Posts with tag: house prices

North East property prices fall in April

Published On: April 29, 2016 at 10:29 am

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A new report from KIS Housing has indicated that house prices in the North East of England fell by 4% in April.

As a result, the average property value in the region fell by £7,000.

Falls

The fall in values eradicates the 3.1% increase recorded in March, which had previously added £4,811 to typical property prices. What’s more, house prices are currently 3.6% down in 2016 to date.

Presently, the average house price in the area is £155,979. This is £7,016 less than at end the end of March. However, this is 1% higher than at the same time in 2015 and 3% greater than in 2014.

All areas saw decrease in property values during the last month. Whitley Bay and Blyth saw above average falls of 6.1% and 6% respectively.

Rises

Since KIS has begun to compile data from April 2014, South Shields has seen the largest price increase, with values increasing by 6.7%. Newcastle and Gateshead have also seen rises of 6.6% and 6.2% respectively over the same period.

In Darlington, April’s decline of 4.7% saw property prices slide to these seen in 2014. As a result, savvy investors are being told to consider purchasing in this region.

In addition, the average rent in the North East increased by £14 per calendar month to £566 in April-a rise of 2.5%.

By region, rents are nearly the same as those recorded in 2014, where an average per calendar month was £560.

North East property prices fall in April

North East property prices fall in April

Predictable

Ajay Jagota, founder and Managing Director of North-East based sales and lettings firm KIS, said, ‘house prices falling at a rate of 1% a week throughout April might sound surprising to some but the sad thing is these figures were entirely predictable. I’ve been forecasting for months that March would see prices boom as landlords raced to complete purchases ahead of tax changes which took place at the start of this month, before slumping back as many abandoned those investments altogether when they became less profitable. And so it proved.’[1]

‘The irony is that investors are now benefiting from higher rental yields and lower purchase prices. It’s the renters that lose out, as rents will inevitably rise as a consequence of those tax changes. Fewer properties are now available, leading to higher prices. It’s simple supply and demand. Having collected this data now for two years we are starting to see some fascinating trends emerging. Although average rents are all-but unchanged since April 2014, on an area-by-area basis there are some huge differences – 17.5% higher in Whitley Bay, but 21% lower in Jarrow.

The reasons for these variations could easily be something as mundane as only a few rental properties coming onto the market, or a disproportionate number of cheaper or more expensive properties skewing the figures but overall they show the real value of us collecting this data – being able to tell our clients with absolute certainly which areas of the North East are at that moment the most attractive to renters and buyers and where landlords can expect to get the best returns,’ Jagota went on to say.[1]

[1] http://www.propertyreporter.co.uk/property/april-wipes-record-%C3%A3%C2%A27k-of-north-east-house-prices.html

House price growth slows in April

Published On: April 28, 2016 at 1:22 pm

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The latest data released from the Nationwide Building Society shows UK house prices slowed in April, following a surge in activity during March.

Annual house price growth was revealed to have slowed to 4.9% in April, in the comparison to 5.7% recorded in the last month.

Slow growth

April has seen house price growth of just 0.2%, which is the lowest monthly rise since November 2015.

In addition, the Royal Institution of Chartered Surveyors has also suggested that demand for commercial property has dropped to a record low. The institution concluded that international investors have been deterred by the uncertainty caused by the pending EU referendum.

Nationwide noted that April’s slowdown in house prices comes after the highs in March, which were caused by residential landlords rushing to beat the additional stamp duty deadline.

During March, there were 165,400 transactions, according to official data from HM Revenue and Customs.

Robert Gardner, chief economist at the Nationwide, said, ‘it may be that the surge in house purchase activity resulting from the increase in stamp duty on second homes from 1 April provided a temporary boost to prices in March.’[1]

Highs

Figures from the report show that the average price of a flat or UK increased to a new high of £202,436 in April.

Gardner observes, ‘house purchase activity is likely to fall in the months ahead given the number of purchasers that brought forwards transactions. The recovery thereafter may also be fairly gradual, especially in the buy-to-let sector, where a wealth of other policy changes, such as the reduction in tax relief for landlords from 2017 are likely to exert an ongoing drag.’[1]

House price growth slows in April

House price growth slows in April

Uncertainty

The survey from RICS underlines that uncertainty being created by the Brexit vote. RICS said that demand from foreign investors for UK commercial property is at its lowest for three years.

Simon Rubinsohn, chief economist at RICS, feels, ‘there is no doubt that since the EU referendum became a certainty following the general election last May, we have seen a decline in interest from overseas investors in UK commercial property.’[1]

‘At least in the short-term, we know that international retailers and service providers are finding the UK market less attractive,’ he added.[1]

[1] http://www.bbc.co.uk/news/business-36153571

UK House Prices Down, but London Still Powers Ahead

Published On: April 28, 2016 at 11:05 am

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The average house price in the UK dropped slightly in March, but prices are still rising in London, according to the latest house price index from Land Registry.

