Posts with tag: property prices

North East property prices steady before election

Published On: June 6, 2017 at 8:47 am


Categories: Property News

Tags: ,,,

The most recent analysis from Keep It Simple has revealed that property prices in the North East have remained almost unchanged in the run up to the General Election.

Data from the report shows that prices in the region fell by only 0.2% over the course of the last month.

North East Property

A typical property in the North East region is valued at £166,125 – £441 less than at the end of April. House price values in the area had risen by 1.9% in April, after sliding by 0.1% in both February and March.

Average regional property values are 5.8% greater than they were last year, with the typical property value £9,150 greater in May 2017 than 2016.

8 of the 20 regions covered by the report experienced price rises – with strong performances recorded in Easington, Peterlee and Houghton-le-Spring. Prices in these regions rose by 2.2%, 1.6% and 1.5% respectively.

Rent Falls

Rents in the North East dropped to an average of £576 pcm in May – a fall of just £9. What’s more, these values are just £2 per month lower than in May 2016.

Rental yields remain unchanged, with investors in the region continuing to enjoy returns of 4.2%. This is higher than the average yield recorded in London, which presently stands at 3.2%.

Easington is the cheapest place to rent in the region, at just £385 per month. On the other end of the scale, Tynemouth is the most expensive, with rents here averaging at £1125pcm.

North East property prices steady before election

North East property prices steady before election

Waiting Game

Ajay Jagota, founder and Managing Director of Keep It Simple, observed: ‘I predicted four weeks ago was that we would see little change in house prices this month with both buyers and sellers adopting a ‘wait and see’ outlook ahead of next week’s General Election – and so it has proved.’

‘What will be fascinating to see is whether this week’s result releases some pent up energy, pushing prices up. This is certainly what happened in 2015, when North East property prices rose by 4.8% in the two months after the General Election,’ he continued.[1]

Assessing the impact of the election, Mr Jagota said: ‘A hung Parliament or slim majority could have the opposite effect, but what’s really striking about our figures is how resilient they show the North East property market to have been over the past 12 months, despite the uncertainty of Brexit and another General Election.’

‘Prices are currently almost 6% higher than they were twelve months ago, adding more than £9000 to the value of the average property. In the case of Blyth, it’s nearly 13% and £15,000 higher.’

‘With rents practically unchanged in the same period, dare I say that the North East property market is strong and stable – good news for both the many and the few,’ he continued.[1]





Property price growth slows for third straight month

Published On: June 1, 2017 at 11:54 am


Categories: Property News

Tags: ,,,

The latest research from Nationwide has shown that UK property prices have fallen for the third consecutive month – the first time this has happened since 2009.

May’s data indicates that yearly house price growth slid to 2.1% – the weakest in nearly four years.

Election Uncertainty

Nationwide looked at house price movements in the months around previous elections and the EU referendum last year. Its analysis found that previous elections do not seem to have generated much volatility in property prices, or significant changes in trends.

Robert Gardner, Nationwide’s Chief Economist, noted: ‘If history is any guide, the slowdown is unlikely to be linked to election-related uncertainty. Housing market trends have not traditionally been impacted around the time of general elections. Rightly or wrongly, for most home buyers, elections are not foremost in their minds while buying or selling their home.’[1]

‘On the whole, prevailing trends have been maintained just before, during and after UK general elections. Broader economic trends appear to dominate any immediate election-related impacts. It is too early to conclude whether the slowdown in house price growth is merely a blip, a reflection of the impact of the squeeze on household budgets, or is due to mounting affordability pressures in key areas of the country,’ he continued.[1]

Moving on, Gardner said: ‘Given the ongoing uncertainties around the UK’s future trading arrangements and the upcoming election, the economic outlook is unusually uncertain, and housing market trends will depend crucially on developments in the wider economy.’

‘Nevertheless, in our view, household spending is likely to slow in the quarters ahead, along with the wider economy, as rising inflation increases the squeeze on household budgets. This, together with mounting housing affordability pressures, is likely to exert a drag on activity and house price growth in the quarters ahead.’[1]

Property price growth slows for third straight month

Property price growth slows for third straight month

Momentum Loss

Russell Quirk, founder and CEO of, observed: ‘A third consecutive drop may seem like a reason to worry for UK homeowners, but house prices still continue to climb despite the slowdown in the rate of growth.’

‘It is unclear as to whether the market is losing momentum or if buyer demand is unseasonably hibernating due to the oncoming election, but Nationwide have been quick to highlight that previous elections have had little impact on traditional house price trends.
It’s fair to say, however, that previous years were a tad more routine that a snap election called in the middle of negotiations to leave the EU and it is likely that the market is seeing an influence from both sides.’

