Posts with tag: house prices

The latest Halifax House Price Index reports that house prices have held steady for another month.

The highlights of the report include:

• On a monthly basis, house prices rose by 0.3%
• In the latest quarter (June to August) house prices were 0.1% higher than in the preceding three months (March to May) 
• House prices in August were 1.8% higher than in the same month a year earlier 

Russell Galley, Managing Director, Halifax, said: “There was no real shift in house prices in August as the average property value grew by just 0.3% month on month. This further extends the predominantly flat trend we’ve seen over the last six months, with the average house price having barely changed since March.

“While ongoing economic uncertainty continues to weigh on consumer sentiment – with evidence of both buyers and sellers exercising some caution – a number of important underlying factors such as affordability and employment remain strong. 

“Although the housing market will undoubtedly be influenced by events in the wider economy, it continues to show a degree of resilience for the time being. We should also not lose sight of the fact that the single biggest driver of both prices and activity over the longer-term remains the dearth of available properties to meet demand from buyers.” 

Lucy Pendleton, founder director of James Pendleton, the independent estate agent, comments: “This index from Halifax has plummeted from some extraordinary annual growth figures seen earlier this year, and somehow always seemed out of kilter with other indices. 

“It is still a nose and perhaps one shoulder ahead of the UK’s other meters of property price progress but has slowly fallen more into line with the rest. All now trail inflation as Brexit has slammed the door on the property market’s fingers, leaving a crack through which only modest price growth can be achieved.

“The market has continued its idling path to what feels like an inevitable grinding halt. It’s very hard to read sentiment at times like this and that’s partly because housing markets fall quickly when they do retreat but have a tendency to bump along for a while with tiny rates of growth beforehand in the absence of a major economic shock. 

“This is one of the consequences of home owner psychology, because people view their home as a piggy bank which can accept money from everyone but shouldn’t be opened by anyone but them. The tendency to think of capital growth in homes as money earned instead of profit yet to be realised is one of the enduring traps sellers fall into.”

Milton Rodosthenous, director of online auction service LetsBid Property, comments: “It’s pleasing to see a monthly rise return to the market. However, the relatively low growth could be attributed to a traditional summer market lull combined with ongoing political uncertainty.”

“The positive news is that the market still appears to be performing well on a quarterly and annual basis, reinforcing the strength of property as a long-term investment.”

“We now expect market activity to ramp up as eager movers look to get deals done before the Christmas and New Year period. However, it will be interesting to see if the unprecedented political circumstances we find ourselves in have a significant effect on this traditionally busy home moving period.”

“As we move through 2019, it’s clear there are still many opportunities for buyers and sellers to achieve their goals if they are proactive, patient and work with a reliable estate agency.” 

Jonathan Samuels, CEO of property lender Octane Capital, says: “If August was anarchic, political events in September have been positively schizoid and so the extended rut prices have been in looks set to end.

“While the market flatlined in August, it’s highly unlikely to emerge unscathed from the latest chaos in Westminster.

“Cheap mortgage rates, high employment and low supply have been supporting property prices to date, but the political climate is is now so febrile that this looks set to change during September.

“With both government and opposition in a state of unprecedented disarray, the property market could soon be paying the cost.”

The Nationwide House Price Index for August 2019 is now out, showing that there has been little change in the UK house price growth.

The highlights of the month’s report include:

·     Annual house price growth remained subdued at 0.6% 

·     Prices unchanged month-on-month, after taking account of seasonal factors 

Commenting on the figures, Robert Gardner, Nationwide’s Chief Economist, said: “Annual house price growth remained below 1% for the ninth month in a row in August, at 0.6%. While house price growth has remained fairly stable, there have been mixed signals from the property market in recent months. 

“Surveyors report that new buyer enquiries have increased a little, though key consumer confidence indicators remain subdued. Data on the number of property transactions points to a slowdown in activity, though the number of mortgages approved for house purchase has remained broadly stable. 

“Housing market trends will remain heavily dependent on developments in the broader economy. In the near term, healthy labour market conditions and low borrowing costs will provide underlying support, though uncertainty is likely to continue to exert a drag on sentiment and activity. 

