Posts with tag: property sales

Number of Landlords Selling in London 125% Higher than National Average

Published On: March 29, 2019 at 9:02 am

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The number of landlords selling their properties in London in February was 125% higher than the national average, according to research by the ARLA Propertymark (the Association of Residential Letting Agents).

Landlords have faced continued legislative change, coupled with increasing costs, over the past few years, with many either having to pass the costs onto tenants or exit the market.

In February, London reported the highest number of landlords selling up, with ARLA Propertymark member letting agents reporting nine buy-to-let properties being marketed for sale per branch, compared to the national average of four.

David Cox, the Chief Executive of ARLA Propertymark, comments on the finding: “Back in December, more than three quarters (78%) of ARLA Propertymark members predicted that the number of landlords operating in the private rented sector would decline this year, as they are driven out by rising costs. This trend is snowballing in London, where, due to the capital’s higher costs, landlords are struggling to make ends meet. This means tenants will continue bearing the brunt, as competition for good quality properties increases, and rent costs rise.”

Yesterday, we covered ARLA Propertymark’s latest Private Rented Sector Report for February, which shows that the number of tenants experiencing rent rises neared record highs last month, as landlords continued to exit the market.

Although the report showed that, nationally, the amount of landlords leaving the market has risen, the new figures show that the situation is worsening in London, in particular.

ARLA Propertymark is disappointed in the Government for failing to deliver solutions to increasing supply in the private rental sector in the recent Spring Statement. It insists that it warned the Government that tenants would face rent rises, due to landlords leaving the market, and that the situation will only deteriorate if it fails to act now. 

First Time Buyers Take Advantage of Reduced Competition in Market

Published On: March 26, 2019 at 10:00 am

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- 26,700 new first-time buyer mortgages have been completed during April, which was 3.5% more than in the same month last year.

First time buyers are taking advantage of reduced competition in the UK property market, as demand for housing dropped in February, according to the latest Housing Report from NAEA Propertymark (the National Association of Estate Agents).

Housing demand

The number of home hunters registered per NAEA Propertymark member estate agent branch dropped by 15% in February, from an average of 297 in the previous month, to 252.

This is the lowest figure recorded since July 2013, when agents registered an average of 250 prospective buyers per branch.

Annually, demand for housing has dropped by a fifth (18%), from an average of 209 potential buyers in February 2018, alongside a decline of more than two-fifths (41%) from 2017 and 46% from 2016, when 463 home hunters were registered per branch.

First time buyer sales

First time buyers took advantage of reduced competition in the market last month. As demand fell, sales to this group rose, hitting a seven-month high of 30%.

The last time that first time buyers experienced this rate of sales was in July 2018, when they benefitted from the annual summer lull.

Month-on-month, the number of sales to first time buyers increased by four percentage points, from 26% in January.

Property supply

The supply of available properties for sale fell from an average of 36 homes per member branch in January to 34 in February.

This figure has not changed significantly from February last year, when 35 properties were available to buy per branch.

Agreed sales

The amount of sales agreed increased in January and remained high in February, with an average of seven recorded per branch.

Year-on-year, this dropped slightly, from an average of eight in the same month of 2018. 

Mark Hayward, the Chief Executive of NAEA Propertymark, says: “With demand at a seven-year low, buyers are approaching the market with caution. As we move into spring, we would usually expect to see an increase in activity, but house hunters are evidently delaying their plans until the impact of Brexit is clearer. Over the last seven months, however, we’ve seen periods where first time buyers have taken advantage of reduced competition and driven their transactions forward, and this really picked up in February.

“The next few months will be very telling – will activity pick up once there’s further clarity on what Brexit means, or will it push the housing market into a deeper pool of uncertainty? Time will tell, but, in the meantime, both buyers and sellers should feel positive. There are still house hunters searching for properties and there are still new homes coming onto the market.”

Supply of Homes for Sale Dropped in February, Reports Agency Express

Published On: March 11, 2019 at 10:29 am

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Following a buoyant start to the year, the supply of homes for sale dropped in February, according to the latest Property Activity Index from Agency Express.

The report reveals mixed activity across the UK property market last month.

Nationally, the number of properties sold remained true to trend, increasing by 16.9% on a monthly basis, while the amount of properties coming onto the market dropped by 0.7%. 

While February’s figures for new listings were affected by January’s spike, annual data does show a greater level of activity in the market during 2018, when new listings rose by 2.7%.

Looking at the individual regions included in the index, all 12 recorded growth in the number of properties sold in February, but only five saw increases in homes coming onto the market.

Scotland sat at the top of February’s leader board, with new listings up by 24.7%, while the amount of properties sold rose by 27.7%. Although February’s figures were buoyant, historical data again shows a greater level of activity in 2018.

Other regional hotspots included:

New property listings

  • Yorkshire and the Humber: +16.8%
  • North West: +7.8%
  • Wales: +0.4%
  • East Midlands: +0.2%

Properties sold

  • Yorkshire and the Humber: +23.4%
  • South West: +19.7%
  • North East: +18.9%
  • London: +18.7%
  • North West: +17.3%
  • East Midlands: +15.1%
  • East of England: +11.2%

The greatest decline in February’s index was in London. Following robust activity in January, new listings fell by 8.8% month-on-month and by 23.1% over a three-month rolling period. Looking back at Agency Express’ historical data, we can see that this decrease is the largest on record for the month of February.

