Posts with tag: property prices

UK property prices set to rise by 50% in next 10 years

Published On: September 1, 2017 at 1:41 pm

Tags: Brexit,house prices,property prices,UK property

Interesting new research has revealed that Britain’s property market is set to be resilient in the face of ongoing Brexit uncertainty.

The investigation conducted by eMoov suggests that property prices are set to rise by over 50% during the next 10 years.

Price Rises

Analysis from eMoov suggests that UK house prices have risen by 0.37% per month on average since the EU referendum, in comparison to 0.67% per month on average between June 2015 and 2016.

Data from the report indicates that if values carry on rising at 0.37% per month, the average UK house price would still reach £34,757 in the next decade. This is a rise of 56%.

Using data from the Land Registry, the firm applied the present rate of growth to the current average house price up until 2027 in order to assess the new data.

It then calculated the total percentage difference between the current and future average house price in order to rank each city on the highest overall growth rate.

Nottingham comes out on top for price growth since the Brexit vote, with prices rising by 0.8% per month on average. If this was to continue, the average house price would increase 160% from £133,215 to £346,592 by 2027. Glasgow has seen values increase by 0.7% a month since the start of June last year, which was the second highest.

Oxford and Cardiff have also seen strong price rises since the Brexit vote.

UK property prices set to rise by 50% in next 10 years

Growth

Even those cities that have seen the smallest house price growth since the EU referendum vote would still see decent increases. Newcastle, where prices have risen by an average of just 0.07% on average each month since June 2016, would see the current average of £156,753 rise by £13,731 to £170,485 in the next 10 years.

Russell Quirk, Chief Executive Officer of eMoov, observed: ‘With latest industry figures indicating an end to the post-Brexit market slowdown that has seemingly plagued the market over the last 18 months, many UK home owners will be breathing a sigh of relief, despite having still enjoyed a notable annual increase in their property’s value.’

‘Although these recent slower rates of price growth are unlikely to persist going forward, and we are by no means predicting they will, this research demonstrates that the outlook would still be rather positive and far from the apocalyptic prophecy’s many have talked the market down with since the Brexit vote.’[1]

[1] http://www.propertywire.com/news/uk/brexit-brexit-british-house-prices-set-rise-50-next-decade/

Scottish rents at highest level since February

Published On: September 1, 2017 at 8:52 am

Author: Em Morley

Categories: Property News

Tags: property prices,rental yields,rents,rents in Scotland

The Scottish property market continued its steady progress throughout July, with property prices rising and rental yields staying strong.

Average Scottish rents – not seasonally adjusted – was £575 during July 2017, according to the latest report from Your Move Scotland. This was 1% more than the £569 recorded last month and the greatest total recorded since February.

The most expensive region was Edinburgh and Lothians, with rents standing at £662 per month. On the other hand, the lowest were in Eastern Scotland, reaching £541 per month on average.

Improvement

Brian Moran, Lettings Director at Your Move, observed: ‘The rental market in Scotland continues to improve, with rents in July performing as well as they have all year. The next year will be an interesting time for the rental market due to the launch of a new style of tenancy agreement in December, while additional rules governing Scottish letting agents come into force in 2018.’

Concluding, Mr Moran said: ‘Whether you’re a landlord, tenant or letting agent now is the time to take stock and make sure the rental market is working for you and that you’re prepared for these changes.’

‘Looking ahead, we can expect the end of the summer to see a rise in letting activity as students move into new properties ahead of the academic year.’[1]

Scottish rents at highest level since February

[1] http://www.propertyreporter.co.uk/landlords/scottish-rents-hit-highest-total-since-february.html

Where are the most expensive National Parks for property?

Published On: June 26, 2017 at 10:27 am

Author: Em Morley

Categories: Property News

Tags: landlords,National Parks,property,property prices

An interesting new report from Knight Frank has revealed the most expensive National Parks in England and Wales in which to purchase a property.

The data looks at the average sold price for detached homes within the boundaries of National Parks in both England and Wales in the year to January 2017. Results show that the average price paid in the South Downs was just over 674,000 – almost double the £350,000 average price of a property in England and Wales.

Prices

The New Forest- only given National Park status in 2005-was the second most expensive area, with homes here selling for £620,000 on average.

