Posts with tag: property prices

Property price inflation at 12-year high in some cities

Published On: April 28, 2017 at 9:46 am

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

Residential property price growth at city level gathered pace during the first quarter of the year, according to the latest Hometrack UK cities house price Index.

Property price growth in major cities increased by 3.5% during Q1 2017, driven by rises in Manchester, Birmingham and Newcastle.

Rises

Manchester is still the largest growing city in the UK, with annual property price rises of 8.8%. This was followed by Birmingham, which posted growth of 8% over the same period.

House price affordability, coupled with record low mortgage rates, is driving demand for property in Britain.

Birmingham, Manchester and Newcastle are posting property price increases not seen since the middle of 2005. In addition, these regions are offsetting weaker growth in southern cities, such as London and Oxford, where pressures on affordability are having a detrimental impact.

The Index reveals that the annual rate of growth for UK cities analyzed was running at an average of 6.4%.

Property price inflation at 12-month high in some cities

Taking Advantage

Richard Donnell, insight director at Hometrack, said: ‘Buyers outside the south of England appear to be shrugging off concerns over Brexit and a squeeze on real incomes to take advantage of low mortgage rates.’[1]

‘This is shifting the dynamics of the housing market. Cities that have been driving house price growth over the last 2-3 years, such as London and Cambridge, are now seeing a significant slowdown while large regional cities continue to register robust and sustained levels of house price growth,’ he continued.[1]

In addition, Mr Donnell said the Prime Minister’s decision to call a snap general election for the 8^th June could create some short-term uncertainty in the market.

However, he noted: ‘Compared to the level of uncertainty over Brexit, it is debateable whether the election will really make a material difference to buyers’ decision in the next two months. In our view the current market trends appear well set for the rest of 2017 where above average growth in regional cities offsets weak, single digit increases in southern cities.’[1]

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2017/4/city-level-residential-property-price-growth-gained-momentum-in-the-first-quarter-of-the-year-rising-by-3-5-led-by-large-regional-cities-such-as-manchester-birmingham-and-newcastle-according-to-the-latest-hometrack-uk-cities-house-price-index-w

Average UK property prices to rise by 2.2% this year

Published On: April 20, 2017 at 12:10 pm

Author: Em Morley

Categories: Property News

Tags: landlords,property market,property prices,UK house price growth

The average UK house price growth will hit 2.2% this year-a rise of £4,460, according to property consultancy BNP Paribas Real Estate.

If the forecasts are true, this means that the average price of property in the UK will hit £210,400 come Christmas.

Uncertainty

The predicted rise comes despite perceived market uncertainty surrounding the snap General Election called for June 8^th, alongside the ongoing Brexit confusion.

BNP Paribas Real Estate suggests that even London house prices will return to growth in 2017, increasing by 1.3% by the end of the year.

Over the next four years, prices in the capital are predicted to increase by 6.8% to £505,297.

John Slade, UK chief executive at BNP Paribas Real Estate, noted: ‘The big debate in London is the extent of the impact on the £1,000 to £1,500 per square foot market. While we have seen some adjustment, people now realise that high stamp duty may be here to stay and pricing has adjusted accordingly. While 2017 may be a year of relative stagnation this market should return to stronger growth thereafter.’[1]

Average UK property prices to rise by 2.2% this year

Trends

Simon Durkin, UK head of research at BNP Paribas Real Estate, also observed: ‘At a practical level, the story will become less about regional trends, with growth and activity focused on micro markets with a strong business and consumer economy. For example the North East features an extremely wide range of growth at a city level, with Newcastle Upon Tyne performing significantly more strongly than the regional average and likely to experience a less dramatic down cycle.’[1]

BNP Paribas Real Estate’s regional estimates for average property price growth by region by the end of 2020 are:

London +6.81%
South East + 17.29%
East Anglia +8.72%
East Midlands +13.07
West Midlands +13.59%
South West +22.21%
North West +7.63%
Yorkshire and Humberside +6.04%
Wales +4.26%
Northern Ireland +0.08%
North East -1.49%

[1] https://www.estateagenttoday.co.uk/breaking-news/2017/4/housing-market-good-news-price-growth-over-10-by-end-2020

North East property prices see slow start to the year

Published On: February 2, 2017 at 11:20 am

Author: Em Morley

Categories: Property News

Tags: investors,North East,prices,property prices

Latest data released by KIS Housing has shown that North East property prices have had a rocky start to 2017. Prices in the region have fallen by 3.1% in the first four weeks of the year.

