Posts with tag: house prices

Average House Price Rose 1.4% in May

Published On: June 30, 2015 at 9:34 am

Author:

Categories: Landlord News

Tags: ,,,

The average property price in the UK rose 5.6% annually and 1.4% monthly in May, making the average house price £212,495, revealed the latest data from haart estate agents.

In London, the market is gaining momentum again after uncertainty surrounding the general election. Prices are up 16.7% year-on-year and 3.4% on a monthly basis, to an average of £536,286.

Average House Price Rose 1.4% in May

Average House Price Rose 1.4% in May

The capital has also experienced an upsurge in sales, recording the highest monthly rise since August 2014. The monthly data report from haart also found that in May, there were 11 potential buyers for every available property around the country. In London, this is 20 per home.

These figures indicate a slight fall in activity both annually and monthly. However, it is clear that the market is still busy and consumer confidence is high.

Overall research from haart reveals a steady increase in house prices since November 2014, which has been fuelled by high levels of demand and low supply.

The average first time buyer property price is also on the up, rising 4.3% annually and 1.7% month-on-month. The amount of new buyers registering has risen slightly, up by 0.3% since April.

However, on an annual basis, the number of new buyer registrations is down 12.7%. The estate agent says that this was expected after particularly high levels of buyer activity in 2014. First time buyer registrations also dropped during the same period.

The amount of new properties coming onto the market has grown by 2.6% monthly and haart says that this indicates that vendors are confident in putting their house up for sale.

The average loan granted to a first time buyer has risen 4.2% yearly to just under £130,000. This reflects high institutional confidence in lending.

haart’s data also revealed that North London is the most expensive postcode area, with prices up 36% annually to an average of £667,944. The North West is the only area of the capital where the average home is still under £400,000.

CEO of haart, Paul Smith, says that will all the current market optimism and low mortgage rates, more people will aspire to buying. However, due to the lack of supply, property will become more unaffordable for many.

He continues: “First time buyer activity in London is down significantly, with 30% fewer first time buyer registrations in May 2015 compared to May 2014. The result will be that young professionals are driven from key areas, as they can’t afford to live there.

“This is bad news for local economies and the UK as a whole, and we need at least 200,000 homes built every year across the next Parliament to keep the housing supply crisis under control.”1 

1 http://www.propertywire.com/news/europe/uk-national-house-prices-2015062910682.html

Worst Housing Shortage for Four Decades

Published On: June 11, 2015 at 3:43 pm

Author:

Categories: Landlord News

Tags: ,,,

Property price growth in the UK accelerated for the fourth consecutive month in May, as the shortage of homes for sale hit the worst level in around four decades, a study revealed.

The Royal Institution of Chartered Surveyors (RICS) said that its price gauge rose to 34 from 32 in April. Economists at Bloomberg had expected a reading of 36. In London, the measure leapt

Worst Housing Shortage for Four Decades

Worst Housing Shortage for Four Decades

to the highest in almost a year.

Price rises were fuelled by the continuing pressure on supply that many estate agents expected to see improved after the Conservative general election win.

Chief Economist at RICS, Simon Rubinsohn, says: “There had been some hope that the removal of political uncertainty would encourage more properties onto the market, but the initial indications are that this is not proving to be the case.

“It is hardly surprising that prices across much of the country are continuing to be squeezed higher, with property set to become ever more unaffordable.”1

Property sales were down 14% in May from the previous year, LSL Property Services and Acadata discovered in a separate report. The average house price in England and Wales rose 0.4% to a record £277,178, up 4.5% on the year earlier.

Estate agent Adrian Gill comments: “The general election did ruffle some feathers, but as we return to smoother ground, it’s becoming clear that there’s a more structural problem holding back the market and that the lack of properties on the market is starting to choke off activity. Price rises will only speed up if housing supply doesn’t put pedal to metal.”1

In May, the price index for London increased to 27% from 24% in April, RICS uncovered. The expectations measure for the next three months also grew to 49 from 12.

Aside from the South East of England, the strongest price growth is forecast for the North West, which is expected to benefit from George Osborne’s northern powerhouse plans to devolve powers to the region.

1 http://www.bloomberg.com/news/articles/2015-06-10/u-k-house-price-growth-quickens-as-supply-shortage-intensifies

House Prices in Every London Borough

Published On: June 9, 2015 at 1:56 pm

Author:

Categories: Finance News

Tags: ,,,,

The average cost of buying a home in London has increased by 10.9% in the last year to reach £474,544, according to recent Land Registry data.

The highest annual price growth was in the East London Borough of Newham, at 17.2%. The lowest was recorded in Kensington and Chelsea. Hackney experienced the strongest month-on-month price rise of 2.1%, taking the average to £616,004.

Barking and Dagenham is the most affordable borough to buy a property, with an average price of £274,173.

