Written By Em

Em Morley

Property price sentiment continues to be strong

Published On: March 27, 2017 at 9:15 am

Tags: Buy-to-Let,house price sentiment,property,values

The most recent report from Knight Frank and IHS Markit has revealed that during March, the majority of UK households believed the value of their property increased.

According to the investigation, this was the eighth straight month that the Index was positive.

Values

Respondents in nine out of eleven regions covered by the Index feel that the value of their home has increased over the last month. Those in the South East were most positive.

Overall, households in all regions believe that the value of their home will increase during the next year.

Oliver Knight, an associate in the residential research team at Knight Frank, said: ‘The latest survey data suggests that house price sentiment across the UK is becoming steadier. Households still report that values are increasing, but at a more modest pace than before the EU Referendum, which is consistent with wider housing market trends.’[1]

‘Future price expectations remain in positive territory, especially in the South and Midlands, but there are a number of headwinds which could weigh on the market, including rising inflation and second-round effects from Brexit. Yet at the same time, a lack of supply of housing for sale is underpinning pricing across much of the UK,’ he continued.[1]

Property price sentiment continues to be strong

Upbeat

Tim Moore, senior economist at IHS Markit, noted: ‘UK house price sentiment was relatively upbeat in March, which provides another signal that confidence has gradually picked up during the first quarter of 2017. This suggests that ultra-low mortgage rates and the resilient UK labour market are helping to offset the drag on house price sentiment from squeezed consumer finances.’[1]

‘While sentiment has rebounded strongly since last summer, house price expectations are still much more subdued than those reported in the three years leading up to the EU referendum. Looking at house price expectations for the next 12 months, regional divergences widened across the UK during March. In particular, household sentiment in Scotland fell to the weakest for over four years, and the gap relative to UK-wide price expectations was the greatest since the survey began in 2009,’ he added.[1]

Concluding, Mr Moore said: ‘Meanwhile, the latest survey saw London drop into the bottom half of the UK regional table for the first time since April 2010. By contrast, people living in the West Midlands were more confident about the outlook for their property values than at any time in the past two-and-a-half years.’[1]

[1] http://www.propertyreporter.co.uk/property/house-price-sentiment-strengthens.html

Just 186,000 Homes are Left for 2m Elderly Homeowners

Published On: March 27, 2017 at 8:47 am

Author: Em Morley

Categories: Property News

Tags: elderly homeowners,first time buyers,housing stock,retirement

Just 186,000 Homes are Left for 2m Elderly Homeowners

Last week, we reported that retired homeowners are cashing in on property wealth at the expense of struggling first time buyers. But there may be a very obvious reason for this – elderly homeowners have no smaller homes to move to.

In its Right-Size Report, Inspired Villages found that Britain’s elderly homeowners are not moving from their family homes because there’s a severe lack of variety and quantity of retirement housing stock.

The research found that, in total, there are around 720,000 homes across various retirement housing types in England and Wales – enough to house just 7% of the nation’s elderly homeowners.

The Right-Size Report, which maps the supply and demand of Britain’s retirement housing, also found that 1.8m elderly homeowners who would normally leave their family homes can’t because there is nowhere suitable for them to move to.

If you are looking to move, however, Portsmouth is the best place to consider, as it has the most retirement housing units for ownership.

Hyndburn and Caerphilly are the worst, with the fewest number of units available.

A quarter (25%) of people say they would like to invest in a retirement property, despite there being only enough units for 2.7% to do so.

And housing supply is definitely the problem – since 2000, while the older population has grown, as few as 5,500 retirement housing units per year have been built on average.

Using this data, Inspired Villages mapped the supply and demand of Britain’s retirement housing, considering what it could be like in 20 years’ time as a result of the country’s rapidly ageing population.

While it certainly appears that Britain’s elderly homeowners would like to move into smaller properties to free up homes for younger first time buyers, it doesn’t look like a likely solution until the country’s housing stock rapidly increases.

Mortgage Approvals were Down in February, Reports the BBA

Published On: March 27, 2017 at 8:14 am

Author: Em Morley

Categories: Finance News

Tags: finance,homebuyers,Mortgage lending,mortgages

The latest high street banking statistics from the British Bankers’ Association (BBA) show that mortgage approvals were down in February.

