Posts with tag: house prices

Little Change in House Prices Recorded by Land Registry

Published On: October 18, 2016 at 10:46 am

Author:

Categories: Property News

Tags: ,,,

The UK House Price Index for August from the Land Registry and Office for National Statistics (ONS) shows little change in house prices over the most recent month for which data is available.

In August, house prices rose by an average of 8.4% on an annual basis, taking the typical property value in the UK to £218,964. Month-on-month, house prices rose by 1.3%.

House prices across the country

In England, prices rose by 9.2% over the last 12 months to an average of £235,573. On a monthly basis, prices were up by 1.4% on July.

Wales experienced an annual price increase of 2.7%, taking the average property value to £144,514. However, prices dropped by an average of 0.6% over the month.

Prices in London rose by 12.1% over the past year, putting the average property value in the capital at £488,908. Over the month, prices increased by 1.3%.

Regionally, the House Price Index found that the East of England experienced the greatest increase in house prices over the last 12 months, at 13.35%. Month-on-month, the South West recorded the highest growth, of 2.3%.

The lowest annual price growth was seen in the North East, at 3%, while the region was the only area to record a monthly drop in prices, of 0.2%.

UK property sales

Property sales across the UK rose by 8.4% in the year to August, up slightly from 8.0% in July. Although demand and supply were broadly unchanged on the previous month, the indicators remained

Little Change in House Prices Recorded by Land Registry

Little Change in House Prices Recorded by Land Registry

somewhat weaker than in 2015 and early 2016, according to the report.

Data for June 2016 – for which the most recent Land Registry figures are available – shows that the number of completed home sales in England dropped by 32.2% to 57,637, compared with 85,020 in the previous year.

The amount of property sales in Wales fell by 27.1% to 3,046, compared to 4,181 in June 2015.

In London, the number of completed home sales also dropped, by a huge 46.7%, to 5,966, from 11,202 in the same month last year.

There were a total of 526 repossession sales in England during June, with just 55 in Wales. The lowest number of repossession sales in England and Wales was in the East of England.

Little change in house prices 

Katherine Binns, of the HomeOwners Alliance, responds to the figures: “The latest house price data released by Land Registry shows little change in house price growth in August. Since the referendum result, both house sales and house price growth have eased. However, low mortgage rates and a shortage of homes available for sale should sustain house prices.

“As the economy and employment have held up following the Brexit vote, it will be interesting to see whether confidence returns and begins to unfold in autumn housing market activity, as buyers take advantage of attractive mortgage rates.”

Seasonally acceptable picture of the market

The CEO of eMoov, Russell Quirk, also comments on the findings: “Today’s figures from the Land Registry portray a pretty seasonally acceptable picture of the UK market during late summer, but with prices up 8.4% annually and still up 1.3% over the slower holiday months, homeowners have a lot to be reassured by.

“Looking annually, it’s a pretty familiar picture with London, the South East and East of England all seeing double-digit growth in house prices. Perhaps a little more unusual when looking at monthly growth is London, seemingly rocked by the leave vote, with an increase of just 1.3%.”

He continues: “Although the East of England and South East both enjoyed strong monthly growth, there are a few unusual front-runners placing well in the regional house price race. Both the East and West Midlands enjoyed strong monthly growth, at 1.6% each, but perhaps the real standout story is the South West, as the only area seeing monthly growth tip over 2%.

“Who knows, this uncharacteristic rise to the top could be a result of South West holiday goers making some snap decisions whilst down in the likes of Devon and Cornwall over the summer.

“Regardless, we’ve just seen one of our strongest months performance wise, with sales and listings both well up on previous months. So any current myths of the UK market on its knees on either side of the fence at present are myths indeed.”

Uncertainty following Brexit

Additionally, the Co-Founder and Director of online mortgage lender LendInvest, Ian Thomas, reacts to the House Price Index: “August was a tricky month for the housing market, with the uncertainty following the Brexit vote adding to the traditional summer slowdown. It has been a feature of this year that the housing market has had to deal with a succession of external factors denting demand. The conclusion of the Help to Buy scheme at the end of 2016 will be another one, which may particularly affect the sale of new build properties.”

Average House Price is Eight Times the Typical Wage in the UK

Published On: October 11, 2016 at 9:22 am

Author:

Categories: Property News

Tags: ,,,,

The average house price in the UK is eight times the typical wage, according to online estate agent eMoov.co.uk.

The agent has found the most unaffordable parts of the UK where house price to wage ratio is concerned. It has compiled data for all London boroughs, and each area across England, Scotland and Wales, calculating the most expensive and cheapest areas for buying property when compared to income.

Unsurprisingly, the majority of the most expensive areas are in London, where the average house price climbs to 14 times the typical wage.

Average House Price is Eight Times the Typical Wage in the UK

Average House Price is Eight Times the Typical Wage in the UK

The Royal Borough of Kensington and Chelsea tops the list, with an average house price of £1,212,375, despite suffering the greatest decline in property values in the capital over the past year, of 6%. The cost of buying a home in the borough is now 46 times the average wage, of £26,624, and the nation’s greatest gap in property prices to wages by far.

The City of Westminster is second on the list for the most expensive property price to income, where the typical property costs £1,028,617, up by 11% annually. With an average wage of £33,020, house prices in the borough are 31 times higher than earnings.

Richmond upon Thames, also in London, placed fourth on the list, with the average house price (£659,636) a huge 26 times the typical wage (£25,636).

Looking at England as a whole, the average house price is nine times the typical wage on offer. The most expensive city outside of London and third place overall is St Albans in Hertfordshire, where the average house price (£522,716) is 28 times higher than typical earnings (£18,928).

The second most expensive location outside the capital is South Bucks in Buckinghamshire, where the house price to wage ratio is 25. Workers on an average income of £23,192 are faced with the challenge of buying a property costing £587,645 in the area.

Chiltern, close behind South Bucks, has a wage to house price ratio of 24, with a typical property value of £512,910.

In Wales, the lower average property value means that the gap between prices and wages is just six times. Monmouthshire is home to the highest average house price to wage ratio in Wales (12), but is only ranked 153rd overall in the UK, with a typical property price of £221,345.

With house prices also lower in Scotland, the price to wage ratio is just five. The most expensive Scottish region is East Renfrewshire, despite placing 113th in the whole of the UK. The average wage in the area is 13 times lower than the typical house price.

The City of Edinburgh placed second in a three-way tie (along with East Dunbartonshire and East Lothian) for unaffordability in Scotland, but is ranked just 210th throughout the UK. It would take ten times the average wage in the Scottish capital to buy a home there.

In contrast, Copeland in western Cumbria is the most affordable part of the UK, with a property price to wage ratio of just three. Blaenau Gwent in Wales follows closely behind, at four times, with Burnley in Lancashire also at four.

The Founder and CEO of eMoov, Russell Quirk, comments on the findings: “Property values in England are significantly higher than the rest of the UK, which is reflected in the wages offered. However, the wages are not always consistent with property prices, and have failed to increase at the same pace.

“It highlights the unaffordability of the market in England when you consider the difference in Wales, where the highest annual average wage is under £21,000 in Cardiff, yet the city’s property value is merely third in the country, behind regions with lower averages in annual incomes. Additionally, the average wage in Kensington and Chelsea would take almost a lifetime working to be able to afford a home, which is unrealistic for most, let alone the average buyer.”

He adds: “It is important to consider the wage you can earn when buying property, to understand the longevity of the investment, as a lower property price doesn’t always mean a better quality of living, as the wage will also reflect the local market and economy.”

Official Statistics Prove that Housing Crisis is Spreading

Published On: October 10, 2016 at 10:53 am

Author:

Categories: Property News

Tags: ,,,

New official statistics from the Office for National Statistics (ONS) prove that the housing crisis is spreading to many cities across the UK, not just London.

The ONS has used its house price statistics to explore the housing market across the UK. The most recent complete data ranges to the end of 2015.

The median price paid for residential property in England and Wales was £207,500 in 2015, up by £12,500 (6.4%) on 2014. This was largely driven by a 7% annual increase in England, while growth in Wales averaged just 2%. The median price paid for property ranged from around £77,000 in Blaenau Gwent to almost £1.2m in Kensington and Chelsea.

Official Statistics Prove that Housing Crisis is Spreading

Official Statistics Prove that Housing Crisis is Spreading

The majority of local authorities in England and Wales recorded an increase in median price between 2014-15. The median price decreased in eight local authorities, five of which were in the North West, two in Wales and one in London. There was just one London borough where the median price decreased over this period – Kensington and Chelsea. The ONS believes that this is likely the result of higher Stamp Duty rates on the most expensive properties from the end of 2014.

The data shows that the gap between the median price paid for properties in regions with the highest and lowest prices has become wider over time.

This gap is largely the result of the steeper increase of house prices in London, reports the ONS. Between 2014 and 2015, London recorded an average house price rise of 9.6%, while an average increase of just 5.5% was seen in the North East.

In 2015, Barking and Dagenham had the lowest median house price in London, at £245,000. Although this was the cheapest price paid in the capital, it was higher than two-thirds of all local authorities in England and Wales, reflecting generally higher housing costs in London and its surrounding areas.

