Posts with tag: property prices

Property asking prices rise during September

Published On: October 12, 2016 at 2:08 pm

Tags: asking prices,investors,landlords,property,property prices

Property prices in the UK rose by 0.7% during September, with the East of England showing the most prominent rises.

However, a report from Home.co.uk suggests that many sellers are being too optimistic on their pricing.

Rises

Month-on-month, property asking prices rose by 0.7% in England, by 0.3% in Scotland and by 0.2% in Wales. Yearly, prices are up by 4.4%, 5.3% and 1.3% than at the same period in 2015.

In addition, supply has found to have risen by 11% year-on-year across Britain. This was particularly driven by the South and East of the England. In London, supply rose by 19%, in the South East by 23% and the East by 30%.

The largest month-on-month rise in asking price was found in the East of England, with 1.1%. This took the average asking price in the region to £342,915, some 11.5% greater than one year previously.

Next came the South East and the East Midlands, with rises of 1% recorded. This pushed the average asking price of property in these regions to £394,837 and £211,328 respectively. Annually, there were increases of 4.2% and 5.5%.

Property asking prices rise during September

Muted

More muted growth was evident in the West Midlands, with asking prices up by 0.5% month-on-month and 6.5% year-on-year. The North West saw rises of 0.1% and 4.2%, Yorkshire and the Humber 0.2% and 3% and the North East 0.2% and 1.1%. Asking prices in these regions are now £225,664, £181,459 and £157,577 respectively.

The report also indicates that a sign of fragility within the market is evident with a growing number of sellers cutting asking prices. This is currently at a three-year high in Britain, with Home.co.uk expecting more to follow.

Doug Shepherd, director of Home.co.uk, noted: ‘Supply is increasingly rapidly in the East, South East and London. What’s more, the pricing of these new instructions is looking rather optimistic.’[1]

[1] http://www.propertywire.com/news/europe/asking-prices-across-uk-sellers-optimistic-index-suggests/

House price growth in UK slows in September

Published On: September 30, 2016 at 2:13 pm

Author: Em Morley

Categories: Property News

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

Residential property values rose yet further in September, according to the latest data released by Nationwide.

Figures from the report show that property prices increased by 5.3% in the last month, in comparison to the same period 12 months ago. This was slightly slower than the rise of 5.6% recorded during August.

Price increases

The building society said that prices increased by 0.3% in comparison to last month, with this down from the month-on-month rise of 0.6% seen in August. The average cost of a residential property is now £206,015.

Nationwide economist Robert Gardner, believes that slight slowdown in growth in property prices is due to a shortage of homes for sale.

Gardner noted: ‘the relative stability in the rate of house price growth suggests that the softening in housing demand evident in recent months has been broadly matched on the supply side of the market.’[1]

Rob Weaver, director of investments at property crowdfunding platform Property Partner, pointed out that despite a slowdown, prices are still creeping up.

‘There’s been a stability in residential property that’s reassuring particularly post-Brexit and proof of the underlying strength in this market compared to the panic seen in the commercial sector. Stable house prices is really positive but the low levels of activity in the market is a continuing concern and an indication that it is still difficult to get mortgage finance despite the recent lowering of the base rate,’ he noted.[1]

House price growth in UK slows in September

Brexit uncertainty

Russell Quirk, founder and CEO of eMoov.co.uk, noted: ‘Today’s report by Nationwide shows that prices have cooled marginally since last month, which could elude to the first real evidence of any post-Brexit uncertainty in the market.

‘I don’t think this is quite what we are seeing. The market remains in a very stable condition and in fact prices are showing stronger rates of growth both quarter to quarter and annually when compared to September of last year.’

‘September has also enjoyed the third largest annual price growth year on year, so I don’t think there is any need to run for the hills just yet. As Nationwide point out, the rate of supply has remained inadequate however, it seems the slight cool in prices is a result of buyers sitting tight rather than sellers and who can blame them,’ he concluded.[2]

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2016/9/uk-house-price-growth-slows-says-nationwide

[2] http://www.propertyreporter.co.uk/property/annual-house-price-growth-slows-to-53.html

Where tops the table for house price growth near Premier League stadia?

Published On: September 30, 2016 at 10:44 am

Author: Em Morley

Categories: Property News

Tags: Buy-to-Let,Football,housing,prices near football stadiums,property prices

They may have had a poor start to the Premier League season but Stoke tops the table for annual property prices increase for homes located near Premiership stadia.

Analysis from Purplebricks shows that homeowners living near the Britannia Stadium enjoyed a 22% rise in the value of their property.

Top of the league

Overall, the average price of property located near to Premier League grounds increased by 8.7% over the year-rising from £284,970 to £309,870. The average price of a home in the UK is currently £216,750.

In London, Spurs took the glory, with prices in Tottenham up by 12.1%. Chelsea came second in the capital, with prices in the region up by 10.9%. Arsenal recorded rises of 10.1%, with West Ham 9.4%.

