Posts with tag: house price values

Asking prices fall, although in line with seasonal trends

Published On: August 15, 2016 at 10:18 am

Tags: Brexit,Buy-to-Let,house price values,property

Asking prices of houses coming onto the market during the last month was 1.2% down on the month before, according to a new report from Rightmove.

However, the firm suggests that this fall is completely in line with trends seen over recent years and has little to do with the recent Brexit vote.

Falls

Figures from the report suggest that the biggest decline in house prices was seen in London and the South East. Values here were down 2.6% and 2% respectively. As a result, annual increases have fallen to 4.1%.

Miles Shipside, Rightmove director and housing market analyst Miles Shipside, noted, ‘the average fall in new seller asking prices at this time of year has been 1.2% over the last six years, so this month’s fall is exactly in line with the long-term average. The largest price falls at this time of year were 2% and 1.3% in 2014 and 2010, with the smallest fall being 0.8% in post-election boosted 2015.’[1]

‘With the timing of Brexit uncertainty coinciding with both the seasonal slowdown and continuing the lull following the first quarter buy-to-let surge, 2016 will be a year of two halves. How different they are will depend upon the strength of the traditional market rebound this autumn, especially at the upper end of the market and within the London commuter belt, which currently appear to be the most subdued,’ he continued.[1]

Data from the report suggests that homes with four or more bedrooms are taking the longest to sell. These types of property currently take an average of 74 days from being advertised to actually selling. What’s more, these properties have seen the biggest drop in new seller prices, falling by 2.9%.

Asking prices value, although in line with season

Increases

In contrast, first-time buyers with two bedrooms or less, alongside second-stepper properties, were found to be performing the best.

Properties in the South had the largest jump in the number of days taken to sell during the last two months.

Shipside continued by saying, ‘many prospective buyers take a summer break from home-hunting and those who come to market at this quieter time of year tend to price more aggressively. This summer is also affected by both Brexit uncertainty and the aftermath of the buy-to-let rush in March to beat the stamp duty deadline.’[1]

[1] https://www.estateagenttoday.co.uk/breaking-news/2016/8/asking-prices-dip–but-its-seasonal-not-brexit-says-rightmove

[2] https://www.propertyinvestortoday.co.uk/breaking-news/2016/8/asking-prices-in-the-uk-fall-sharply

Monthly UK house price values fall, despite increased sales

Published On: August 10, 2016 at 9:43 am

Author: Em Morley

Categories: Property News

Tags: house price values,property sales,residential property,transactions

Values of residential property in Britain fell by 0.9% month-on-month in July, according to new research from Haart.

This is a surprise given a good month of property sale transactions.

New buyers

The number of new buyers in the market actually increased during the previous month in Britain. This in turn aided a 6.5% month-on-month rise in property transactions. Many buy-to-let investors are now feeling confident to press ahead with transactions following the result of the EU referendum.

Despite this rise in transactions, results from the investigation show that UK house price values slipped to an average of £233,254.

A number of factors could have contributed to this decline. Many buy-to-let landlords have been detracted by the 3% additional stamp duty surcharge imposed in April.

Monthly UK house price values fall, despite increased sales

Pressing ahead with purchases

Paul Smith, CEO of Haart, said, ‘despite last month’s political turmoil, it seems buyers aren’t being deterred by the noise. We’ve actually seen a bounce in transactions in July, with a lot of buyers pressing ahead with their purchase now that the referendum is over.’[1]

‘Prices have dropped slightly by 0.9% across the UK and have fallen 5.6% in London, showing that sellers are cutting deals to bypass the uncertainty in the wider economy and plucky buyers are taking advantage. Nevertheless, prices in London and across the UK both remain significantly higher than they were at the same time last year,’ he continued.[1]

Understandably, uncertainty is still prominent given the decision to leave the European Union. However, Smith believes the cut in interest rates will see mortgage rates fall further, meaning, ‘it won’t be long before the market bounces back.’[1]

‘The desire for people to own their own home or move up the ladder is as strong as ever and we have every reason to be confident about the property market’s long-term prospects. The only thing we have to fear post-Brexit is fear itself,’ Smith concluded.[1]

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2016/8/uk-home-prices-fall-despite-pick-up-in-sales-momentum

Average property prices in England and Wales up 6%

Published On: January 29, 2016 at 2:32 pm

Author: Em Morley

Categories: Property News

Tags: house price values,housing crisis,property,property market

The average property value in England and Wales increased year-on-year by 6.4% in December, according to the latest monthly index report from the Land Registry.