This means that the average costs of a home in the North East currently stands £5,200 less than at the beginning of 2017.

North-East Prices

At present, a home in the North East will set you back £163,591, which is 5% higher than the £158,755 recorded in January 2016. Interestingly, the price fall recorded last year is identical to the one seen last month.

The most prominent falls were found in Houghton-le-Spring (-6%), Killingworth (-5.5%) and Morpeth (-5.1%).

Properties in Killingworth have performed best over the period, currently 6.4% higher than those seen in January 2016.

Rental Rises

Rents in the North East increased to £584 in January, £32 or 5% higher than the same time last year.

Despite house prices falling, rental yields rose slightly by 0.1%, increasing the average North East rental yield to 4.3%.

The cheapest place to rent in the North East is Jarrow, while Durham City is the most expensive.

Peterlee offers the highest yields, with investors enjoying an average return of 6.1%. Other good performers were Newcastle (5.7%), Gateshead (5.6%) and Seaham (4.9%).

North East property prices see slow start to the year

January Blues

Ajay Jagota, founder and MD of KIS Group, noted: ‘January is the time when people tend to view a lot of properties, having made a New Year Resolution to move home, but the actually buying tends to come later. As such we would expect to see house prices fall back at this time of year – not least as they fell by exactly the same amount in January last year!’[1]

‘It’s also been a particularly cold and dark month, which has doubtless discouraged a lot of people from house-hunting. The long-term trend for property values in the North East is incremental, sustainable growth – as shown by the year-on-year rise in values of 5%, which in places like Killingworth and Cramlington has added close to £1000 a month to house prices. There’s increasing evidence that investors are turning away from London and looking north. Increased investor demand may increasingly impact on North East property prices in 2017, for the first time since the early 2000s,’ he added.[1]

Concluding, Jagota said: ‘It’s been claimed this week that demand for rental properties is at a two-year low, but that’s not something we’ve much evidence of in the North East, where rising rents and returns for investors indicate strong demand. Certainly the most eye-catching fact about the state of the residential renting market in the North East is the fact that for the first time landlords in Newcastle are currently getting a better return on their investment than those in Gateshead.’[1]

[1] http://www.propertyreporter.co.uk/property/north-east-property-sees-a-bumpy-start-to-2017.html

How have property prices performed in last Chinese zodiac cycle?

Published On: January 27, 2017 at 12:56 pm

Author: Em Morley

Categories: Property News

Tags: average property prices,Chinese New Year,investors,property prices

With the Chinese New Year arriving this weekend, Knight Frank has investigated how UK house prices have performed over the Chinese zodiac cycle of the last 12 years.

Research from the firm indicates that average house price growth was greatest during the Year of the Dog, between 2006-07. Here, property values rose by 9.26% on average, making it the luckiest animal sign for property owners and investors during the last twelve months.

Good Signs

Other profitable years were that of the Ox, Snake and Horse, with prices rising by 8.72%, 8.66% and 6.66% per year respectively.

At the other end of the scale, the Year of the Rat, between 2008-09, saw average property prices plummet -16.55% year-on-year. This was obviously due to the fact the financial crash occurred between this period.

Other poor years included the Year of the Tiger, Dragon and Rabbit, with prices ranging from -1.37, -0.08% and 0.59% in these periods.

How have property prices performed in last Chinese zodiac cycle?

