Posts with tag: house price growth

What Will the Average House Price be in 2030?

Published On: May 17, 2016 at 10:55 am

Tags: average house price,house price growth,house prices,London

Using figures from the last 15 years, leading online estate agent eMoov.co.uk has revealed what the average house price will be in England, Scotland and Wales in 2030.

The study, into the future of the UK property market, also breaks down prices in London by each borough.

eMoov analysed house price growth between 2000 and 2015, finding that the average property value has soared by 84% over the last 15 years. Using the same increase, the firm has projected how much the average home in London, England, Scotland and Wales will cost over the next 15 years.

London

Unsurprisingly, London took the top spot in terms of highest property value by 2030, with an average home in the capital costing over £1m in 15 years’ time.

What Will the Average House Price be in 2030?

eMoov has also broken London down by borough to show which places will be the cheapest and most expensive by 2030.

For those looking to get onto London’s property ladder in the next 15 years, the best borough to look at is Barking and Dagenham, which is currently the most affordable place to buy a property in the capital. However, the definition of affordable is somewhat different in 2030, with the average house price in the borough expected to be over £450,000, compared to £246,000 today.

At just under £1.9m, Kensington and Chelsea has long been the most expensive borough in London to buy a home. But by 2030, even the wealthiest of buyers may struggle to purchase a property, with a typical price of £3.4m.

England

By 2030, the average house price in England could shoot up to £457,433 – close to the current asking price in London. Based on the current market, just three places in England will offer an average house price below £280,000 in 15 years’ time – Merseyside at £275,074, East Riding of Yorkshire at £277,411 and Durham at £279,985.

Excluding London, 12 counties in England will also be home to an average house price over £500,000. Property in Dorset, East and West Sussex, Kent, Essex, Berkshire, Surrey, Oxfordshire, Hertfordshire, Buckinghamshire, Cambridgeshire and Rutland will command over half a million pounds on average.

Wales

The current trend of Londoners moving to the surrounding areas of the capital may soon become a national trend of English homeowners moving to Wales.

In 2030, the average house price in Wales is expected to hit £307,712; although pricey, still £150,000 cheaper than England. Just one part of the country, Monmouthshire (£442,141) will have an average house price over £400,000.

Scotland

Similarly, English homeowners may also look to move to Scotland. Of the three countries studied, Scotland will have the cheapest average house price in 2030, at £297,222. Edinburgh will continue to drive the market, with the highest price of £432,468. Aberdeenshire is the only other Scottish location to break through the £400,000 mark.

At £200,600, North Lanarkshire will offer the cheapest house price to Scottish buyers in 15 years’ time.

The CEO of eMoov, Russell Quirk, says: “The past 15 years have seen extreme growth in the price commanded for UK property, as well as a crash as a direct result of this inflated growth. Although this research is only a projection of what may happen by 2030, it is safe to assume that with prices continuing to spiral beyond affordability, history could well repeat itself.

“Although rising prices are always good news for current homeowners, it’s extremely worrying to look at the difficulty many have in getting on the ladder at the moment, let alone with a price jump of 84% by 2030.

“This map highlights just how dangerous this current artificial inflation of the market could be in the long run, it’s not just London that will become beyond the reach of the average UK homebuyer, the issue will spread the length and breadth of England, Scotland and Wales.”

UK House Prices Up by 1751% Since the Last European Referendum

Published On: April 24, 2016 at 8:43 am

Author: Em Morley

Categories: Property News

Tags: average house price,EU referendum,house price growth,house prices

In 1975, Britain decided to remain in Europe after the UK’s first ever European referendum. On 23^rd June, the country will vote again on whether we should stay in the EU. So how have house prices changed since the first vote?

UK House Prices Up by 1751% Since the Last European Referendum

Since the second quarter (Q2) of 1975, just 30 out of 164 quarters have recorded decreases in house price growth, according to property crowdfunding platform Property Partner.

The firm has found that house prices in the UK have gone up more than 18-fold, 1751%, since the last time Britons were asked whether we should stay in or out of Europe.

Compared to other investments, residential property has surpassed all other asset classes over the same period, including stocks and shares – up by 9.5 times since 1975 – and gold – up by 12 times.

Unsurprisingly, property prices in London have soared the most, increasing by 3200% – almost double the annual UK average – since Q2 1975.

Currently, with just over two months to go until the second European referendum, the average UK house price is now £198,564. Back in June 1975, homebuyers were faced with paying £10,728 for a property. In real terms today (taking inflation into account), this would be just £99,949.