Average property prices in London boroughs

Borough Average house price Annual change Monthly change
Barking and Dagenham £274,173 13.3% -0.5%
Barnet £464,645 15% 1.3%
Bexley £287,732 14.9% 0.1%
Brent £428,558 13.1% 0.2%
Bromley £388,896 16% 1.1%
Camden £825,082 10.2% -0.2%
City of Westminster £990,896 6.4% -0.4%
Croydon £328,282 15.8% 1.1%
Ealing £459,637 12.6% 1.6%
Enfield £335,967 16.3% 1.5%
Greenwich £357,194 15.6% 1%
Hackney £616,004 14.8% 2.1%
Hammersmith and Fulham £784,613 9.3% -0.5%
Haringey £491,472 10% 0.2%
Harrow £380,073 16% -0.1%
Havering £311,689 10.4% 0.3%
Hillingdon £335,450 15.7% 0%
Hounslow £361,336 11.4% 0.7%
Islington £671,321 10.9% 0.6%
Kensington and Chelsea £1,317,323 4.4% 0.4%
Kingston upon Thames £421,480 10.2% 0.3%
Lambeth £534,304 11.9% -0.5%
Lewisham £391,510 16.4% 1.4%
Merton £466,919 11.6% 0.3%
Newham £295,306 17.2% 0.4%
Redbridge £363,318 14.7% 0.4%
Richmond upon Thames £622,233 10.6% -0.4%
Southwark £549,488 11% -0.1%
Sutton £321,026 13.6% 0.8%
Tower Hamlets £492,585 14% 1.3%
Waltham Forest £359,329 10.9% -1.8%
Wandsworth £576,155 9.9% -0.2%

 

 

‘Second steppers’ getting market encouragement

Published On: June 8, 2015 at 12:25 pm

Author:

Categories: Landlord News

Tags: ,,

New research has suggested that a number of so-called ‘second steppers’ in the UK housing market are now in a comfortable financial position.

A survey from Lloyds Bank indicates that a number of people looking to make the next step up the property ladder are being boosted by rising property prices and a steady increase in first-time buyers. The positive report comes despite the fact that additional figures suggest that many second steppers face a rise of £128,000 to move up the housing scale.[1]

Positivity

Lloyds’ report shows that 33% of second steppers believe that it will be easier to sell their property during the coming year. 37% said that they want to move soon to take advantage of the buoyant housing market.[1]

Undoubtedly, first time sellers are in a stronger position than they were five years ago. The rise in house prices have seen the equity of those living in their first homes, with 71% of respondents to the survey saying that they felt their position had improved in the last twelve months.

With prices at their lowest in 2009, many current second steppers would have purchased their homes in this troubled period. The average price of a first time buyer home is now 31% than it was in 2009. This means that the average second stepper has an average equity level of £87,096, which equates to 29% of the typical price of a second step home value of £304,963.[1]

The average estimated equity level has increased by in excess of £36,000 during the last year from £50,655, due to a rise in prices paid for first time buyer properties.[1]

'Second steppers' getting market encouragement

‘Second steppers’ getting market encouragement

Affordable

The research from Lloyds also shows that the average cost of a standard second stepper home is more affordable than one year ago, in comparison with earnings. Housing affordability has grown substantially in the last year from 7.1% times the UK gross annual average earnings in 2014 compared with 6.4% in 2015.[1]

Despite growing house prices giving equity levels a boost, findings from the report also show that people living in their first property must find an average of £128,390 to fill the gap between the sale price of their home and the cost of their next desired property. This desired property was found to commonly be a detached home. The monetary gap drops to just £17,864 if the second-stepper wishes to move to a semi-detached house.[1]

 

[1] http://www.propertywire.com/news/europe/uk-second-step-property-2015060810599.html

 

Annual Property Price Growth Slows

Published On: June 4, 2015 at 2:21 pm

Author:

Categories: Landlord News

Tags: ,,,

Annual Property Price Growth Slows

Annual Property Price Growth Slows

Annual property price growth in the UK slowed to 4.6% in May, down from 5.2% in April, according to the latest Nationwide house price index.

House prices increased by an average of 0.3% last month, compared to a 1% rise in April. The average property price was £195,166 in May, up from £193,048 in the previous month.

Chief Economist at Nationwide, Robert Gardner, forecasts house price growth to reflect income increases, which is currently around 4%.

He says: “The annual pace of house price growth slowed to 4.6% in May. This resumes the gradual downward trend that had been in evidence since the summer of 2014, which was briefly interrupted in April when house price growth edged up to 5.2% from 5.1% in March.

“Over the longer term, we would expect house price growth to converge with earnings growth, which has typically been around 4% per annum.

“However, much will depend on supply side developments; in recent years, the rate of building activity has remained well below that required to keep up with population growth.”1

1 http://www.propertyflock.co.uk/f/8416B41FC

 

 

 

 

Will Londoners Move to Birmingham for Better Prices?

Published On: May 21, 2015 at 10:25 am

Author:

Categories: Property News

Tags: ,,,

Will Londoners Move to Birmingham for Better Prices?

Will Londoners Move to Birmingham for Better Prices?

Kings Heath in Birmingham could potentially prove an ideal residence for Londoners looking to move away from the sky-high prices of the capital.

The Birmingham suburb is just 15 minutes from Birmingham New Street train station, which has recently been renovated. The homes are well presented, the streets are tree-lined, the parks are impressive and the schools are good.

For those looking for a quiet life, Kings Heath has a nice array of tearooms and for those still hoping for some culture, the music scene is growing.

If Londoners are looking to completely uproot from the capital, Birmingham’s economy is booming; George Osborne’s Budget revealed that a job is created every ten minutes in the Midlands.

But if working in London is still a priority, trains from Birmingham New Street to Euston take an hour and 20 minutes, with this time reducing when the HS2 arrives.

To Londoners, homes in Kings Heath are ridiculously cheap. Six-bedroom Victorian detached houses can be snapped up for £475,000, a five-bedroom terraced property is £350,000 and a three-bedroom home is £260,000.

If travelling from Birmingham to London everyday isn’t ideal, Londoners can sell up their pricey homes and split the cost between a house in Kings Heath and a studio flat in central London.

With people trying to get out of the London property bubble, non-London homes could rise in line with London prices. Now would be a perfect time to buy.