Posts with tag: property prices

How much does a bad view devalue property prices?

Published On: January 19, 2017 at 11:21 am

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Interesting research has revealed how much having a bad view can devalue the price of a property.

The analysis from DirectBlinds.co.uk reveals that 56% of the population believe a house with a poor view will be worth less. 27% said that they would look to spend between £15,000 to £25,000 less on a property with a horrible view.

Views

What’s more, the research found that a poor view does not only affect the value of a property but can also impact on mood. 59% of those questioned said they would feel down due to a bad view.

The poll found that the three worst views are:

An industrial site (23%)

Derelict building (21%)

Motorway (15%)

Those in Edinburgh and in London however should not worry, with the survey finding these cities to have the best views in the UK. On the other hand, Birmingham was found to have the worst views, with 20% of respondents saying they were unhappy with theirs.

How much does a bad view devalue property prices?

How much does a bad view devalue property prices?

David Roebuck, Managing Director of DirectBlinds.co.uk, said: ‘We were amazed to see how much a bad view could potentially affect what people are willing to pay for a property. The potential psychological effect is also concerning. Hopefully homeowners with terrible views will have some beautiful curtains or blinds to cover them up!’[1]

Favourites

Coming out of the city and into the country, it seems that the North is home to some of the best rural views. Lake Windermere was found to have favourite views, followed by the Yorkshire Dales and Ben Nevis.

The top 5 rural views were found to be:

Lake Windermere, Cumbria

Yorkshire Dales

Ben Nevis

The Cotswolds

Land’s End, Cornwall

[1] http://www.propertyreporter.co.uk/property/how-much-could-a-bad-view-devalue-your-home-by.html

 

 

Property prices rise by 3.3% year-on-year

Published On: January 18, 2017 at 10:12 am

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A new report released by haart estate agents has shown that property prices throughout England and Wales fell by 1.6% during December. This resulted in an overall drop of 3.3% year-on-year, with the average property price at £224,991.

Demand

The investigation indicates that new buyer demand for homes slipped by 15.1% in December and is well down year-on-year, by 38.8%. What’s more, the number of homes coming onto the market declined by 16.7% in the month and by 7.5% in the year. Despite the decrease in stock, there has also been a decrease in the number of buyers. This meant there were nine buyers per instruction during December.

In addition, the market was more efficient in December, as transactions increased despite the number of viewings dropping. This means that buyers are looking at fewer properties before buying.

Purchase prices

Average purchase prices for first-time buyers rose during December, by 7.6%, but remain stable year-on-year. The rate of first-time buyers entering the market slipped by 17.3% month-on-month and by 44.7% in the year.

In London, the average price of a property slipped by 2.5% in the last month, leading annual growth to slip to 5.9%. The fall seen in December in the capital was greater than across the rest of England and Wales.

Property prices down by 3.3% year-on-year

Property prices down by 3.3% year-on-year

Seasonal Slowdown

The number of tenants coming onto the market fell by 12% in December, but increased by 1.7% year-on-year. In London, the fall was more prominent, with falls of 20.2% in the month and by 65.1% annually.

Buy-to-let sales also fell in the month and in the year.

Paul Smith, CEO of haart, observed: ‘A slight jump in transactions in December is definitely very promising, pointing to a cohort who have stopped sitting on their hands, brushed off their Brexit uncertainty and started to move on with their lives. Our applicant activity in the period after Christmas to date is up 5% on the year, which when considering the pre-stamp duty rush in early 2016, is very impressive. If the economy remains sound, renewed interest should translate into higher transaction rates in 2017.’[1]

‘It is certainly time we all moved on. The idea of Article 50 holding up someone’s decision to buy or sell a home is ridiculous nearly a year on from the referendum, especially as the economy has remained so robust. Prices cooling down is a good thing for buyers – now is a great time for them to get a good deal,’ he added.[1]

[1] http://www.propertyreporter.co.uk/property/positivity-surrounding-brexit-boots-housing-market-sentiment.html

 

 

[1]

Property price growth increases for first time in 8 months

Published On: December 7, 2016 at 11:08 am

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The latest data released from the Halifax has revealed that the annual rate of house price growth has increased from 5.2% to 6% in November. This represents the first rise in 8 months.

According to the report, property prices in the three months to November were 6% greater than at the same period in 2015.