Stephen Watson, the Managing Director of Agency Express, comments: “We typically see figures plateau in February, but the latest data from the Property Activity Index has shown a decline in supply compared to the same month in 2018. However, overall figures remain robust and year-on-year activity continues to increase for us.”

Business as Usual for Sellers, but Buyers put Plans on Hold

Published On: February 28, 2019 at 10:28 am

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It’s business as usual for home sellers, but buyers are putting their plans on hold, according to the latest Housing Report from NAEA Propertymark (the National Association of Estate Agents).

The research covers January 2019.

Housing demand

In January, the number of home hunters registered per NAEA Propertymark member estate agent branch fell from an average of 304 in December, to 297. 

Annually, demand has fallen by a fifth (19%), from 367 in January 2018, as buyers hold off on making any decisions, in light of the current political climate.

Property supply

The supply of available homes to buy dropped by 14% in January, from an average of 42 properties per branch in December, to just 36.

On an annual basis, supply is unchanged.

First time buyer sales

First time buyers took advantage of weakened demand in January, as the number of sales made to the group increased for the second consecutive month, from 24% in December to 26%.

This is the highest level recorded since July 2018, when first time buyers completed 30% of sales.

Agreed sales

Following a dip in the number of sales agreed per branch over the last few months, this figure rose in January, from an average of five in December, to seven. 

Year-on-year, the amount of sales agreed per branch was unchanged.

Mark Hayward, the Chief Executive of NAEA Propertymark, says: “January is usually the time where we’d expect to see house hunters flood the market following the festive lull; however, this didn’t happen last month. It’s normal that, during a period of uncertainty, buyers put their plans on hold and, until there’s further clarity on what Brexit will mean for the market, we expect the level of house buyers to remain stagnant. 

“However, it’s clear that people still want to sell their homes and there are properties available for those looking to move. While first time buyers are taking advantage of this situation, those hoping to secure a property may well find the market is leaning in their favour, as the number of sales agreed per branch return to the level seen at the start of 2018. Although sellers are usually keen to hold off until they secure the right price, when the market is slow, they are typically more willing to negotiate. After all, when demand falls, and supply remains the same, it’s a buyers’ market.”

Wait-and-See Approach Causing Slump in Property Market

Published On: February 27, 2019 at 10:00 am

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The wait-and-see approach used by potential homebuyers and sellers in these uncertain political and economic times is causing a slump in property market activity, according to the latest Household Lending and Deposits data from UK Finance.

In the trade body’s latest release, covering January 2019, it is clear that the upcoming Brexit is reducing the number of mortgage approvals, for both homeowners and landlords.

Gross mortgage lending in the residential market in January totalled £21.6 billion, which is down by 1.5% on the same month of 2018.

However, the number of mortgages approved by the main high street banks in January was up by 0.3% on an annual basis, while approvals for home purchases rose by 1.5%.

Nevertheless, remortgage approvals were down by 3.1% year-on-year, while approvals for other secured borrowing were up by 6.8%.

These figures follow several months of strong growth in the remortgaging sector in early 2018, as customers took advantage of a competitive mortgage market to lock into attractive deals. This was seen for both homeowners and buy-to-let landlords.

John Goodall, the CEO of peer-to-peer lender Landbay, explains what has caused this slump in the UK property market: “This dip in lending is unquestionably linked to homeowners and landlords putting off the decision to put their property on the market. This wait-and-see approach, entirely understandable in the current economic climate, is exacerbating the chronic undersupply of available housing.

“The current stalemate means that it falls to landlords, both private and institutional, to pick up the pieces and provide quality housing for those who would be buyers in more normal economic conditions.”

Have you adopted a wait-and-see approach to your property market activity due to the impending Brexit? If so, we’d be interested to find out under what conditions your buying/selling activity will pick up once again.

HMRC Data Highlights the “Sluggish Nature” of the Housing Market

Published On: February 22, 2019 at 10:57 am

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Up to a third of young people today could be renting into their retirement

The latest HM Revenue & Customs (HMRC) UK Property Transactions Statistics highlight the “sluggish nature” of the housing market, an expert believes.

The report shows that the provisional seasonally adjusted number of UK property transactions in January 2019 was 101,170 residential and 10,650 non-residential sales.

The provisional seasonally adjusted count of residential property transactions increased by 0.8% between December 2018 and January 2019, and is up by 1.3% on an annual basis.

Generally, residential transactions in January are lower than in other months. This has been a consistent year-on-year trend, HMRC reports. 

Equally, year-to-date residential sales in 2018-19 are at similar levels to previous years. 

On an annual basis, non-adjusted residential transactions in January were approximately 0.9% higher than in the same month of 2018.

Steve Seal, the Director of Sales and Marketing at Bluestone Mortgages, comments on the release: “Today’s figures show the sluggish nature of property transactions. Monthly peaks and troughs fail to disguise the lack of housing, rendering the market inaccessible to some aspiring homeowners.  

“While house prices are rising at a more steady rate, the rising cost of living is preventing many borrowers from saving for both a deposit and funds for a rainy day. It’s usually either/or, and the majority struggle to save for the latter. As a result, many see their credit history suffer, should an unexpected illness, bill or payment occur.”

He insists: “However, a few missed payments should not be a reason for these borrowers to be blocked from homeownership. As an industry, we need to ensure these borrowers are provided with the support they need in navigating their way through life’s challenges, and still achieving their homeownership ambitions.” 

Are you concerned about the “sluggish nature” of the UK housing market at present, and do you expect property sales to pick up over the coming months, as in recent years?