Posts with tag: house price growth

Annual House Price Growth Stable at the End of the Year

Published On: January 3, 2017 at 9:44 am


Categories: Property News

Tags: ,,,

Annual house price growth across the UK was stable at the end of 2016, standing at 4.5% – the same as 2015 – according to the latest House Price Index from Nationwide.

The study also shows that annual house price growth in London ended the year below the UK average for the first time in eight years.

Following a 0.8% monthly increase in values, the average property price ended the year at £205,898.

Annual house price growth

The Chief Economist at Nationwide, Robert Gardner, comments on the findings: “The story of UK house price growth in 2016 was one of relative stability. Annual house price growth ended 2016 at 4.5%, the same as the rate recorded in 2015.

“There were signs that London’s significant period of outperformance may be drawing to a close. For the first year since 2008, annual house price growth in the capital was lower than the UK average, with prices increasing by 3.7% over the year, down from 12.2% in 2015.

“The south of England as a whole continued to see slightly stronger price growth than the north of England, though the differential narrowed.

“Price growth in Wales, Scotland and Northern Ireland remained subdued, though each saw small gains overall in 2016.”

Outlook for 2017

Annual House Price Growth Stable at the End of the Year

Annual House Price Growth Stable at the End of the Year

Sharing his predictions for the coming year, Gardner says: “Looking ahead to 2017, house price prospects will depend crucially on developments in the wider economy, around which there is a greater degree of uncertainty than usual.

“Like most forecasters, including the Bank of England, we expect the UK economy to slow modestly next year, which is likely to result in less robust labour market conditions and modestly slower house price growth.

“But we continue to think a small gain – around 2% – is more likely than a decline over 2017 as a whole, since low interest rates are expected to help underpin demand, while a shortage of homes on the market will continue to provide support for house prices.”

Affordability across the UK

He also addresses the striking differences in affordability across the UK: “There has been a marked divergence in house price growth across the UK in recent years, which has translated into a significant difference in affordability across the regions.

“We used regional income data to estimate where in the income distribution a prospective purchaser would lie if they were purchasing the typical first time buyer property in a region, had a 20% deposit and were borrowing four times their (single) income.

“The differences are striking. In Scotland and the north of England, this typical buyer would lie in the 30th income percentile, while in the South West they would be at the 75th percentile and above the 90th percentile in London.

“This picture has shifted over time. In particular, the dispersion or variation in affordability across regions has increased over the past ten years.”

He continues: “Affordability has improved in Scotland, the north, East Midlands and Northern Ireland over the past ten years. By contrast, in London and the south of England, more people have found themselves priced out of the market or had to borrow a greater multiple of their income, though low interest rates have helped to reduce monthly mortgage costs.

“This pattern is reflected in median loan to income (LTI) ratios for first time buyers across the regions. Median LTI ratios are highest in London and the South East (at around four times income) and lowest in Northern Ireland (at less than three).

“As you might expect, there is a strong relationship between affordability in a region and how much first time buyers borrow relative to their income. As affordability becomes more stretched (as measured by higher house price to earnings ratios), the more first time buyers borrow relative to their income.”

Top performing region of 2016 

All regions recorded annual house price growth in 2016, with East Anglia topping the chart for the first time since 2010, with average values up by 10.1%.

London experienced a further moderation in the annual rate of price growth, from 7.1% in the third quarter (Q3) to 3.7%. This is the first time since 2010 that London has not ended the year as the strongest performing region and the first year since 2008 that it has been below the UK average.

The north was the weakest performing area, with prices little changed over the year.

Wales recorded a slight uptick in the rate of growth compared to the last quarter, with a 2.4% annual rise. Scotland remained fairly subdued, with prices up by just 2.2% over the year, although this was an improvement on 2015, when Scotland was the only region to see price declines.

The annual rate of growth in Northern Ireland slowed to 0.7%, from 2.4% in the previous quarter.

The average house price in England rose by 0.8% in the final quarter of 2016, and was up by 5.1% over the whole year.

Most southern regions of England, with the exception of East Anglia, experienced a further slowdown in annual price growth compared to Q3. Overall, prices in southern England (the South West, outer South East, outer Metropolitan, London and East Anglia) were up by 5.5% over the year, while in northern England (West Midlands, East Midlands, Yorkshire and the Humber, North West and north), prices increased by 3.8%.

