Posts with tag: house prices

British Homes are Earning More Than Their Owners

Published On: March 5, 2016 at 9:31 am

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Last year, British homes earned more than nearly half of all workers, according to a new study.

The average house price in Britain increased by £18,000 last year – more than the salary of almost 40% of the workforce, says Post Office Money.

The Cost of Buying and Moving report reveals that the average price rise almost matched the starting salaries of many professionals, including nurses, teachers, junior hospital doctors and police officers, who all start on around £22,000 per year.

British Homes are Earning More Than Their Owners

British Homes are Earning More Than Their Owners

In London, the average property price increased by £46,000 in 2015, compared to an average annual salary of £36,000 in the capital.

A recent report from the Halifax discovered that the largest gap between wages and property price rises was in Three Rivers, Hertfordshire, where house prices have risen by £148,000 in the past two years, exceeding average earnings by a huge £98,000.

Three Rivers is becoming increasingly popular with London commuters, due to the Metropolitan line.

The second biggest gap was in Harrow, northwest London, which often features in the top ten areas with the fastest rising prices.

Greenwich was in third place thanks to becoming a regeneration hotspot. It is just minutes from Canary Wharf on the DLR and Jubilee line, and will boast a new Crossrail station in 2018, making it even quicker for workers to get to the City of London.

The average house price rise in the UK was £5,800 lower in December last year compared to the year before, while workers’ wages increased by an average of £400, to £26,400.

In London, the average property price growth fell by £11,300 from £57,600 for the previous year. However, the average home in the capital still costs £536,000. Elsewhere, the average price is £365,000 in the South East and £315,000 in the East of England.

The Head of Mortgages at Post Office Money, John Willcock, analyses the data: “Although the rate at which property prices have increased has slowed compared with the dramatic rises seen in 2014 and early 2015, we have still seen a big increase in prices over the last year.

“This has been driven by demand for housing outstripping supply, with the number of properties coming to market failing to match the needs of people looking to buy.”

He remarks: “While this is good news for those who already own their home and will see their property wealth increase, our study highlights the uphill struggle that buyers and movers looking to climb the property ladder continue to face, especially when attempting to get on that all-important first rung.”

Willcock offers his predictions for the rest of the year: “Forecasts seem to indicate a year of two halves in 2016, with prices pushed up before April, as buyers race to beat the new Stamp Duty surcharge on second homes, but then weakening following its introduction and uncertainty around the UK’s position in Europe.

“In the medium term, house prices look likely to continue to rise, as demand for property continues to outstrip the supply of new homes.”1 

As of 1st April, buy-to-let landlords and second homebuyers will be charged an extra 3% in Stamp Duty. Reports have found that landlords are rushing to complete on property purchases to beat the deadline.

It has also be claimed that home movers are delaying their plans ahead of the EU referendum on 23rd June, deciding whether to move once the outcome is confirmed.

Additionally, questions were raised this week over whether housebuilders are restricting housing supply in order to boost profits.

1 http://www.homesandproperty.co.uk/property-news/british-houses-earn-more-than-their-owners-average-home-rose-by-almost-20k-across-the-country-and-a99506.html

Average House Price Hits £196,930, According to Nationwide

Published On: March 3, 2016 at 12:28 pm

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The average house price increased by 0.3% in February, hitting £196,930, according to figures from Nationwide.

Although activity in the mortgage market was strong at the start of the year, Nationwide’s data – based on loans it approved during February – shows that prices have remained steady.

Average House Price Hits £196,930, According to Nationwide

Average House Price Hits £196,930, According to Nationwide

The monthly growth recorded for February matches that seen in January, and although the annual rate of growth rose to 4.8% from 4.4%, Nationwide claims that it has remained in a fairly narrow range – between 3% and 5% – since last summer.

The Chief Economist at Nationwide, Robert Gardner, believes recent activity was likely to have been driven by a rush of landlords seeking to complete on property purchases ahead of the 3% Stamp Duty surcharge, set to be enforced on 1st April.

“This is likely to have brought forward a significant number of purchases, which in turn will probably result in a fall back in approvals during the spring-summer,” he says. “Looking through this volatility, we expect the underlying pace of activity to increase in the quarters ahead, as improving labour market conditions and low borrowing costs provide ongoing support.”1

The Chief UK Economist at Pantheon Macroeconomics, Samuel Tombs, notes that Nationwide’s house price index is showing lower price growth than other measures, which could be down to the sample it was based on.