This year, the quarterly figures (between September-November) were 0.8% higher than in the previous three months.

Increased growth

Martin Ellis, Halifax housing economist, noted: ‘House prices in the three months to November were 0.8% higher than in the previous quarter. This increase followed little movement in prices on this quarterly measure in both September and October. The annual rate of growth also increased, rising for the first time for eight months.’[1]

‘Despite November’s pick-up, the annual rate has been on a steady downward trend in recent months since reaching a peak of 10.0% in March. Heightened affordability pressures, resulting from a sustained period of house price growth in excess of earnings rises, appear to have dampened housing demand, contributing to the slowdown in house price inflation. Very low mortgage rates and an ongoing, and acute, shortage of properties available for sale should help support price levels although annual house price growth may slow over the coming months,’ he added.[1]

Jeremy Duncombe, Director at Legal & General Mortgage Club, also commented: ‘November’s figures show a slight increase in monthly house price growth, but nothing like the thundering rate that we got accustomed to over the first half of the year. Despite the negative perceptions that often accompany such slowdowns, this cooling of house price inflation should be viewed positively. The fact remains that there is still a huge disparity between wage growth and property price inflation.’[1]

Property price growth increases for first time in 8 months

Property price growth increases for first time in 8 months

Early Christmas present

Founder and CEO of eMoov.co.uk, Rusell Quirk, said that the report shows: ‘yet more signs of life shooting from the frosty ground of the UK property market with the first annual increase in eight months providing UK homeowners with an early Christmas gift. Many in the industry have been quick to put the boot in over the last few months where the UK property market is concerned, hanging gloomy predictions on a dwindling level of demand in the market.’[2]

‘It would seem this simply isn’t the case. The driving factor behind inflating house prices is an imbalance between supply and demand and, with house prices spiking this late in the year, it would seem there is certainly a sustained level of buyer demand present in the current market,’ Quirk added.[2]

[1] http://www.propertyreporter.co.uk/finance/house-price-growth-increases-for-first-time-in-eight-months.html

[2] Russell Quirk, eMoov press release, 07.12.16

Shortage in property pushing up prices

Published On: November 14, 2016 at 12:03 pm

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New figures released from haart estate agents has showed that transactions, viewings and registrations all slipped during October.

The report reveals that property prices rose by 0.5% month-on-month and by 1.5%, taking the average UK house price to £227,566.

Dropping demand

Buyer demand for homes dropped by 2% in September and is down substantially by 22.4% year-on-year. What’s more, the number of properties coming onto the market has dropped 5.3% month-on-month and by 6.1% year-on-year.

As such, the decrease in stock has led to the number of buyers chasing an instruction to rise slightly. There are now nine potential purchasers for every new property coming onto the market.

In addition, the market has become less efficient in the last month, with the number of transactions decreasing and viewings rising.

Market ups and downs

The typical purchase price for first-time buyers has increased by 2.8%, up year-on-year by 5.6%. However, the number of first-time buyers entering the market dropped by 1.5% month-on-month and by 30.1% annually.

In terms of tenants, the numbers entering the market fell by 2.6% and by 13.4% annually. This pushed down rents marginally, with the average rent now £1,385 in the whole of the UK. In London, demand has risen by 6.8% month-on-month, but is still down year-on-year. Average rents in the capital are £1,961.

Investors taking out landlord insurance on properties have increased over the last month, with numbers registering to buy rising by 5.4% month-on-month across Britain. Despite that increase in demand, sales prices have fallen, by 3.5% over the month and by 9% in London.

Transactions increased by 28.6% across the UK over the course of the year.

Shortage in property pushing up prices

Shortage in property pushing up prices

Confusion

Paul Smith, CEO of haart estate agents, noted: ‘The nation’s property market is suffering from the ongoing confusion around Brexit and what it will mean for our economy. Homeowners are experiencing a crisis of confidence, with sellers either holding out for better offers or keeping their properties off the market altogether. A Brexit courtroom drama has hardly helped the situation. The Government must set out a clear plan for Brexit to help buyers and sellers feel confident and to get housebuilders building again.’[1]

‘In London, which voted heavily in favour of Remain, the problem is particularly acute, with the number of new properties on the market down by over 10% on last month, and transactions down by over 20% on last year. The current supply shortage has seen a jump in London prices compared to last month, but unlike normal times this isn’t a sign of a ‘hot’, active market. It is a blip undermined by the fall in transactions – in reality nobody is winning in the current market. The ‘Psychology of Brexit’ is holding the market back, and the government must act to avoid this dip becoming a long-term problem,’ he continued.[1]