Mortgage Approvals were Down in February, Reports the BBA

However, the figures also show that household borrowing of £13.4 billion in February was 4.6% higher than in the same month last year.

The data found that consumer credit is also growing, at an annual rate of 6.6%.

Gross mortgage borrowing of £13.4 billion in February was 4.6% higher than in the same month last year. After allowing for repayments, February’s net mortgage borrowing was 2.5% higher than in February 2016.

Nonetheless, house purchase approval numbers of 42,613 were 4.6% lower than in February last year and 3.5% lower than in January 2017, but still above the 2016 monthly average of 41,287.

Remortgaging approvals stood at 25,414 in February – much lower than January’s figures and a slight drop on the 2016 average of 25,987.

Other advances were 4.8% higher than a year ago.

The BBA also reports that business borrowing continues to be subdued, growing by just 0.9% annually.

The Managing Director for Retail Banking at the BBA, Eric Leenders, says: “Elevated approval volumes for house purchases and remortgaging experienced during the winter months fell back in February, to average levels seen throughout most of last year. Consumers’ use of credit cards and personal loans reflect last month’s increased spending figures.

“Businesses continue to exercise a cautious approach to borrowing, using cash reserves and alternative lending sources to finance their operations.”

Will mortgage lending continue to decline over the rest of this year, or will it pick up as the property market hits the spring rush?

We will keep you updated on all aspects of the property market at LandlordNews.co.uk and through our handy monthly newsletter, which you can sign up for free at www.34.207.192.121/register.

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Agents are not going to be included in Money Laundering Directive

Published On: March 24, 2017 at 12:59 pm

Author: Em Morley

Categories: Finance News

Tags: landlords,legislation,letting agents,Money Laundering Directive

The UK property industry feels that a recent Government decision not to include letting agents in its proposals for legislation to meet requirements of the fourth Money Laundering Directive is wrong.

There are many elements of the consultation on the directive that are likely to have an impact on the property sector. While letting agents will be expected to carry out consumer due diligence, lettings agents will not.

This means that buyers and sellers of properties will be checked by estate agents, but tenants and landlords won’t.

Disappointed

David Cox, Chief Executive of ARLA Propertymark, said: ‘We’re disappointed the Government has chosen not include letting activity within the money laundering regulations 2017.’[1]

‘The risk with this is that money laundering activity will transfer from the sales sector due to the increased powers within the new regulation, into the lettings sector which remains unregulated. However, within the context of the recently increased legislative burden on letting agents, coupled with the shock announcement to ban letting agent fees in the Autumn Statement, we understand why the Government has chosen not to impose these requirements at this critical juncture,’ he continued.[1]

Agents are not going to be included in Money Laundering Directive

Implementation

Mark Hayward, NAEA Propertymark Chief Executive, believes it is good news that the consultation on money laundering has appeared. He believes that when legislation comes into force, it is imperative that the sector acts to implement the changes.

Hayward said: ‘The Government has announced that purchasers are now included in the application of customer due diligence, so additional checks will need to be made by sales agents and auctioneers, which will be complicated by the fact that buyers are sometimes at arm’s length and there’s not necessarily a face to face relationship.’[1]

‘However, further clarity will be required as to what point the purchaser becomes a purchaser and this is an issue we will be seeking guidance on,’ he added.[1]

[1] http://www.propertywire.com/news/uk/uk-property-industry-disappointed-letting-agents-not-included-money-directive/

Is Manchester the new property hotspot?

Published On: March 24, 2017 at 10:56 am

Author: Em Morley

Categories: Property News

Tags: Buy-to-Let,house prices,Manchester,property

Manchester is seemingly the latest property hotspot, after new research revealed that values here rose fastest over the last year than any other part of the country.

Property price values rose by 8.8% in Manchester during February, in comparison to the same period in 2016. Portsmouth saw a rise of 8.1% as buyers were lured back to the market due to an improving employment outlook and record low mortgage rates.

