Posts with tag: house price growth

House Prices Continue Steady Rise in February, Reports Nationwide

Published On: March 1, 2017 at 10:03 am

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House prices rose steadily in February, up from average annual growth of 4.3% in January to 4.5%, according to the latest House Price Index from Nationwide.

House Prices Continue Steady Rise in February, Reports Nationwide

House Prices Continue Steady Rise in February, Reports Nationwide

On a monthly basis, the average house price increased by 0.6% in February, up from just 0.2% in the previous month.

This growth takes the average house price in the UK to £205,846, up from £205,240 in January 2017.

The Nationwide data also shows that more households in England now own their homes outright than with a mortgage.

Robert Gardner, the Chief Economist at Nationwide, comments on the figures: “Recent data suggests that the UK economy has continued to perform relatively strongly. The economy accelerated slightly in Q4, expanding by a healthy 0.7% quarter-on-quarter, and the unemployment rate remained stable at an 11-year low of 4.8%.

“The outlook is uncertain, but we, along with most other forecasters, expect the UK economy to slow through 2017 as heightened uncertainty weighs on business investment and hiring. Consumer spending, a key engine of growth in recent quarters, is also likely to be impacted by rising inflation in the months ahead as a result of the weaker pound.”

However, he adds: “Nevertheless, in our view, a small rise in house prices of around 2% is more likely than a decline over the course of 2017, since low borrowing costs and the dearth of homes on the market will continue to support prices.”

The Founder and CEO of online estate agent eMoov.co.uk, Russell Quirk, also says: “The UK market has come out of the blocks slow but steady for 2017, and has continued to see upward price growth, shaking off January’s lowest rate of increase in 14 months. This was almost certainly seasonal and, as spring approaches, UK buyers seem to be emerging from hibernation, albeit tentatively.

“Despite the doom and gloom predictions, we should start to see an increase in market activity over the coming months, which should further strengthen this upward price trend.”

He continues: “It will be interesting to see where we stand after this month’s Budget announcement. With an overall air of hesitation in the market, it is likely that many savvy buyers will be holding out to see what the Chancellor has in store, whereas the previous bulletproof nature of the market may have seen them proceed with a purchase regardless.

“It is likely that Mr. Hammond will loosen his stranglehold on the top end market where Stamp Duty is concerned, which could breathe new life into the market to an extent, particularly in London. The severity of the property market storm in 2017 could well hinge on next week’s announcements, so it will be interesting to see where we stand this time next month.”

House Price Growth Strong at the End of Last Year

Published On: February 14, 2017 at 10:04 am

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House price growth across the UK was strong at the end of last year, according to the latest figures from the Office for National Statistics (ONS) and Land Registry.

The report shows that house prices rose by an average of 7.2% in the year to December, up from 6.1% in the previous month. This highlights the continuing strong growth recorded since the end of 2013.

However, annual growth was weaker in the second half of 2016 than in the first six months of the year, the ONS reports.

The average UK house price in December was £220,000. This is £15,000 higher than in December 2015, and £3,000 higher on a monthly basis.

House Price Growth Strong at the End of Last Year

House Price Growth Strong at the End of Last Year

The main contributor to the increase in UK house prices was England, where property values rose by 7.7% in the year to December, taking the average price to £236,000.

House prices in Wales increased by 4.7% over the same period, to stand at an average of £148,000. In Scotland, the average value grew by 3.5%, taking it to £142,000. The average price in Northern Ireland rose by 5.7%, to reach £125,000.

Regionally 

London continues to be the region with the highest average house price, at £484,000, followed by the South East and East of England, at £316,000 and £282,000 respectively. The lowest average price continues to be found in the North East, at £129,000.

The highest annual growth of December was recorded in the East of England, at 11.3%. Growth in the South East was second highest, at 8.5%, followed by London, at 7.5%. The lowest annual growth was seen in the North East, where prices rose by just 4.1% over the year.

By local authority 

The local authority showing the largest annual growth in the year to December was the Shetland Islands, where prices were up by 26.1% to stand at an average of £179,000. Low numbers of property sales in some local authorities, such as the Shetland Islands, can lead to volatility in the index, the ONS points out. The lowest annual growth was recorded in the City of Aberdeen, where prices fell by 9.8%, to an average of £168,000.

In December, the most expensive borough to live in was Kensington and Chelsea, where the average home cost £1.3m. In contrast, the cheapest place to buy a property was Burnley, at an average of £74,000.

Comments

The CEO and Co-Founder of LendInvest, Ian Thomas, responds to the figures: “As we head into 2017, we’ve seen slowing rises in property price rises. Despite this, reasonable growth should still be expected throughout 2017.

“We’ve seen from last week’s Housing White Paper that the Government is more committed than ever to fixing the broken housing market. Restoring confidence in the property market will require action by Government to get all parts of the housebuilding sector firing on all cylinders, especially the SME housebuilders, who Government promise to help grow.”