However, in cash terms, the gap in average prices between the south and the north continued to widen, now standing at over £170,000 – around £11,500 higher than a year ago.

Luton Recorded the Strongest House Price Growth of 2016, Reports Halifax

Published On: December 30, 2016 at 9:34 am


Categories: Property News

Tags: ,,

Luton Recorded the Strongest House Price Growth of 2016, Reports Halifax

Luton Recorded the Strongest House Price Growth of 2016, Reports Halifax

Luton has recorded the strongest house price growth over 2016, according to a recent report from Halifax.

Property values in the town have surged by almost a fifth (19.4%) this year, and are nearly £42,000 higher than a year ago.

The house price growth recorded in Luton is more than double the 7.5% seen across the UK as a whole this year, found the study, with the average property value in the town now standing at £256,636.

The ten locations with the highest house price growth over 2016 were all in London or the South East, with Barking and Dagenham, Dunstable, Basildon, Tower Hamlets and Watford also on the list.

The top ten hotspots for house price growth over 2016 are:

[table id=29 /]

At the other end of the spectrum, Aberdeen has recorded the weakest house price growth over the past 12 months, with values dropping by 6.9% to reach an average of £203,425.

Bangor in Northern Ireland, Inverness in Scotland, and Blackpool in the North West were also among the areas with the weakest house price growth.

The ten locations with the weakest price growth of the year are:

[table id=30 /]

A Housing Economist at Halifax, Martin Ellis, comments on the findings: “Most of the areas that have seen the biggest house price rises during 2016 are either within close commuting distance of the capital or in outer London. Demand in these areas has risen, as substantial property price rises in central London over the last few years have caused increasing numbers of people to seek property in more affordable areas.

“A few towns have experienced price falls, with the biggest in Aberdeen. On the northeast coast of Scotland, it is highly dependent on the North Sea oil and gas sector. The substantial fall in oil prices in the past couple of years has hit the industry hard with adverse impact on demand for homes in the area. Price declines elsewhere have been modest.”

Property price growth in key UK cities is slowing

Published On: December 21, 2016 at 10:16 am


Categories: Property News

Tags: ,,,

House price growth in some of the UK’s key cities is continuing to increase, in all but one region, according to the latest report from Hometrack.

In addition, the firm suggests that property prices in these locations will rise by 4% during 2017.

Slowing Growth

Despite the growth in property prices, these increases are at a slower rate than in previous months. Cambridge for example has seen its rate of growth slip from 12.5% to 2.5% over the last year. London has seen growth fall from 7.6% to 3%-the lowest level of growth seen in the capital for over 3 years.

These two cities, alongside Oxford, Bournemouth and Bristol have seen the largest rate of growth of UK cities in the last five years, but are now experiencing a slowdown.

More steady growth has been recorded in Birmingham, Manchester, Leeds, Leicester and Nottingham. These particular cities have seen house price growth between 5% and 8% per annum during the last year.

Aberdeen is the only city to see year-on-year falls, with values 6.4% down.

Property price growth in key UK cities is slowing

Property price growth in key UK cities is slowing


For all sales, cities covered by the index saw between a 50%-60% rise in sales volumes in the last five years. In cities where property price growth has been high and affordability levels most stretched, volumes of sales have dropped off during the last two years.

Looking to 2017, Hometrack suggests that weaker growth in real household incomes and worries over Brexit will impact on housing market sentiment.

The Hometrack report states: ‘While the economy is projected to grow in 2017, levels of employment are forecast to grow more slowly although mortgage rates are expected to remain low by historic standards. Given the current projections for the economy, we do not believe that any of the cities covered by the index will be registering year on year price falls at the end of 2017.’[1]

‘However, we do expect the rate of city level house price growth to slow over the next 12 months led by weaker growth in cities across southern England. This is where affordability pressures on home owners are most extended and where previously buoyant investor demand has been impacted by fiscal changes and by tougher underwriting standards for mortgaged borrowers,’ it continues.[1]


Moving on, the report says: ‘While we expect some moderation in the rate of house price growth from current levels in larger UK regional cities, such as Birmingham and Manchester, we believe the underlying fundamentals in these markets remain attractive and there is potential for further price appreciation over 2017.’[1]

‘We expect our London index to register nominal growth of 2% in 2017. This will equate to a fall in real terms. A harder landing for house prices could drag the headline rate lower. While house prices are registering small, single digit price falls in central London areas, a lack of forced sellers is expected to minimise the scale of price falls,’ the statement concludes.[1]



How has Christmas Present Inflation Compared to House Price Growth?