Property Partner has analysed quarterly house price data dating back to just before the referendum in June 1975. Out of the 164 quarters since then, just 30 (18.3%) have seen decreases in house prices. From Q2 1990 to Q3 1993, there were 14 consecutive quarters of negative growth – the longest stretch in the last 40 years.

Just before the last European referendum, quarterly price growth slowed significantly to 7%, a year after reaching 18.2%, and two-and-a-half years after recording the highest ever quarterly house price growth of 42%. Average price growth didn’t fall as low as 7% again until Q4 1980 – more than five years after the referendum.

Change in house prices since the last European referendum

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The CEO of Property Partner, Dan Gandesha, comments: “With all the nervousness and uncertainty around whether Britain is going to stay in or out, our research shows that although average house prices softened in the run up to the last referendum in 1975, they have risen a staggering 18-fold since, leaving all other asset classes in the shade.

“There is never any guarantee that prices will continue to rise, but even taking into account factors which may put a brake on growth, such as the recent 3% Stamp Duty hike on second homes and buy-to-lets, if the past is any indication, property will remain a strong long-term investment. London in particular has been consistently the star performer, although the capital has been transformed in the past four decades, attracting huge inward investment. Whatever the result on June 23^rd, London will remain a truly global city.”¹

A recent report from the Royal Institution of Chartered Surveyors indicates that house prices and sales will fall ahead of the EU referendum.

¹http://www.propertyreporter.co.uk/property/how-much-have-house-prices-risen-since-the-last-european-referendum.html

House Prices Increasing at Fastest Rate for 12 Years

Published On: April 22, 2016 at 8:36 am

Author: Em Morley

Categories: Property News

Tags: average house price,buy to let investors,house price growth,house prices

Over the first quarter of the year, house prices increased at the fastest quarterly rate for 12 years, according to the latest data from Hometrack.

The valuation firm believes that buy-to-let landlords have driven prices up as they seek cheap properties in high yielding cities.

House Prices Increasing at Fastest Rate for 12 Years

The UK Cities Index for March reveals that average house prices rose by 4.2% in Q1 2016 – the fastest quarterly growth rate in 12 years.

The greatest quarterly increase of any city in the UK was in Liverpool, at 4.1%, taking the average house price to £113,100. Hometrack has found that many landlords have looked to the city for high yields in order to accommodate forthcoming tax changes.

A quarterly boost of 3.5% was also recorded in Cardiff, where the average property now costs £191,300.

The Insight Director at Hometrack, Richard Donnell, explains: “The acceleration in growth in the last quarter has, in part, been down to stronger demand from investors, especially those searching for higher yielding property and seeking to beat the Stamp Duty deadline.”

As of 1^st April, buy-to-let landlords and second homebuyers are now charged an extra 3% in Stamp Duty. Ahead of the deadline, there was considerable evidence that landlords were fuelling a rush in the housing market.

The greatest annual increase in average house prices was in Cambridge, where values rose by 15.6% to £403,500. London was close behind, at 14.2%, taking the average property price to £468,100. However, recent research suggests that the London property market is finally running out of steam.

House prices in Bristol have also recorded double-digit growth for the year, at 13.5%, to £248,800.

Donnell adds: “In the recent past, periods of accelerating house price growth have coincided with changes in market sentiment and demand, notably following the introduction of Help to Buy in 2013 and after the 2015 general election.

“We believe house prices will continue to rise, but a moderation in investor demand and greater caution in the run-up to the EU referendum will limit further acceleration in prices.

“Most likely, the rate of growth will slow more rapidly in high value, low yielding cities such as London, where prices will be more responsive to weaker investor demand.”¹

Indeed, the Royal Institution of Chartered Surveyors believes that the Stamp Duty changes and the forthcoming EU referendum will cause a dip in house prices and sales.

¹http://www.propertyindustryeye.com/house-prices-rising-at-their-fastest-rate-for-12-years/

Annual House Price Growth at 7.9%, According to ONS

Published On: March 23, 2016 at 12:30 pm

Author: Em Morley

Categories: Property News

Tags: average house price,house price growth,house prices,London

UK house price growth rose to 7.9% in the year to January, up from 6.7% in the 12 months to December 2015, according to the latest house price index from the Office for National Statistics (ONS).

Annual house price inflation was 8.6% in England in January, -0.3% in Wales, 0.1% in Scotland and 0.8% in Northern Ireland.

