Posts with tag: home values

August House Prices strongest for 8 years

Published On: August 17, 2015 at 4:05 pm

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The typical hunt for a bargain property in the summer months has been found to have been elusive for many, with asking prices for UK property at an eight-year high in August.

Property website Rightmove has indicated that prices dipped by just 0.8% this month, far less than the typical average and the lowest decrease since the recession.

Strong

Data from the report conducted by Rightmove shows that asking prices are currently 6.4% greater than they were one year ago, bringing the average value of a home in England and Wales to £292,284. The firm attributed the slight decline to a lack of new sellers, combined with stronger house hunting activity.[1]

‘The underlying shortage of property coming to market, compared to buyer demand has helped to deliver the strongest August price performance since before the credit crunch,’ observed Miles Shipside, director of Rightmove.[1]

‘Buyers can normally pick up some bargains in August as sellers who are marketing their homes when they should be holidaying often have a pressing need to sell and mark their prices down pretty aggressively,’ Shipside continued. ‘At 0.8% down on the previous month, this is the least generous that sellers have had to be for eight years and a clear sign of upwards price pressure in the pipeline,’ he added.[1]

Staying put

Further research shows that the main factors behind people’s hesitancy to sell their own homes were the lack of suitable properties in which to move into at a desired price. In fact, Rightmove’s data indicates that asking prices increased across a number of areas in England and Wales in August.

Asking prices were up by 1.2% in the North East of England, by 0.5% in the North West and by 0.1% in the West Midlands. In Wales, process grew by 0.2%, meaning that average home prices currently stand at £177,709.[1]

Falls in asking prices were recorded in the East of England (1.2%) and in the East Midlands and South West (1.4%).[1]

Mark Manning, director of  Manning Stainton in Leeds, Harrogate, Wetherby and Wakefield commented, ‘in July, the number of appraisals that we carried out was 21% higher than usual, so there’s definitely a sense that there are a greater number of people who are considering selling, but not yet coming to market.’[1]

‘With regards to stock level in the market it’s not that there’s no stock, it’s just that when good property does come on the demand is so high that it’s selling much more quickly than usual,’ he added.[1]

August House Prices strongest for 8 years

August House Prices strongest for 8 years

Demand

Alastair Hilton, manager of Winkworth in Chiswick, said that his own company had, ‘seen strong demand and growth in prices in the past few months, especially for one and two bed flats. Quite a few sellers in Chiswick are looking to trade up and move out of London, and when they’re not able to find a suitable property this is having a knock-on effect on the flats they’re selling, increasing the demand for the smaller properties further.’[1]

In a separate data release, housebuilder Bovis has revealed that they experienced a 9% pre-tax profit of £53.8bn, completing a record number of house sales in the first half of the year. The group sold 1,525 properties at an average price of £264,200, 10% more than the average sale prices recorded in the first six months of 2014.[1]

Commenting on the figures, David Ritchie, managing director of Bovis, said, ‘We anticipate that the addition of around 40 sites per annum will support our medium term growth strategy to deliver volumes of between 5,000 and 6,000 new homes each year.’[1]

[1] http://news.sky.com/story/1536927/house-hunters-fail-to-bag-a-summer-bargain

 

Waterfront properties worth more than inland

Published On: July 27, 2015 at 10:41 am

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Categories: Property News

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An interesting new data release shows that prime waterfront properties are valued at around 70% higher than similar properties inland.

Increases

Knight Frank’s annual Prime Waterfront Index shows that waterfront properties in the South West have the greatest premiums of these property types in the UK.

