Posts with tag: average house price

Average Asking Price to Surpass £300k by End of Year

Published On: January 26, 2016 at 9:28 am

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Average Asking Price to Surpass £300k by End of Year

Average Asking Price to Surpass £300k by End of Year

The average asking price of new properties for sale will be £307,000 by the end of this year, according to predictions from Rightmove.

The property portal expects asking prices to increase by an average of £17,000 over the next 12 months.

It forecasts that the average new asking price in London will rise by 3% over 2016, to £635,000.

Rightmove’s January House Price Index found that the average price of property coming onto the market is up by 0.5% (£1,509) on December – the second highest Christmas/New Year period increase since 2007.

The average asking price of a new home coming onto the market is currently £290,963 across the UK and £610,741 in London.

The portal also predicts a surge in traffic to its website in the spring, as rental demand will continue to grow as house prices rise further. In the first week of 2016, visits to Rightmove rose by 21% compared to the same period in 2015.

The expectations arrive after the Association of Residential Letting Agents (ARLA) reported a lull in rental supply and demand for December. This seasonal slowdown is normal. However, letting agents fear that the forthcoming changes to Stamp Duty for buy-to-let investors could cause private landlords to leave the sector and thus, lower supply further.

Find out more about the changes and what they could mean for the private rental sector here: /17794-2/

Average House Price Could Soon Hit £300,000

Published On: January 14, 2016 at 12:04 pm

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The average house price in England and Wales was £292,077 at the end of last year, according to the latest report from Your Move and Reeds Rains.

Average House Price Could Soon Hit £300,000

Average House Price Could Soon Hit £300,000

The firms found that the average property value rose 6.6% annually, an increase of £17,963 over the year.

House prices in central London fell by an average of 8.7% last year, pulled down by higher Stamp Duty on the most expensive homes. Meanwhile, prices elsewhere in the capital soared by 11%.

The estate agents also found that last month was the strongest December for property sales since 2006, as buyers compete for fewer homes on the market. Over the month, there were 85,000 home sales.

The Director of Your Move and Reeds Rains, Adrian Gill, claims that new price records were set in every single month last year.

He says: “If the current speed of house price growth continues into 2016, the value of the average home may soon pass the £300,000 watermark, having reached £250,000 in December 2013.

“Property prices have certainly left the recession in their wake.”

He continues: “Regionally, house prices in the South East have been increasing at a rate of knots, enjoying the fastest growth of any region. The 8.1% year-on-year price rise has been particularly propelled by demand for homes in commuter towns.

“Luton has seen the largest increase of 18.5% year-on-year, with the average cost of a semi-detached home in the town increasing by approximately £40,000 since 2014.

“The East Midlands has also seen a significant surge in house prices, overtaking East Anglia to become the second fastest growing region in England.

“This acceleration has emanated from a boom in Nottingham, which has seen year-on-year house price growth of 10.6%, boosting the region’s overall annual growth rate of 6.7%. Average property prices in the city have risen £14,691 in a year and now stand at £152,978.”1 

How have prices changed where you live?

1 http://www.propertyindustryeye.com/average-house-prices-will-soon-get-close-to-300000-mark-claim/

 

2015’s Property Hotspot Outside of London Named

Published On: December 24, 2015 at 11:48 am

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2015's Property Hotspot Outside of London Named

2015’s Property Hotspot Outside of London Named

Rightmove has announced the property market seeing the highest house price rises of the year: Margate. The Kent resort was the hottest part of Britain for homes outside of London in 2015.

It came out on top of the locations where asking prices have grown the most over the last 12 months. Fuelled by a host of Londoners seeking affordable homes outside of the capital, asking prices in Margate surged by 24.2% this year to an average of £204,631.

Margate has led a housing boom over east and north Kent towns that fall within London’s commuter belt. Also included in Rightmove’s top five were: Gravesend, where asking prices soared by 20.5%, Ramsgate at 18.6% and Dartford at 17.4%.

The only non-Kent area to land in the top five was Altrincham in Greater Manchester, where asking prices jumped by 21.9% to an average of £484,258. It is one of the wealthiest parts of the North West, with some homes fetching up to £5m.

The average increase in asking prices across England and Wales this year was 7.1%.

Top ten areas with highest house price growth outside London

Position

 Area Average house price Jan 15 Average house price Nov 15

Comparison
1 Margate, Kent £164,786 £204,631 24.2%
2 Altrincham, Cheshire £397,097 £484,258 21.9%
3 Gravesend, Kent £214,308 £258,232 20.5%
4 Ramsgate, Kent £175,026 £207,591 18.6%
5 Dartford, Kent £233,811 £274,377 17.4%
6 Wokingham, Berkshire £445,973 £519,858 16.6%
7 Maidenhead, Berkshire £447,824 £521,962 16.6%
8 Luton, Bedfordshire £200,640 £233,662 16.5%
9 Slough, Berkshire £286,626 £333,010 16.2%
10 Westcliff-on-Sea, Essex £228,777 £265,136 15.9%

Outside of London, the most searched for areas on Rightmove this year were Bristol and Cambridge. Prospective buyers made 14m search enquiries for these cities. Third place went to York, followed by Milton Keynes and Norwich.