Concluding, Mr Smith said: ‘The Autumn Statement is the Government’s opportunity to relieve the pressure. Philip Hammond must look to cut stamp duty, especially at the bottom end to help ‘generation rent’ make their move onto the property ladder, which will increase fluidity in the market. We also need to see new incentives to ensure housebuilders continue with planned projects and increase their pipelines to get Britain building again.’[1]

[1] http://www.propertyreporter.co.uk/property/property-shortage-continues-to-push-up-house-prices.html

Where will see the largest property price increases in the next 5 years?

Published On: November 10, 2016 at 9:56 am

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A new report has revealed the UK regions expected to see the greatest levels of property price growth in the next five years.

The 2017 outlook report from Strutt & Parker suggests that Greater London, the South East and the East of England will perform best over the timeframe.

Property price increases

London is estimated to see prices increases by 16.5%, the South East 16% and the East of England 14.2%. However, ongoing uncertainty caused by Brexit and economic pressures makes forecasting growth very difficult.

Stephanie McMahon, Strutt & Parker’s head of research, observed: ‘’The differing of opinions between forecasters going into 2017 is an indicator of the uncertainty currently going on in the market, things are far more difficult to predict than usual because of the high number of upcoming global events.’[1]

‘Article 50 may or may not be triggered by the end of March 2017-we just don’t know at the moment and so the potential impact is difficult to call. It is crucial that we view the UK through the prism of global investment stability,’ she continued.[1]

Where will see the largest property price increases in the next 5 years?

Where will see the largest property price increases in the next 5 years?

Fundamentals

McMahon believes that given the uncertain nature of the economy and sector, ‘we need to go back to looking at the fundamentals of the UK’s property market. When compared to the rest of the world, we have benign corporation tax, mid-level residential property tax, a favourable GMT time zone, we speak in the international business language and have huge depth of markets and skills. As a result, our economy is currently holding up better than perhaps many expected following the European Union referendum.’[1]

She also believes that rising inflation will have an impact during 2017, noting: ‘It is important that the Government quickly addresses the undercurrent of the Brexit voting and encourages growth in the regions.’[1]

[1] http://www.propertywire.com/news/europe/london-south-east-england-set-see-best-property-prices-2017/

Property price values stay fairly static in September

Published On: October 20, 2016 at 2:26 pm

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Categories: Property News

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Property prices in England and Wales stayed fairly constant during September to record an annual rise of 3.5% in comparison to one year ago. However, there are regional variations, according to the latest Your Move Index.

Ups and downs

The average price of a property now stands at £292,763, making the typical price of a property almost £10,000 more than a decade ago. Some regions are seeing strong annual growth, but prime property in London has seen the biggest slowdown.

Further analysis of the Your Move figures indicates that London saw average property prices fall month-on-month to £580,930. Prices were also down by 0.3% in Wales, the South West and Yorkshire and the Humber to hit £168,051, £265,170 and £176,174 respectively. In addition, prices slipped by 0.2% in the North East to hit an average of £145,623.

Locations where values increased the most were 0.3% in the North West, the West Midlands and the East of England, to reach averages of £177,670, £203,507 and £309,835 respectively. Prices also rose by 0.2% in the East Midlands to hit £193,601 and by 0.1% in the South East to reach £361,211.

Year-on-year, values increased most in the East of England. Annual growth here was 7.5%, closely followed by the South East (7.2%), the South West (4.2%) and the East Midlands (3.6%).

However, transaction numbers fell in September to around 74,000 sales.

Property price values stay fairly static in September

Property price values stay fairly static in September

Established

Adrian Gill, director of Your Move estate agents, said: ‘We’re seeing a two speed market become firmly established as cheaper parts of the capital and the regions record price increases while prime London property stalls.’[1]

‘At the same time transaction levels are showing how much the market has changed, with the number of properties now held by private landlords changing market dynamics. This all creates big challenges for Government housing policies, which are going to have to be flexible enough to allow regions to make use of the solutions that work best for their different needs,’ he added.[1]

[1] http://www.propertywire.com/news/europe/house-prices-england-wales-flat-september-agents-index-shows/