Posts with tag: house price growth

New House Price Record Set in Every Month This Year

Published On: October 8, 2015 at 12:04 pm


Categories: Property News

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New House Price Record Set in Every Month This Year

New House Price Record Set in Every Month This Year

The average house price in England and Wales has risen by 4.2% over the last year, reaching £284,742, according to the latest LSL Property Services House Price Index.

The data reveals that last month was the strongest September for house sales since 2007, fuelled by an increase in activity in the north and high annual price growth in the South East.

September’s 0.4% monthly price inflation on August also means that a new house price record has been set every month this year.

Director of e.surv chartered surveyors, Richard Sexton, reports: “The speed of house price growth across England and Wales may not be setting the world alight, but it’s certainly showing it has stamina – September marks the 42nd successive month of positive annual growth.

“Typical property prices are now £11,500 higher than a year ago and house price growth continues to outdo rises in wages and consumer prices.

“This growth is primarily being underpinned by sturdy demand and solid activity at the bottom of the property ladder.

“The most frequent paid property price across England and Wales is just £125,000, mirroring the level at which Stamp Duty becomes payable, and reflecting the impetus that has been injected in the first time buyer market recently.

“The shift in Stamp Duty bands continues to slow growth at the higher end of the market, and prices above £600,000 are largely stationary.”1 

The greatest annual price rise was experienced in the South East, with homes now costing 5.8% more than last year, at an average of £333,539.

Prices in Greater London increased by 3.9% over the year, and the East Midlands and South West also witnessed substantial yearly growth, of 4.8% and 4.5% respectively.

The lowest rises were experienced in the North of England at 1.8% and Wales at 1%.















House Price Growth Slow, But Demand is Still Surging

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


Categories: Landlord News

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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 



















Over Half of People Expect Interest Rates to Rise

Despite an increase in the amount of people expecting interest rates to rise, confidence has remained strong for house price growth, reveals the latest Halifax Housing Market Confidence Tracker.

The Halifax found that 58% of people now think that mortgage interest rates will be higher in 12 months’ time, up from 48% in the second quarter (Q2) of the year. Furthermore, 35% predict that savings interest rates will rise, compared to 26% in the previous quarter.

Over Half of People Expect Interest Rates to Rise

Over Half of People Expect Interest Rates to Rise

House price inflation is currently standing at 9% and 68% of respondents expect the average property price to be higher this time next year, with just one in 20 thinking prices will be lower.

Craig McKinlay, Mortgage Director at Halifax, comments: “While economic optimism appears to have tailed off in the last quarter, house prices have continued to increase and the underlying pace of house price growth is strong.

“This has helped to maintain the expectation that house prices will continue to rise, despite more people expecting interest rate rises in the next 12 months.

“The factors behind the upward pressure on house prices include the continued lack of second-hand properties for sale on the market and the availability of low mortgage rates.

“Without an increase in supply, it’s likely to mean that house price growth continues to be robust in the short-term, even if interest rates eventually begin to increase.”1

Despite the clear stability in property price expectations, there has been a decline in selling confidence, with the amount of people thinking the next 12 months will be a good time to sell dropping from 59% to 52%.

There has also been a decrease in the proportion of Britons that believe it will be a good time to buy in 12 months’ time, from 56% to 53%.

Only 40% of Londoners think the next year will be a good time to buy, compared with 77% in Scotland and 58% in the north of England.

Additionally, 64% of people in London said the next 12 months will be a good time to sell, with 48% of those in Scotland agreeing, 47% in the north of England and 43% in the Midlands.

The main barrier to buying a home is raising a deposit, at 57%, despite the availability of higher loan-to-value mortgages and the Help to Buy scheme.

The amount of people naming job security as an obstacle has dropped to its lowest ever level, at 42%, but it is still the second highest factor, ahead of household finances, at 36%.

Although house prices continue to increase, the proportion of people mentioning rising prices or prices being too high has fallen from 35% to 31% over the past quarter.

And despite an increase in the number of people expecting to see an interest rate rise in the next year, the amount of people who claim interest rates are a barrier to homeownership is fairly unchanged from Q2, from 16% to 14%.





London House Price Growth Back in Double Figures

The north-south divide in house prices has widened, as London’s growth has moved back into double figures, according to recent data from Nationwide.

The latest quarterly figures from the building society show that across the UK, the average house price increased by 1% in the third quarter (Q3) of 2015 and rose by 3.7% annually to reach £195,733.

Nationwide’s statistics are based on mortgages it arranged between July and September. The figures highlight a significant difference in price growth and average prices around the country.

London House Price Growth Back in Double Figures

London House Price Growth Back in Double Figures

London has seen the strongest housing market recovery in recent years and its annual rate of increase has returned to double figures, up from 7.3% to 10.6%.

As a result, the gap between house prices in the capital and the rest of the UK is at its widest yet. The typical property price in London, £443,399, is more than three and a half times the average of £124,345 recorded in the north of England.

London’s surrounding area has also experienced strong growth, with an annual price rise of 9.5% in the commuter belt outside the capital. Prices in this area average £326,785.