The property portal also suggests vendors put their property on the market during the second week of August. In 2015, Monday 10th August was Rightmove’s busiest day of the year, with 56m page views, as people tried to find a new home in time for Christmas.

Homes generally last 62 days on the website. Properties were sold fastest in Welwyn Garden City. Homes in the Hertfordshire town were listed for just 25 days, followed closely by Hertford at 26 days.

Top ten areas for quickest property sales outside London

Position

 Area

No. of days on Rightmove
1 Welwyn Garden City, Hertfordshire 25
2 Hertford, Hertfordshire 26
3 Ely, Cambridgeshire 26
4 Leighton Buzzard, Bedfordshire 28
5 Letchworth Garden City, Hertfordshire 28
6 South Ockendon, Essex 28
7 Watford, Hertfordshire 29
8 Hitchin, Hertfordshire 29
9 Sandy, Bedfordshire 29
10 Purfleet, Essex 29

Spokesperson for Rightmove, Sam Mitchell, comments: “This year saw demand reach record levels for home hunters both buying and renting, and the ripple effect from London to the South East moved even further out to places like Essex and Hertfordshire, as you can see from how quick properties are selling in these locations.

“Usually, January is Rightmove’s busiest month, but the New Year rush stayed even longer this year and we recorded our busiest ever month in March.”1

1 http://www.theguardian.com/money/2015/dec/18/hottest-property-market-outside-london-margate-rightmove

 

 

Shortage of Supply Will Continue Pushing Up Prices, Says RICS

Published On: December 22, 2015 at 10:24 am

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A shortage of housing supply will continue to push up property prices next year, according to the latest report from the Royal Institution of Chartered Surveyors (RICS).

The body predicts an average 6% increase in house prices and a modest rise in sales activity.

Shortage of Supply Will Continue Pushing Up Prices, Says RICS

Shortage of Supply Will Continue Pushing Up Prices, Says RICS

It states that next year’s growth in prices will outstrip any rise in household incomes.

The report says: “One theme has dominated the private housing market this year – the dramatic fall in inventory on the books of estate agents.”

It expects the greatest price rises to be in East Anglia in 2016 at 8%, followed by the South East and West Midlands at 7%.

The North West, Wales, and Yorkshire and the Humberside will see prices rise by 6%, believes the RICS, with 5% increases in London, Northern Ireland and the South West, 4% in the East Midlands and Scotland, and 3% in the North East.

Chief Economist at the RICS, Simon Rubinsohn, comments: “Housing has clearly leapt up the Government’s agenda, but despite the raft of initiatives announced over the past year, the lags involved in development mean that prices, and for that matter rents, are likely to rise further over the next 12 months.

“Lack of stock will continue to be the principal driver of this trend, but the likely persistence of cheap money will compound it for the time being.”

He continues: “Critically, our principal concern with the measures announced by the Government is that they are overly focused on promoting homeownership at the expense of other tenures.

“Discouraging buy-to-let could see private rents take even more of the strain if institutional investment doesn’t increase significantly, particularly given the likely reduced flows of social rent property.”1 

Separately, Marsh & Parsons’ Peter Rollings forecasts a 3% increase for house prices in prime central London, but 5% on the fringes of the capital.

The estate agent reports that sales of expensive homes have been greatly affected by last year’s Stamp Duty changes, which saw a top rate of 12% introduced.

Sales of properties worth more than £937,000 – the threshold for higher Stamp Duty charges – have dropped substantially.

The firm warns that next year, vendors of prime property must revise their price expectations.

Rollings adds: “The Stamp Duty changes have certainly dulled the London housing market, and while 2016 will see a return to growth, it will be rather lacklustre.”2

However, he expects high demand to continue outstripping supply and believes that in the broader London market, the only way for house prices is up.

1 http://www.rics.org/uk/news/news-insight/comment/uk-house-prices-to-rise-by-6-percent-in-2016/

2 http://www.propertyindustryeye.com/lack-of-stock-will-continue-to-drive-next-years-market-rics-warns/

 

 

 

Top Ten Fastest Growing London Boroughs of the Year

Published On: December 19, 2015 at 12:32 pm

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Top Ten Fastest Growing London Boroughs of the Year

Top Ten Fastest Growing London Boroughs of the Year

House prices in outer London continue to outperform property values in more central parts of the capital, as buyers are priced out of inner areas. But which London boroughs have seen the highest price growth of 2015?

Merton has experienced the fastest rising prices this year, with annual growth of 30%. The southwest borough is home to Wimbledon and Mitcham. Houses here now cost around £670,771 – among the capital’s highest average property prices.

