Posts with tag: house price growth

2015’s Property Hotspot Outside of London Named

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


Categories: Property News

Tags: ,,,,

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


Area Average house price Jan 15 Average house price Nov 15


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



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




Shortage of Supply Will Continue Pushing Up Prices, Says RICS

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


Categories: Property News

Tags: ,,,

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.






Rightmove Reports Strongest December for Nine Years

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


Categories: Property News

Tags: ,,,,,

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


House Prices Could Rise Faster if Base Rate Rise is Delayed

Published On: December 9, 2015 at 5:06 pm


Categories: Finance News

Tags: ,,,

House prices could rise by almost 7% next year if an interest rate rise is postponed, according to BNP Paribas.

Researchers at one of the world’s biggest banks warns that while the delay of a rate increase until 2017 could be good news for homeowners, it might lead to higher property prices and force the Bank of England (BoE) to further restrict mortgage lending.

House Prices Could Rise Faster if Base Rate Rise is Delayed

House Prices Could Rise Faster if Base Rate Rise is Delayed

BNP Paribas expected house prices to rise by 4.4% in the UK in 2016 if the base rate started to increase slowly from its current rate of 0.5%, followed by 6.7% growth in 2017.

This level of growth would put the average house price, as measured on Nationwide’s monthly index, at £206,256 by the end of 2016, from £197,582 this year. It would then reach £220,116 in 2017.

BNP Paribas reports that improved household finances and confidence in the overall economy will strengthen demand for homes and the prices paid, but the lack of supply of property for sale continues to be “a serious concern”.

If the base rate rise is kept on hold, the bank forecasts a price rise of 6.9% in 2016 and 11.5% in 2017, putting prices at £211,215 and £235,500 respectively.

Head of Residential at BNP Paribas Real Estate, Adrian Owen, says: “While on the face of it a deferral would be good news for homeowners, we believe this scenario is a cautionary tale for the UK economy as a whole.

“There is already concern at the BoE over the pace of house price growth, and while the current lack of housing supply is a significant driver, the sustained low cost of finance is also a major contributor.”

Mortgage rates have dropped to record lows this year, with an average rate of 1.87% on a two-year fixed rate mortgage at 75% loan-to-value (LTV), and the average five-year rate is 2.78%.

In some parts of the country, house prices are now at a higher multiple of earnings than ever before. However, restrictions by the BoE in 2014 have reduced the amount of lending at more than four-and-a-half times an applicant’s salary.

Governor of the BoE, Mark Carney, has suggested that rates could remain as they are well into 2016 and that other measures could be introduced to cool the market.

Owen comments: “Even under our central scenario that base rates rise next year, it is likely that the BoE will seek to place a brake on house price growth by introducing further restrictions on the availability of finance.

“This may achieve the desired dampening effect, although does not address the underlying structural issue in the market of insufficient supply.”1

The bank forecasts house price growth of around 27% in the UK by the end of 2019. In the South West, researchers say that prices could increase by 40.2% by 2020. Meanwhile, in the South East (excluding London), the rise could be 36.1%. In the capital, values are predicted to grow by 25.1% over the same period.

Chancellor George Osborne’s recent announcement in the Autumn Statement – that buyers of a buy-to-let property or second homes will pay an extra 3% in Stamp Duty – has been factored into the forecasts.

The bank found that this measure would have little national impact, but could reduce house price growth in regional town centres and London. As a result, BNP Paribas has cut its house price expectations for the capital from 5.6% to 4.7%. It now forecasts the average London house price to be £468,893 in 12 months’ time.

Read more about the Stamp Duty changes here: /16883-2/


UK house prices rise 6.1% in year

Published On: November 17, 2015 at 2:21 pm


Categories: Property News

Tags: ,,

Property prices increased by 6.1% in the twelve months to September 2015, according to the latest data released by the Office for National Statistics.

This represented a rise from the 5.5% recorded in August and 5.2% in July, bringing the average house price in the UK to £286,000.


However, this is still much slower than one year ago, when prices were rising by in excess of 12%. What’s more, the results differ from those revealed in a recent survey from the Halifax and the Nationwide respectively, with these surveys indicating prices rose by just 8.6% and 3.8% respectively.[1]

The Office for National Statistics figures indicate that prices rose mostly in Northern Ireland (10.2%) and the East of England (8.4%).

By region, house prices were found to have risen by the following amounts over the course of the year:

Regional House Prices
Region Annual % change Average house price
UK 6.1% £286,000
England 6.4% £299,000
Wales 1.1% £175,000
Scotland 1.1% £199,000
Northern Ireland 10.2% £162,000
North East England 1.8% £158,000
North West 4.2% £184,000
Yorks and Humber 4.6% £186,000
East Midlands 3.6% £196,000
West Midlands 4.5% £207,000
East 8.4% £309,000
London 7.2% £531,000
South East 7.4% £359,000
South West 6% £263,000


UK house prices rise 6.1% in year

UK house prices rise 6.1% in year

Uncertain future

John Hawksworth, chief economist of PricewaterhouseCoopers, noted that house price inflation is now running at twice the pace of average earnings. He said, ‘the ongoing rise in house prices reinforces our projections that, by 2025, only around a quarter of 20-39 year olds in England may be owner occupiers, compared to around three quarters of over-55 year olds.’[1]

In addition, former chairman of RICS, Jeremy Leaf, believes that the housing market is in the process of re-energising itself. Leaf commented that, ‘with the average property price in London now £531,000, unless you earn way above the national average salary, you have precious little hope of being in a position to buy.’[1]

‘Generation Rent is being left out in the cold: they have aspirations to buy but are being pushed further away from their goal,’ he added.[1]



Only Way is Up for House Prices

Published On: November 12, 2015 at 1:11 pm


Categories: Property News

Tags: ,,,

House prices are continuing to soar and are expected to grow further.

Only Way is Up for House Prices

Only Way is Up for House Prices

The Royal Institution of Chartered Surveyors (RICS) and LSL Property Services/Acadata have reported on the property market. LSL found that the average house price is edging closer to £300,000 after the most recent increase.

Another firm, Home, says that the number of homes for sale has dropped to a new record low. There are now 45% fewer homes on the market than in November 2007.

However, while demand is surpassing supply and driving up prices, the prime central London market is experiencing a slowdown in sales, as Stamp Duty is now considerably more expensive on homes costing £1m or more.

Estate agent Winkworth reports that its profits will be “slightly below”1 market expectations this year, due to slow sales in the capital.

It blames Stamp Duty reform for “undermining demand for more expensive properties”, but adds that “this will still be the second best ever year for Winkworth, despite transactions still being 26% off their historic peak”1.

Simon Rubinsohn, Chief Economist at the RICS, comments: “Property is set to become even more unaffordable going forward, making the Government’s focus of boosting the delivery of new homes absolutely critical.”

He says it is “hard to get away from the issue of supply when it comes to the current state of the housing market”1.

The RICS reports that house prices have increased across all parts of the UK. Meanwhile, new listings have fallen since the start of the year.

The LSL/Acadata study found that house prices grew by an average of £2,500 in October, equivalent to £80 per day, reaching a tenth record high this year.

It believes that prices continue to be fuelled by London, where price rises averaged £24,636 in the past year, equivalent to 75% of the typical Londoner’s salary.

It also reports that last month was the strongest October for sales since 2007.

The LSL/Acadata index says that the average house price in England is Wales is now £288,421, up 0.9% on the previous month and 5.2% on October last year.

When London and the South East are excluded, the average house price rise in the rest of England and Wales was 3.9% over the past year.