Posts with tag: house price growth

House price growth in UK slows in September

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


Categories: Property News

Tags: ,,,

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

House price growth in UK slows in September

Brexit uncertainty

Russell Quirk, founder and CEO of, 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]



House price growth in UK’s largest cities slowing

Published On: September 26, 2016 at 11:31 am


Categories: Property News

Tags: ,,,

The average annual rate of residential property growth in the UK’s 20 largest cities is continuing to slow, according to a new report.

Hometrack’s UK Cities Index suggests that increase in value slid to 8.2% in these cities during August. This was down from the 9.5% reported in July, taking the average price of a home in the 20 cities to £239,400.


This slowdown is being driven primarily by lesser price growth in the largest cities in the South of England-led by the capital.

During the three months to August, property prices in the 20 big cities increased by only 1.9%. This was the lowest level of quarterly growth seen since February.

Despite this, Bristol led the way for the quickest rate of yearly growth, with prices rising by an average of 13.1% in the period. London was next, with typical growth of 10.4%. However, the capital is set to end 2016 with property prices up by just 6% year-on-year.

This owes much to a slowdown in the highest value inner London boroughs. These include Kensington and Chelsea, Hammersmith and Fulham and Westminster, where prices were up by just 0.2%, 1% and 1.8% respectively.


Richard Donnell, insight director at Hometrack, noted: ‘on current trends house price growth in London will be running at circa 6% per annum by December and on course for low single digit growth by Spring 2017. Record unaffordability, tax changes impacting investor demand and high stamp duty costs are all combining to reduce market activity in the face of rising supply.’[1]

‘Despite the overall slowdown in London, it is dangerous to view the capital as a single housing market. While many of the central boroughs have seen low rates of growth, in parts of outer London where house prices are 30% lower than the London average, such as Barking and Dagenham and Havering, prices are rising by more than 15% although these areas are starting to slow,’ he continued.[1]

Similar trends are evident in most of the cities located in southern England, including Cambridge, Oxford and Bournemouth. Cambridge has seen the fastest decline in growth, with prices slipping from 16% in March 2016 to 6% at present.

House price growth in UK's largest cities slowing

House price growth in UK’s largest cities slowing


Cities with short-lived housing market resurgence, such as Liverpool and Glasgow have seen the largest rates of growth. Despite this, they offer some of the cheapest priced properties throughout the UK.

Mr Donnell continued by saying, ‘Regional cities such as Glasgow, Liverpool, Birmingham and Edinburgh have all posted above average growth in the last three months as low mortgage rates and affordable property prices support growth. Aberdeen has registered a small bounce back in house prices – after house prices registered a £20,000 fall since July 2015 – the rebound in growth reflects the fact that the recent fall in the oil price has now been priced into capital values.’[1]

The fall list of how the top 20 UK cities performed in regards to house price growth over the last three months and over the year can be seen below:

City Average price % yoy  August 2016 % last quarter to August 2016
Liverpool £114,300 7.2% 4.1%
Glasgow £113,900 4.5% 2.7%
Aberdeen £184,800 -6.7% 2.3%
Edinburgh £203,800 3.3% 2.2%
Birmingham £144,400 8.0% 2.1%
Manchester £147,500 7.4% 1.9%
Nottingham £137,900 7.5% 1.8%
Newcastle £127,700 4.1% 1.7%
Bristol £256,100 13.1% 1.7%
Portsmouth £217,400 9.0% 1.5%
Sheffield £128,700 3.4% 1.3%
Southampton £214,200 7.7% 1.2%
Belfast £123,100 3.1% 1.2%
London £475,700 10.4% 0.9%
Oxford £409,800 8.1% 0.9%
Leicester £151,400 5.6% 0.7%
Bournemouth £263,500 6.2% 0.4%
Cardiff £188,100 6.3% 0.3%
Cambridge £407,200 6.0% -0.4%
Leeds £148,800 4.8% -0.8%
20 city index £239,400 8.2% 1.9%
UK £202,400 7.4% 1.6%



House Prices in Port Talbot Bounce Back Despite Steel Works Uncertainty

Published On: September 22, 2016 at 10:31 am


Categories: Property News

Tags: ,,,

House prices in the Welsh town of Port Talbot have bounced back, despite uncertainty surrounding the fate of the Tata steel works, which employs around 10% of the population.