House prices fell by an average of 0.5% last month, while they were up by 0.2% in London on a monthly basis.

UK House Prices Down, but London Still Powers Ahead

UK House Prices Down, but London Still Powers Ahead

Annually, house price growth now stands at 6.7%, taking the average property value to £189,901 in England and Wales.

The amount of property transactions has also increased over the last year. From October 2014 to January 2015, Land Registry recorded an average of 73,744 sales per month. In the same period a year later, the figure was 74,374. It has been claimed that this rise is a result of landlords rushing into the property market to avoid the 3% Stamp Duty surcharge.

Alongside the monthly increase recorded in March, London has also seen the highest annual house price growth of all regions, at 13.9%. The average property in the capital is now worth £534,785.

The East of England is the only other region to record monthly house price growth, of 0.2%.

The London borough with the highest annual price rise is Lewisham, at a huge 19.9%, while the greatest monthly increase was seen in Brent, at 2.8%.

Kensington and Chelsea experienced the smallest annual increase of 4.2%, amid claims that the prime London property market is running out of steam.

Prices were down the most in Hammersmith & Fulham, by 1.3%.

The Managing Director of estate agent Stirling Ackroyd, Andrew Bridges, comments on the data: “House prices across the country may be coasting in neutral, but the capital is speeding ahead. London’s lead is getting larger and the demand for life in the fast lane shows no sign of letting up.

“Such momentum in London also comes despite a few road bumps. Stamp Duty surcharges have caused a slight slowdown at the top end of the market and particularly in the west of the capital. Gears are grinding in old prime areas, such as Kensington and Chelsea and Hammersmith & Fulham. The new champions of the London property market are areas further east and further out.”

The London property market looks set to face changes in the near future, as the London mayoral election takes place next week. Online estate agent eMoov has analysed what each candidate can do for the housing crisis: /london-mayor-candidate-best-housing-market/

House Prices Still Struggling to Recover in Half of UK Towns and Cities

Published On: April 26, 2016 at 9:25 am

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Average house prices in half of UK towns and cities are still struggling to recover to their pre-financial crash levels of 2007, according to new research.

Data from Land Registry analysed by online estate agent HouseSimple shows that property prices in 53% of towns and cities in the UK had still failed to recover between February 2007 and 2016, particularly in the north. This means that many homeowners with a mortgage could be in negative equity.

House Prices Still Struggling to Recover in Half of UK Towns and Cities

House Prices Still Struggling to Recover in Half of UK Towns and Cities

HouseSimple examined 75 major towns and cities across England and Wales, finding that 17 of the 20 most affected areas are in the north of England. The region most hit by post-recession negative equity is the North West, with four in ten of the top 20 towns and cities in this part of the country.

The worst hit towns are Blackpool and Middlesbrough, where house prices are now almost 30% lower than their pre-crash levels, at £77,317 and £77,024 respectively.

Blackburn and Liverpool are also in the top five worst affected areas, with house prices still 25% and 23% lower than before the crisis.

The top 20 worst affected towns and cities are as follows:

[table id=9 /]

Yorkshire and the Humber was also badly affected, with a quarter of towns in the top 20 list in that region. The average price in Middlesbrough is 28% below its pre-2007 peak, while in Bradford and Hull, values are 20% and 19% lower.

Contrastingly, the average London property price has soared by 52% over the same period, from £339,511 to £530,368.

Homeowners in Winchester have also seen substantial growth, with prices up by 44.2% since 2007, from £310,089 to £447,046.

HouseSimple’s Alex Gosling comments on the figures: “London homeowners have watched as their properties have risen in value substantially since 2008, but thousands of people around the country have had to put their lives on hold, unable to move because they are trapped in negative equity.

“Unfortunately, the north of England has been slower to recover losses suffered during and after 2008. And anyone wanting to relocate for work or family reasons faces a less than appealing choice, either making a loss on the sale of their property, or staying put and waiting until the price of their house at least recovers to the price they paid.”1 

1 http://www.whatmortgage.co.uk/news/hundreds-thousands-home-owners-still-stuck-negative-equity/

UK House Prices Up by 1751% Since the Last European Referendum

Published On: April 24, 2016 at 8:43 am

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In 1975, Britain decided to remain in Europe after the UK’s first ever European referendum. On 23rd June, the country will vote again on whether we should stay in the EU. So how have house prices changed since the first vote?

