Posts with tag: property

Sales up but prices down, according to Rightmove

Published On: June 19, 2017 at 9:54 am

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The most recent report from Rightmove indicates that the number of sales agreed by agents over the last month rose by 7%, in comparison to the same period in 2016.

This is the greatest level recorded for this time of year since 2007, apart from one other higher figure seen in 2014.

Despite this, the average asking price of properties being listed on the portal has fallen by 0.4% during the last month.

Falls

This was the first monthly decline in prices recorded at this time of year since 2009 and the first monthly fall in 2017.

Yearly asking price growth is now at 1.8% – the slowest rate recorded since April 2013. As such, Rightmove predicts that the average asking price of properties coming onto the market is £316,109.

In terms of sales times, May saw properties take 59 days on average, down from 60 in April and 79 in January.

The average stock per agent is 60 properties, up from the 57 recorded in April.

Sales up but prices down, according to Rightmove

Sales up but prices down, according to Rightmove

Instability

Director of Rightmove, Miles Shipside, noted that a recent lack of stability has contributed towards sliding asking prices.

Shipside said: ‘The price of property coming to the market had increased in June in every year since 2009, so buyer confidence has clearly been affected by inflation outstripping their pay packets and current political events.’[1]

‘The high levels of sales being agreed show that the underlying fundamentals are largely unchanged with high first-time buyer demand which drives movement higher up the ladder, all aided by the cheap cost of borrowing,’ he continued.[1]

According to Shipside, markets in different local markets and sectors are reacting differently to the air of uncertainty. For example, a typical first-time buyer property consisting of two-bedrooms or less, represents the fastest growing property type, with newly-listed prices rising by 3.5% monthly and by 5.5% annually.

‘Those at the traditional starter level are brushing aside uncertainty, with demand being fuelled by the ongoing desire for home-ownership, government assistance, and mortgage repayments often being cheaper than rent for a similar property. In contrast, sectors higher up the ladder with a larger proportion of discretionary movers have seen the greatest recent price wobbles,’ Shipside concluded.[1]

[1] https://www.estateagenttoday.co.uk/breaking-news/2017/6/sales-agreed-up-but-asking-prices-down–rightmove

 

Slow growth in London dragging national levels down

Published On: June 14, 2017 at 10:06 am

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The most recent analysis released by Home.co.uk has shown that property price growth in London is in decline. On the other hand, prices in the North and South West and the Midlands are thriving and in turn upping the national average figure.

Substantial price growth, that above the rate of monetary inflation, is apparent in only four English regions.

Northern Rising

Trends towards improved market conditions in the North are continuing, with property marketing times improving significantly. In the region, higher demand and limited supply has pushed prices higher during the last month.

The North West is leading the way, with annual growth of 3.7%, followed by Yorkshire, which recorded 2.9%. The North East has seen marketing times return to levels seen in 2008.

The East of England is still heading the regional league table for price growth, closely followed by the East Midlands, the South West and West Midlands. All of these regions are showing growth on or above the rate of inflation. What’s more, in all regions apart from the East, marketing times are either the same or lower in comparison to June 2016 levels.

Slow growth in London dragging national levels down

Slow growth in London dragging national levels down

Dragging

Overall, the national figures for growth will represent a static market. Despite recent price rises in these regions indicate that confidence is high, the dragging of prices seen in Greater London suggests that the trend towards zero year-on-year price growth is almost inevitable.

In addition, rising inflation due to a weaker post-Brexit means that overall capital values will show no rise in real terms.

Looking ahead towards the back end of the year it is expected that prices in London and the South East will fall – causing a negative impact on national figures. In June 2016, the yearly rate of increased home prices was 6.8%. Today, that figure stands at just 2.8%.

Is it, ‘business as usual’ for the housing market?

Published On: June 13, 2017 at 11:55 am

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Last week’s shock General Election result has plunged the country into more uncertainty, with many peers concerned about the immediate future of the housing market in Britain.

Following Prime Minister May losing her Commons majority and with subsequent talks with the DUP ongoing, many observers are suggesting her days as PM are numbered.

‘Business as Usual’

However, despite the uncertainty, one leading housebuilder has suggested that there should be no reason why it shouldn’t be ‘business as usual’ for the housing market.