This took the typical house price to £188,270 as month-on month, values rose by 1.2%.

Rise and fall

London recorded the largest increase in average house prices, with an annual growth of 12.4, coupled with a monthly rise of 2.1%, taking the typical price in the capital to £514,097.

The North East saw the lowest annual price growth, with a rise of just 0.8%. This took the average price in the region to £99,069. Wales was the region with the largest month-on-month fall, with a decrease of 0.8%, taking the average price of a property in the country to £121,780.

However, the number of completed house sales in England and Wales dropped by 8% to 79,960. In addition, the number of £1m plus properties sold fell by 2%.

Repossessions also fell by 51%, with London recording a 71% decline.

Average property prices in England and Wales up 6%

Activity

Mark Posniak, managing director of Dragonfly Property Finance, pointed out that with high demand and weak supply continuing in December, the usual seasonal slowdown was more muted.

‘On a more positive note, we are seeing noticeably more construction activity at the moment, particularly by smaller developers. But this will take time to trickle through into the market,’ he noted. ‘Looking into 2016, it’s hard to see anything other than a continuation of the current trend of steadily rising prices, especially with interest rates unlikely to rise in the near future and a robust jobs market.’[1]

John Eastgate, sales and marketing director of OneSavings Bank feels, sustained demand is driving the growth in values. He said, ‘a strengthening labour market, robust consumer sentiment and a supportive mortgage market all played their part, despite the obstacles provided by the festive period. This strength of demand has been compounded by the record low levels of property on the market at present.’[1]

Caution

‘Uncertainty around economic growth in 2016 provides a reason for caution. The good news however, is that house building starts appear to be at their highest level since 2007,’ he continued. ‘It is not yet strong enough to counterbalance demand. However, if this trend of improvement is maintained, it should lead to a healthier property market for investors and buyers alike.’[1]

Jonathan Hooper, managing director of buying agents Garrington Property, also believes a lack of supply is the issue. He pointed out that, ‘even though the NHBC this week announced that house building in 2015 hit its highest level since 2007, the supply of homes is still falling far short of demand.’[1]

[1] http://www.propertywire.com/news/europe/england-wales-property-prices-2016012911497.html

Britain’s top house price performers in 2015 revealed

Published On: December 29, 2015 at 12:19 pm

Author: Em Morley

Categories: Property News

Tags: house price values,property,property prices

As the year draws to a close, the Halifax has presented a rundown of Britain’s top house price performers during 2015.

Research from the firm has revealed that Newham in London recorded the largest percentage rise in property price values in major UK towns and cities during the past year.

Ups

The Halifax’s own house price data reveals that the average house price in Newham was 22% greater than in the last year. Property prices rose from £261,399 to £319,522 in 2015. This represents almost double the 12% that London recorded as a whole.

Royston in Hertfordshire saw the second highest rise in average house prices, with an increase of 19%.

Unsurprisingly, the top-ten performers were all in London and in the South East.

Outside of these areas, Stroud in Gloucestershire, Wellingborough in Northamptonshire and Solihul in the West Midlands were the regions with the largest growth. All recorded price increases of between 14-15%.

Britain’s top house price performers in 2015 revealed

Downs

Just a few towns recorded a decline in house price values during the last year. The greatest was in Merthyr Tydfil, South Wales where prices slumped by 3.8%. Colwyn Bay saw prices dip by 2.3%, Durham 2.1% and Coalville 0.5%.

The top-ten worst performers were all located outside of London and the South East, with the exception of Kensington and Chelsea, where prices rose by just 1% during 2015.

‘Those areas that have seen the biggest house price increases over the past year are either in outer London or within close commuting distance of the capital,’ noted Martin Ellis, housing economist at the Halifax. ‘Demand in these areas has risen as rapid house price rises in central London in the past few years have caused increasing numbers of people to look for property in more affordable areas.’ [1]

‘A few towns have experienced modest price falls,’ he continued, before stating that, ‘these areas are typically stiff suffering from relatively weak employment and economic conditions, which has dampened local housing demand.’[1]

[1] http://www.propertyreporter.co.uk/property/where-is-the-uks-top-house-price-performer-in-2015.html