Since 2007, the median price paid for properties in the most expensive 10% of England and Wales has soared by 37.6%. Over the same timeframe, there has been a decline in median house prices for properties in the least expensive areas, of 3.9%. ONS believes that there are many factors that may cause changes in house prices, including average earnings and the rate of population change. When there is higher demand for owner-occupied housing in a certain area, house prices tend to rise at a faster rate than in areas where demand is lower, says the report.

The ONS claims that local authorities in which the population has increased the most in one year typically have a larger increase in house prices the following year.

While the population of England and Wales has risen steadily over time, this is not the only factor that pushes up demand for housing. One factor that affects housing demand is the characteristics and composition of residents in households. In 2015, people living alone occupied 28.6% of all homes in the UK. This can contribute to rising house prices, which in turn makes it more difficult for young people to purchase homes.

Commenting on the recent report, the Senior Research and Policy Analyst at the Resolution Foundation, Lindsay Judge, says: “Today’s ONS figures confirm that the housing crisis facing Britain is about much more than the inability of younger people to buy their own home. Housing is becoming less affordable. Homeowners and renters alike are seeing more of their earnings eaten up by accommodation costs, undermining living standards for millions. And while London remains the outlier in terms of costs, this housing crisis has now spread to cities across the country.

“While there has been a slight uptick in the number of new houses built this year, we are still falling well short of the levels needed to make housing genuinely affordable again. It’s encouraging that the Prime Minister has put housing at the heart of her Government’s plans. We now need to see the Government roll up its sleeves to meet its target of one-million homes built this Parliament.”

House Price Growth Continues to Slow, According to Halifax

Published On: October 7, 2016 at 9:33 am

Author:

Categories: Property News

Tags: ,,,

House price growth has slowed to just 0.1% on a monthly basis, according to the latest House Price Index from Halifax.

House Price Growth Continues to Slow, According to Halifax

House Price Growth Continues to Slow, According to Halifax

Although annual house price growth still stands at 5.8%, prices have only risen by 0.1% over the past month. Additionally, on a quarterly basis, house prices have dropped by an average of 0.1%.

At present, the average house price in the UK is £214,024.

The Founder and CEO of eMoov.co.uk, Russell Quirk, comments on the data: “Halifax’s figures show the market has continued to slow, with growth almost stalling month-on-month, and down marginally over the last quarter.

“Although there may be a small few still walking on EU eggshells when it comes to the sale or purchase of a property, the leave decision continues to have a very minute influence on the UK market at present, as, at this point, we are a member of the EU. This slowdown is undoubtedly seasonal, and looking at this time last year, prices were on a much steeper month-on-month downturn.

“Those small few should remain reassured that until Article 50 is triggered, the UK market will remain in good health when compared to previous years, albeit cooling slightly, and endure no sudden or lasting impact as a direct result of the referendum vote. When Article 50 is implemented, we could see a market wobble, however, the extent of this is likely to be minor.”

He looks ahead: “We are heading into what is seasonally a very busy time in the UK property market in the lead up to Christmas, with many looking to get their sale or purchase over the line before the festive season starts. I’m confident that over the coming three months, we will witness the usual winter flu shot to the market, with the scramble to complete helping to push prices up again.

“Our advice for those on the Brexit fence would be to keep faith in what remains to be a strong UK market, as indecision at this point is based on nothing but empty rhetoric from both sides of the Brexit camps.”

Ian Thomas, the Co-Founder and Director of online mortgage lender LendInvest, also responds to the figures: “Recent months have seen a number of external factors chipping away at demand, such as Brexit, the additional Stamp Duty charge on second homes and the traditionally slow summer.

“The confirmation that the Help to Buy scheme will end later this year is another one. The initiative has been extremely popular, so it will be interesting to see if its conclusion will drive down demand, and therefore sales, of new build properties.

“It is good that the Government has made housebuilding such a significant part of their party conference over the last week, with new measures designed to improve the rate at which we build new homes. The time for talking about the housing shortage must end – we need action, not words.”

Shoreditch is the Most Affordable London Location for Literature Lovers

Published On: October 6, 2016 at 11:07 am

Author:

Categories: Property News

Tags: ,,,

Shoreditch has been named the most affordable London location for literature lovers to move to, as estate agent Marsh & Parsons analyses the backdrops of famous books.

With the London Literature Festival taking place at the Southbank Centre from 5th-16th October, the agent has scoured the shelves for novels set in the capital, looking at the average house prices in the locations mentioned.

Shoreditch is the Most Affordable London Location for Literature Lovers

Shoreditch is the Most Affordable London Location for Literature Lovers

The trendy neighbourhood of Shoreditch was the most affordable area committed to ink, where the average house price stands at £729,807. The area was most famously included in Monica Ali’s 2003 hit Brick Lane.

Other parts of east London have also gained literary fame, such as London Fields in Martin Amis’s murder mystery of the same name in 1989, and Peter Ackroyd’s The Clerkenwell Tales in 2003.

