Posts with tag: house prices

House Prices in Port Talbot Bounce Back Despite Steel Works Uncertainty

Published On: September 22, 2016 at 10:31 am

Author:

Categories: Property News

Tags: ,,,

House prices in the Welsh town of Port Talbot have bounced back, despite uncertainty surrounding the fate of the Tata steel works, which employs around 10% of the population.

Online estate agent eMoov.co.uk has found that the average house price in Wales is now £146,272, and is on the up.

House Prices in Port Talbot Bounce Back Despite Steel Works Uncertainty

House Prices in Port Talbot Bounce Back Despite Steel Works Uncertainty

Nationally, prices are up by 2% over the past month and 5% annually.

Merthydr Tydfil has experienced the greatest annual increase, of 12%, while Gwynedd saw prices drop by 6% over the same period.

In the past month, the Isle of Anglesey saw the largest decrease in prices, of 2%, on the previous month. But it is Port Talbot that has experienced a shocking turnaround, with prices rising by 9% over the last year – the same growth rate as England as a whole and 5% higher than Wales.

On a monthly basis, house prices in Wales have experienced a marginal decline, while England saw a slight increase of 2% over the same timeframe. Port Talbot, however, has enjoyed a 7% rise on the month.

Tata’s Port Talbot site is one of the largest steel works in the world. It has been at the centre of controversy surrounding its sale and closure, which could result in the loss of thousands of jobs in the community.

Although the future of the steel works still remains unclear, Port Talbot’s increase in house prices over the last year is an encouraging sign for the local community. Discussions are also continuing about a pan-European merger with Tata’s closest competitor, ThyssenKrupp, although no concrete details have been released.

The outcome for Port Talbot might still be in limbo, but if the controversy with the steel works is resolved, the community will experience a newfound stability in the area’s property market. However, if the stalemate continues, homeowners will at least be able to find comfort in experiencing the greatest house price growth of the whole of Wales.

Russell Quirk, the founder and CEO of eMoov, says: “Port Talbot enjoying the biggest monthly increase in property values across Wales is great news for homeowners in the area, after the uncertainty that has plagued the market due to Tata closing the steel works in the area.

“When the local economy relies so heavily on one particular trade or output to survive, it can be disastrous for the local property market when this trade declines drastically or, in this case, disappears altogether. Although the future of Tata steel works is not yet decided for certain, homeowners in Port Talbot have a small silver lining around the dark cloud that has been hanging above them for quite some time.”

Asking Prices Up, Particularly for First Time Buyers

Published On: September 19, 2016 at 8:28 am

Author:

Categories: Property News

Tags: ,,,

Average asking prices are on the up following the Brexit vote, particularly for first time buyers, according to the latest house price index from Rightmove.

Asking Prices Up, Particularly for First Time Buyers

Asking Prices Up, Particularly for First Time Buyers

The property portal’s September data shows that the average asking price of new properties on the market rose by 0.7% over the month (or £2,277) to reach £306,499, following a 3% decline in the previous two months.

Asking prices are up by 4% annually, down on August’s 4.1% growth.

First time buyer properties, those with two bedrooms or less, showed particularly strong growth, rising by 3.3% on a monthly basis (or £6,240) to hit an average of £194,477. Year-on-year, asking prices increased by 10.5%.

Second stepper properties recorded growth of 0.5% on the month and 5.2% annually, reaching an average of £258,836.

However, properties at the top of the ladder continue to struggle, with asking prices up by just 1.2% on August and 2.7% on last year. The average asking price is now £545,387.

Rightmove also found that properties are staying on the market for an average of 62 days – down on last year’s average of 66 days.

Although eight regions saw falls in asking prices in August, just two recorded declines in September – the North West and Yorkshire and the Humber, where prices dropped by 0.1% and 0.7% respectively.

The Director and Housing Market Analyst at Rightmove, Miles Shipside, comments on the data: “Some of those trying to get onto the property ladder may have wistfully listened to speculation of lower prices in a post-Brexit Britain.

“While the referendum result has created additional downwards price pressure in some upper segments of the market that were already slowing, those who do not own a home and arguably have the greatest housing need are now finding it harder to achieve their goal in the post-Brexit vote aftermath.

“In their favoured target sector with two bedrooms or fewer, average asking prices have jumped by over £6,000 in the last month as we enter the typically active autumn market.”