He states: “Nationwide’s measure of house prices underplays the extent to which the housing market is heating up again. The latest growth rates of all the other main measures of house prices have been significantly stronger over the last six months.”

For January, the Land Registry recorded an average price increase of 2.5% and annual growth of 7.1% – considerably higher than Nationwide’s figures.

However, Nationwide’s data covers the whole of the UK, while the Land Registry only reports on England and Wales, with growth in England typically higher in recent years.

Tombs adds: “We still expect the strengthening labour market, falling mortgage rates and a dearth of homes for sale to result in punchy house price increases this year.”1

Howard Archer, the Chief UK Economist at IHS Global Insight, expects the average house price to rise by 6% over the rest of the year. However, he adds that the EU referendum, scheduled for 23rd June, is a “potential major downside risk to housing market activity and prices”.

He comments: “A vote for Brexit would be liable to see a marked hit to UK economic activity over the rest of this year and in 2017 amid heightened uncertainties, which would likely weigh down heavily on the housing market.”1 

Rightmove has predicted that the average house price will reach £300,000 in the near future. 

1 http://www.theguardian.com/money/2016/mar/03/house-price-creeps-up-nationwide-mortgage-stamp-duty

The Fastest Selling Property Hotspot in the UK Revealed

Published On: February 24, 2016 at 12:57 pm

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Rightmove has named the fastest selling property hotspot in the UK as Dartford in Kent. Homes are selling in just 16 days in the town, taking two-thirds (33 days) off last year’s average of 49 days. Dartford has also beaten its closest rival by an impressive ten days.

The latest data from Rightmove, for January, found that Dartford is the fastest place to sell a property in the UK.

Nationally, the average time to sell a property has fallen by eight days, from 87 to 79 days.

The top ten fastest selling property hotspots outside of London is dominated by areas within London commuter counties, such as Kent, Essex and Hertfordshire. The majority of these areas have seen annual house price rises of more than 10% since January 2015.

The Fastest Selling Property Hotspot in the UK Revealed

The Fastest Selling Property Hotspot in the UK Revealed

The average asking price in Dartford has risen by 17% over the past 12 months, while the average of 16 days before a property is sold is ten days faster than the second hotspot, Grays in Essex, where it takes 26 days to sell a home – half the time it took in January last year (52 days).

The Branch Partner of Robinson-Jackson estate agent in Dartford, Robert Browning, observes: “Properties are going extremely quickly in Dartford, to the extent that around 90% of those that we have for sale are selling within the first seven to ten days of signing our contract.

“Traditionally, in the past, the majority of buyers were people moving within Dartford; now, there are a lot more people moving from London, as well as investors. There’s a handy commute to London, which will get even quicker when nearby Abbey Wood Crossrail station opens up, not to mention good links to the A2 and M25, some outstanding Ofsted-rated primary and secondary schools, and prices are more affordable than London.”

He adds: “In the past 12 months, sales have been very strong and we’ve had a busy start to the year, so this looks set to continue in 2016.”1 

The most searched for area on Rightmove in January, Bristol, came in at number seven on the fastest selling property hotspots, with homes taking an average of 31 days to sell, down from 47 in January 2015.

The average time it takes to sell a property in Scotland has dropped from 97 days to 87 over the last 12 months. Meanwhile, in Wales, it has declined from 108 days to 97.

Rightmove’s data includes all properties that were changed to Sold Subject to Contract (SSTC) by agents during January 2016 and measures the timeframe since they were first listed for sale on the property portal.

But it’s not just southern commuter towns that have seen sales speeding up.

The northern towns of Warrington, Crewe, Middlesbrough and Bury have all experienced selling times drop by 30 days or more, putting them into the top ten areas where sales have sped up the most. The biggest difference in selling times was recorded in Clacton-on-Sea, where properties are now selling 45 days quicker than last year, down from 95 days to 50.

Kevin Shaw, of Leaders estate agent, comments on the findings: “As London prices continue to rise, many people make the conscious choice to add to their commute rather than their mortgage, making areas like Clacton-on-Sea, which has a direct train service to London’s Liverpool Street, a popular place for buyers.

“In particular, we have seen increased demand for three and four-bedroom family homes in this area, as families look to gain more space for their budget in an area which offers some excellent schools.”