UK House Prices Up by 1751% Since the Last European Referendum

UK House Prices Up by 1751% Since the Last European Referendum

Since the second quarter (Q2) of 1975, just 30 out of 164 quarters have recorded decreases in house price growth, according to property crowdfunding platform Property Partner.

The firm has found that house prices in the UK have gone up more than 18-fold, 1751%, since the last time Britons were asked whether we should stay in or out of Europe.

Compared to other investments, residential property has surpassed all other asset classes over the same period, including stocks and shares – up by 9.5 times since 1975 – and gold – up by 12 times.

Unsurprisingly, property prices in London have soared the most, increasing by 3200% – almost double the annual UK average – since Q2 1975.

Currently, with just over two months to go until the second European referendum, the average UK house price is now £198,564. Back in June 1975, homebuyers were faced with paying £10,728 for a property. In real terms today (taking inflation into account), this would be just £99,949.

Property Partner has analysed quarterly house price data dating back to just before the referendum in June 1975. Out of the 164 quarters since then, just 30 (18.3%) have seen decreases in house prices. From Q2 1990 to Q3 1993, there were 14 consecutive quarters of negative growth – the longest stretch in the last 40 years.

Just before the last European referendum, quarterly price growth slowed significantly to 7%, a year after reaching 18.2%, and two-and-a-half years after recording the highest ever quarterly house price growth of 42%. Average price growth didn’t fall as low as 7% again until Q4 1980 – more than five years after the referendum.

Change in house prices since the last European referendum

[table id=7 /]

The CEO of Property Partner, Dan Gandesha, comments: “With all the nervousness and uncertainty around whether Britain is going to stay in or out, our research shows that although average house prices softened in the run up to the last referendum in 1975, they have risen a staggering 18-fold since, leaving all other asset classes in the shade.

“There is never any guarantee that prices will continue to rise, but even taking into account factors which may put a brake on growth, such as the recent 3% Stamp Duty hike on second homes and buy-to-lets, if the past is any indication, property will remain a strong long-term investment. London in particular has been consistently the star performer, although the capital has been transformed in the past four decades, attracting huge inward investment. Whatever the result on June 23rd, London will remain a truly global city.”1 

A recent report from the Royal Institution of Chartered Surveyors indicates that house prices and sales will fall ahead of the EU referendum.

1 http://www.propertyreporter.co.uk/property/how-much-have-house-prices-risen-since-the-last-european-referendum.html

 

St George Leads the Property Market in the UK

Published On: April 23, 2016 at 8:20 am

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As it’s St George’s Day, what better time to look at how the property market in England differs to the other countries of our nation?

Although united as a nation, England, Wales, Scotland and Northern Ireland all have different patron saints, and very different housing markets.

While house price growth may not be the highest in England, values are. Prices are set to reach an all-time high in England, with the current average property costing £274,101, according to online estate agent eMoov. London remains the driving force in the market, however, reports suggest the capital is running out of steam. With London’s sky-high prices and a property boom in Midlands, it is no wonder that England has the highest prices. In the past year, prices have risen by 2%.

St George Leads the Property Market in the UK

St George Leads the Property Market in the UK

In second place is Northern Ireland and its patron saint, St Patrick. Of all the four countries, Northern Ireland has recorded the greatest annual house price growth in the past year, of 4%. The average price across the Irish Sea is £183,505.

Recently, the Royal Institution of Chartered Surveyors revealed that Northern Ireland should be expecting a rise in property sales in the next three months, reflecting the strong performance seen in the first quarter of the year. Although the firm believes that a drop in house prices and sales will hit the UK, as the EU referendum approaches, it is thought that this won’t affect Northern Ireland.

However, the forecast isn’t so secure for St Andrew and St David, the patron saints of Scotland and Wales respectively. Both countries have experienced a significant decrease in house prices from 2015-2016. Scotland is still slightly ahead, with an average price of £168,683, compared with £165,077 in Wales.

Despite this, Scotland has recorded the greatest decline in prices over the last 12 months, down by 6%. Although there have been plans for major developments by European firms within Scotland, there are signs that projects are being put on hold as the UK faces the June vote.

And although Wales has seen a drop in house prices, of 1%, it is much smaller than Scotland’s sharp fall.

The CEO of eMoov, Russell Quirk, says: “Although together we stand as one British nation, it’s interesting to see how the property markets across England, Scotland, Wales and Northern Ireland differ. With London the jewel in Britain’s property crown, England is always going to come out on top, but each country has its property pros and cons.

“It’s also interesting how uncertainty in the current market, with the recent changes to Stamp Duty and the approaching EU referendum, seem to have impacted each market differently.”

He explains: “Northern Ireland has enjoyed a stronger rate of growth than England, but Scotland seems to be suffering along with Wales, although the Welsh haven’t seen a drop in values to the same extent as the Scottish.”