A waterfront home here could lead to an uplift of a huge 91%, up 21% on the same period last year. The South East (44%) and East Anglia (41%) were the regions found to have commanded the next largest uplifts.[1]

Data from the report also shows that properties on estuaries command the greatest premiums of waterfront homes. On average, these homes have a 95% uplift in comparison to the same properties inland. Some of the most expensive coastal towns include Dartmouth, St Mawes and Salcombe.[1]

Properties close to a harbor have a premium uplift of around 91%, with coastal properties not overlooking an estuary or a harbor worth an average of 67% more than their inland equivalents. Homes next to a river were also found to have added value of around 67%.[1]

Average value premiums for waterfront homes by region in quarter two in 2015 were:

Average value premium for waterfront properties region to region Q2 2015
South West 91%
East Anglia 41%
South East 44%
Scotland 33%
Wales 27
Average value premium for waterfront properties with the following attributes (location type and facility) present
Estuary 95%
Coastal 67%
Harbour 91%
Riverside 67%
Lakeside 40%
Seaview 68%
Moorings 106%
Slipway 118%
Pontoon 105%
Jetty 91%
Private beach access 86%
Waterfront properties worth more than inland

Waterfront properties worth more than inland

Post-election boom

Christopher Bailey, Head of Knight Frank’s Waterfront Team said, ‘since the election, we have seen a positive rise in activity in the waterfront market. It would appear that a number of cash buyers at the higher end of the waterfront market have been waiting to see the outcome of the election and in particular whether a Mansion Tax would manifest itself.’ Bailey feels that the outcome, ‘has increased the confidence of waterfront buyers at the higher end of the market where we have seen properties exchanging relatively quickly with competitive bidding and sometimes above the guide price.’[1]

‘Equally, the waterfront market below £1m is picking up whereas the market between £1m to £2m is still quieter as buyers are still absorbing the stamp duty changes at the end of the year. The beginning of a new five government, low interest rates, and the safe sterling has all helped to strengthen the confidence of waterfront buyers,’ Bailey added.[1]

[1] http://www.propertyreporter.co.uk/property/70-premium-for-waterfront-properties.html

 

 

Nationwide says property prices fell in June

Published On: July 9, 2015 at 9:15 am

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Property prices in the UK fell by 0.2% and as a result, brought the annual growth rate to its lowest level for two years, according to new research from the Nationwide.

Nationwide’s report suggests that despite a 3.3% increase from June 2014, house value increases were down from the 4.6% recorded last month. Despite a different survey from the Halifax suggesting that average UK home values had shot through the £200,000 barrier, Nationwide’s data suggests that this price is £195,055.[1]

Prices

Price growth and overall activity in the market have slowed since last summer, following an extremely busy start to 2014. However, Nationwide says that the slowdown in prices has not applied to the capital, where affordability has spiralled out of reach for many would-be buyers.

‘House price growth continues to outpace earnings, but the gap is closing, helped by a pickup in annual wage growth, which moved up to 2.7% in the three months to April from 1.9% at the start of the year,’ said Robert Gardner, Nationwide’s chief economist.[1]

Mr Gardner went on to say state that, ‘the slowdown in house price growth is not confined to, nor does it appear to be driven primarily by, developments in London. In quarter on quarter terms, London has continued to see price growth a or above the rate in the UK overall over the past three quarters.’[1]

Nationwide says property prices fell in June

Nationwide says property prices fell in June

Irish smiles

Nationwide’s figures are based on mortgages that the firm has approved during the month and shows that Northern Ireland has overtaken the English capital to record the largest yearly house price growth.

Figures assessing the second quarter of the year show that prices in Northern Ireland have increased by 8% during the last twelve months, in comparison to 7.3% in London. It was not such good news for Wales and Scotland, where prices fell by 0.8% and 1% respectively.[1]

Howard Archer, chief UK economist at IHS Global Insight commented that he was, ‘slightly surprised,’ by the figures but said that the price fall recorded in June, ‘does not fundamentally change our view that house prices are likely to be firmer over the second half of the year amid improving activity.’[1]

‘A current shortage of properties on the market is also likely to provide support to house prices,’ Archer added.[1]

[1] http://www.theguardian.com/money/2015/jul/02/uk-house-prices-slip-in-june-says-nationwide