However, the second fastest growing borough is Newham, which is one of the cheapest. The area is home to the Olympic Park and has consistently topped monthly price growth indices over the year. In the past 12 months, the average house price in Newham has increased by 25% to £396,012, according to Rightmove’s latest House Price Index.

Newham’s growth is in part down to new developments in Stratford, but Forest Gate is set to become a property hotspot when Crossrail arrives in 2018.

Director and Housing Market Analyst at Rightmove, Miles Shipside, comments on the study: “This is December’s best price performance in the capital since 2008. The most buoyant sector in London overall is the one made up of first time buyer-type properties – two bedrooms or fewer – up by 11% annually.”1 

Top ten fastest growing London boroughs of 2015

Position

 Borough Average house price Dec 2015 Average house price Dec 2014 Monthly price change

Annual price change
1 Merton £670,771 £516,951 6.3% 29.8%
2 Newham £396,012 £316,671 4.9% 25.1%
3 Camden £1,207,626 £991,428 15.3% 21.8%
4 Redbridge £445,398 £370,152 2.8% 20.3%
5 Hammersmith & Fulham £1,095,788 £919,982 4.6% 19.1%
6 Barking and Dagenham £280,128 £236,161 1.9% 18.6%
7 Waltham Forest £431,917 £370,775 -0.4% 16.5%
8 Islington £770,411 £663,773 -3.2% 16.1%
9 Southwark £645,101 £560,235 1% 15.1%
10 Harrow £549,153 £477,812 2.1% 14.9%

East London’s Barking and Dagenham continues to be a hit with first time buyers, thanks to its good value homes and new build developments. It is the only borough in the capital where the average property price is under £300,000. However, this isn’t expected to last long, as it is London’s sixth fastest growing borough, with prices rising by 18.6% over the year.

Homebuyers and buy-to-let investors are advised to watch the area, as a planned extension of the London Overground will link the huge Barking Riverside regeneration project to the Gospel Oak to Barking line.

Over 10,000 homes will be built at Barking Riverside in the next couple of decades, alongside new schools, shops, offices and health centres. It is located on a former power station site beside the River Thames.

Another east London borough to keep an eye out for is Waltham Forest, home of Leyton, Chingford and Walthamstow. The average house price here has soared by 16.5% over the year to £431,917. Demand has surged in the borough, as buyers are pushed out of more central locations.

Estate agent Savills expects prices in Waltham Forest to rise up to 20% by 2020, so get in there early!

1 http://www.homesandproperty.co.uk/property-news/buying/london-house-prices-2015s-top-ten-fastest-rising-boroughs-a93736.html

Rightmove Reports Strongest December for Nine Years

Published On: December 14, 2015 at 1:41 pm

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This month has been the strongest December for the housing market since 2006, according to Rightmove’s latest data.

Rightmove Reports Strongest December for Nine Years

Rightmove Reports Strongest December for Nine Years

The property portal expects to see further rises in property prices next year, as the International Monetary Fund (IMF) warns that increasing house prices are posing a threat to the UK economy.

However, property expert Henry Pryor believes that we could be witnessing the height of the market at present. He tweeted: “When they ask you ‘How did you know the market had peaked?’ say ‘2 beds in SW8 for £3.15m’.”

Pryor was referring to a two-bedroom apartment in Nine Elms, Battersea that has been put up for sale for £3.15m.

Rightmove has reported the lowest December drop in asking prices for new homes on the market in nine years, with a monthly decline of 1.1%. Annual house price growth is now 7.4%.

It found that buyer inquiries to agents since the start of October were up 37%, while the amount of properties coming onto the market has fallen by 5% compared to the same period last year.

The portal’s average new asking price is £289,452 and it expects this to rise by 6% next year.

Director and Housing Market Analyst at Rightmove, Miles Shipside, comments: “Whilst a fall in new asking prices is the norm at this time of year, this is December’s best post-financial crash performance, signalling another round of price rises in 2016.

“Despite the shortage of suitable stock in many parts of the market, demand for housing is on the up.

“Although the average price of property coming to market is already up by a hefty 7.4% compared to a year ago, Rightmove forecasts that prices will reach and breach new records next year.”

On the extra Stamp Duty costs for buy-to-let properties and second homes – coming into force from 1st April – Shipside says: “Those looking to expand their property portfolios will be trying hard to find suitable properties to buy and then complete the purchase before the April deadline.

“Those selling for the first time are likely owners of properties suitable for renting out, so they may be best advised to take advantage of any surge in investor activity and market as soon as possible.

“Given that the legal process could take six weeks or so once a buyer is found, they only have between now and the middle of February to take advantage of this artificially-induced boost to buyer demand.”1

1 http://www.propertyindustryeye.com/this-is-the-strongest-december-for-nine-years-says-rightmove/