John Elliot, Managing Director of Millwood Designer Homes, predicted a Tory landslide. Instead, he was left to rue the result and is worried about the, ‘uncertainty it now brings for the future of the country and the Brexit negotiations.’[1]

Despite this, he maintains that the housing market should look to continue as usual.

Is it, 'business as usual' for the housing market?

Is it, ‘business as usual’ for the housing market?

Elliot observed: ‘Even though it’s early days, as far as I am aware, Theresa May will remain Prime Minister. I have not seen anything other than the statement issued by Downing Street to suggest otherwise and I can’t see this making much difference to our industry, as it stands. People still need homes and we need to keep building.’[1]

‘Had Corbyn been allowed to introduce the ‘garden tax’, I think that would have had a detrimental effect on the market, alongside his other polices on taxation,’ he continued.[1]

Concluding, he noted: ‘If Theresa May were to step down now, I am not sure who the best candidate it to lead the party and the country. My personal view, is that the one bit of stability should remain, is if Theresa May remains in office and continues to negotiate a good deal for the UK’s exit from the EU, and forges ahead with her policy to  build a million new homes between now and 2020, and another 500,000 by 2022.’[1]

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2017/6/business-as-usual-for-uk-housing-industry-despite-election-uncertainty

UK buyers are becoming more efficient

Published On: June 9, 2017 at 8:48 am

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UK property buyers are becoming more efficient, according to the most recent research from haart estate agents.

Buyers are allegedly looking at fewer properties before deciding to make an offer. However, it is still tough for first-time buyers, with the average deposit they are required to pay increasing by 7.7% in the last year.

Changing Market

This certainly suggests a changing housing market. Supply has risen by nearly 6% across the country and by 9% in London. Despite this rise, supply is still down by 20.8% in comparison to one year ago.

In addition, the data indicates that property prices in England and Wales slipped by 0.2% month-on-month and by 3.2% year-on-year. This took the average price of a property to £228,221.

The average price paid by a first-time buyer was £168,619.

Overall, new buyer demand rose by 0.2%, but has fallen by 29.7% year-on-year. Despite this, there are still 11 buyers after each property in England and Wales.

Tenant Falls

Analysis from the report also shows that the number of tenants coming onto the market fell in May by 8.3%. There was a more substantial decline of 34.7% year-on-year.

Rents rose by 1.6% month-on-month, taking the average rent to £1,268.

UK buyers are becoming more efficient

UK buyers are becoming more efficient

What’s more, the number of landlords registering to buy is also down, falling by 3.7% in England and Wales and by 9.6% in London. Worryingly, these figures rose to 35.3% 52.6% year-on-year respectively.

The number of buy-to-let sales dropped by 7% month-on-month and Wales and by 4.2% in London.

Improvement?

Paul Smith, haart chief executive officer, noted: ‘The UK property market is showing signs of improvement. Stock of new homes for sale has increased by almost 6% across the UK and by a huge 9% on the month in London. And although it remains a tough market for first time buyers who have seen their deposits rise again this month, we saw an 11% increase in new buyers looking to take their first step onto the ladder in May.’[1]

Smith is tipping a boost following the General Election, stating: ‘It is obvious that the desire for people to own their own home or move up the ladder is as strong as ever. We have every reason to be confident about the property market’s long term prospects but a greater emphasis from the next Government on helping aspiring home owners and increasing the amount of stock would certainly not go amiss.’[1]

[1] http://www.propertywire.com/news/uk/research-suggests-uk-buyers-becoming-efficient-discerning/

Priorities of homebuyers are changing

Published On: June 8, 2017 at 11:49 am

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Fresh research from GoCompare Home Insurance has revealed that the importance of ‘location, location, location’ for property hunters is on the decline.

Instead, the survey indicates that when choosing a property, the focus is now moving to a good broadband connection.

Changing Values

The report uncovered that the most desirable features for homebuyers are a good neighbourhood, with low crime rates and good access to shops, schools and GP.

In addition, the survey discovered would-be homebuyers are increasingly valuing superfast broadband, a good mobile-phone signal and satellite TV.