In comparison, the average price paid for a detached property in the county of Hampshire over the same period was just over £444,000.

Figures from the report are shown in the table below:

Average price paid: 12 months to Jan 2017, detached property

National Park	Average price (detached)	County	Average price (detached)
South Downs	£674,268	West Sussex	£487,926
New Forest	£620,883	Hampshire	£444,287
Peak District	£417,878	Derbyshire	£244,222
Lake District	£416,970	Cumbria	£265,250
Dartmoor	£372,980	Devon	£326,261
Exmoor	£345,277	Somerset	£347,048
Yorkshire Dales	£344,397	North Yorkshire	£290,344
The Broads	£319,864	Norfolk	£280,652
North York Moors	£296,038	North Yorkshire	£290,344
Brecon Beacons	£281,774	Powys	£225,140
Pembrokeshire Coast	£261,589	Dyfed	£203,055
Northumberland	£242,327	Northumberland	£263,431
Snowdonia	£205,124	Gwynedd	£212,096

Where are the most expensive National Parks for property?

Quality of Life

Oliver Knight, Associate in Knight Frank’s Residential Research team, observed: ‘The high quality of life connected with living in some of the most distinctive landscapes in England and Wales is an obvious attraction for many home buyers, but this often comes with a premium. More restrictive planning regimes in place within National Parks and Areas of Outstanding Natural Beauty means supply can often fall short of demand and this – along with the nature of existing stock, which tend towards older, larger homes with land – has underpinned pricing.’[1]

‘Wider trends we’re experiencing in the housing market are also evident, not least the north-south divide in terms of pricing, with the South Downs and the New Forest topping the pricing charts. The London ripple effect is also evident within popular commuter location such as the Surrey Hills and the Chilterns,’ he continued.[1]

[1] http://www.propertyreporter.co.uk/property/where-are-the-top-performing-national-parks-in-terms-of-house-prices.html

Is UK property price growth rising at an unattainable rate?

Published On: June 20, 2017 at 1:07 pm

Author: Em Morley

Categories: Property News

Tags: house price growth,investors,property,property prices

Yesterday saw Rightmove release data indicating that the average property price in the UK slipped by 0.4% in June, in comparison to the previous month.

However, would-be property investors should take these figures with a pinch of salt according to Jeremy Duncombe, director at Legal & General Mortgage Club.

Prices

Mr Duncombe, a mortgage expert, explains that despite the typical asking price this month dropping to £316,109, prices are still up by 1.8% on a yearly basis.

Despite this being the lowest rate of annual price growth seen since April 2013, residential property prices are still rising. However, there are concerns that in regions where affordability levels are stretched, less households are able to take part in the market.

Duncombe observed: ‘Although the data shows a minor decrease in monthly house price growth, on a year-on-year basis, house prices are still rising. Potential buyers are having to increase their borrowings, or depend on family members to help fund a deposit.’[1]

‘For many workers, price increases are occurring at an unattainable rate, with house prices now at a record 7.6 times earnings. For London, this is stretched to more than 10 ten times,’ he continued.[1]

Is UK property price growth rising at an unattainable rate?

Supply

A main cause for the increase in property prices is due to the fact that demand continues to outstrip supply in many regions of Britain. This once again underlines the need for new affordable housing to be developed.

Mr Duncombe went on to say: ‘Once the dust has settled in the newly-formed government, the task of building more affordable housing needs to become an urgent priority on the agenda. Building affordable housing in the right places will help first time buyers to take their first steps onto the property ladder.’[1]

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2017/6/uk-property-price-growth-is-occurring-at-an-unattainable-rate

How have UK property prices altered since Brexit vote?

Published On: June 20, 2017 at 10:17 am

Author: Em Morley

Categories: Property News

Tags: Brexit,EU referendum,landlords,property prices

A new report has assessed how property prices in Britain have altered in the year since the historic vote for the UK to leave the European Union.

eMoov’s Brexit House Price Report shows that the average price of a property in the UK has risen by 3.35% in the last 12 months. In real terms, this has taken the average price from £212,950 to £220,094.

Post-Referendum Rises

The figures suggest that then Chancellor George Osborne’s comments that prices could slide by 18% in the next two years are well wide of the mark.