‘House prices, along with the gap when compared to earnings, have continued to increase and such a pattern is unsustainable in the long term. It is likely that we will see the market let off a little steam and naturally adjust over the coming months and overall it should stabilise once the election dust has settled and buyer confidence returns to full force.’[1]



Flats see largest increase in pricing since 2009

Published On: May 22, 2017 at 11:33 am


Categories: Property News

Tags: ,,,,,

The most recent research from the Halifax has shown how different property types have increased in price during the last seven years.

Data from the report indicates that flats have seen the most prominent rise- increasing in value by 53% during the last seven years. This was in comparison to 39% for all property types.


Flats have typically increased in value by £1,008 per month, from the £159,292 recorded in the final quarter of 2009, to £243,936 in the last three months of 2016.

Terraced homes saw the next biggest rise over the period, increasing in value by 43% over the seven years. On the other hand, detached homes saw the smallest increase, of 19%.

Much of the rise in the price of flats since 2009 can be attributed to the major increase in flat prices in London, where values have risen by 65%. In addition, flats make up 48% of all sales of property in the capital, in comparison to the UK average of just 11%.

The average price of a flat in London currently stands at £398,038, with the price in the rest of the UK much lower at £167, 144. In fact, should London be excluded from the data, terraced homes saw the greatest increase over the period (41%), followed by flats (35%).

Regional Rises

By region, flats have been the best performing property type since 2009 in five of the eleven regions assessed. These were:

  • North- 31%
  • North West – 37%
  • South West – 33%
  • Yorkshire and the Humber – 30%
  • Scotland – 21%

Terraced houses rose quickest in:

  • London – 73%
  • East Anglia – 46%
  • East Midlands – 35%

Six in ten property transactions are for terraced or semi-detached properties. This said, semi-detached homes have risen in popularity with first-time buyers, making up 30% of purchases in 2016 – a rise from 28% in 2009.

Flats see largest increase in pricing since 2009

Flats see largest increase in pricing since 2009


Averaging at £215,690, terraced properties are the most affordable property type in the UK. This was followed by semi-detached homes (£225,070) and flats (£243,936).

Outside of London, flats are most affordable (£167,144) followed by terraced housing (£185,116).

Martin Ellis, Halifax housing economist, said: ‘Nationally, terraced and semi-detached homes are the most affordable and popular homes with buyers accounting for 60% of sales during 2016. However average price growth for flats, helped by the London market, have outperformed all other property types since 2009.’[1]

‘There has been an increasing trend for first time buyers to choose semi-detached homes over the past seven years, whilst terraced homes have shown a decline in popularity. The rise in the age of a typical first time buyer may partly account for this change in preference towards the family-friendly semi,’ he added.[1]



House Prices Fall by 0.6%: ONS

Published On: May 16, 2017 at 10:18 am


Categories: Property News

Tags: ,,,

The most recent House Price Index from the ONS shows that average property prices in the UK slipped by 0.6% between February and March 2017.

This data seems to indicate that the general slowdown in annual growth rate seen since mid-2016 is continuing.

Property Prices

The average UK house price currently stands at £216,000- £9,000 greater than in March 2016 and £1,000 less than in February 2017.

England saw the largest growth in UK house prices, with property values increasing by 4.4% over the course of the year to March 2017. In Scotland, values edged up by 0.7% to hit £137,000.

Regionally, the East of England and the East Midlands saw the highest annual rate of growth, with prices in both locations rising by 6.7% over the period. The lowest rate of annual growth was seen in the North East, where prices fell by 0.4%.

London saw the next slowest rate of growth, with prices increasing by 1.5%.

John Goodall, CEO and Co-Founder of Landbay observed: ‘While it may look as though house price growth is beginning to slow down, affordability remains a key concern for many aspiring homeowners struggling to get a foot on the ladder. Furthermore, rising inflation and recent warnings from the Bank of England that a year of falling wages lies ahead means we’re unlikely to see any immediate relief.’[1]

‘Now more than ever, the private rented sector will be relied upon to support those unwilling or unable to buy a house outright. As the General Election draws closer, we hope to see some ironclad commitments on house building from policy makers. Encouraging institutional investment in large scale developments, specifically designed to rent rather than buy, will help to control house price growth while also improving living standards for those relying on a well-served buy-to-let market,’ he added.[1]

House Prices Fall by 0.6%: ONS

House Prices Fall by 0.6%: ONS

‘Flat and Stagnant’

Andy Sommerville, Director at Search Acumen, noted: ‘Today’s figures show that UK house prices are continuing to slow, falling from 5.6% growth in February to 4.1% in March. This trajectory is no doubt reflective of the wider sentiment of the UK housing market, with the industry remaining flat and stagnant in the face of ongoing uncertainty.’[1]

Mark Harris, chief executive of SPF Private Clients, highlights last year’s rush to beat the Stamp Duty deadine as a reason for the slowdown:

‘The housing market in March was bound to be quieter compared with a year ago because back then investors and second homeowners were rushing to purchase in order to beat the stamp duty hike at the beginning of April. This year there is no such impetus to focus the mind, with the market ticking along as usual.’[1]

‘The impending general election is having little impact on the market, apart from the upper end where there may be people just waiting for the sake of three or four weeks before making a decision.’[1]




Property price growth remains stagnant

Published On: May 8, 2017 at 9:23 am


Categories: Property News

Tags: ,,,

The most recent analysis released by the Halifax has indicated that property prices in the UK rose by 3.8% in the three months to April. This is unchanged from March, remaining the lowest annual rate since May 2013.

