Posts with tag: housing market

Homes for sale at lowest rate for years

Published On: June 4, 2015 at 12:36 pm

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A report from the Halifax has indicated that the number of properties for sale on the market is at its lowest level for a number of years.

The chronic shortage of homes for sale, married with surging demand from buyers, has seen prices soar at a greater rate than wages. Property prices increased by 8.6% in the year to May, meaning the average cost of a home is now £196,067.

However, prices did slow in May, albeit by 0.1%, in comparison to April.

Imbalance

Housing economist at the Halifax, Martin Ellis, suggested that, ‘the imbalance between supply and demand is likely to continue to push up house prices over the coming months. Looking further ahead, the increasingly level of house prices in relation to earnings is expected to dampen house price growth.’[1]

Homes for sale at lowest rate for years

Homes for sale at lowest rate for years

Jonathan Samuels, chief executive of Dragonfly Property Finance, agreed with Mr Ellis’ comments. Samuels stated that, ‘unless supply improves materially, it is hard to see how prices will not continue to rise throughout 2015, albeit at a more modern pace relative to last year.’[1]

These figures from the Halifax come hot on the heels of data released yesterday from the Nationwide, which indicated that 38% of properties were sold to cash purchasers during the first quarter of 2015.

[1] http://www.bbc.co.uk/news/business-33003592

 

 

Online Agents Investigated over Fees

Published On: June 2, 2015 at 4:59 pm

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The National Trading Standards Estate Agency Team is investigating four online estate agents over the way they display fees.

Property expert Henry Pryor passed information to the body over Twitter.

Online Agents Investigated over Fees

Online Agents Investigated over Fees

A spokesperson for the National Trading Standards Estate Agency Team says: “We have received a complaint about four online estate agents and their pricing practises, which we are currently looking into.

“The allegation received is that the estate agents are quoting VAT exclusive prices on their website. Our guidance states that fixed estate agency fees should be inclusive of VAT. This matter is being investigated.”1 

Pryor tweeted the National Trading Standards Estate Agency Team, operated by Powys County Council, and also the Property Ombudsman, Trading Standards Institute and the Advertising Standards Authority (ASA).

Last month, Adam Day, from online agent Hatched, complained to the ASA about some agents advertising fees exclusive of VAT.

Day named Purplebricks, eMoov, Tepilo and House Network, the same agents that Pryor complained of.

The ASA confirmed to Day that they were investigating the matter and yesterday, the National Trading Standards Estate Agency Team told Pryor that they are looking into the four named agents.

By yesterday afternoon, just one agent, Sarah Beeny’s Tepilo, had shown their fees inclusive of VAT.

Yesterday afternoon, Purplebricks, eMoov and House Network were still showing their prices exclusive of VAT.

1 http://www.propertyindustryeye.com/four-online-agents-investigated-by-industry-regulator-over-fees/

House Prices Near Record High

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

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Latest Landbay Rental Index Reveals Best and Worst Areas for Growth in England

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

New Shadow Chancellor against rent controls

Published On: June 1, 2015 at 12:41 pm

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Despite having no leader, Labour have moved to appoint a new shadow chancellor. Interestingly, Chris Leslie is a landlord and has clear views on what he feels about rent control.

Regulation

Mr Leslie has acknowledged that plans by his party to introduce rent controls through the regulation of landlords alienated many during the election campaign. He feels that the proposal of restricting the speed of rent increases for tenants had been concerning to people looking to buy properties by implying that quick rises could be exploitative.

Leslie said that, ‘part of the issue we always face on the centre-left is the temptation to want to control and run what’s going on in a particular market. It was reasonable to talk to people who were renting and say we understand your anxieties. But actually the solution is supply of housing and not necessarily implying that landlords are all exploitive and opportunistic.’[1]

In an interview with the Guardian newspaper, Mr Leslie expressed his views that the market could be improved by giving more consumer information which would increase transparency. Additionally, he supports the idea of a Help To Buy scheme in order to encourage developers. ‘I personally feel that it’s got to be about consumer information about blasting some transparency through these markets,’ he commented.