Lucy Pendleton, founder director of independent estate agents James Pendleton, has commented: “The property market remains in a state best described as stasis and for a good 15 months now, buyer behaviour has been characterised by a good deal of tyre kicking. 

“Evidence of this can be seen in the woeful transactions figures of late. However, that’s not to say that buyers have retreated entirely. They are still looking. In fact, buyers are still all over the property portals like a rash but they just aren’t pulling the trigger. 

“Instead, they’re sitting tight and whether you choose your metaphors sympathetically (snipers) or not (vultures), the end result is the same. 

“The pace of the market is extremely slow and in London more expensive properties are being hit hardest. Anything between £1.4m and £1.8m is sticky and hanging around longer. 

“The market has washed up where it is with a growth rate that makes European Commission meetings look thrilling because of inaction, not some hard fought war of attrition between buyers and sellers over fair value. 

“The willingness of some vendors to discount continues to be frequently undone by the reluctance of others to follow suit. Normally this ‘paying forward’ of discounts is what can get chains over the line but disagreement about the economic outlook is leading to a lack of cooperation.

“The housing market’s two great foes remain Brexit and Stamp Duty.”

You can read the full report here.

The latest House Price Index from Halifax has now been released, revealing another dip in average UK house prices for July.

Russell Galley, Managing Director of Halifax, said: “The average UK house price fell slightly for a second month, as the market continues to tread water with marginal increases or decreases in each monthly period. 

“That said, it’s worth remembering that while economic uncertainty continues to weigh on the market, the overall trend actually remains one of comparative stability, with average prices down by less than £600 over the last three months. 

“We have seen a reported drop off in the number of properties sold during the early months of summer, which may lead some to speculate a downturn is on the horizon. However, new buyer enquiries are up, and favourable mortgage affordability – driven by low interest rates and strong wage growth – should continue to underpin prices for the time being. 

“In the longer-term, we believe there is unlikely to be a step change in market activity until buyers and sellers see some form of resolution to the current economic uncertainty.” 

Lucy Pendleton, founder director of independent estate agents James Pendleton comments: “The volume of sales in the UK may be turning to ashes but you can always count on the Halifax to be the cricketer that comes out to the crease and slogs it. 

“Yet another big annual figure will have the critics scratching their heads again slightly but it’s the lowest growth rate since March. 

“Brits have battened down the hatches with transaction volumes on their knees but that’s had little impact on prices, softening only slightly from the all-time high. 

“That’s because, among buyers and sellers, there has been a balanced retreat by both sides. Prices have been stable in broad terms. In other words, the music is playing just as loud but it’s 3am, there’s hardly anyone left on the dance floor and no one knows where we’re going on to.

“Eventually something will have to give. If buyers abandon Brexit jitters and blink first, then low supply of homes coming to market will mean prices rise rapidly relatively.

“If sellers, who have been holding their breath, suddenly exhale together and new properties hit the market en masse, then buyers could sense this and exacerbate falling prices by waiting for even more dramatic falls. We probably won’t find out until November once Boris’ set-in-stone deadline has passed.”

Andrew Montlake, Managing Director of UK-wide mortgage broker Coreco, comments: “The quarterly rate of growth, at 0.4%, is the most accurate portrayal of the market, namely its head is just above water. 

“Comparative stability is a fair summary, as the economic fundamentals remain strong, mortgage rates cheap and low supply is propping up house prices.

“Equally, with the odds of no-deal shortening by the day, it’s crunch time for UK bricks and mortar. The impact of no-deal on the UK property market is thick in the air.

“The consensus appears to be that the property prices will suffer if we exit the EU without a deal. But if ‘no-deal’ is more damp squib than end of the world then the property market could rediscover its mojo.

“Of course, some suspect Boris is bluffing and that a deal will still happen, which would again be a positive for the market.

“What we can be sure of is that, with so many unknowns in play, most households will sit tight during the next two to three months and transactions tail off.

“Another reason many households will sit tight in the short-term is the potential for major changes to the stamp duty regime, which could be a game changer for buyers.

“In the meantime, remortgage activity remains strong as households brace themselves for a period of potentially strong turbulence.”