The large increase in house prices in England was fuelled by an 11.7% rise in the South East and 10.8% growth in London, shows the data.

Excluding London and the South East, UK house prices rose by 5.1%.

On a seasonally adjusted basis, average house prices grew by 0.9% between December and January.

The average UK house price is now £292,000, according to the ONS. Earlier this week, Rightmove reported that the average property is now worth over £300,000.

Many industry experts have commented on the new figures:

Stephen Smith, the Director of Legal & General Housing Partnerships, says: “House prices continue their steady upwards march, as they are likely to do for some time, unless Britain can address the lack of housing supply in this country.

“With the cost of owning a home continuing to rise well above both earnings and inflation, the gap between supply and demand is pumping up prices and making affordability an impossible dream for many – especially in London and the South East.”¹

More and more young people believe that they will never get on the property ladder, as it is believed that it takes the average single first time buyer 13-and-a-half years to save a deposit.

Annual House Price Growth at 7.9%, According to ONS

Worryingly, three quarters of young Britons expect to stay in the private rental sector forever.

The Sales Director at New Street Mortgages, Adrian Whittaker, continues: “The ONS figures show a market that’s continuing the strong annual growth that characterised much of 2015. Competition for property is still fierce, and in this sellers’ market, the speed at which a buyer can secure a mortgage can be the difference between first and last place in the race to buy property.”¹

Mark Posniak, the Managing Director of Dragonfly Property Finance, adds: “This latest annual house price data once again throws into sharp relief the contrast between the housing markets of England, Wales, Scotland and Northern Ireland. They may be geographical neighbours but they could be thousands of miles apart in terms of house prices.

“For annual prices in the South East to have outperformed London underlines an ongoing shift in demand away from the capital as people look for more value elsewhere. London will remain a formidable bastion of the UK’s property market, but for many its prices are an insurmountable obstacle.

“However, the strength of demand in the months ahead may well be reduced by worries about the impact of a potential Brexit, causing many would-be buyers to sit on their hands.

“The Government’s move against landlords, which officially starts next month, is a fundamental shift and has the potential to reshape the property market in the years ahead.”¹

From 1^st April, landlords will face changes to their taxes, notably the 3% Stamp Duty surcharge, which was confirmed in last week’s Budget.

Finance expert Paul Mahoney of Nova Financial has explained how the Budget announcements will affect landlords: /budget-reasonably-positive-believes-finance-expert/

Jan Crosby, the Head of Housing at KPMG, explains the ONS data: “Today’s ONS figures show a record high, with England outpacing the other areas of the UK for house price growth. When you look further into the facts, the rise is driven by ever by the South East of England, London and the East of England, with the percentage increase in the capital over the past 12 months more than double the rest of England when London and the South East’s rises are excluded.

“Of course, this comes as no surprise, and highlights both the broken and atypical nature of the market in those areas. As ever, the issue is down to supply versus demand, and while last week’s Budget did have measures, such as the Lifetime ISA, which are in part designed to help buyers onto the property ladder, the record didn’t change when it came to generating supply, with announcements effectively repeating or slightly extending previous reforms.”

He adds: “However, one particular Budget announcement could have an underlying effect on house prices; it will be interesting in a year’s time to see how much prices in the north have inflated, specifically around areas like Manchester and Liverpool, which are set to benefit following the Chancellor’s renewed commitment to infrastructure projects, including HS3, the trans-Pennine tunnel and improvements to the M62.

“It is certainly likely that property investment, especially from abroad, will increase in the north, and this will include housing projects – while this might be good for the economy, it could be bad news for those hoping to buy a home.”¹

We continue to provide you with the latest landlord updates on all issues regarding the sector.

¹ http://www.financialreporter.co.uk/finance-news/ons-annual-house-price-growth-rises-to-79.html

Average House Price Breaks Through £300,000 Mark

Published On: March 21, 2016 at 11:16 am

Author: Em Morley

Categories: Property News

Tags: average house price,house price growth,house prices,Rightmove

The average asking price of a property new to the market in England and Wales has broken through the £300,000 mark for the first time, according to new data.

The average house price is now £303,190, says Rightmove.

The news arrives exactly ten years since new asking prices passed the £200,000 barrier. This means that house prices have soared by 50% in a decade.

Average House Price Breaks Through £300,000 Mark

Despite the housing market crash occurring during this period, new asking prices did not go back down below the £200,980 reported in 2006 when prices fell.