New Shadow Chancellor against rent controls

New Shadow Chancellor against rent controls

Voters

Recent figures suggest that landlords make up just 3% of the population. However, renters make up 15%. A poll from YouGov suggests that rent controls would prove to be popular, with just 8.6% of people asked against this measure, with 59% in support.[1]

According to figures from the latest English Housing Survey, landlords increased rents by an average of 8% during last year. With Labour pledging to slow rent rises to just the rate of inflation per the duration of a rental agreement and with contracts fixed at three years, there is little wonder why they alienated themselves from voters.

[1] http://www.independent.co.uk/news/uk/politics/labours-new-shadow-chancellor-is-against-rent-control-and-guess-what-hes-a-landlord-10288889.html

 

 

 

Confidence in UK market dips

Published On: June 1, 2015 at 12:16 pm

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Despite the fact that interest rates have been frozen and that the average price of a property in the UK continues to rise, confidence in the market has slowed.

Confidence

According to the new Halifax Housing Market Confidence Tracker, the headline House Price Outlook balance slipped to +58 in April, in comparison to +64 in March. The balance is worked out by taking the number of people who believe in the UK that expect property prices to rise, minus those that believe that it will fall.[1]

Similarly, the proportion of people asked that believe the next year will be a good time to buy is up from +21 in March to +26 in April. Furthermore, those who will believe that the next twelve months will be a good time to sell is down from +33 to +30.[1]

Increases

Results from the report also show that 63% of people questioned believe that property prices will be higher in a years time, down from 67% in March. This dip comes despite a number of positive factors for the market. Record low mortgage rates, negative inflation and frozen interest rates should give consumers more confidence in the market.[1]

Confidence in UK market dips

Confidence in UK market dips

This is certainly the view of Craig McKinlay, Halifax mortgages director, who stated that, ‘with inflation now at its lowest level since records began, unemployment falling, and the economy still growing, the fundamentals for the housing market remain positive. Going forward the key factor in how consumers adjust to any changes in rates will be the way in which they manage their disposable income.’[1]

 

[1] http://www.propertywire.com/news/europe/uk-housing-market-confidence-2015060110572.html

 

 

Ex Generation Rent Director Attacks Housing Groups

Published On: May 26, 2015 at 3:22 pm

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Alex Hilton recently left lobby group Generation Rent after being its director. But now, he has attacked housing groups, specifically the National Housing Federation (NHF) and homelessness charity Shelter, for “not wanting to upset anyone.”

Hilton’s words arrive in an interview with Hannah Fearn, featured in The Guardian.

On the sector generally, Hilton says: “These are intelligent people who have all the answers and are too scared to say what they are. Somehow an industry full of people utterly dedicated to something noble has become a very cautious and conservative industry.

“Generation Rent shouldn’t exist – these people should be doing that job, they should have solved these problems by now. They have the talent and the brains and the money to get it done and yet almost every housing association in the country has abrogated its role in changing the housing sector.”

Hilton believes that the NHF has “so many wonderful people, yet somehow these trade bodies manage to be so much woefully less than the sum of their parts. It’s all to do with not wanting to upset anyone.”

In March, Hilton took Generation Rent from the Homes for Britain rally, challenging the call to end the housing crisis within a generation. He explained: “Most 20-year-olds want it sorted before they’re 50.”

Hilton adds: “Homes for Britain gave them [politicians] a get-out-of-jail-free card. They said: ‘Tell us in a year what you’re going to do and we don’t mind if it takes you 30 years to do it’.”

Shelter also came under attack: “If I were to analyse Shelter, I would say it’s almost like a division by pay scale as to who thinks that [Generation Rent] has got the right policy positions: invariably it’s the people who can’t afford to be owner-occupiers who think that we’re right.”1 

Hilton is leaving the country for Singapore, but will remain closely involved with the London mayoral election, as he is the campaign manager for candidate Lindsey Garrett. Read her manifesto here: /housing-campaigner-running-for-mayor-of-london/.

1 http://www.24dash.com/news/housing/2015-05-26-Alex-Hilton-departs-with-stinging-attack-on-NHF-Shelter?utm_source=dlvr.it&utm_medium=twitter