He continues: “Crawley is equally an area we are not surprised to see on the list of fastest places to sell, as it’s a location fuelled by big businesses and major employers, therefore flats and small houses are in increasing demand. We have sold a number of properties in this area recently in under a week, whilst still achieving on average 98% or more of the asking price.”1

The fastest selling property hotspots

Position Town/City No. of days to sell in January 2016 No. of days to sell in January 2015 Average asking price in January 2016

Annual price change
1 Dartford, Kent 16 49 £285,782 16.6%
2 Grays, Essex 26 52 £270,224 13.2%
3 Benfleet, Essex 28 50 £333,056 8.2%
4 Crawley, West Sussex 30 47 £299,595 10.9%
5 Leigh-on-Sea, Essex 30 62 £358,440 13.3%
6 Stevenage, Hertfordshire 31 56 £280,691 13.5%
7 Bristol 31 47 £294,851 9.1%
8 Watford, Hertfordshire 32 48 £433,679 19.7%
9 Rochester, Kent 33 59 £250,334 10.1%
10 Reading, Berkshire 33 44 £367,495 15.4%

At the slower end of the market, properties are taking more than 100 days to sell, with the slowest place to sell a home named as Darlington, at 132 days. St Helens came in second at 128 days, followed by Wakefield at 120 and Bradford at 119.

The Director and Housing Market Analyst at Rightmove, Miles Shipside, says: “This analysis mirrors what agents have been telling us for the past few months, that properties in the right area and on Rightmove at the right price are in high demand and selling really quickly.

“Homes in Dartford selling in just over two weeks shows just how in-demand the places within easy commuting distance to London have become over the past year. The average asking price of a property in Dartford is under £300,000, so it’s not hard to see why it’s so sought-after compared to average prices being more than double that in London.

“Further out from the capital, it seems that Bristol could be becoming the new Cambridge, which was the quickest place to sell a property two years ago. However, in the slower market areas, it’s even more important for sellers to work with their local agent and agree a realistic asking price so they have more chance of securing a buyer to speed up their own move to their next home.”1 

Earlier this month, Rightmove revealed that the average asking price is almost at the £300,000 mark across England and Wales. It is expected that house prices will surpass this value in the near future.

If you are a landlord planning to leave the buy-to-let sector ahead of changes to landlord taxes, how will this new data affect how you sell your property?

We have the latest news and advice for landlords on all changes to property, buy-to-let and landlord law.

1 http://www.propertyreporter.co.uk/hero/rightmove-reveals-the-fastest-selling-hotspot-in-the-uk.html

 

 

Shortage of Conveyancers Putting Property Sales on Hold

Published On: February 23, 2016 at 9:32 am

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Categories: Property News

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A lack of conveyancers is holding up a large number of property sales, according to recent research.

The CEO of estate agent haart, Paul Smith, notes that as a result, the amount of exchanges dropped by 14.7% in January compared to the previous month and by 7.5% compared with January last year.

Based on his own company’s data, Smith estimates that there were 50,152 exchanges in January, with an average house price of £225,914.

He reports that demand has grown by over a third year-on-year, while housing supply has increased by 8%.

Shortage of Conveyancers Putting Property Sales on Hold

Shortage of Conveyancers Putting Property Sales on Hold

Part of the surge in demand may have come from a rush of buy-to-let landlords hoping to complete on a property investment ahead of the 1st April Stamp Duty deadline.

Smith comments: “The property market in the New Year has got off to a flying start with a surge in buyer registrations and new property instructions.

“The number of new homes coming on the market is up by a healthy 8% compared to a year ago, but demand has surged by 35% over the same time period, with buy-to-let investors responsible for a large proportion of this rise in anticipation of the Stamp Duty surcharge.”

He continues: “This high level of activity has resulted in a substantial backlog of homes in the pre-completion stages, and we’re now seeing a shortage of conveyancers and lawyers to progress these sales, leading to delays and a subsequent decline in the number of completions in January.

“Across the UK, we’re now seeing more than 15 buyers chasing every property to come onto the market, and house prices have subsequently risen by 10% annually.”

How does the whole UK property market compare to London?

“London is also seeing a high level of activity and finally the issues surrounding the supply of homes is starting to ease, with a 20% increase in instructions registered compared to last year,” Smith reveals.

“In fact, supply is now beginning to outpace demand, which is up by 14% over the same time period. While this increase is very welcome, we are still seeing nearly 21 buyers for every instruction, despite the slowdown at the top end of the market.”

And how are first time buyers faring?

Smith explains: “First time buyers have started the year enthusiastically, with demand for starter homes up 26% annually. This is just the start of an upward trajectory for first time buyers, as the 3% Stamp Duty surcharge for buy-to-let investors, due to be introduced in April, will mean less competition for homes.”1

From 1st April, buy-to-let landlords and second homebuyers will be charged an extra 3% Stamp Duty on properties costing £40,000 and over. Many investors have been rushing to purchase rental properties ahead of the additional tax charge.