At the opposite end of the spectrum, Notting Hill was named the most expensive location mentioned in famous stories. Property in the exclusive district is worth an average of £2,071,429 – a far cry from the Notting Hill portrayed in Samuel Selvon’s 1956 novel, The Lonely Londoners, in which “the Gate” is described as a down-at-heel area where newcomers could find cheap lodgings.

Particularly pertinent, following the release of the third film, is the Bridget Jones series. Before Helen Fielding’s newspaper columns were turned into novels and then films, the British heroine lived in Holland Park (not Borough, as the films would suggest). With typical house prices in the area now exceeding £1.5m, the character maybe wasn’t as doomed as she let on…

London has provided the backdrop for thousands of novels over the years, with other notable mentions including: North Kensington (in 1959’s Absolute Beginners by Colin MacInnes) where the average price is £1,373,036; Westminster (in Virginia Woolf’s 1925 novel Mrs Dalloway) at £1,353,750; Clapham (in Graham Greene’s The End of the Affair from 1951) at £987,286; and Balham (in the 2001 novel Atonement by Ian McEwan) at £801,667.

Literary legends Charles Dickens and George Orwell set many of their famous novels in the streets of London, while in more recent years, Nick Hornby, Sebastian Faulks and Zadie Smith have used the capital as a backdrop in their stories.

London’s stations also feature prominently in literature, most famously Michael Bond’s Paddington Bear and JK Rowling’s Platform 93/4 at King’s Cross in the Harry Potter series.

The CEO of Marsh & Parsons, David Brown, comments on the study: “As a global epicentre of some renown, it’s unsurprising that thousands of authors have chosen London as the backdrop for their novels. Each neighbourhood has its own unique character, so a capital city as vast and diverse as London provides ample ammunition for writers seeking striking settings. Of course, due to this prestige, living in London comes at a cost, and homebuyers looking to follow in the footsteps of their literary heroes will have to pay for the privilege.

“Modern-day London is as far removed from the city portrayed by Charles Dickens in Oliver Twist and Bleak House as to feel like a different metropolis altogether. But as esteemed as London is, there are still affordable opportunities for those who aren’t preoccupied with the most prestigious postcodes. Shoreditch and the surrounding areas have a number of advantages, such as enviable transport links and a stellar cultural and arts scene, and they can also add literary landmark to the long list of plus points. The average property value may be in excess of £700,000 due to some luxury properties at the higher end, but more modest flats are available for a fraction of that price.”

Government Decides to Scrap the Help to Buy Scheme

Published On: October 3, 2016 at 9:20 am

Author:

Categories: Finance News

Tags: ,,,,

The Government has decided to scrap its Help to Buy mortgage guarantee scheme. The programme will close to new mortgages on 31st December 2016, Chancellor Philip Hammond has confirmed.

The news arrives following research by online estate agent eMoov.co.uk that found that house prices in almost half of England will be too expensive for buyers to purchase a property through the Help to Buy ISA scheme by spring 2017.

Government Decides to Scrap the Help to Buy Scheme

Government Decides to Scrap the Help to Buy Scheme 

The agent analysed the average house prices across all 326 districts in England, finding that prices in almost half of the country will exceed the Help to Buy threshold by March next year.

The Founder and CEO of eMoov, Russell Quirk, comments on the Government’s decision to scrap the Help to Buy mortgage guarantee scheme: “Big development for those looking to get that vital first foot on a rather high UK property ladder.

“On the face of it, it might seem like bad news for would-be homeowners, however, the failure of the Help to Buy scheme has been pretty monumental in addressing the growing housing crisis.”

He continues: “Today’s announcement by Philip Hammond marks a significant change in the ideology of this new Prime Minister and her Government – an ideology that clearly does not share the Cameron/Osborne love affair with aspirational homeownership.

“This complete reversal could be seen as a real retrograde step and now leaves several hundred thousand would-be homebuyers that could benefit from the Help to Buy scheme, particularly those first time buyers, without the assisted first rung of the property ladder to step on.”

Quirk explains his expectations: “I suspect that the direction of travel for the Prime Minister is to now promote build-to-let, which is an easier win than chasing ever higher house prices. Although it will be seen as an attack on those looking to buy in an ever inflated market, the Government’s record of actually building new property has been less than woeful, and so any attempt to address the shortage of property stock should be commended at the very least.

“If we do see this supply and demand imbalance start to level out, prices will follow suit, resulting in a more realistic ask for those looking to buy.”

With the Help to Buy mortgage guarantee scheme set to be no more in a matter of months, will private tenants be forced to rent for even longer? While this might be good news for landlords, it is always important to remember to stick to the law in order to protect your renters!

Keep up to date with your responsibilities at Landlord News.