Online estate agent has found that the average house price in Wales is now £146,272, and is on the up.

House Prices in Port Talbot Bounce Back Despite Steel Works Uncertainty

House Prices in Port Talbot Bounce Back Despite Steel Works Uncertainty

Nationally, prices are up by 2% over the past month and 5% annually.

Merthydr Tydfil has experienced the greatest annual increase, of 12%, while Gwynedd saw prices drop by 6% over the same period.

In the past month, the Isle of Anglesey saw the largest decrease in prices, of 2%, on the previous month. But it is Port Talbot that has experienced a shocking turnaround, with prices rising by 9% over the last year – the same growth rate as England as a whole and 5% higher than Wales.

On a monthly basis, house prices in Wales have experienced a marginal decline, while England saw a slight increase of 2% over the same timeframe. Port Talbot, however, has enjoyed a 7% rise on the month.

Tata’s Port Talbot site is one of the largest steel works in the world. It has been at the centre of controversy surrounding its sale and closure, which could result in the loss of thousands of jobs in the community.

Although the future of the steel works still remains unclear, Port Talbot’s increase in house prices over the last year is an encouraging sign for the local community. Discussions are also continuing about a pan-European merger with Tata’s closest competitor, ThyssenKrupp, although no concrete details have been released.

The outcome for Port Talbot might still be in limbo, but if the controversy with the steel works is resolved, the community will experience a newfound stability in the area’s property market. However, if the stalemate continues, homeowners will at least be able to find comfort in experiencing the greatest house price growth of the whole of Wales.

Russell Quirk, the founder and CEO of eMoov, says: “Port Talbot enjoying the biggest monthly increase in property values across Wales is great news for homeowners in the area, after the uncertainty that has plagued the market due to Tata closing the steel works in the area.

“When the local economy relies so heavily on one particular trade or output to survive, it can be disastrous for the local property market when this trade declines drastically or, in this case, disappears altogether. Although the future of Tata steel works is not yet decided for certain, homeowners in Port Talbot have a small silver lining around the dark cloud that has been hanging above them for quite some time.”

Property Market Cools But Won’t Crash, Claim Experts

Published On: September 13, 2016 at 11:35 am


Categories: Property News

Tags: ,,,,,

The latest UK House Price Index from the Land Registry/Office for National Statistics (ONS) shows that the property market has cooled over recent months, but experts believe it will not crash following the Brexit vote.

As of July 2016, the average house price in the UK is £216,750, after values rose by 0.4% over the month. Although this marks a slowdown in the market, prices are up by 8.3% on an annual basis.

Analysis has found that although property sales are down, low supply is keeping house prices high.

Property Market Cools But Won't Crash, Claim Experts

Property Market Cools But Won’t Crash, Claim Experts

House price growth remained strong over July, rising by 12.3% year-on-year and 1% on the previous month.

Thomas Fisher, an Economist at PwC, comments on the figures: “Today’s data from the ONS shows a moderation in house price growth from 9.7% in the year to June to 8.3% in the year to July. But house prices still edged up by 0.4% between June and July.

“This suggests that market demand remained relatively resilient after the Brexit vote, despite some slowdown in mortgage lending. However, as many of these transactions will have been in motion since before the referendum, more data will be needed to make a proper assessment of how the referendum result is affecting the housing market.”

He predicts: “Our own expectation is that the UK housing market will cool not crash. In our main scenario, average UK house price growth is projected to decelerate to around 5% in 2016 and around 1% in 2017.”