The Founder and CEO of eMoov.co.uk, Russell Quirk, also comments: “There has been a number of sceptics where the state of the housing market in 2016 is concerned and, although the likes of Halifax and Nationwide provide a snapshot of performance, the fact they are based on mortgage approval data, not cold hard completions, will always leave room for doubt.

“But today’s data from the Land Registry provides a concrete view of how the market performed during a testing year and, on the face of it, held up very well, all things considered.”

He explains: “Not only did prices see an increase of 7.2% annually, but, heading into what is a quiet time of year for the market, an increase of 1.4% in prices and an uplift of 0.2% in transaction volume month-on-month is a promising sign indeed for the year ahead.

“Not only did the London market see healthy growth despite the changes to second home Stamp Duty tax brackets, but there is also positive signs across the rest of the nation. The market in Wales, in particular, has really suffered of late, and so a 1% boost on November’s figures will be a welcome sign for Welsh homeowners.”

Quirk concludes: “This latest market insight should spur a renewed confidence in UK homeowners that we have very much weathered the storm and that UK property is an attractive proposition as it has ever been, whether you are buying or selling.”

January House Price Growth Eased to 5.7%

Published On: February 7, 2017 at 10:07 am

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House price growth in the three months to January eased to an annual rate of 5.7%, down from 6.5% in December, according to the latest House Price Index from Halifax.

January’s slowdown in house price growth followed two consecutive increases in the annual rate, from a low of 5.2% in October 2016. The annual rate recorded for the start of this year is much lower than the 10.0% peak hit in March last year.

On a quarterly basis, house prices rose by an average of 2.4% when compared to the previous quarter, which compares to the 2.5% rate recorded in December – the highest since March (+2.9%).

Month-on-month, house price growth dropped by a slight 0.9%.

The average house price in the UK, as of January, is £220,260.

A Housing Economist at Halifax, Martin Ellis, comments: “The quarterly and annual rates of house price growth remain robust, even though they are lower than in spring 2016. UK house prices continue to be supported by an ongoing shortage of property for sale, low levels of housebuilding, and exceptionally low interest rates.

January House Price Growth Eased to 5.7%

January House Price Growth Eased to 5.7%

“These factors are unlikely to change materially during 2017. Nonetheless, weaker economic growth and increasing pressure on spending power, along with affordability constraints, are expected to dampen housing demand, resulting in some downward pressure on annual house price growth during the year.”

First time buyers

Halifax has also released its latest First Time Buyer Review, which suggests that the number of buyers purchasing their first homes has risen by 7% over the past 12 months, to reach 335,750.

This was the highest level since the start of the financial crisis in 2007, when it stood at 359,900. First time buyer numbers still remain 17% below the immediate pre-crisis peak of 402,800 in 2006, however.

UK home sales

In 2016, the total number of UK home sales was marginally higher (+0.4%) than in 2015, at 1.23m. Sales in the fourth quarter (Q4) of 2016 were 0.5% higher than in the previous quarter.

Despite this modest quarterly improvement, sales in Q4 2016 were 9% lower than in Q4 2015.

Mortgage approvals 

The amount of mortgage approvals for house purchases – a leading indicator of completed property sales – rose by 1% between November and December last year, to 67,900.

This was the highest level recorded since March 2016, when approvals were boosted by the impending Stamp Duty surcharge for additional homes and buy-to-let properties.

Approvals in Q4 2016 were 9% higher than in Q3 2016, suggesting that property sales could increase over the coming months.

Housing supply 

Regardless, housing supply remains very low across the country. New instructions failed to pick up in December, marking the tenth consecutive month without any improvement in new listings.

As a result, stock levels remain close to a record low, which Halifax claims is severely restricting choice for prospective buyers and constraining market activity.

The Founder and CEO of online estate agent eMoov.co.uk, Russell Quirk, comments on the report: “There are those that will, of course, see this marginal monthly drop in house prices as a fulfilment of the Armageddon-style prophecies that have plagued the UK market since the start of last year, with many widely predicting a troublesome year ahead for property.

“But these figures demonstrate the robust, Teflon-style nature of the UK market as, despite a turbulent year for property, it has weathered the storm and continues to see upward price growth both annually and when compared to the last quarter.”

He continues: “January is always a lethargic month for UK property as a result of the Christmas break, and so any fall in house prices at this time of year should be taken with a pinch of salt, rather than a handful of panic. Mortgage approvals have continued to increase, and demand remains woefully low, so it is likely that come this time next month, prices will be on the up again across the board, and this monthly drop will have righted itself.

“Had any other market around the world been subject to such a sustained period of scaremongering and uncertainty amongst buyer and seller as the UK market has in the last year, I expect it would be a different story to the one we are seeing here.”