The growing divide in house prices mirrors the Land Registry’s latest report for completed sales in August. It reveals that prices in London increased by 1.7% over the month, whereas in the North West, they dropped by almost as much.

However, the data shows that the greatest annual growth was experienced in the cheapest parts of the capital, indicating that buyers are unable or unwilling to afford some areas.

Nationwide’s figures suggest that Northern Ireland is seeing the highest yearly price growth, after recording a 6.5% increase since last year. However, at an average of £127,562, they are still 44% below their pre-recession peak.

Prices rose by 6% in England, to £239,842, by 1.9% in Wales, to £146,854 and Scotland saw a 1.3% decline, taking prices down to £140,402.

Regionally, prices vary hugely. In eight areas, a slowdown in the annual pace of growth was recorded, while five regions experienced acceleration.

Nationwide has also released its latest monthly index, which shows a 0.5% price rise in September and an annual growth rate of 3.8%.

Chief Economist at the building society, Robert Gardner, says there are signs that growth is hitting more ordinary levels across the UK.

He continues: “The data in recent months provides some encouragement that the pace of house price increases may be stabilising close to the pace of earnings growth.

“However, the risk remains that construction activity will lag behind strengthening demand, putting upward pressure on house prices and eventually reducing affordability.”1

Chief UK Economist at IHS Global Insight, Howard Archer, expects house prices to rise by 7% this year.

He explains: “We expect house prices to see solid increases over the coming months amid firm activity.

“Given that house prices were soft in the latter months of 2014, this is likely to see annual house price inflation on the Nationwide’s measure move higher over the coming months.”1

He adds that a shortage of homes on the market could fuel higher growth.


Mortgage Lending Up £3.4bn in One Month

Published On: September 30, 2015 at 3:58 pm


Categories: Finance News

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Mortgage lending has risen by the greatest level since 2008, according to official data from the Bank of England (BoE).

Mortgage Lending Up £3.4bn in One Month

Mortgage Lending Up £3.4bn in One Month

In August, 71,030 loans were approved for home purchases – the highest monthly figure for 19 months and up by 20% on levels recorded as recently as November 2014.

The Bank announced that total net mortgage lending grew by £3.4 billion in August, compared with the £2.8 billion rise in July – the highest number since May 2008.

The report arrives after the Land Registry revealed that the average house price in England and Wales increased by 0.5% in August to £184,682.

And the rise in mortgage lending follows a price war between lenders, causing rates to drop to record lows. Homebuyers are also rushing to secure competitive mortgage rates before interest rates start rising.

Chief Executive of the Royal Bank of Scotland (RBS), Ross McEwan, says customers are moving from standard variable rates (SVRs) “because they are frightened of interest rates going up”1.

Most consumers are moving onto two or five-year fixed rates, with SVR mortgages accounting for 18% of the bank’s mortgage lending, compared with 25% a year ago.

UK Economist at IHS Global Insight, Howard Archer, says the latest data provides “more compelling evidence that housing market activity is on the up”. He adds: “Stronger buy-to-let activity is also pushing up mortgage approvals.”

Archer now expects house prices to end the year 7% higher than at the start, and to rise by a further 6% in 2016. He explains why: “Higher interest rates are unlikely to have a major dampening impact on housing activity for some time to come, as the BoE is stressing that interest rates will only rise gradually and to a limited extent.”1

Head of Lending at the Mortgage Advice Bureau (MAB), Brian Murphy, believes there are “no signs of a summer slowdown” in the mortgage market.

He concludes: “The remortgage market in particular has experienced a burst of activity, with approvals for remortgage rising more than twice as fast as those for house purchase year-on-year.”1






Number of Home Purchase Mortgage Approvals Grows

Published On: September 30, 2015 at 12:02 pm


Categories: Finance News

Tags: ,,,,

Number of Home Purchase Mortgage Approvals Grows

Number of Home Purchase Mortgage Approvals Grows

House prices increased in September, according to the latest Nationwide report.

The building society found that the average price of a home purchased with a mortgage was £195,585, up from £195,279 in the previous month.

The price of a typical property in London is now £443,399 – more than three and a half times the price of an average home in the North of England.

Furthermore, the Bank of England (BoE) has reported that the amount of mortgage approvals for home purchase rose for the third consecutive month in August.

Last month, 71,030 mortgages were approved, compared to the average of 65,594 for the previous six months and up from 69,010 in July.

Remortgaging levels are continued to increase, with the number standing at 40,931 in August, up from the average of 35,811 over the last six months.

Additionally, the Mortgage Advice Bureau (MAB) said that in August, the amount of mortgage products grew to over 15,000 for the first time since the recession. There were 15,838 mortgage products on offer last month, up by 10% on July and the highest number since 2008.

Estate agent haart has analysed figures from its own 200 branches, finding that the average UK sold subject to contract price in August was £219,315. The typical first time buyer paid £169,259 for a home.

Both prices are higher than the same time last year, up by 7.3% and 9.9% respectively.

haart’s average London price was £507,096 during August, and it states the ratio of buyer demand to housing supply is 12.4 to 1.