The founder and CEO of, Russell Quirk, is also pleased to see some positive figures. He says: “Another index and another positive outlook where the post-Brexit property market is concerned. [This] shows that there has been no immediate impact on the market in England since Britain’s decision to leave the EU.

“Although this isn’t news as such, this data from the Land Registry acts as a more concrete confirmation compared to the likes of Halifax and Nationwide, who base their figures on mortgage data.”

However, Katherine Binns, of the HomeOwners Alliance, has witnessed a cooling in the market from property buyers and vendors.

She explains: “We are seeing signs of hesitancy among both buyers and sellers at the moment. We expect this to continue in the short term until there’s greater certainty around the economic impact of Brexit. Time will tell whether the recent Bank of England cut in interest rates will help to boost confidence and generate an increase in buyer and seller numbers in the autumn. However, despite this slowing in activity, tight supply is likely to keep upward pressure on house prices. So we’re not expecting a drop in the short term.”

Finally, the CEO of estate agent Marsh & Parsons, David Brown, looks at the data from a London point of view.

He says: “It’s been nearly three months since the referendum and London, which voted overwhelmingly to remain, seemed to approach the market with more caution. However, it is extremely pleasing to see that the definitive UK House Price Index clearly indicates that London is shrugging off any negative sentiment about Brexit.

“The ONS data shows that London is again leading the way, with a yearly uplift of house prices in the capital of 12.3% to July, only surpassed by the Eastern region, where values are much lower. The prime end of the market has undoubtedly seen challenges as a result of George Osborne’s considerable Stamp Duty hikes, but we hope that we may see these reversed in the upcoming Autumn Statement.”

He concludes: “The general picture is that the property market in London is returning to normal, and that has to be positive for buyers and sellers alike.”

Annual House Price Growth Slows to 6.9%, Reports Halifax

Published On: September 7, 2016 at 8:40 am


Categories: Property News

Tags: ,,,,

Annual house price growth slowed to 6.9% in the three months to August, down from 8.4% in July, according to the latest report from Halifax.

On a quarterly basis, the bank’s House Price Index shows that house prices have risen by 0.7% to stand at an average of £213,930. However, this is down from July’s 1.5% figure and the lowest quarterly rate since December 2014 (0.5%). Halifax reports that the quarterly rate of growth has been on a downward trend over the past six months, after peaking at 3% in February.

The annual rate of growth has also been on a downward trend since March, when it reached 10%. August’s 6.9% rate is the lowest year-on-year increase since October 2013 (6.9%).

Over the month, house prices dropped slightly, by 0.2%, on July’s figure. This modest decrease was the lowest of the four monthly declines recorded so far this year. Halifax adds that the quarterly change is a more reliable indicator of the underlying trend.

Annual House Price Growth Slows to 6.9%, Reports Halifax

Annual House Price Growth Slows to 6.9%, Reports Halifax

The Housing Economist at Halifax, Martin Ellis, comments on the figures: “House price growth continued the trend of the past few months in August with a further moderation in both the annual and quarterly rates of increase. There are also signs of a softening in sales activity.

“The slowdown in the rate of house price growth is consistent with the forecast that we made at the end of 2015. Increasing difficulties in purchasing a home, as house prices continued to increase more quickly than earnings, were expected to constrain demand, curbing house price growth.”

Property sales declined marginally between June and July, by 1%, following successive growth in the two previous months. However, Halifax notes that sales have been heavily distorted in recent months by April’s introduction of higher Stamp Duty rates for buy-to-let landlords and second homebuyers.

The Stamp Duty change has also affected mortgage approvals data since the start of the year. The number of mortgage approvals for house purchases – a leading indicator of completed sales – was down by 5% between June and July. At 60,912, it is the lowest level since January 2015.

Additionally, new instructions by vendors fell for the fifth consecutive month in July. This contributed to a further drop in the number of homes on the market, which remains close to record low levels.

