price Growth Eased to 5.7%

Published On: February 7, 2017 at 10:07 am

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House price growth in the three months to January eased to an annual rate of 5.7%, down from 6.5% in December, according to the latest House Price Index from Halifax.

January’s slowdown in house price growth followed two consecutive increases in the annual rate, from a low of 5.2% in October 2016. The annual rate recorded for the start of this year is much lower than the 10.0% peak hit in March last year.

On a quarterly basis, house prices rose by an average of 2.4% when compared to the previous quarter, which compares to the 2.5% rate recorded in December – the highest since March (+2.9%).

Month-on-month, house price growth dropped by a slight 0.9%.

The average house price in the UK, as of January, is £220,260.

A Housing Economist at Halifax, Martin Ellis, comments: “The quarterly and annual rates of house price growth remain robust, even though they are lower than in spring 2016. UK house prices continue to be supported by an ongoing shortage of property for sale, low levels of housebuilding, and exceptionally low interest rates.

January House Price Growth Eased to 5.7%

January House Price Growth Eased to 5.7%

“These factors are unlikely to change materially during 2017. Nonetheless, weaker economic growth and increasing pressure on spending power, along with affordability constraints, are expected to dampen housing demand, resulting in some downward pressure on annual house price growth during the year.”

First time buyers

Halifax has also released its latest First Time Buyer Review, which suggests that the number of buyers purchasing their first homes has risen by 7% over the past 12 months, to reach 335,750.

This was the highest level since the start of the financial crisis in 2007, when it stood at 359,900. First time buyer numbers still remain 17% below the immediate pre-crisis peak of 402,800 in 2006, however.

UK home sales

In 2016, the total number of UK home sales was marginally higher (+0.4%) than in 2015, at 1.23m. Sales in the fourth quarter (Q4) of 2016 were 0.5% higher than in the previous quarter.

Despite this modest quarterly improvement, sales in Q4 2016 were 9% lower than in Q4 2015.

Mortgage approvals 

The amount of mortgage approvals for house purchases – a leading indicator of completed property sales – rose by 1% between November and December last year, to 67,900.

This was the highest level recorded since March 2016, when approvals were boosted by the impending Stamp Duty surcharge for additional homes and buy-to-let properties.

Approvals in Q4 2016 were 9% higher than in Q3 2016, suggesting that property sales could increase over the coming months.

Housing supply 

Regardless, housing supply remains very low across the country. New instructions failed to pick up in December, marking the tenth consecutive month without any improvement in new listings.

As a result, stock levels remain close to a record low, which Halifax claims is severely restricting choice for prospective buyers and constraining market activity.

The Founder and CEO of online estate agent eMoov.co.uk, Russell Quirk, comments on the report: “There are those that will, of course, see this marginal monthly drop in house prices as a fulfilment of the Armageddon-style prophecies that have plagued the UK market since the start of last year, with many widely predicting a troublesome year ahead for property.

“But these figures demonstrate the robust, Teflon-style nature of the UK market as, despite a turbulent year for property, it has weathered the storm and continues to see upward price growth both annually and when compared to the last quarter.”

He continues: “January is always a lethargic month for UK property as a result of the Christmas break, and so any fall in house prices at this time of year should be taken with a pinch of salt, rather than a handful of panic. Mortgage approvals have continued to increase, and demand remains woefully low, so it is likely that come this time next month, prices will be on the up again across the board, and this monthly drop will have righted itself.

“Had any other market around the world been subject to such a sustained period of scaremongering and uncertainty amongst buyer and seller as the UK market has in the last year, I expect it would be a different story to the one we are seeing here.”

The CIO and Co-Founder of LendInvest, Ian Thomas, also says: “Figures from Halifax in January indicated higher than expected house price growth, as constrained housing supply maintained buoyancy in prices.

“While there will be growth in prices this year, measures in the Government’s Housing White Paper announced today will tackle the gridlock in supply and will ultimately determine the scale of price growth.”

We will keep you up to date with the release and content of the Housing White Paper at Landlord News.

Steady Start to the Year for UK House Prices, Reports Nationwide

Published On: February 1, 2017 at 10:08 am

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Figures for January show a steady start to the year for UK house prices, according to the latest House Price Index from Nationwide.

Over the month, the annual rate of growth for UK house prices fell slightly to 4.3%, from 4.5% in December 2016. The monthly increase in January also slowed, from 0.8% to 0.2%.