Property Market Cools But Won’t Crash, Claim Experts

Published On: September 13, 2016 at 11:35 am

Author:

Categories: Property News

Tags: ,,,,,

The latest UK House Price Index from the Land Registry/Office for National Statistics (ONS) shows that the property market has cooled over recent months, but experts believe it will not crash following the Brexit vote.

As of July 2016, the average house price in the UK is £216,750, after values rose by 0.4% over the month. Although this marks a slowdown in the market, prices are up by 8.3% on an annual basis.

Analysis has found that although property sales are down, low supply is keeping house prices high.

Property Market Cools But Won't Crash, Claim Experts

Property Market Cools But Won’t Crash, Claim Experts

House price growth remained strong over July, rising by 12.3% year-on-year and 1% on the previous month.

Thomas Fisher, an Economist at PwC, comments on the figures: “Today’s data from the ONS shows a moderation in house price growth from 9.7% in the year to June to 8.3% in the year to July. But house prices still edged up by 0.4% between June and July.

“This suggests that market demand remained relatively resilient after the Brexit vote, despite some slowdown in mortgage lending. However, as many of these transactions will have been in motion since before the referendum, more data will be needed to make a proper assessment of how the referendum result is affecting the housing market.”

He predicts: “Our own expectation is that the UK housing market will cool not crash. In our main scenario, average UK house price growth is projected to decelerate to around 5% in 2016 and around 1% in 2017.”

The founder and CEO of eMoov.co.uk, Russell Quirk, is also pleased to see some positive figures. He says: “Another index and another positive outlook where the post-Brexit property market is concerned. [This] shows that there has been no immediate impact on the market in England since Britain’s decision to leave the EU.

“Although this isn’t news as such, this data from the Land Registry acts as a more concrete confirmation compared to the likes of Halifax and Nationwide, who base their figures on mortgage data.”

However, Katherine Binns, of the HomeOwners Alliance, has witnessed a cooling in the market from property buyers and vendors.

She explains: “We are seeing signs of hesitancy among both buyers and sellers at the moment. We expect this to continue in the short term until there’s greater certainty around the economic impact of Brexit. Time will tell whether the recent Bank of England cut in interest rates will help to boost confidence and generate an increase in buyer and seller numbers in the autumn. However, despite this slowing in activity, tight supply is likely to keep upward pressure on house prices. So we’re not expecting a drop in the short term.”

Finally, the CEO of estate agent Marsh & Parsons, David Brown, looks at the data from a London point of view.

He says: “It’s been nearly three months since the referendum and London, which voted overwhelmingly to remain, seemed to approach the market with more caution. However, it is extremely pleasing to see that the definitive UK House Price Index clearly indicates that London is shrugging off any negative sentiment about Brexit.

“The ONS data shows that London is again leading the way, with a yearly uplift of house prices in the capital of 12.3% to July, only surpassed by the Eastern region, where values are much lower. The prime end of the market has undoubtedly seen challenges as a result of George Osborne’s considerable Stamp Duty hikes, but we hope that we may see these reversed in the upcoming Autumn Statement.”

He concludes: “The general picture is that the property market in London is returning to normal, and that has to be positive for buyers and sellers alike.”

Annual House Price Growth Slows to 6.9%, Reports Halifax

Published On: September 7, 2016 at 8:40 am

Author:

Categories: Property News

Tags: ,,,,

Annual house price growth slowed to 6.9% in the three months to August, down from 8.4% in July, according to the latest report from Halifax.

On a quarterly basis, the bank’s House Price Index shows that house prices have risen by 0.7% to stand at an average of £213,930. However, this is down from July’s 1.5% figure and the lowest quarterly rate since December 2014 (0.5%). Halifax reports that the quarterly rate of growth has been on a downward trend over the past six months, after peaking at 3% in February.

The annual rate of growth has also been on a downward trend since March, when it reached 10%. August’s 6.9% rate is the lowest year-on-year increase since October 2013 (6.9%).

Over the month, house prices dropped slightly, by 0.2%, on July’s figure. This modest decrease was the lowest of the four monthly declines recorded so far this year. Halifax adds that the quarterly change is a more reliable indicator of the underlying trend.

Annual House Price Growth Slows to 6.9%, Reports Halifax

Annual House Price Growth Slows to 6.9%, Reports Halifax

The Housing Economist at Halifax, Martin Ellis, comments on the figures: “House price growth continued the trend of the past few months in August with a further moderation in both the annual and quarterly rates of increase. There are also signs of a softening in sales activity.