In addition, the report shows that house prices during the period were 0.2% down on the previous three months-the first quarterly fall since November 2012.


Martin Ellis, Housing Economist at the Halifax, observed: ‘House prices have stagnated over the past three months. Overall, prices in the three months to April were marginally lower than in the preceding three months; the first quarterly decline since November 2012. The annual rate of growth remained at 3.8% in April, the lowest rate since May 2013.’[1]

‘Housing demand appears to have been curbed in recent months due to a deterioration in housing affordability driven by the sustained period of rapid house price growth during 2014-16. Signs of a decline in the pace of job creation, and the beginnings of a squeeze on households’ finances as a result of increasing inflation, may also be constraining the demand for homes. A continued low mortgage rate environment, combined with an ongoing acute shortage of properties for sale, should nonetheless help continue to underpin house prices over the coming months,’ he continued.[1]


Russell Quirk, founder and CEO of, noted: ‘Another slight decline in the rate of house price growth on a monthly basis would suggest that the UK market has begun to naturally adjust after a long period of sustained inflation.’[1]

‘We’ve seen an abundance of buyer demand and a lack of sufficient stock heat the market and it would seem that it is finally beginning to level out. This slow may also be due to a number of other influential factors such as the uncertain political landscape and, it will be interesting to see if the market bounces back over the coming months. That said, sellers are still seeing the price of their property increase annually and this slow in price growth will no doubt be welcomed by those on the other side of the fence, who are struggling to get on the ladder.’[1]

Property price growth remains stagnant

Property price growth remains stagnant


Jeremy Leaf, former residential chairman at RICS, acknowledged: ‘Low mortgage rates and a shortage of property haven’t been enough to support prices.’ However, he went on to say he is, ‘encouraged that the annual level is still above where it was this time last year, bearing in mind the huge increase in demand ahead of the introduction of the 3% stamp duty surcharge last April.’[1]

Concluding, Mr Leaf said: ‘Looking forward, we are finding the market to be relatively balanced between supply and demand and still expect those people who recognise current market conditions to take advantage. The market does seem to be finding a new, slightly lower, level and we are certainly seeing no signs of a more substantial fall.’[1]



North East property prices continue to rise

Published On: May 4, 2017 at 11:29 am


Categories: Property News

Tags: ,,,,

Property prices in the North East have defied forecasts of a worsening UK economy to post their strongest month-on-month growth this year to date.

House values in the region rose by 1.9% during April, adding an average of £3,099 to the price of a typical property.

In March in February, prices slipped by 0.1% and in January, by 3.1%.


Average regional property prices in the region are now 6% higher than 12 months ago, with the typical value standing at £9,591 greater than in April 2016.

An average North East home will currently set one back £166,566, in comparison to £163,467 at the end of March.

18 of 20 North East regions saw prices rise, with strong performances recorded in South Shields (5.4%), Blyth (4.7%) and Kilingworth and Easington (3.2%).

The only areas to see falls were Cramlington (-0.9%) and Jarrow (-0.3%.)

North East property prices continue to rise

North East property prices continue to rise


In terms of rents, these rose by £585 in April-a rise of £9.

Increasing property prices have forced rental yields downward slightly. Property investors in the region are now seeing average returns of 4.2%.

Investors in the North East are continuing to see higher returns than those in London, where yields stand at 3.2% typically.

Good News

Ajay Jagota, founder and MD of Keep It Simple and Dlighted, said: ‘After three months of negative growth it’s very good news to see North East house prices making up lost ground over the past four weeks and in a markedly stronger position than twelve months ago, with prices the best part of £10,000 higher than this time last year.’[1]

‘The run up to a General Election generally means flat house prices as buyers and sellers adopt a ‘wait and see’ approach, and even though this election has come slightly out of the blue I’d expect to see the same thing happen in May and June, with prices moving forward again come the summer, a traditionally strong period.

Average asking prices for UK homes this week reached £313,000, all but double the North East average. When you combine that with historically low mortgage deals currently available for both owner-occupiers and investors, the North East remains a phenomenally good value location to make a home or invest in one,’ Jagota added.[1]