The red half of Manchester took the plaudits, with property values up by 4.8% near Old Trafford. Prices near the Etihad Stadium saw a smaller, 2.4% increase.

Property prices near the home of Premier League champions Leicester City saw an annual rise of 7.5%. On the South Coast, near St Mary’s stadium Southampton, values rose by 7.7%.

Fighting relegation

Liverpool finds itself in the relegation zone, with prices 6.41% down year-on-year, due to the area around Anfield awaiting major redevelopment.

Land Registry figures for the last 15 years show that the price of property near Premier League venues have increased by 10% more than the national average.

You have to look no further than the Etihad Stadium, opened in 2002, for the impact a new stadium can have on property prices. Before the stadium was built, property in the area could be purchased for an average of just £20,378. Now, the average is £156,092, a monumental rise of 665%.

Prices around Anfield have seen a rise of 277% over the same period, while in Stoke, average values have risen by 215%.

Where tops the table for house price growth near Premier League stadia?

Redevelopment

Michael Bruce, CEO of Purplebricks, said: ‘football stadiums generally used to be in run-down areas of a city, often cramped between back streets, whereas most are now sited in areas which have undergone major redevelopment and boast new transport links, attractive new amenities, shops and bars. This has been reflected in house prices, which are consistently higher than those in neighbouring locations.’[1]

‘Our data proves that living near to your favourite club makes good financial sense-and it’s also handy for home games too.’[1]

[1] http://www.propertyreporter.co.uk/property/premier-league-properties-see-game-changing-price-rise.html

Property prices slide slightly in August

Published On: September 16, 2016 at 10:38 am

Author: Em Morley

Categories: Property News

Tags: Buy-to-Let,property prices,rents,UK housing

Average property prices fell slightly during August, dropping yearly house price growth down to 5%, according to the latest data released by haart.

House price values slipped by 1.9% during the month, meaning that the average UK house price is now £228,831.

Falls

Results from the report show that new buyer demand fell by 3.8% in August, and by a substantial 13.2% year-on-year.

What’s more, the number of new properties coming on the market has slipped by 4.4% month on month, but has actually risen by 5.2% annually. However, due to the fall in August, there are now nine potential buyers for every property coming onto the market in the UK.

Data from the report suggests that the market has become more efficient over the last month, with the number of transactions increasing but viewings falling. This means that buyers are choosing to look at less properties before making a purchase.

Capital pains

In London, the average property price has slipped by 3.4% during the last month, but this is 2.7% greater than last year. This is lower than the annual rate of growth seen across the rest of the UK. In addition, demand for properties in the capital has also fallen by 6.1% month-on-month and by a significant 25.5% year-on-year.

During the same period, the numbers of properties for sale has decreased by 5.2% but are up 1.9% year-on-year.

Tenants

Tenant numbers entering the market have slipped 10.7% month-on-month and by 26.6% year-on-year. In turn, this has pushed down rents, which are now £1,353 on average.

In London however, the market remains steady, with demand rising by 0.7% on the month, but dropping by 23.3% annually.

Landlords are still leaving the sector as a result of the tax changes impacting on them earlier this year. London particularly has seen the brunt of the problem, with numbers of people registering down by 13.4% month on month and by a staggering 59.8% annually. This is in comparison to national falls of 5.3% and 52.2% year-on-year.

Property prices slide slightly in August

Brexit blues

Paul Smith, CEO of haart, noted: ‘this month sees a property market that is still suffering from the Brexit blues. House prices are down, but are not out-as we near the bottom of the post-Brexit dip, with interest rate falls likely to help pick things back up again in the second half of the year. It is positive to see that transactions are still up for the second month in a row, so there is still plenty of activity in the market. We are also seeing a more positive picture for first-time buyers, as mortgage rates decrease, along with deposit and purchase prices, making it a good time to buy.’[1]

‘What has become most apparent is that for London, the rise in the SDLT earlier this year has had a more profound impact on the market than Brexit has, as we see buy-to-let landlords continue to venture out of the capital and into regions where they are now more likely to see more lucrative returns on their investment. However, the continued lack of supply will always hold the market up in our resilient capital, and this is unlikely to see a too damaging effect long-term,’ he continued.[1]

Concluding, he said, ‘the pound is continuing to recover week on week and broader business confidence data from YouGov shows the largest month on month jump in confidence in over 3 years – it’s too soon to say we’re ‘over’ Brexit, but the fog of uncertainty is beginning to clear. This boost in confidence should be reflected in property activity in the coming months as we return to relative normality. With the summer lull coming to an end, expect to see the market moving onwards and upwards in the autumn.’[1]

[1] http://www.propertyreporter.co.uk/finance/house-prices-down-but-not-out-in-august.html

Property sales down 0.9% in month after Brexit

Published On: August 24, 2016 at 9:11 am

Author: Em Morley

Categories: Property News

Tags: Brexit,house prices,property prices,transactions

Property sales in Britain dropped marginally between June and July of this year, (post-Brexit vote), according to the latest data released by HMRC.