“The slowdown in the rate of house price growth is consistent with the forecast that we made at the end of 2015. Increasing difficulties in purchasing a home, as house prices continued to increase more quickly than earnings, were expected to constrain demand, curbing house price growth.”

Property sales declined marginally between June and July, by 1%, following successive growth in the two previous months. However, Halifax notes that sales have been heavily distorted in recent months by April’s introduction of higher Stamp Duty rates for buy-to-let landlords and second homebuyers.

The Stamp Duty change has also affected mortgage approvals data since the start of the year. The number of mortgage approvals for house purchases – a leading indicator of completed sales – was down by 5% between June and July. At 60,912, it is the lowest level since January 2015.

Additionally, new instructions by vendors fell for the fifth consecutive month in July. This contributed to a further drop in the number of homes on the market, which remains close to record low levels.

Responding to the data, the co-founder and Director of online mortgage lender LendInvest, Ian Thomas, says: “There have been a number of external factors that have chipped away at the property market in recent months, from the additional Stamp Duty charge to Brexit, with the traditional summer slowdown weighing in as well. While transactions have certainly slowed in central London as a result, the sentiment we get from buyers around the rest of the country is that it is close to business as usual.

“September will be a useful barometer for what comes next for the property market, as transactions tend to pick up once the holiday period is over. Nonetheless, the fundamentals of the property market are unchanged – we do not have enough homes, and we aren’t building enough homes to address that shortage. That will act as a brake on any house price softening in the months to come.”

The founder and CEO of eMoov.co.uk, Russell Quirk, also comments: “Today’s figures from Halifax show house prices have cooled a further 0.2% from the 0.1% drop seen in July. Although on the face of it, this may seem like validation of the Brexit-inspired blues that have plagued the media over recent months, this decrease is nothing more than a seasonal adjustment due to the slower pace of the market during the summer months.

“It may seem like Britain’s decision to leave the EU is starting to take its toll on the UK property market, but in reality, the timing of the referendum vote is just coincidental with the type of market movement traditionally experienced during July and August.”

He continues: “The annual change provides us with a much clearer diagnosis of the current market and shows that prices are still up 6.9% when compared to August last year. This annual calculation is based on the last three months of data when compared to the same three months of 2015, which provides a more honest portrayal of the underlying condition of the market and adjusts for any short-term fluctuations, such as this marginal month-to-month drop.”

House Prices Will Continue Rising Despite Brexit, Say Homeowners

Published On: August 30, 2016 at 9:11 am

Author:

Categories: Property News

Tags: ,,,,

It’s now been a couple of months since the UK voted to leave the EU, and as of yet, there has been no meaningful impact on the property market, other than a slight 1% drop in house prices.

With no concrete impact likely to surface for quite some time, online estate agent eMoov.co.uk asked over 1,000 UK homeowners what they think will happen to house prices as a result of the Brexit vote.

House prices 

Following the Brexit vote, eMoov asked homeowners what they expect the change in house prices to be over the next 12 months. The majority of those asked (70%) believe there will be a change in house prices as a result of the Brexit vote, with 54% of those saying that house prices will continue rising.

eMoov then asked what the change in house prices will be over the next five years. Most of those asked (78%) believe the leave vote will impact property values, with 64% saying prices will continue to grow over the next five years.

Housing demand

The agent then asked if the Brexit vote will result in less demand for housing, due to lower immigration levels. Around 61% of those asked don’t think that lower immigration levels will help suppress the overwhelming demand for UK property.

However, when focusing on London, this figure shifts to a majority of 53% who believe that lower immigration will cause a reduction in housing demand.

Property sales

The homeowners were then asked if the Brexit vote has changed the minds of those selling their properties. Despite an abundance of doomsdays predictions, 78% of those asked said that the Brexit had no impact on their decision to sell.

Almost a quarter (23%) of homeowners said that when voting in the referendum, selling a property swayed their decision. Over half (59%) of those that voted to remain did so because they were already involved in a property sale.

House Prices Will Continue Rising Despite Brexit, Say Homeowners

House Prices Will Continue Rising Despite Brexit, Say Homeowners

Interest rates

What do homeowners think will happen to interest rates now that we’ve voted to leave the EU? 78% of those asked believe there will be an impact one way or another, with 63% saying rates will drop even further, despite the UK already seeing an interest rate cut to 0.25%, just weeks before eMoov’s poll.