Figures also show that average wage growth has been significantly lower than house price inflation over the last ten years, rising by just 22%.

Rightmove has found that new asking prices increased by 1.3% on February’s figure – the second highest monthly rise seen at this time of year.

The director of Rightmove, Miles Shipside, comments: “On average, 30,000 properties have come to market each week over the past month, up by 3% on this time last year. But there are insufficient numbers of newly listed properties in many parts of the country to meet demand.

“Visits to Rightmove are up by 14% in early March compared to the same period in 2015, so it’s no surprise that those buyers who can borrow more or can find some extra cash are keeping the price merry-go-round spinning, even though increasing numbers of aspiring home movers cannot afford the ride.”¹

Surprisingly, the rise in new asking prices is not being driven by London, where the market is stagnant.

Six out of ten regions have experienced house price growth, while three of the top four are northern regions – the West Midlands, North West and Yorkshire and the Humber came after the South West, and ahead of all other southern regions.

Although new asking prices in the capital have remained steady month-on-month, homes in London are still worth more than double the average, at a huge £644,045 – an annual increase of 11%. This is the greatest rate of annual house price growth of anywhere in England and Wales.

Rightmove’s research also shows that the average time to sell a property last month was 68 days, down from 79 in the same month last year. In London, the typical time a house is on the market is 47 days, lower than at any point last year.

Average stock per agent – including properties under offer or sold subject to contract – was 54 in February, down from 59 last year.

Last month, Rightmove reported that the average house price was almost at £300,000, and expected the barrier to be broken soon. It will be interesting to see how prices move on from the current record high.

¹http://www.rightmove.co.uk/news/300000-milestone-hits-new-high

Buy-to-let rush drives house price growth

Published On: March 10, 2016 at 2:06 pm

Author: Em Morley

Categories: Property News

Tags: Buy-to-Let,buy-to-let activity,house price growth,property price growth,Stamp Duty

House price growth in England surged during February in comparison to the previous month and was driven by a rush in buy-to-let activity.

These are the key results from the latest Your Move Index, which suggests buy-to-let investors looking to complete deals before the Stamp Duty changes come into force in April 1^st are pushing prices further upwards.

Rises

Average property values increased by 0.8%, or by £2,277 on a monthly basis. Demand from buy-to-let lenders and second home buyers led to a 12% month-on-month increase in sales.

Additionally, data from the report shows average prices were up 6.2% year-on-year. However, if London and the South East are excluded from this, yearly growth dips to 4.6%. The average house price now stands at £289,229.

In the capital, London house prices increased by 6.8%, or £36,903 during the last twelve months. The average price of a property in London is currently £582,783. Hull has also seen a significant rise in property values, rising by 0.9% in one month to hit a new record of £111,409. The city’s recently awarded City of Culture has undoubtedly had an impact on property prices.

Rush to complete

Richard Sexton, director of e.surv chartered surveyors, noted, ‘growth could be as a result of buy-to-let investors rushing to complete quickly to avoid April’s additional 3% Stamp Duty surcharge, which has also seen sales shoot up 11.8% since January.’[1]

Sexton feels that the figures represent brilliant news for existing homeowners, particularly those who are thinking of cashing in on additional demand. ‘Typical property values are now £16,866 higher year-on-year, the fastest annual growth rate seen in eleven months, driven by the gulf in the number of aspiring home buyers, compared to the limited supply of homes for sale,’ he observed.[1]

Buy-to-let rush drives house price growth

Regional records

The Index also reveals that the East of England’s property prices are rising quicker than those in London. In fact, the East of England saw the fastest growing property price increase of all regions of the country with a 7.2% rise in the last 12 months.

‘This pace is being fuelled by commuter towns, as London’s workers search for more affordable housing. The trend towards higher house price growth in cheaper areas can also be seen elsewhere,’ Mr Sexton explained.[1]

‘The upswing in Hull’s home values is due to the increase in new jobs resulting in more demand, with major firms including Samsung lifting employment in the city. Recently winning City of Culture 2017 may have provided an additional boost to demand for property within the city, as the pickup in tourism supports the local economy as a result of the award,’ he continued.[1]

‘Despite the upswing in the capital’s overall property values, sales have slipped 4.6% in the three months from November 2015 to January 2016, compared to the same three months one year earlier. This is largely due to a lack of homes for sale combined with more caution at the top of the market, rather than a general decline in demand, ‘Sexton concluded.[1]

[1] http://www.propertywire.com/news/europe/england-wales-buy-let-2016031011654.html