Published On: December 15, 2016 at 11:47 am


Categories: Finance News

Tags: ,,,

While we all know that house price growth has spiralled over the last few decades, how have Christmas present prices compared?

Online estate agent has analysed the average house prices of the last 30-odd years against the cost of the must-have Christmas presents over each period.

1980: The Rubik’s Cube

In 1980, the average house price in the UK was just £23,497. Since then, it has increased by an alarming 778%. The most popular gift of the year was the Rubik’s Cube, which cost just £2 at the time. Today, however, the game sells for as much as £13 – that’s a 713% rise, which only marginally trails house price growth.

1990: Nintendo

In the early 90s, Nintendo burst onto the scene with its Gameboy, one of the first handheld videogame devices. At £71, they weren’t the cheapest Christmas present, but the latest DS 3D today comes in at over £100 more (£175), up by 146%.

Unsurprisingly, house prices have managed to beat this growth, up by 276% from the average value at the time, of £54,919.

How has Christmas Present Inflation Compared to House Price Growth?

How has Christmas Present Inflation Compared to House Price Growth?

1998: Furby

The Furby craze swept the nation back in 1998. The average house price of the time, £66,313, has now risen by 211%, but how has the Furby fared? Originally costing just under £25, the latest edition sells for £76 – a 206% increase.

2010: The iPad

As technology started to advance like never before, more traditional toys were put on the back shelf. In 2010, Apple flooded the market with its iPad – the perfect gift for someone needing something bigger than a phone, but not as big as a computer.

The original price of £400 has now gone up to a huge £729 – an 82% hike in just six years. Shockingly, this is well ahead of house prices, which have risen by just 27% over the same period.

2013: The Xbox 

When the original Xbox was released in 2001, the average house price was £92,533, while the must-have games console cost £240. 12 years later, the price of playing an Xbox had increased by 67%, with the Xbox One costing £400. Over the same period, house prices rose by 89%.

Unfortunately for those that bought the Xbox One on release, the product hasn’t retained the upward price trend – in the last three years, the price of an Xbox One has fallen by half, now costing around £200. For homeowners, prices haven’t followed suit, and are up by a further 18%.

2016: Nerf 

One of the hottest Christmas gifts this year is the latest Nerf gun. They first became popular in 2012, when the average house price was £162,924 and a Nerf would cost around £30.

In the last four years, house prices have continued to rise, up by 27%, while the Nerf gun has increased by 47% to over £40.

The Founder and CEO of eMoov, Russell Quirk, comments on the findings: “It’s a well-known fact that Christmas is probably the most expensive time of year, with many stretching beyond their means to provide the latest gifts and gadgets for their families.

“Therefore, it is hardly surprising that the cost of the must-have items during the holidays have seen similar, if not larger, price hikes than the UK property market itself.

“When people talk about the struggles of obtaining homeownership, they rarely consider the many underlying factors that come with it and the affordability issues of modern day life itself.”

He adds: “If you would have told me back in the 80s to invest into Rubik’s Cubes, I would have thought you were mad, but this research shows it probably wasn’t such a bad idea after all.”

House Price Growth Down Across England

Published On: December 13, 2016 at 11:51 am


Categories: Property News

Tags: ,,,

House price growth is down on a monthly basis across England, according to the latest House Price Index from the Land Registry and the Office for National Statistics (ONS).

In the UK as a whole, house prices have risen by 6.9% in the last year and 0.1% over the month to October.

House Price Growth Down Across England

House Price Growth Down Across England

However, this trend is reversed in England, as prices have dropped by 0.1% month-on-month. Nevertheless, growth still stands at 7.4% on an annual basis.