The full list of how property prices have performed during the Chinese zodiac cycle of the last 12 years reads:

Position	Start	End	Year	Annual Price Growth (%)
1	2006 January 29	2007 February 17	Dog	9.26
2	2009 January 26	2010 February 13	Ox	8.72
3	2013 February 10	2014 January 30	Snake	8.66
4	2014 January 31	2015 February 18	Horse	6.66
5	2016 February 8	2017 January 27	Monkey	4.4*
6	2015 February 19	2016 February 7	Goat	4.37
7	2005 February 9	2006 January 28	Rooster	4.36
8	2007 February 18	2008 February 6	Boar	4.21
9	2011 February 3	2012 January 22	Rabbit	0.59
10	2012 January 23	2013 February 9	Dragon	-0.08
11	2010 February 14	2011 February 2	Tiger	-1.37
12	2008 February 7	2009 January 25	Rat	-16.55

[1]

[1] http://www.propertyreporter.co.uk/property/which-chinese-year-has-been-the-luckiest-for-uk-house-price-growth.html

Average property prices could rise sharply in next decade

Published On: January 26, 2017 at 9:50 am

Author: Em Morley

Categories: Property News

Tags: average house price values,Buy-to-Let,landlords,property prices

A warning has been sounded that residential property prices in England could reach an average of over £300,000 during the next decade, should prices continue to rise at the same rate as previously.

What’s more, the research from eMoov suggests that in the capital, prices could rise to over £800,000, with those in the South East hitting £445,000.

Property Price Rises

The report from eMoov shows that house prices in England have risen by 29% in the last ten years. The same increase between now and 2027 would take the average house value in England to £301,864.

In London, they would increase by 80% to hit £866,719 and in the South East a rise of 43% to £445,159.

For other regions, the rise would not be as prominent. In the North West, prices would increase to £158,131. Prices in the East and West Midlands would rise to £205,870 and £183,883.

Looking at the last 20 years, values in England have risen by 320%. Should this happen again until 2037, average property prices would rise to £983,826. In London, average values would hit a whopping £2,792,783.

Average property prices could rise sharply in next decade

Impossible

Russell Quirk, chief executive officer of eMoov, believes the figures show the almost impossible task being faced by the next generation of would-be renters.

Quirk noted: ‘The property boom in several regions of England has made it increasingly more expensive to get on the ladder and the figures anticipating the next two decades only further attest to the importance of investing in a home as soon as possible if the trend in increasing property values is to persist.’[1]

‘It is stomach churning to think that should prices continue the way they are, there will be just one real area of property affordability left across England in 20 years’ time, with the average house price in England approaching the £1 million mark and three regions tipping beyond this,’ Quirk added.[1]

[1] http://www.propertywire.com/news/uk/average-house-price-england-reach-close-1-million-2037/

Bristol and Manchester lead annual price growth

Published On: January 23, 2017 at 10:56 am

Author: Em Morley

Categories: Property News

Tags: Buy-to-Let,growth rates,house price values,property prices

The latest Hometrack index has revealed that Bristol and Manchester led the way for price growth in key cities in the UK during 2016.

Bristol recorded growth of 9.6% and Manchester saw property values increase by 8.9%.

Highs

In Manchester, house price inflation hit a 12 year high, with demand far higher than supply. London however fell to seventh position.

Overall, average house price values rose by 2.2% in the final quarter of 2016, up by 0.3% from the previous quarter. Annual growth stood at 7.7%, slightly down on 2015.

The report suggests that lower unemployment and increasing earnings are continuing to increase demand in more affordable markets. Buyers are using to low mortgage rates to increase housings costs.

However, the headline growth rate is obscuring a shift in underlying growth at city level. Growth is shifting from London to regional cities, with more attractive affordability for further inflation.

Bristol and Manchester lead annual price growth

Capital Slowdown

It is predicted that house price growth in London will slow to 1% during 2017. Average prices increased by 7.3% during last year, the slowest annual growth rate since July 2013.

Other cities recording higher price growth than London, apart from Manchester and Bristol, were Oxford, Portsmouth and Southampton. These cities recorded growth of 8.1%, 8% and 7.9% respectively.

At the other end of the scale, Aberdeen saw annual price rates slide by -3.2%. However, house prices did recover by 2.9% in the final quarter of 2016. Despite this, Aberdeen has seen a 11% drop in average house prices since the year 2014.