Posts with tag: residential market

UK auction market remains stable

Published On: June 27, 2017 at 1:38 pm

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Investment in UK residential property at auction continues to perform well, despite the political uncertainty generated by the snap General Election.

That is the synopsis provided by the latest figures provided by the Essential Information Group.

Data from the report indicates that 2,422 lots were sold during the last month, up by 2% in comparison to May 2016. This represented a healthy sales rate of 75.7%.

Stable

Despite the result of the Election, EIG’s MD David Sandeman said that he was pleased to report on results that were, ‘largely strong and stable.’

Overall, the residential sector performed well during the last month, with lots offered up by almost 5% to stand at 2,560. Lots sold also rose by nearly 10% to stand at 1,945 lots.

Amounts realised from residential sales hit £338m, up by £27m, or 8.9% from the £311 seen in May 2016.

These rolling quarterly figures given by EIG, which had recorded double-digit declines in April, now show only small falls in lots both offered and sold.

UK auction market remains stable

UK auction market remains stable

Commercial Challenge

While demand for residential property increased during the month, the commercial sector faced a rather more challenging month. Lots offered and sold fell by 15% and 20% respectively, with the amount raised sliding by 16% to £179m.

The overall statistics for May were:

Overall Statistics May 2017

Auctions Held in the UK             130
Total Lots Offered                   3,199
Total Lots Sold                        2,422
Percent Sold                          75.7%
Total Realised           £517,003,228

Concluding, Mr Sandeman said: ‘One hopes that this was merely a blip in what has otherwise been a reasonably steady year to date for commercial auctions.’[1]

 

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2017/6/uk-property-auction-activity-is-strong-and-stable-despite-political-instability

 

 

Property prices could rise by 2% in 2017-depending on economy

Published On: December 20, 2016 at 9:58 am

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The UK residential property market’s performance during 2017 will rest majorly on how the economy develops during 2017, according to Nationwide.

It is believed that next year will see the UK starting the process of leaving the European Union, which means the economic outlook is difficult to call. Small price growth of around 2% has been projected by the firm.

Economic links

Chief Economist at the Nationwide Robert Gardner, feels that the residential housing market growth will depend hugely on what happens in the wider economy.

Gardner note: ‘Like most forecasters, including the Bank of England, we expect the UK economy to slow modestly next year, which is likely to result in less robust labour market conditions and modestly slower house price growth.’[1]

‘But we continue to think a small gain of around 2% is more likely than a decline over 2017 as a whole, since low interest rates are expected to help underpin demand while a shortage of homes on the market will continue to provide support for house prices,’ he continued.[1]

In addition, Gardner said: ‘The major house builders appear to have capacity to expand output, with most reporting land banks that could support around five years’ worth of construction at current rates of building activity. However, there is a risk that the uncertain economic outlook may weigh on activity in the period ahead.’[1]

Property prices could rise by 2% in 2017-depending on economy

Property prices could rise by 2% in 2017-depending on economy

Policy changes

Moving on, Mr Gardner looked at what has happened during 2016, noting that overall house price growth remained between 4% and 6-in line with expectations.

He acknowledges that a number of policy changes have made it more difficult to ascertain the underlying strength of housing demand for a lot of 2016. He observes: ‘The picture was further obscured by the gyrations of some forward looking indicators of economic activity and consumer sentiment in the wake of the Brexit vote, where a number of indicators recorded large, but short lived, declines.’[1]

‘However, what made the most difference to the market in 2016 was that the fundamentals underpinning housing demand remained solid. Labour market conditions were robust, with strong employment growth, healthy gains in real wages, thanks in part to low inflation, and borrowing costs falling to new record lows,’ he concluded.[1]

[1] http://www.propertywire.com/news/europe/uk-prices-rise-around-2-2017-depending-economy-brexit-process-starts/

 

Property supply slowdown in October

Published On: November 4, 2016 at 11:09 am

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Categories: Property News

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After a burst of activity in the UK market during September, figures for property supply in October are subdued in comparison.

Nationally, figures for sold property stood at 0.3% and for sale -11.2%, according to the latest Property Activity Index from Agency Express.

Decline

A seasonal decline in October comes as little surprise, but the figures recorded this year are greater than those at the same period 12 months ago. Then, new listings were down -4.3%, while sold properties were at 2.7%.

Just four of the twelve regions assessed by the Property Activity Index saw increases in properties sold, while none recorded increases in new listings for sale.

The top performing region was the West Midlands, where figures for properties sold rose for the second straight month to stand at 13%. Listings for sale saw a decline to -4.9%. Over a three month period, new listings were down by -3.9% overall.

At the other end of the scale, the largest declines were seen in the North East. Here, after a strong September, figures for October fell sharply. New listings for sale dropped to hit -31.2%, while properties sold were at -18.1%.

In the twelve regions investigated, the best in terms of properties for sold were:

South West-10%

London-6.4%

North West 5.8%

And for new listings for sale, the best figures were seen in:

Wales- -0.4%

East Anglia- -7.6%

Property supply slowdown for October

Property supply slowdown for October

Slowdown

Stephen Watson, Managing Director of Agency Express, observed: ‘During October we traditionally observe a seasonal slowdown, however this month’s Property Activity Index has shown one consistent trend across the UK and that is a slowdown in supply. As we head in to the last few months of the year it is unlikely that we will see any major increases. However, if the slowdown in supply continues it will be interesting to see how the market picks up in the New Year where a spike in supply is expected.’[1]

[1] Property Activity Index Press Release, ‘October 2016 Sales Report’ 04.11.16

BTL continues to outgrow residential market

Published On: April 30, 2015 at 2:16 pm

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Categories: Finance News

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Fresh analysis has shown that buy-to-let lending is far ahead of the residential market, judging by the first quarterly report of the year.

Equifax Touchstone suggests that buy-to-let lending grew in excess of 12 times more than residential market during the opening three months of 2015. Year-on-year, buy-to-let lending rose by almost 20%, whereas residential lending rose by only 1.6%.

Overall lending in the quarter was £36.2bn, a yearly increase of 5.4% from the same period last year. [1]

Growth

There were substantial rises in both residential and buy-to-let mortgage prices. The average residential mortgage was £177,060, rising from £170,730 at the same period twelve months ago. Buy-to-let loans were up to £151,033 from £145,017.[2]

The data from Equifax Touchstone covers 92% of the entire intermediary market. Statistics from the report show that March was the best sales month recorded for mortgage brokers in eight years. Growth was present in all bar two UK postcode areas, these being Perth and the Western Isles, where falls were recorded.[3]

BTL continues to outgrow residential market

BTL continues to outgrow residential market

However, despite the growth in lending, the number of brokers within the market was found to have fallen for the first time in the past year. A slight decline saw brokers down from 8,288 in the first quarter of 2014 to 8,208 in 2015.[4]

Encouraging signs

Relationship manager at Equifax Touchstone, Iain Hill, was encouraged by the findings of the report. Hill said that, ‘there have been lingering doubts over the market recovery and it is encouraging to see such positive growth.’

‘While traditional savings accounts continue to offer low returns, savers are looking for alternative ways to invest their money, prompting substantial growth in the buy-to-let market.’[5]

 

 

[1-5] http://www.introducertoday.co.uk/1245-buy-to-let-thrashes-residential-market?utm_content=buffer30b88&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer