Posts with tag: house buyer demand

House Price Growth Slow, But Demand is Still Surging

Published On: October 7, 2015 at 1:36 pm

Author:

Categories: Landlord News

Tags: ,,,

House Price Growth Slow, But Demand is Still Surging

House Price Growth Slow, But Demand is Still Surging

House price growth is slowing down, reveals the latest Halifax House Price Index.

Property prices were 8.6% higher in the three months to September than in the same period in 2014. This is down on the 9% annual rise recorded in the three months to August.

The data also shows that in the three months to September, prices increased by 2% compared to the previous three months, down from the 3% growth witnessed in the three months to August.

Between August and September, prices dropped, with the average home now costing £202,859, down from £204,722.

However, Housing Economist at the Halifax, Martin Ellis, sees no reason for house price rises to continue slowing.

He explains: “Housing demand has been strengthening recently, underpinned by economic growth, rising real earnings and very low mortgage rates.

“Increasing demand is combining with very low growth. There is little reason to expect any fundamental shift in the key market drivers over the coming months.”1 

1 http://www.propertyindustryeye.com/house-price-rises-slow-but-demand-still-growing/

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Where are You Most Likely to be Gazumped?

Published On: August 25, 2015 at 8:31 am

Author:

Categories: Landlord News

Tags: ,,,

Although there is a shortage of property for sale on the market, the amount of buyers in the UK being gazumped has fallen over the last ten months, according to eMoov.

A survey of 1,000 homeowners revealed that gazumping – when another buyer puts in a higher offer and secures the purchase – has dropped by 40% since October 2014.

eMoov’s 2014 study found that almost a quarter (22%) of all homeowners had been gazumped when trying to buy a home, but this has dropped to 13%.

Brighton is no longer the gazumping capital of the country, after it experienced a 68% decrease, to just 11% of buyers being gazumped in 2015.

Where are You Most Likely to be Gazumped?

Where are You Most Likely to be Gazumped?

The amount of buyers being gazumped in London has also declined, by 46%, to 17% of all house hunters.

This year, the London housing market has slowed, due to the uncertainty surrounding the general election, high house prices and low demand. As demand has steadied slightly, buyers are able to be less competitive and therefore gazumping has dropped.

As demand in the capital rises again, this could reverse.

Sheffield now experiences the highest levels of gazumping in the UK, with almost a third (29%) of buyers in the city being gazumped when looking to buy a house, a rise of 25% over the past ten months.

eMoov has also recorded demand for property around the UK since December 2014. Sheffield has seen a stable increase in demand, up 35%. This is the most likely cause of the rise in gazumping, as prospective buyers fight for properties.

Plymouth has experienced a rise of 31% in gazumping over the same period, matched by a strong increase in demand, of 27%. Newcastle is the only other UK city to witness growth in gazumping levels during this time, with 16% of buyers being gazumped, a 12% increase.

Other cities where gazumping levels are high, despite a drop, are Birmingham at 17% of buyers, Leeds at 16%, Manchester at 15%, Nottingham and Bristol at 12% and Brighton at 11%.

Southampton has the lowest level of gazumping in the UK, at 2%.

The most likely age group to be gazumped is the 25-34 age range, with a fifth being affected. 17% of those buying a home worth over £500,000 have been gazumped – this is more than any price bracket.

Founder and CEO of eMoov, Russell Quirk, says: “It will come as a surprise to many that gazumping has dropped across the nation, but a welcome surprise nevertheless. We’ve kept a close eye on the London market especially and given the lower levels of demand experienced since the start of the year, the drop in gazumping reflects that the insanity of the London market has simmered a little.

“In previous years, property sellers, especially in London, knew that they had a queue of buyers stood outside their door. Even open days became fiercely competitive, so even if you did lose out, you have a direct route to the seller in order to gazump the accepted buyer. This all helped towards the rise of gazumping.

“It’s interesting however that we have seen an increase in Sheffield and Newcastle. It reinforces our research on property demand in each city, with plenty of buyers looking to get on the ladder, a lack of inventory results in cutthroat tactics such as gazumping. This is due to the shortage of inventory to accommodate the rising demand for property in these areas.