The CIO and Co-Founder of LendInvest, Ian Thomas, also says: “Figures from Halifax in January indicated higher than expected house price growth, as constrained housing supply maintained buoyancy in prices.

“While there will be growth in prices this year, measures in the Government’s Housing White Paper announced today will tackle the gridlock in supply and will ultimately determine the scale of price growth.”

We will keep you up to date with the release and content of the Housing White Paper at Landlord News.

Steady Start to the Year for UK House Prices, Reports Nationwide

Published On: February 1, 2017 at 10:08 am

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Figures for January show a steady start to the year for UK house prices, according to the latest House Price Index from Nationwide.

Over the month, the annual rate of growth for UK house prices fell slightly to 4.3%, from 4.5% in December 2016. The monthly increase in January also slowed, from 0.8% to 0.2%.

Steady Start to the Year for UK House Prices, Reports Nationwide

Steady Start to the Year for UK House Prices, Reports Nationwide

Nevertheless, the steady start of the year takes UK house prices to an average of £205,240, from £205,898 in the previous month.

The Chief Economist at Nationwide, Robert Gardner, comments on the report: “The outlook for the housing market remains clouded, reflecting the uncertainty surrounding economic prospects more broadly.

“On the one hand, there are grounds for optimism. The economy has remained far stronger than expected in the wake of the Brexit vote. Recent data indicates that the economy didn’t slow in the second half of 2016 and the unemployment rate remained stable, at an 11-year low in the three months to November.”

Nonetheless, he continues: “However, there are tentative signs that conditions may be about to soften. Employment growth has moderated, and while wage growth has edged up in recent months in real terms (i.e. after adjusting for inflation), earnings growth has already slowed.

“With inflation set to rise further in the months ahead as a result of the weaker pound, real wages are likely to come under further pressure. Employment growth is also likely to continue to moderate, should the economy slow as most forecasters expect.”

He adds: “On balance, we agree with the consensus view that the economy is likely to slow through 2017 as the squeeze on household budgets intensifies and heightened uncertainty weighs on business investment and hiring.

“Nevertheless, we continue to believe that a small rise in house prices of around 2% is more likely than a decline over the course of 2017, since low borrowing costs and the dearth of homes on the market will continue to support prices.”

Following the release of the report on UK house prices, the CEO of online estate agent eMoov.co.uk, Russell Quirk, says: “Today is the first look at house price movement for the New Year, as the market whirs back into life after Christmas and, on the face of it, the overarching stability and market confidence that was seen throughout 2016 seems to have spilt over into 2017.

“It’s fair to say that as far as external influences are concerned, 2017 has already thrown up its fair share of curve balls, particularly across the pond. But the ripple effects of these distance influences are unlikely to reach the UK property market, unless you own a second home in high-end London.”

He goes on: “That said, this year is probably the year we see some form of the knock-on effect from the turbulence of 2016 where price growth is concerned. But this is likely to come in the form of a slower rate of escalation rather than a negative movement.

“Despite this potential marginal slowdown, it is widely predicted that the market will remain robust throughout the coming year, and prices will maintain their upward trend, which certainly seems to be the case based on today’s numbers.”

He concludes: “A New Year and another increase in house prices will provide a positive outlook for UK homeowners in 2017, perhaps not so positive for those still struggling to buy.”

Do you believe UK house prices will continue growing this year?

House Prices Almost Recovered to March Peak at End of 2016

Published On: January 16, 2017 at 11:12 am

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House prices almost recovered to the March peak seen last year at the end of 2016, but transactions dropped by 3.9%, according to Your Move’s latest House Price Index.

The agent found that prices rose by 0.4% in December and by 3.1% on an annual basis, to an average of £297,678. This figure is close to Rightmove’s average asking price for January of £300,245.

The Your Move figure takes the average house price almost back to the £297,725 March peak reached amid the rush to beat last year’s Stamp Duty deadline.

House Prices Almost Recovered to March Peak at End of 2016

House Prices Almost Recovered to March Peak at End of 2016

However, the annual rate of growth was down from 3.5% in November, while transaction figures for the final six months of the year show just how great the impact of the Stamp Duty reforms were, as sales dropped by 14.7%.

There was much variation across the country at the end of last year, with annual price growth as high as 16.2% in Hull and as low as -11.5% in the London Borough of Hammersmith & Fulham.

Overall, London has trailed the other regions of England and Wales, with house price growth of just 0.2% year-on-year.

The East of England recorded the highest annual increase of 2016, at 7.9%.

The Managing Director of agents Your Move and Reeds Rains, Oliver Blake, says: “It was a strong finish to an uncertain year. Despite the doubts over Brexit, prices have continued to grow, powered by good value commuter properties.

“As the lower transaction figures since April show, the market faces challenges ahead, but it has entered 2017 a lot stronger than many would have expected.”