Tax specialists have warned about the high cost of missing the deadline.

For the latest landlord information and advice, check back to LandlordNews.co.uk.

1 http://www.propertyindustryeye.com/lack-of-conveyancers-holding-up-huge-numbers-of-house-sales/

First Time Buyer Mortgages Outnumber Buy-to-Let Loans by Three to One

Published On: February 17, 2016 at 9:26 am

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Despite an increase in buy-to-let lending last year, first time buyer mortgages outnumbered landlord loans by three to one, according to data from the Council of Mortgage Lenders (CML).

First Time Buyer Mortgages Outnumber Buy-to-Let Loans by Three to One

First Time Buyer Mortgages Outnumber Buy-to-Let Loans by Three to One

In 2015, 311,700 mortgages were approved for first time buyers. Although this figure is the same as 2014’s number, the amount borrowed, £46.7 billion, was the highest since 2007.

Home movers took out 365,800 mortgages for house purchase, down slightly on 2014 (0.2%). However, the amount was up, at £72.1 billion – again, the highest since 2007.

Buy-to-let mortgages increased by both volume, by 28%, and by value, up 39%, which was also the highest recorded since 2007.

Just 41% of buy-to-let loans were for house purchase, amounting to £15.6 billion.

The Managing Director of Paragon Mortgages, John Heron, comments on the data: “A common accusation levelled at buy-to-let landlords is that they have an unfair advantage over homebuyers.

“The data would suggest this is not the case, with buy-to-let purchases making up only 11.6% of all purchases.

“First time buyers accounted for three times as many transactions as buy-to-let purchasers.”1

While this may sound like good news for generation rent, since the start of this year, buy-to-let landlords have been flooding into the property market in a bid to beat the 1st April deadline for an increase in Stamp Duty. The figures for the first half of 2016 are likely to be very different.

Separate data from the Office for National Statistics (ONS) found that the average house prices across the UK ended last year at £301,000 in England, £175,000 in Wales, £193,000 in Scotland and £148,000 in Northern Ireland.

The highest average property price in England was unsurprisingly in London, at £536,000, and the lowest was in the North East, at £155,000.

The ONS reports that annual house price inflation was 7.3% in England in 2015, 1% in Wales, -0.2% in Scotland and 1.5% in Northern Ireland.

1 http://www.mortgageintroducer.com/cml-data-proves-buy-to-let-isnt-out-of-hand/#.VsQ7o1tLH8s

Average House Price Almost at £300,000, According to Rightmove

Published On: February 15, 2016 at 3:53 pm

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House prices have reached a new record high this year and are set to hit £300,000 in the near future, according to data from Rightmove.

The property portal found that new vendor asking prices have risen by 2.9%, or £8,324, in February, taking the average house price in England and Wales to £299,287.

Average House Price Almost at £300,000, According to Rightmove

Average House Price Almost at £300,000, According to Rightmove

The Director of Rightmove, Miles Shipside, comments on the figures: “The New Year’s market has hit the ground running in many locations, continuing last year’s momentum and resulting in the price of property coming to the market hitting a new high.”1 

The previous peak was recorded in October last year.

Rightmove also reports that the supply of new homes is improving. In February, there was a 5% rise in the amount of new properties coming onto the market compared with last year.

Supply of first time buyer homes has grown the most, up by almost 10%.

However, supply is not consistent across regions. Only four regions have seen supply increase by more than the average 5% – London, the South East, South West and Yorkshire and the Humber.

Supply has decreased in the West Midlands, where buyers are struggling to find homes.

The Managing Director of Chancellors estate agent, Robert Scott-Lee, says: “January has seen a huge jump in demand that has surpassed the normal seasonal increase.

“Undoubtedly, this is partly fuelled by investors looking to take advantage of a quick purchase before the tax change in April, and sellers looking to secure a sale to an investor who is panic buying.”1

We recently reported that a surge of buy-to-let landlords into the property market is pushing prices higher. Investors are looking to avoid the 3% Stamp Duty surcharge, which will be in effect from 1st April.

As house prices rise, as do rents. This morning, Countrywide revealed that rent prices are now the highest on record. Find out more: /rents-are-highest-on-record-says-countrywide/

Remember to check back to our latest news for property market updates.

1 http://www.independent.co.uk/news/business/news/house-prices-approach-record-300000-rightmove-reports-a6874816.html