Price Rises

According to the latest Hometrack UK cites house price index, Bristol also saw high growth, with rises of 8% last month. The Index looks at property price movements across the UK’s 20 biggest cities.

However, the capital is seeing growth cool, with annual property price growth slowing to 5.6%-the lowest level since 2013. London is now tenth on the list of fastest growing cities, with weaker demand partly a cause.

Is Manchester the new property hotspot?

Overall, the headline rate of growth for Hometrack’s UK Cities Index is running at 6.4%, down from 6.9% one month ago and 7.8% one year ago.

The table below shows how property prices for all 20 regions assessed by Hometrack have faired:

HomeTrack infographic

Flat

Richard Donnell, insight director at Hometrack, noted: ‘Levels of housing turnover across UK cities are expected to remain broadly flat over 2017. There is some further upside for sales volume in regional cities but much depends upon how would be buyers respond to external factors, not least the impact of lower real wage growth, the potential for higher mortgage rates and whether demand will be impacted by the triggering of Article 50 at the end of the month.’[1]

‘In cities where affordability remains attractive we expect demand to hold up in the short term albeit with slower growth in sales volumes. Overall we continue to expect the rate of house price growth to moderate over the rest of 2017,’ he added.[1]

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2017/3/manchester-has-fastest-growing-house-prices-in-the-uk

Love Actually Cast Reunites for Red Nose Day, but how have their Properties Fared?

Published On: March 24, 2017 at 10:42 am

Author: Em Morley

Categories: Property News

Tags: house prices,London,London property market,Red Nose Day

To celebrate the reunion of the cast of Love Actually for Red Nose Day today, online estate agent eMoov.co.uk has assessed the incredible house price growth experienced in the boroughs used in the film back in 2003.

The agent calculated the percentage increase seen in each of the five London boroughs used in the film some 14 years ago.

Love Actually Cast Reunites for Red Nose Day, but how have their Properties Fared?

Keira Knightley and Chiwetel Ejiofor’s Notting Hill flat in the Royal Borough of Kensington and Chelsea came out on top, with a huge 188% increase over the 14 years, from an average price of £466,463 to £1,342,561.

3835651490179564164

Closely following the winner is Hugh Grant’s Prime Ministerial residence at 10 Downing Street. Although the property is unlikely to ever go on the market, the City of Westminster’s average house price has increased by 177% since 2003, from £366,519 to £1,015,855.

3835651490179607605

Heading south of the river to the South Bank is Andrew Lincoln’s quirky warehouse conversion flat in Southwark. The borough has enjoyed a 162% rate of house price growth between the film’s release and reunion, from an average of £194,070 to £509,218.

3835651490179675304

Staying in south London, Martine McCutcheon’s terraced house in the “dodgy end” of Wandsworth is, in fact, in Herne Hill, Lambeth. eMoov assumes that this is because there is no real dodgy part of Wandsworth, as, even in 2003, the average house price was a whopping £640,000.

Coincidentally, however, both Wandsworth and Lambeth have recorded a 155% price rise over the past 14 years but, at £524,605, the average house price in Lambeth is a lot more affordable than Wandsworth’s £1,633,768.

The average property value in Lambeth rose from £205,905 in 2003 to £524,605 today.

3835651490179747918

Finally, poor Colin Firth not only found his fiancée cheating on him with his brother in the first film, but he has also seen the lowest growth in house prices over the period. His flat in Turnham Green came in last place, with a 109% increase.

The average property value in Hounslow rose from £192,798 in 2003 to £403,631 in 2017.

The Founder and CEO of eMoov, Russell Quirk, comments: “It seems that love actually is all around London when it comes to the property market. With the cast reuniting for Red Nose Day, we thought it would be interesting to see how much their fictional characters would have made since the original film was launched, due to the ever-inflating cost of the London property market.

“Despite the prime central London market seeing a fall in buyer demand over the last year or so, it remains one of the most lucrative markets for those lucky enough to have bought there in the last ten to 20 years. But even the less prestigious areas of London, such as Harrow and Lambeth, have seen prices more than double since Love Actually first hit our screens.”

Will you be tuning in to the Red Nose Day action tonight?