Responding to the data, the co-founder and Director of online mortgage lender LendInvest, Ian Thomas, says: “There have been a number of external factors that have chipped away at the property market in recent months, from the additional Stamp Duty charge to Brexit, with the traditional summer slowdown weighing in as well. While transactions have certainly slowed in central London as a result, the sentiment we get from buyers around the rest of the country is that it is close to business as usual.

“September will be a useful barometer for what comes next for the property market, as transactions tend to pick up once the holiday period is over. Nonetheless, the fundamentals of the property market are unchanged – we do not have enough homes, and we aren’t building enough homes to address that shortage. That will act as a brake on any house price softening in the months to come.”

The founder and CEO of, Russell Quirk, also comments: “Today’s figures from Halifax show house prices have cooled a further 0.2% from the 0.1% drop seen in July. Although on the face of it, this may seem like validation of the Brexit-inspired blues that have plagued the media over recent months, this decrease is nothing more than a seasonal adjustment due to the slower pace of the market during the summer months.

“It may seem like Britain’s decision to leave the EU is starting to take its toll on the UK property market, but in reality, the timing of the referendum vote is just coincidental with the type of market movement traditionally experienced during July and August.”

He continues: “The annual change provides us with a much clearer diagnosis of the current market and shows that prices are still up 6.9% when compared to August last year. This annual calculation is based on the last three months of data when compared to the same three months of 2015, which provides a more honest portrayal of the underlying condition of the market and adjusts for any short-term fluctuations, such as this marginal month-to-month drop.”

House Price Growth Slows, as the North Outpaces London

Published On: August 27, 2016 at 8:51 am


Categories: Property News

Tags: ,,,

The last three months have seen house price growth slow down, as the north of England outpaces London and the south, according to the latest Hometrack UK Cities House Price Index.

House Price Growth Slows, as the North Outpaces London

House Price Growth Slows, as the North Outpaces London

The annual rate of house price growth across the 20 cities included in the study slowed to 9.5% in July, after 12 months of higher inflation. This shift in momentum was due to growth stalling across a number of cities in southern England over the past quarter, says Hometrack.

In the three months to July, house prices in London rose by just 2.1% – the lowest quarterly rate of growth since February 2015. Additionally, growth in Bristol, which was the fastest growing city over the last year, slowed to 2.6% from a recent high of 5% in May. Prices in Cambridge dropped by 1% in the last quarter, although prices are 7.1% higher than 12 months ago.

However, Hometrack has also found that house price growth in many large regional cities in the north of England and Scotland shows no signs of slowing down. The rate of annual house price inflation in Leeds, Manchester, Birmingham, Liverpool and Nottingham continues to stand between 7-8%.

Focusing on activity over the past quarter, Hometrack revealed that the highest rates of growth were recorded in lower value, high yielding cities, such as Glasgow (5.2%), Liverpool (4.4%), Manchester and Nottingham (3.4%).

In Aberdeen, the annual rate of house price growth fell at a slower rate of 8% in July, as prices rose by 2% in the last quarter, a sign that the housing market may have adjusted to the impact of falling oil prices on demand over the past year.

The Insight Director at Hometrack, Richard Donnell, comments: “In the absence of adverse economic trends impacting employment and mortgage rates, the near term outlook is for a continued slowdown in London towards mid-single digit growth. The slowdown in London is being seen across the market, but is not accounted for by seasonal factors, with weaker demand from homeowners and investors as supply grows. This analysis suggests London house price growth will continue to slow over the rest of the year.

“In contrast, northern regional cities will continue to register stable growth rates, as households benefit from record low mortgage rates and affordability remains attractive.”

Donnell adds: “We continue to believe that turnover will register the brunt of the slowdown in London. In the face of lower sales volumes, agents will look to re-price stock in line with what buyers are prepared, and can afford, to pay. Past experience shows that this process can run for as long as six months, and relies, in part, in how quickly sellers are willing to adjust to what buyers are prepared to pay.”