A fall of just 0.9% was recorded month-on-month, with fears of a more substantial drop following the Brexit vote proving unfounded.

Year-on-year however, there was an 8.3% decline in transactions.

Estimations

The seasonally adjusted estimates of non-residential property transactions fell by 7.5% between June and July, 1.7% down on the same month last year.

In addition, the report shows that there was a large rise in transactions in March, in comparison to a sharp reduction in April. This can be attributed to the introduction of higher stamp duty rates on additional property that came in on April 1^st.

Andy Sommerville, director of Search Acumen, suggests that the statistics show the market is stabilising. He notes that, ‘many would have expected a sharp fall in transaction activity in what was the first full month in our post-referendum economy, yet an underwhelming change suggests the darkness in our market shows little sign of worsening.’[1]

‘Despite the encouraging resilience the market has shown in the short term, the bigger picture reveals an 8.3% decrease in transactions since July last year, demonstrating the true hit we’ve taken from Brexit, combined with the underlying issue of affordability. As our economy absorbs the shock of the past three months, it is positive that home buyers are being given a leg-up into the property market to reignite demand and boost our industry,’ he added.[1]

Property sales down 0.9% in month after Brexit

Stable

Doug Crawford, chief executive officer of My Home Move, said that the data shows that the property market has shook off the uncertainty of the Brexit vote.

He observed, ‘following the referendum there was talk that the market would be quickly affected by the outcome, but these fears have been allayed with residential transactions falling by just 0.9% month-on-month. While transactions levels remain lower than a year ago, this is in the context of a market that is still feeling the effects of changes to stamp duty, which led to a frontloaded first quarter.’[1]

‘The figures reflect our own experiences of the market. Following the referendum the vast majority of purchases went ahead without any issue, and chains were largely unaffected. In the medium term the market will remain stable, and our view is that it is strong enough to weather mild economic uncertainty.’[1]

Concluding, Crawford said, ‘In the long term, strong fundamentals will continue to support a prosperous housing market. High levels of demand for both rental and owner occupied accommodation will drive transaction figures upwards, and our recently published forecast predicts the number of property transactions will rise by 20% by 2020.’[1]

[1] http://www.propertywire.com/news/europe/uk-sales-post-brexit-2016082312298.html

How has Brexit impacted on Leave and Remain regions?

Published On: August 18, 2016 at 10:19 am

Author: Em Morley

Categories: Property News

Tags: Brexit,Brexit impact,EU referendum,property prices

An interesting new report from independent estate agent haart has looked at the impact on property prices in areas that voted differently in June’s EU referendum.

The investigation reveals that areas that voted for the UK to leave the EU have seen a positive effect in the property market. However, those who voted to remain have seen a substantial fall.

Brexit

Figures from the report show the impact on property market confidence following the vote. Haart looked at registrations, listings and sales across 20 of its local branches.

Results indicate that ‘Remain’ branches saw a 6% drop in the number of listed properties. ‘Leave’ on the other hand saw a slight 1% increase. In fact, six out of ten Leave branches saw a rise in new listings.

However, the number of registrations fell in both Leave and Remain regions, down 30% on average in Remain locations and 23% for Leave areas.

Sales shift

The number of sales found to have fallen through in Leave branches was 2% lower than before the referendum. For Remain, sales falling through increased by more than 50% on average in the weeks following the historic vote.

Doncaster for example, where 69% of voters opted to Leave, saw a 25% rise in the number of new listings following the result. Wisbech, where 71% of people voted to Leave, saw a 9.6% rise in listings.

On the other hand, Great Shelford in South Cambridgeshire, where 60% of people voted to Remain, has seen a 42% drop in registrations. Similarly, Bristol, where 62% voted to Remain, saw a drop of new listings.

How has Brexit impacted on Leave and Remain regions?

Referendum reality

Paul Smith, CEO of haart, observed, ‘it’s clear that the winners of the EU referendum are feeling much more confident about the future of the property market than those who voted Remain. The doom and gloom of the campaign has obviously had a lasting impact on how Remain voters feel about the economy and the property market, while Leave voters are much more relaxed. The areas that had the strongest Leave vote are even seeing a small surge in activity.’[1]

‘The reality is that we have a property market heavily driven by sentiment, and it’s the confident Leavers who are currently keeping the market afloat. If the government can continue to provide a strong vision for the UK’s post-Brexit future and a clear timetable for an EU exit, greater stability and confidence will follow, which might reassure Remainers. However if they can’t be convinced we could see the market and wider economy flat-lining for some time. Nevertheless the fundamentals of the residential market are strong, with people more determined than ever to get on to and move up the ladder, so we have every reason to be confident. When it comes to Brexit, it seems the only thing we have to fear is fear itself,’ he concluded.[1]

[1] http://www.propertyreporter.co.uk/property/leave-or-remain-which-areas-have-the-highest-property-sentiment.html