Housebuilding

As the Government’s pledge to build more homes has so far been worryingly inadequate, it is unsurprising that 53% of homeowners believe that leaving the EU will have a negative impact on housebuilding in the UK, due to the lower number of European tradespeople.

Troublingly, a recent report also claims that the country is still facing significant obstacles to get more homes built. Read more here: /1-4-billion-bricks-needed-solve-housing-crisis/

Holiday homes

eMoov then asked if the Brexit vote will impact the buying process for those looking to purchase a holiday home in the remaining EU member states. A huge 62% of homeowners believe it will now be harder for UK nationals to buy a holiday home in mainland Europe.

Unemployment 

Will the leave vote result in higher unemployment? The majority of homeowners asked (56%) believe that the Brexit vote will not result in higher unemployment levels across the UK.

Recession

On whether the Brexit vote will lead to another recession, 65% of homeowners claim the outcome could trigger another economic downturn across the country.

Second thoughts 

Finally, eMoov asked the homeowners whether they would vote differently in the referendum now.

Of those that voted for Brexit, just 21% would change their mind if they were given a second chance, while 15% of remain voters have also had a change of heart.

The founder and CEO of eMoov, Russell Quirk, comments on the findings: “There is still little evidence to show any detrimental impact on the UK property market, despite a number of media publications looking to scare the British public into thinking otherwise.

“The UK market is still looking impenetrably strong, with just a minor seasonal drop in values being the only chink in its armour. This research shows that the troops on the ground, British home sellers and buyers, are seeing the same when it comes to selling and buying, and so far, there is little if anything to worry about.”

He adds: “Yes, any lasting damage will take time to show conclusively, but had there been any as a result of the Brexit vote, the shockwaves would have already impacted on the ground level, and it appears that this just isn’t the case.”

House Price Growth Slows, as the North Outpaces London

Published On: August 27, 2016 at 8:51 am

Author:

Categories: Property News

Tags: ,,,

The last three months have seen house price growth slow down, as the north of England outpaces London and the south, according to the latest Hometrack UK Cities House Price Index.

House Price Growth Slows, as the North Outpaces London

House Price Growth Slows, as the North Outpaces London

The annual rate of house price growth across the 20 cities included in the study slowed to 9.5% in July, after 12 months of higher inflation. This shift in momentum was due to growth stalling across a number of cities in southern England over the past quarter, says Hometrack.

In the three months to July, house prices in London rose by just 2.1% – the lowest quarterly rate of growth since February 2015. Additionally, growth in Bristol, which was the fastest growing city over the last year, slowed to 2.6% from a recent high of 5% in May. Prices in Cambridge dropped by 1% in the last quarter, although prices are 7.1% higher than 12 months ago.

However, Hometrack has also found that house price growth in many large regional cities in the north of England and Scotland shows no signs of slowing down. The rate of annual house price inflation in Leeds, Manchester, Birmingham, Liverpool and Nottingham continues to stand between 7-8%.

Focusing on activity over the past quarter, Hometrack revealed that the highest rates of growth were recorded in lower value, high yielding cities, such as Glasgow (5.2%), Liverpool (4.4%), Manchester and Nottingham (3.4%).

In Aberdeen, the annual rate of house price growth fell at a slower rate of 8% in July, as prices rose by 2% in the last quarter, a sign that the housing market may have adjusted to the impact of falling oil prices on demand over the past year.

The Insight Director at Hometrack, Richard Donnell, comments: “In the absence of adverse economic trends impacting employment and mortgage rates, the near term outlook is for a continued slowdown in London towards mid-single digit growth. The slowdown in London is being seen across the market, but is not accounted for by seasonal factors, with weaker demand from homeowners and investors as supply grows. This analysis suggests London house price growth will continue to slow over the rest of the year.

“In contrast, northern regional cities will continue to register stable growth rates, as households benefit from record low mortgage rates and affordability remains attractive.”

Donnell adds: “We continue to believe that turnover will register the brunt of the slowdown in London. In the face of lower sales volumes, agents will look to re-price stock in line with what buyers are prepared, and can afford, to pay. Past experience shows that this process can run for as long as six months, and relies, in part, in how quickly sellers are willing to adjust to what buyers are prepared to pay.”