The top-ten most desirable home location and facilities features were found to be:

Most desirable home location/facilities %
1 A good area or neighbourhood 66
2 An area with a low crime rate 59
3 Good proximity to local shops 51
4 Near a good GP or dentist surgery 44
5 A good, reliable broadband connection sufficiently strong to stream TV and films 43
6 Reliable and clear mobile phone signal 42
7 Superfast broadband 39
8 A land-line telephone 33
9 Bus, tram or underground stop nearby 31
10 Satellite TV 27
Priorities of homebuyers are changing

Priorities of homebuyers are changing

 

Changing Factor

Ben Wilson, from GoCompare Home Insurance, noted: ‘Location will always be a key factor for homebuyers. After all, while you can improve a property – you can’t move it.  But it is too simple these days to say that it is the only consideration.  Homeowners also expect to be connected in a way that wasn’t envisaged even 10 years ago. They will want to know about the transport infrastructure and communications as much as the schools, shops and amenities.’[1]

[1] http://www.propertyreporter.co.uk/property/connection-is-the-new-location.html

 

 

Disappointing Spring for property transactions, says RICS

Published On: June 8, 2017 at 9:43 am

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The most recent data released from RICS and in general, it does not illustrate a great outlook for the UK housing market.

Data from the report reveals that new buyer enquiries, selling instructions and agreed sales slipped further during May.

What’s more, price growth also saw a loss in momentum and is forecasted to slow more over the next quarter.

Election Uncertainty

Respondents to the RICS survey feel that the declines could well be due to the General Election, with many investors are adopting a wait and see tactic.

During May, 25% of those questioned said that there was a decline in new listings, which in turn gave the most negative reading since July 2016. What’s more, new buyer enquiries fell across the UK, after remaining consistent over the previous six months.

Agreed sales also continued their decline, for the second straight month. The national indicator showed 8% less respondents seeing a slide in agreed sales. Expectations for the next three months have seen little change. However, for the next year, respondents seem more optimistic, with 26% believing that activity will increase.

Simon Rubinsohn, Chief Economist at RICS, said: ‘Although the latest survey suggests that uncertainty related to the General Election may have contributed to what appears to have been a disappointing level of transactions in the housing market over the spring, perhaps the most ominous signal emanating from the data released today is that contributors still expect house prices to increase at a faster pace than wages over the medium term despite the difficulty many first time buyers are clearly having in taking their first steps onto the property ladder.’

‘The increasingly tight second hand market remains a cause for concern with the RICS series tracking new instructions to agents recording its fifteenth successive negative reading. It is hard to see this as anything other a major obstacle to the efficient functioning of the housing market.’[1]

Disappointing Spring for property transactions, says RICS

Disappointing Spring for property transactions, says RICS

Boost

Robert Grigg, Managing Director of Property Finance at Hampshire Trust Bank, observed: ‘To make homeownership a reality for more people, we need to boost housebuilding activity and we believe SME housebuilders are key to unlocking potential new developments across the UK. Smaller housebuilders not only help to increase housing stock, but with many based and operating within their local area, they are more attuned to ensuring the right properties are built in the right place. With our SME Growth Watch report highlighting economic uncertainty as the greatest barrier to growth for smaller construction firms, following the outcome of today’s General Election, we urge the government to work with SME housebuilders to create a stable environment for future growth.’[1]

Brian Murphy, Head of Lending at the Mortgage Advice Bureau, also stated: ‘What’s apparent from the report is that house price growth is still in positive territory with ‘modest gains’ in most areas – that’s hardly cause for concern and isn’t the same as the market seeing key indicators for a fall or sharp correction.’

‘The continuing lack of supply isn’t a surprise, with the current political goings on deterring those ‘discretionary sellers’ who normally add a valuable additional number of available properties to the Spring market, inevitably providing buyers with more choice,’ he continued.[1]

Concluding, Mr Murphy said: ‘It’s probably reasonable to suggest then that, when all is said and done, surveyors up and down the UK are observing on the ground what many others in the industry suspect; those who need to move are doing so, and those who are seriously considering it are just ‘holding off’ for a few weeks and then, regardless of the Election result, are likely to get on with it. Whilst that may mean the market has been slightly more subdued last month, there’s nothing to suggest that this is anything more than the normal pattern for the housing market around an Election, and that consumer confidence in UK property remains undeterred.’[1]

[1] http://www.propertyreporter.co.uk/property/spring-transaction-levels-disappointing-says-rics.html