The annual rate of growth is only marginally higher in the capital, at 7.7%, with London house prices falling by a significant 1.2% between September and October.

The East of England enjoyed the greatest monthly and annual growth, while the North East experienced the greatest month-on-month decline, as well as the slowest annual increase.

Russell Quirk, the Founder and CEO of eMoov, comments on the latest index: “It would seem that London has taken a backseat when it comes to the driving force behind UK house price growth, having suffered a 1.2% drop month-on-month, despite monthly growth creeping up by 0.1% across the UK as a whole.

“The industry will really start to stutter to a halt now as Christmas fast approaches, and so any panic over falling house prices should really be taken with a pinch of salt. Not only will buyer demand drop right off as thoughts turn to the stress of the festive season, but many sellers will also freeze the marketing of their property, ready to hit the ground running again in January.”

He continues: “Although there is a great marketing push behind the Boxing Day bounce, and the number of people that log on after the Queen’s speech to surf the property portals, this has little benefit to actual sellers, as those full of Christmas merriment are unlikely to be serious in their search. So it really is worthwhile to enjoy your time with friends and family and prepare for the onslaught of buyer interest that will come with the New Year.”

The Senior Economist at PwC, Richard Snook, also has his take on the recent figures: “The final official housing release from the ONS and Land Registry before Christmas shows that average UK house inflation was 6.9% in the year to October – barely changed from 7.0% in September. This takes the average price of a UK home to £217,000.

“Whilst the annual inflation rate remains high, prices have barely moved over the last three months. If this trend continues into 2017, we will see a pronounced drop in growth rates in the New Year. We project that UK house price growth for 2017 could range between 2-5%.

“The picture was mixed across the regions, with monthly price declines of over 1% in London, the North East and the North West. However, monthly growth is volatile and it is too early to call a slowdown in these areas.”

We will continue to keep you updated of any changes to house price growth across the UK at Landlord News.

Property price growth increases for first time in 8 months

Published On: December 7, 2016 at 11:08 am


Categories: Property News

Tags: ,,,

The latest data released from the Halifax has revealed that the annual rate of house price growth has increased from 5.2% to 6% in November. This represents the first rise in 8 months.

According to the report, property prices in the three months to November were 6% greater than at the same period in 2015.

This year, the quarterly figures (between September-November) were 0.8% higher than in the previous three months.

Increased growth

Martin Ellis, Halifax housing economist, noted: ‘House prices in the three months to November were 0.8% higher than in the previous quarter. This increase followed little movement in prices on this quarterly measure in both September and October. The annual rate of growth also increased, rising for the first time for eight months.’[1]

‘Despite November’s pick-up, the annual rate has been on a steady downward trend in recent months since reaching a peak of 10.0% in March. Heightened affordability pressures, resulting from a sustained period of house price growth in excess of earnings rises, appear to have dampened housing demand, contributing to the slowdown in house price inflation. Very low mortgage rates and an ongoing, and acute, shortage of properties available for sale should help support price levels although annual house price growth may slow over the coming months,’ he added.[1]

Jeremy Duncombe, Director at Legal & General Mortgage Club, also commented: ‘November’s figures show a slight increase in monthly house price growth, but nothing like the thundering rate that we got accustomed to over the first half of the year. Despite the negative perceptions that often accompany such slowdowns, this cooling of house price inflation should be viewed positively. The fact remains that there is still a huge disparity between wage growth and property price inflation.’[1]

Property price growth increases for first time in 8 months

Property price growth increases for first time in 8 months

Early Christmas present

Founder and CEO of, Rusell Quirk, said that the report shows: ‘yet more signs of life shooting from the frosty ground of the UK property market with the first annual increase in eight months providing UK homeowners with an early Christmas gift. Many in the industry have been quick to put the boot in over the last few months where the UK property market is concerned, hanging gloomy predictions on a dwindling level of demand in the market.’[2]

‘It would seem this simply isn’t the case. The driving factor behind inflating house prices is an imbalance between supply and demand and, with house prices spiking this late in the year, it would seem there is certainly a sustained level of buyer demand present in the current market,’ Quirk added.[2]


[2] Russell Quirk, eMoov press release, 07.12.16