Analysis of the figures indicates that regions where a majority voted to leave the EU saw the largest rises in price. Values here rose by 2.27% from an average of £191,611 to £195,957.

Average house prices across regions that voted to remain were higher back in June 2016 at £247,471, but have seen a rise of only 1.36% thereafter. This has taken the average price to £250,840.

Voters

The top five regions to see the biggest price growth since the Brexit vote were all home to majority leave voters. The East Midlands saw the largest increase of 3.84%, followed by the West Midlands with 3.62%.

Completing the top five were the East, North West and Yorkshire and the Humber, where values increased by 3.46%, 2.92% and 2.92% respectively.

When looking at each region individually by areas within them that voted to leave or remain, all bar four have seen house price growth amongst regions that won the overall vote.

In London, the majority of people voted to remain – but house price growth in boroughs that voted to leave has increased by 11.1%, in comparison to only 1.90% across boroughs where the majority voted to remain.

The North East, North West, East Midlands and Wales all saw the majority of people vote to Leave the EU. Areas within these regions that voted to remain however have seen greater price growth than those that voted to leave.

How have UK property prices altered since Brexit vote?

Other UK countries

Scotland voted unanimously to remain and property prices here have risen by 2.84% in the last year. Northern Ireland also voted to remain, with prices here seeing more subdued growth of 0.61%.

Founder and CEO of eMoov.co.uk, Russell Quirk, said: ‘We thought it would be interesting to run this research from a neutral standpoint to assess what impact, if any, the EU Referendum has had on the UK property market.

What is clear is that those areas that voted to remain were home to a much higher average house price in general and it would seem that it is this upper end of the market in each region that has seen price growth slow the most.’[1]

‘Encouraging news for those at the other end of the ladder, who seem to be benefitting the most since the decision to leave. What it certainly does highlight is that there are still swathes of the market, even in London, where the UK property market remains immune to any external political uncertainty, and this should stand us in good stead as we exit the EU and with the recent general election in mind,’ he added.[1]

[1] eMoov Press Release, eMoov’s Brexit House Price Report, 20.06.17

Sales up but prices down, according to Rightmove

Published On: June 19, 2017 at 9:54 am

Author: Em Morley

Categories: Property News

Tags: agents,landlords,property,property prices,sales

The most recent report from Rightmove indicates that the number of sales agreed by agents over the last month rose by 7%, in comparison to the same period in 2016.

This is the greatest level recorded for this time of year since 2007, apart from one other higher figure seen in 2014.

Despite this, the average asking price of properties being listed on the portal has fallen by 0.4% during the last month.

Falls

This was the first monthly decline in prices recorded at this time of year since 2009 and the first monthly fall in 2017.

Yearly asking price growth is now at 1.8% – the slowest rate recorded since April 2013. As such, Rightmove predicts that the average asking price of properties coming onto the market is £316,109.

In terms of sales times, May saw properties take 59 days on average, down from 60 in April and 79 in January.

The average stock per agent is 60 properties, up from the 57 recorded in April.

Sales up but prices down, according to Rightmove

Instability

Director of Rightmove, Miles Shipside, noted that a recent lack of stability has contributed towards sliding asking prices.

Shipside said: ‘The price of property coming to the market had increased in June in every year since 2009, so buyer confidence has clearly been affected by inflation outstripping their pay packets and current political events.’[1]

‘The high levels of sales being agreed show that the underlying fundamentals are largely unchanged with high first-time buyer demand which drives movement higher up the ladder, all aided by the cheap cost of borrowing,’ he continued.[1]

According to Shipside, markets in different local markets and sectors are reacting differently to the air of uncertainty. For example, a typical first-time buyer property consisting of two-bedrooms or less, represents the fastest growing property type, with newly-listed prices rising by 3.5% monthly and by 5.5% annually.

‘Those at the traditional starter level are brushing aside uncertainty, with demand being fuelled by the ongoing desire for home-ownership, government assistance, and mortgage repayments often being cheaper than rent for a similar property. In contrast, sectors higher up the ladder with a larger proportion of discretionary movers have seen the greatest recent price wobbles,’ Shipside concluded.[1]

[1] https://www.estateagenttoday.co.uk/breaking-news/2017/6/sales-agreed-up-but-asking-prices-down–rightmove