Posts with tag: house prices uk

House Prices Near Record High

Published On: June 2, 2015 at 3:55 pm

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The housing market received a boost in April, driving prices up towards the record high set in 2007.

The average property price in England and Wales rose by 0.9% in April to reach £179,817, revealed Land Registry.

This is just £1,197 below the record £181,014 seen in November 2007, before the housing market recovery.

House Prices Near Record High

House Prices Near Record High

The annual rate of price growth eased for the eighth consecutive month, falling to 5.1%, down from 5.3% in March.

April’s increase counterbalances the decrease in March, indicating that house prices could accelerate in the coming months.

Property Economist at Capital Economics, Matthew Pointon, comments: “With the stock of homes for sale at an historic low, the conditions are in place for further price gains this year. That suggests the low point for the annual rate of house price inflation is now in sight.

“The combination of an improving labour market and record low mortgage interest rates will support a steady rise in demand.”1 

London continued to experience the strongest yearly rate of growth, with an increase of 10.9% in the year to the end of April; the only region with a double-digit rise.

However, the gap between the capital and other regions is starting to close, with the South East and East of England seeing increases of 8.8% and 7.8% correspondingly.

The North East was the only area to record an annual drop in prices, with the average down 0.6%. Wales’ property prices rose by just 0.3%.

During April alone, northern regions performed better, indicating that the high price growth of 2014 is beginning to move out of London into other parts of the country.

The average house price rose by 2.7% in Yorkshire and the Humber during April, and prices in the North West increased by 2.1%.

The East Midlands and South East also recorded higher than average growth of 1.4%.

However, the North East and Wales were still struggling, with prices dropping by 0.5% and 1.1% respectively.

Property sales also dropped between November 2014 and February 2015 (the latest period for which figures are available). Read more: /huge-decrease-in-house-sales/.

This slowdown was particularly noticeable at the top end of the market, with the amount of homes sold for over £1m falling by 18% annually in February, to 722 properties.

1 http://www.zoopla.co.uk/discover/property-news/house-prices-within-touching-distance-of-181-000-high/#oVa1jX8f8DURLuWO.97

Boom in House Prices Following Election only in London

Published On: May 22, 2015 at 12:49 pm

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Categories: Property News

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Property price predictions remain positive across the UK, but indications of a post-election boom are mainly restricted to London, revealed research from Knight Frank.

Boom in House Prices Following Election only in London

Boom in House Prices Following Election only in London

In the firm’s first House Price Sentiment Index since the general election, households in all regions saw house prices increasing in May. However, Londoners witnessed the highest rate of price growth in the month. Expectations for price rises in the future soared to a six-month high in the capital.

However, residents of the East of England predict the strongest price growth in the next year. The report also found that 6.4% of UK households plan to buy a home in the next 12 months.

Head of UK Residential Research at Knight Frank, Grainne Gilmore, explains: “There is little evidence yet of an election bounce in house price expectations, reflecting current market conditions. Activity is certainly picking up following the election of a majority government and the certainty this has provided in the housing market.

“Demand is rising, but an increasing number of vendors are putting their homes on the market and this is set to create more balance in terms of pricing.

“Londoners’ expectations for future price rises reached their highest level since November last year, perhaps reflecting the increased certainty in the outlook for property taxes in the capital.”1

1 http://www.propertyreporter.co.uk/property/post-election-bounce-in-price-expectations-confined-to-london.html

Unemployment Causes North-South Property Price Divide

Published On: May 18, 2015 at 10:33 am

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Unemployment Causes North-South Property Price Divide

Unemployment Causes North-South Property Price Divide

Unemployment levels are causing a divide in house prices between the north and south of the country.

New research from Lloyds Bank found that average property prices in places with high levels of unemployment have increased by just £4,100, or 3%, since 2009. However, values in areas with high employment numbers rose by £65,000, or 25%, over the same period.

The best performers were Hart and Winchester in Hampshire, whereas Middlesbrough and Hull were the worst.

Lloyds Bank’s Andy Hulme says the findings “underlined the importance of local economic health in house price behaviour.”1 

1 Taylor, J. (2015) ‘Job prospects cause a house price divide’, Metro, 18 May, p.26

 

 

 

 

 

Scottish Property Prices at Record High Quarterly Figures

Published On: April 30, 2015 at 4:07 pm

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House prices in Scotland increased significantly between January and March, found Registers of Scotland (RoS).

The average property price rose year-on-year by 13.3% to £173,830. This is the highest quarterly figure since RoS started collecting data in 2003.1

The value of sales also increased year-on-year by 8% to £2.95 billion. However, the total volume of sales around Scotland dropped by 4.7% to under 17,000.

Scottish Property Prices at Record High Quarterly Figures

Scottish Property Prices at Record High Quarterly Figures

All local authority areas in Scotland reported an increase in average prices.

The largest percentage growth was in East Lothian, up 28.6% on the same time a year earlier, to an average of £248,902.

The highest percentage increase in the amount of sales was in West Dunbartonshire at 10.6%.

The greatest percentage drop was in Midlothian, at 28.1% to 233 residential property sales.

The City of Edinburgh reported both the highest average for the quarter at £260,647, an increase of 21.4%, and the largest amount of sales at 2,123.

The City of Edinburgh also accounted for Scotland’s highest market value, with sales of around £553m for the quarter, a rise of 29.2% on last year.

All property types reported house price growth, with semi-detached homes recording the highest rise of 15%.

Head of Data at RoS, Hugh Welsh, says: “We’ve seen sustained growth in house prices throughout the 2014-15 financial year, with January to March’s figures representing the highest quarterly increase in average price since quarter one of 2007-08.

“Future sales statistics will determine whether this is a one-off spike in quarter four average prices, or whether this is a trend that will continue.”1

Bob Fraser, Senior Property Partner at Aberdein Considine, believes the data reveals a one-off upsurge caused by urgency to beat the new Land and Buildings Transaction Tax (LBTT).

LBTT has replaced Stamp Duty in Scotland, but will increase the tax for larger homes from 1st April.

Fraser comments: “These figures are for registered sales and are therefore indicative of the market at the turn of the year. What we have here is a larger percentage of sales coming from the top end of the market, which drives up the average sale price.”1

1 http://www.bbc.co.uk/news/uk-scotland-scotland-business-32496350

Just 1.1% House Price Inflation in Wales

Published On: April 23, 2015 at 2:11 pm

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Just 1.1% House Price Inflation in Wales

Just 1.1% House Price Inflation in Wales

Property price growth in Wales has been slowing down recently, with the country experiencing only 1.1% inflation in the last 12 months.

The Office for National Statistics (ONS) has found that for the whole of the UK, house prices rose 7.2% in the year to February 2015. However, this is still down from 8.4% in the year to January 2015.1

Annual property price increases were 7.4% in England, 6.4% in Scotland and 14.2% in Northern Ireland.1

Despite the Wales figures indicating a significant slowdown, the ONS says that annual price growth is showing signs of slowing around most of the UK.

1 http://www.ftadviser.com/2015/04/20/mortgages/houses-price-inflation-in-past-year-ADjp4xOgDgmq2AdXMH7tcP/article.html