In terms of properties coming onto the market, Rightmove claims there is now an opportunity for first time buyers to get onto the ladder, as there is less competition from buy-to-let landlords.

Rightmove attributes the 13.2% decline in sales of smaller properties – those with two bedrooms or fewer – in December to less buy-to-let interest. As a result, the portal reports that available stock for sale in this sector is up by 1.9% on last year. This contrasts to January 2016, when availability of these properties fell by 18%.

Across the whole market, Rightmove puts the current average asking price at £300,245 – up by 0.4% on December and 3.2% annually.

The average time taken to sell a property rose to 72 days in December, up from 67 in November, while the average stock per member agent dropped from 56 to 51 over the same period.

Miles Shipside, the Director and Housing Market Analyst at Rightmove, comments: “The 0.4% monthly and 3.2% year-on-year price increases are indicators of the continued market momentum from the autumn.

“Demand for a suitable home is such that visits to the Rightmove website are still up by 5% year-on-year, despite being compared to a period that was boosted by high demand from buy-to-let investors rushing to beat the Stamp Duty deadline.

“Year-on-year comparisons for transactions in the first quarter of 2017 should also allow for the distortion of last April’s additional Stamp Duty tax deadline, as transactions were up 40% in the first quarter last year.”

Annual House Price Growth Increases to 6.5%, Reports Halifax

Published On: January 9, 2017 at 10:22 am

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Annual house price growth increased to 6.5% in the three months to December 2016, according to the latest House Price Index from Halifax.

This marks the second consecutive increase in the annual rate of growth, from a 2016 low of 5.2% in October and up from 6.0% in November. Despite the rises seen in November and December, however, the annual rate remains significantly below the 10.0% peak reached in March 2016.

At the end of last month, Halifax reported that Luton experienced the strongest annual house price growth of the year, at 19.4%.

On a quarterly basis, prices in the last three months of the year were 2.5% higher than in the previous quarter. This compares to the 0.9% change recorded in November. The quarterly rate of growth seen in December was the highest since March 2016, when it stood at 2.9%.

Following a month-on-month increase of 1.7% between November and December – the fourth consecutive monthly rise – the average house price across the country was £222,484.

Annual house price growth

Annual House Price Growth Increases to 6.5%, Reports Halifax

Annual House Price Growth Increases to 6.5%, Reports Halifax

A Housing Economist at Halifax, Martin Ellis, says: “House prices finished 2016 strongly. Prices in the final quarter of the year were 2.5% higher than in the previous quarter. The annual rate of growth increased, rising for the second consecutive month, from 6.0% in November, to 6.5%.

“Slower economic growth, pressure on employment and a squeeze on spending power, together with affordability constraints, are expected to reduce housing demand during 2017. UK house prices should, however, continue to be supported by an ongoing shortage of property for sale, low levels of housebuilding and exceptionally low interest rates. Overall, annual house price growth nationally is most likely expected to slow to 1-4% by the end of 2017. The relatively wide range for the forecast reflects the higher than normal degree of uncertainty regarding the prospects for the UK economy this year.”

2016 housing market activity 

Total UK home sales for 2016 are expected to be broadly unchanged form 2015 and 2014, at 1.2m. Sales largely stabilised in the second half of the year, with a 1% increase between October and November. Purchases in the three months from September to November were, however, 9% lower than in the same period of the previous year.

Mortgage approvals were 6% higher in the three months to November compared to the preceding three months. The number of mortgage approvals for house purchases – a leading indicator of completed property sales – slightly increased (0.2%) on a monthly basis from October to November, following a 6% rise between September and October. This suggests that home sales could increase over the coming months.

Nevertheless, supply remains incredibly low, and there are no signs that the shortage of stock is easing. The number of new instructions for November was flat, with the amount of unsold stock at a record low.

The CEO of online estate agent eMoov, Russell Quirk, comments on the data: “A late flourish for the UK housing market at the end of 2016 sees price growth remain strong, which will be welcomed by UK homeowners. It would seem positive news on house prices simply will not go away, despite the efforts of some to make us accept that the market will weaken in the wake of EU referendum angst.

“As we have said time and again, the UK housing market is fundamentally robust, bulletproof even, and we do not subscribe to the view of the naysayers that we will see price reductions in 2017. The clever money, given today’s numbers, is yet more positive news, which will serve to underpin the overall economy this year.”

He adds: “Low money costs, a demand led by an aspirational home owning culture and scant supply, will all ensure that property prices remain buoyant, regardless of those using falling prices as a scare tactic for their own personal agenda.”

Ian Thomas, CEO and co-founder of LendInvest, also responds: “While the property market proved resilient towards the end of the year, 2017 will likely see a slowdown in growth, as the impact of last year’s Stamp Duty changes are felt by investors, and the Government begins to negotiate the UK’s withdrawal from the EU.”