“Unfortunately, this is just one of the downfalls of such a buoyant property market. Yes, it’s good to some extent for buyers, as they are able to achieve a good price, but for those struggling to buy it isn’t much fun at all.

“Our research has seen a 4% drop in demand for property in Brighton, so with the market there cooling, it explains the city being dethroned as gazumping capital of the UK.”1

1 http://www.propertyreporter.co.uk/property/which-city-is-the-new-gazumping-capital.html

House Prices to Rise as Demand Peaks

Published On: August 13, 2015 at 2:51 pm

Author:

Categories: Finance News

Tags: ,,,,

House Prices to Rise as Demand Peaks

House Prices to Rise as Demand Peaks

House prices increased faster in July as demand from buyers rose, but the amount of homes on the market dropped to a record low, revealed a report from the Royal Institution of Chartered Surveyors (RICS).

The number of properties for sale has now declined for the sixth consecutive month, while the amount of new buyer inquiries has been rising for four months.

The average number of homes for sale through each RICS member decreased to 47 and new listings were down in nine out of 12 UK regions. Surveyors in East Anglia experienced the sharpest fall.

RICS says that its members agree that the shortage of homes on the market is causing a “vicious cycle, as the limited choice on offer is deterring would-be movers and therefore further restricting new instructions.”

The difference in supply and demand has caused surveyors to predict huge house prices rises over the next year, with the highest gains expected in East Anglia and Northern Ireland.

Rents are also forecast to increase, as demand is again surpassing supply.

Chief Economist at RICS, Simon Rubinsohn, says that with prices rising but sales remaining flat, the housing market has serious problems.

He adds: “More worrying still is the suspicion that the imbalance between supply and demand will lead to even stronger price gains over the next 12 months. This is also visible in the firmer pattern in the buyer inquiries series, which has now risen for four months in succession, reflecting in part a further modest easing in credit conditions.”1

1 http://www.theguardian.com/money/2015/aug/13/house-prices-rents-rise-rics-surveyors

Mortgage Figures Confirm Pre-Election Slowdown in Market

Published On: June 30, 2015 at 8:58 am

Author:

Categories: Landlord News

Tags: ,,,

Mortgage approvals in the UK dropped significantly in May, confirming observations by estate agents of a pre-election slowdown in the market.

Mortgage Figures Confirm Pre-Election Slowdown in Market

Mortgage Figures Confirm Pre-Election Slowdown in Market

In May, 64,434 mortgages were granted by Britain’s major lenders, down from 67,580 in April, revealed data from the Bank of England (BoE).

Most analysts were expecting a small increase, however, the figures reflect evidence from within the industry of less activity and price rises in the pre-election period.

As inflation is low, mortgage rates are close to record lows, wages are beginning to grow and consumer confidence is high, economists are forecasting a stronger housing market over the summer.

Chief UK Economist at Deutsche Bank, George Buckley, says he expects “approvals to continue on an upwards trajectory.”1 

Consumer credit was also slightly weaker than expected, up by £1 billion in May, down from £1.1 billion in April.

Senior UK Economist at Capital Economics, Samuel Tombs, believes the May figures are a “lull” with demand picking up.

He adds that although the Mortgage Market Review (MMR) and the Financial Policy Committee’s restrictions on high loan-to-income lending will “prevent a major increase in supply of secured credit, we still think that credit flows will continue to recover in the second half of this year.”1

In the latest survey by the Royal Institution of Chartered Surveyors (RICS), members revealed that although buyer interest is stronger, there is a huge undersupply of homes, with the stock of properties per surveyor at a record low since records began in 1978.

Chief Economist at RICS, Simon Rubinsohn, says that due to the shortage, “it is hardly surprising that prices across much of the country are continuing to be squeezed higher with property set to become ever more unaffordable.”1

1 http://www.ft.com/cms/s/0/0db0b4b6-1e3b-11e5-aa5a-398b2169cf79.html?ftcamp=published_links%2Frss%2Fcompanies_property%2Ffeed%2F%2Fproduct#axzz3eRz5F7jD