Posts with tag: house price rises

Property prices near London Olympic Stadium have soared in 5 years

Published On: August 9, 2017 at 11:45 am

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London is currently playing host to the World Athletics Championships, evoking great memories of the superb Olympic Games in the summer of 2012.

Now, interesting new research has examined how average property prices in the 14 postal districts of East London closest to the Olympic Stadium have fared since the Games.

Gold-Medal Rises

The investigation from the Halifax has revealed that average prices in these regions have risen from £286,683 in September 2012 to £470,687 in April 2017- an increase of 64%.

This rise has outperformed London as a whole during the last five years. Since September 2012, the average property price in the capital has risen by £160,986, or 38%, to hit £584,190.

Of the 14 boroughs closest to the Olympic Stadium, Walthamstow saw the strongest growth, with average property prices doubling in five years. Values have risen from £238,348 to £479,421 – a rise of £241,073 or 101%.

Five other regions have seen price rises of over £200,000 in the last five years, namely Homerton, Clapton, Shoreditch, Dalston and Leyton.

Property prices near London Olympic Stadium have soared in 5 years

Property prices near London Olympic Stadium have soared in 5 years

Regeneration Boost

Martin Ellis, Housing Economist at the Halifax, noted: ‘Hosting the 2012 Games welcomed major regeneration to boost areas close to the Olympic Park in East London. Large scale infrastructure investment in the existing tube networks, an international rail station and now Crossrail have not only created jobs in the area, but improved options for people to move around the capital.’

‘This has enabled home owners in the 14 postal areas closest to Olympic Park to celebrate their own victory as a result, as the average value of their homes has risen by more than £4,000 per month since the Paralympic Games ended in 2012. Not only has this area been reinvigorated as a community, but average property price growth in this part of East London has raced ahead of England, Wales and even Greater London as a result.’[1]

[1] http://www.propertywire.com/news/uk/areas-london-around-olympic-park-see-prices-soar-since-2012-games/

 

 

House Price Growth Slow, But Demand is Still Surging

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

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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 

1 http://www.propertyindustryeye.com/house-price-rises-slow-but-demand-still-growing/

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property Experts Expect House Price Rises to Slow in 2016

Published On: August 27, 2015 at 3:45 pm

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House prices will rise more slowly next year than this year, according to a poll of property experts.

The study also found that interest rates would have to hit 3% before having a serious effect on the market.

The poll of 22 property experts taken in the last week suggests that house prices will increase by 5% this year and 4% in the next two years. These predictions are similar to forecasts released three months ago.

Property Experts Expect House Price Rises to Slow in 2016

Property Experts Expect House Price Rises to Slow in 2016

Another survey revealed that wages will pick up faster than inflation, by 0.2% this year, 1.6% in 2016 and by 2% in 2017. Salary growth is not expected to match house price rises until 2017.

Matthew Pointon, of Capital Economics, states: “An acute shortage of homes for sale, coupled with a recovery in housing demand, as the labour market continues to strengthen, is putting upwards pressure on house prices.

“However, with interest rates set to rise gradually from next year, and house prices already at very high levels, gains in 2016 and 2017 will be far more modest.”1

Interest rates have sat at a record low of 0.5% since early 2009, and a recent study indicates that they will not rise until early next year. Even then, increases are expected to be gradual.

16 of 19 respondents said that the housing market is strong enough to endure higher interest rates, and most said the lending rate would need to hit 3% before having a detrimental impact, something that the experts don’t expect to happen until 2018 at least.

The Council of Mortgage Lender’s (CML) Bob Pannell says: “Small, gradual and anticipated interest rate rises, alongside decent GDP growth, are unlikely in themselves to derail the housing market.”1 

Another indication that the housing market is in a solid position is the news that mortgage approvals reached the highest level in 17 months in July.

However, Rightmove has announced that the average asking price for a home in Greater London is now £606,826, more than double the national average of £292,284.

As the national average annual salary was £27,200 last year, London house prices are unaffordable, if not very unaffordable, to most.

If prices increase by 5.3% this year, 3.5% next year and 4.5% in 2017, as predicted, owning property in the capital will be even further out of reach for most people.

Experts believe that on a scale from one to ten – one being very cheap, ten being very expensive – the average level of London house prices is nine. Nationally, they were rated seven.