Steady Start to the Year for UK House Prices, Reports Nationwide

Steady Start to the Year for UK House Prices, Reports Nationwide

Nevertheless, the steady start of the year takes UK house prices to an average of £205,240, from £205,898 in the previous month.

The Chief Economist at Nationwide, Robert Gardner, comments on the report: “The outlook for the housing market remains clouded, reflecting the uncertainty surrounding economic prospects more broadly.

“On the one hand, there are grounds for optimism. The economy has remained far stronger than expected in the wake of the Brexit vote. Recent data indicates that the economy didn’t slow in the second half of 2016 and the unemployment rate remained stable, at an 11-year low in the three months to November.”

Nonetheless, he continues: “However, there are tentative signs that conditions may be about to soften. Employment growth has moderated, and while wage growth has edged up in recent months in real terms (i.e. after adjusting for inflation), earnings growth has already slowed.

“With inflation set to rise further in the months ahead as a result of the weaker pound, real wages are likely to come under further pressure. Employment growth is also likely to continue to moderate, should the economy slow as most forecasters expect.”

He adds: “On balance, we agree with the consensus view that the economy is likely to slow through 2017 as the squeeze on household budgets intensifies and heightened uncertainty weighs on business investment and hiring.

“Nevertheless, we continue to believe that a small rise in house prices of around 2% is more likely than a decline over the course of 2017, since low borrowing costs and the dearth of homes on the market will continue to support prices.”

Following the release of the report on UK house prices, the CEO of online estate agent eMoov.co.uk, Russell Quirk, says: “Today is the first look at house price movement for the New Year, as the market whirs back into life after Christmas and, on the face of it, the overarching stability and market confidence that was seen throughout 2016 seems to have spilt over into 2017.

“It’s fair to say that as far as external influences are concerned, 2017 has already thrown up its fair share of curve balls, particularly across the pond. But the ripple effects of these distance influences are unlikely to reach the UK property market, unless you own a second home in high-end London.”

He goes on: “That said, this year is probably the year we see some form of the knock-on effect from the turbulence of 2016 where price growth is concerned. But this is likely to come in the form of a slower rate of escalation rather than a negative movement.

“Despite this potential marginal slowdown, it is widely predicted that the market will remain robust throughout the coming year, and prices will maintain their upward trend, which certainly seems to be the case based on today’s numbers.”

He concludes: “A New Year and another increase in house prices will provide a positive outlook for UK homeowners in 2017, perhaps not so positive for those still struggling to buy.”

Do you believe UK house prices will continue growing this year?

Surveyors Report a Subdued Property Market for Lettings and Sales

Published On: January 19, 2017 at 11:50 am

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Surveyors reported that the property market, for both lettings and sales, was subdued at the end of last year.

The Royal Institution of Chartered Surveyors (RICS) has released its latest UK Residential Market Survey, covering December 2016, looking into activity in the lettings and sales markets.

Surveyors Report a Subdued Property Market for Lettings and Sales

Surveyors Report a Subdued Property Market for Lettings and Sales

Surveyors saw a slight drop in sales activity at the end of last year, while many are predicting a decline in volumes over the next three months.

The report shows that 1% more chartered surveyors saw a fall rather than a rise in sales in December, with just 4% more respondents anticipating an increase in sales over the next three months, down from 18% previously.

However, in the longer term, the 12-month sales outlook is much more positive, with 32% more surveyors expecting sales to rise rather than fall this year, compared with 31% in the November survey.

More surveyors are also expecting house price declines in the next three months, but, over the year, 49% more forecast growth, up from 40% in November and the strongest level seen since May 2016.

The latest official statistics, for the end of last year, show that house prices remain resilient across the UK.

In the lettings sector, surveyors said new landlord instructions were more or less flat, projecting rental growth to average around 5% per year over the next five years. However, recent reports warn that rents are close to hitting an affordability ceiling.

The Chief Economist at the RICS, Simon Rubinsohn, comments on the lettings and sales markets report: “A familiar story relating to supply continues to drive both the sales and lettings market, impacting on activity, prices and rents.

“The eagerly awaited Housing White Paper should help to create a more positive framework for new build delivery, but, with the best will in the world, it is going to take time before the resulting uplift in the development pipeline begins to impact on the opportunities for either homebuyers or tenants.”

He adds: “Meanwhile, the latest RICS survey provides further evidence that both price and rent pressures are continuing to spread from the more highly valued to more modestly valued parts of the market for good or ill.”

How do you think the lettings and sales markets will fare over the coming 12 months?