Tony Williams, of Building Value, explains: “London is now significantly above its previous peak and a large part of a generation is priced out of the market. Across the country, this is markedly less true.”1 

1 http://uk.reuters.com/article/2015/08/27/uk-property-poll-britain-idUKKCN0QV1KT20150827

House Prices Rise £3,000 in a Month

Published On: August 19, 2015 at 2:55 pm

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The average price of a home in the UK has risen by £3,000 in just one month, according to the latest data from the Office for National Statistics (ONS).

The ONS revealed that the annual rate of house price growth increased slightly to 5.7% in June, but this covers up huge regional differences. Prices grew by 9% in Northern Ireland over the past 12 months, but dropped by 0.6% in Scotland.

House Prices Rise £3,000 in a Month

House Prices Rise £3,000 in a Month

Annual growth in London is now 5.3%, but just a year ago, in August 2014, it was just under 20%.

The average price of a home in the UK is now £277,000, compared to £274,000 in May. However, the typical London homes costs £513,000, which is over three times the average price in the North East of England, at £156,000.

The ONS claimed its index reached a new record in June, surpassing the previous month’s high. The average house price is now £290,000 in England, £169,000 in Wales, £154,000 in Northern Ireland and £192,000 in Scotland. This was the first annual fall in Scottish prices for around two years.

The ONS states: “Following relatively strong growth during much of 2014, the rate of house price growth appears to have moderated in recent months.

“Despite this moderation, house price growth remains high relative to the movement of prices in general, likely reflecting a mismatch between strong demand and relatively weak supply throughout much of the UK.”1

Shelter’s Director of Campaigns, Roger Harding, explains the charity’s viewpoint: “From families trapped in expensive and insecure private renting, to young people stuck in their childhood bedrooms, a stable future is spiralling further and further out of reach for millions.

“Piecemeal schemes may help a lucky few, but the only way for the Government to turn this crisis around is to urgently invest in the genuinely affordable homes we need. The autumn spending review is their last chance to put real money towards this, and show they’re serious.”1 

Head of Lending at the Mortgage Advice Bureau (MAB), Brian Murphy, says: “In June, there were no shocks or surprises for homebuyers with annual house price growth increasing by just 0.1 percentage point from the 5.6% seen in April and May. Compared to this time last year, when buyers were faced with annual house price rises of 10.2%, conditions are looking far more affordable.

“Growth is also no longer restricted to the south, with a 9.2% annual rise in the East of England being the main driving force behind these figures. At the same time, price pressure in the capital has eased remarkably since last year.”1

1 http://www.theguardian.com/money/2015/aug/18/uk-house-prices-up-3000-in-one-month-ons

 

House Prices Rising Further

Published On: August 19, 2015 at 9:55 am

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House prices grew by 5.7% in the year to June, standing at a UK average of £277,000.

House Prices Rising Further

House Prices Rising Further

The average price in England was £290,000, £169,000 in Wales, £154,000 in Northern Ireland and £192,000 in Scotland.

The highest price within England was in London, at £513,000. The lowest average price in England was found in the North East at £156,000.

Excluding the capital and the South East, the average UK house price was £211,000.

Although average UK house price inflation was 5.6% annually, there are great differences between countries. Inflation was 6.1% in England, 9% in Northern Ireland, but just 0.8% in Wales. House prices dropped by an average of 0.6% in Scotland.

The average first time buyer in the UK paid 5.1% more for their starter home this June than last year.

Chief Executive of Spicerhaart, Paul Smith, says: “In a drastic reversal of regional trends, it is not London driving national house price growth, but other areas such as the East of England and Northern Ireland, which have seen price increases of 9.2% and 9% respectively.

“This demonstrates that the supply shortage is now a far-reaching problem that needs to be tackled imminently.

“The new All-Party Parliamentary Group for Housing and Planning needs to drive national action from the centre and it needs to think innovatively to effect real change in the UK’s housing market, which may include decisions that aren’t universally popular.”1 

1 http://www.propertyindustryeye.com/house-prices-on-the-up-but-london-no-longer-in-driving-seat/

Market Isn’t Bright for First Time Buyers

Published On: July 16, 2015 at 10:45 am

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Market Isn't Bright for First Time Buyers

Market Isn’t Bright for First Time Buyers

First time buyers have faced difficulty getting onto the property ladder for some time, but the market doesn’t look to be getting any brighter.

The cost of starter homes is continuing to increase, alongside UK properties in general. First time buyers still face being priced out of the market.

Buyers are paying 5.1% more than they did last year for their first home. The average price reached £211,000 in May, according to the Office for National Statistics (ONS).

House prices rose 0.9% nationwide in May, after a 1.4% decrease in April.

Annually, property values have grown by 5.7% to an average of £274,000.