Posts with tag: Rightmove

Rightmove reports ‘best ever spring sellers’ market’ for the UK

Rightmove has reported a new record for average house prices, as it sees the ‘best ever spring sellers’ market’.

The average house price in the UK was £354,564 in March 2022.

James Forrester, Managing Director of Barrows and Forrester, comments: “Since early 2020, an unrelenting level of homebuyer demand has fuelled a property market boom that shows no signs of slowing some two years down the line.

“Such sustained market conditions are quite phenomenal and as cliche as it sounds, there really never has been a better time to sell your house. 

“To say homes are selling like hotcakes would be an understatement and with multiple buyers battling it out for every last scrap of property stock, sellers are achieving above and beyond their original price expectations.”

Marc von Grundherr, Director of Benham and Reeves, comments: “As a nation, we’ve endured a prolonged period of economic instability due to the pandemic and yet more dark clouds are gathering due to the cost of living crisis. But despite this the UK property market remains a powerhouse of defiance, demonstrated by the fact that every region of the nation has reached record price highs in unison. 

“Although London continues to trail where this asking price performance is concerned, we’ve already seen concrete signs that the market is starting to turn in 2022, putting a sluggish pandemic performance firmly behind us.

“It will, of course, take some time before this starts to filter through and bolster home seller confidence within the capital, but when it does, it won’t be long before asking price expectations start to climb considerably. So while it very much remains a sellers’ market across the board, now is the time to buy in London as property prices are only heading one way for the remainder of the year, at the very least.” 

Geoff Garrett, Director of Henry Dannell, comments: “There’s no denying that the property market has performed impressively and with the cost of borrowing remaining favourable at present and buyer demand levels unlikely to subside, the short-term outlook remains positive. 

“However, both buyers and sellers would be well advised to make hay while the sun is shining, as growing economic headwinds are likely to take their toll further down the line. 

“While we don’t expect to see market activity evaporate completely, the growing cost of living will be a significant factor in the months to come and as household finances are stretched, it’s likely that prospective buyers will ease off on the sums they’re willing to offer. As a result, sellers will need to realign themselves with these changing market conditions and this will cause the rate of house price growth to cool.”

Chris Hodgkinson, Managing Director of HBB Solutions, comments: “The market is moving at an incredibly fast pace and this certainly favours the nation’s home sellers who are spoilt for choice when it comes to the interest shown in their property. 

“Despite these favourable conditions they are still advised to act with a level head and avoid getting swept up by this cyclone of market activity.

“The highest offer isn’t always the best option and it’s important to consider a buyer’s position within the market, not just the money they’re willing to pay. Failing to do so can see a sale collapse and unnecessary additional costs incurred.” 

Christina Melling, CEO of Stipendium, comments: “What we’re currently seeing is a feeding frenzy from second and third rung buyers and it’s this segment of the market that is driving the unsustainable levels of house price growth seen in recent months.

“Unfortunately, it’s the nation’s first-time buyers who are paying the price and those looking to take that first step are now paying £2,000 more for the pleasure compared to just one month ago. While this may not sound significant to those with the financial foundation of an existing property to fund their onward purchase, it’s yet another brick in an already substantial financial wall that’s blocking many from realising their dreams of homeownership.”

Rightmove releases first House Price Index report of 2022

Published On: January 17, 2022 at 10:29 am

Author:

Categories: Property News

Tags: ,,,,,

According to its latest House Price Index, Rightmove found the average asking price of a property was £341,019 this month (January 2022).

This is 7.6% higher than in January 2021, the highest annual rate of price growth recorded by Rightmove since May 2016.

The report also highlights:

  • First-time buyer asking prices hit a new record of £214,176 after a monthly jump of 1.4%
  • Strong demand and continuing low numbers of available homes for sale set up the housing market frenzy to continue into the start of 2022, with early-bird sellers benefitting from increased buyer competition:
  • The number of buyers enquiring about homes is 15% higher than the same time last year
  • The number of available homes for sale per estate agency branch drops again to a new record low of just 12
  • As a result, competition among buyers is almost double what it was at this time last year
  • However, there are early signs that more property choice is on its way, with the first working week of 2022 being the busiest start of the year ever for people requesting agents to come out and value their homes:
  • The number of home valuation requests in the first working week of 2022 is 44% up on the same period last year, and 48% up on the same period in 2020

The full report can be read on the Rightmove website.

Walid Koudmani, market analyst at financial brokerage XTB, comments: “Falling supply continues to increase pressure on house prices as buyers begin to run out of options while prices continue to steadily increase.

“Today’s HPI report highlights the ongoing trend we have seen with house prices rising once again as less properties become available on the market due to an increase in sales seen at the beginning of the year. Unless the supply situation is alleviated, we could continue to see an increase in prices for average buyers while a slight rebound is expected moving forward as more properties are expected to be listed in the coming months.”

Chris Hodgkinson, Managing Director of HBB Solutions, comments: “There’s certainly been no New Year’s change where the UK property market is concerned, and homebuyers are still swamping the market while house prices continue to defy the ‘what goes up must come down’ mantra.

“In fact, with stock levels remaining low, this fresh wave of demand is pushing asking prices even higher than the stamp duty fuelled thresholds of last year. 

“When you also consider that the cost of borrowing is still very low, we can expect more of the same where property market performance is concerned in 2022.”

Marc von Grundherr, Director of Benham and Reeves, comments: “There have been no signs of a sluggish start to the year for the property market and not only are we seeing a very strong level of buyer activity, but we’ve also been inundated with requests from potential sellers keen to make the most of these buoyant market conditions. 

“We’re now seeing a strong level of activity returning to the London market and the capital’s forecast is far brighter for the year ahead, having been uncharacteristically left in the shadows during the pandemic house price boom. 

“Overseas buyers are returning in their number and the capital is hotting up as the time to sell a home reduces and stock availability comes under pressure. 

“If buyers are quick there is still an element of ‘old stock’ that has been stuck on the market and these opportunities can potentially be snapped up at relatively decent price levels – for now.”

Colby Short, Founder and CEO of GetAgent.co.uk, comments: “Many home sellers will have listed their home prior to the festive break in anticipation of a fast start to the year and this proactive approach is now paying off as many are already accepting offers on their homes. 

“However, for those buyers who are struggling to find their ideal home, there is hope for the year ahead. Now that the dust has settled following the final stamp duty holiday deadline, we’re seeing a significant increase in the number of sellers heading to market.

“So, we can expect to see a good level of fresh stock materialise over the coming months, bringing greater choice to buyers and adding yet further fuel to the house price growth furnace.”

Record house price growth in Wales and the north as London stands still

Rightmove’s May 2021 House Price Index reports that the average asking price for UK properties has increased by 1.8% since the previous month.

Rightmove also states:

  • Average London house prices are 2.9 times higher than prices in the norther areas of Great Britain. Although still large, this is the smallest ratio recorded by Rightmove since 2013
  • Wales has seen the most growth since the first lockdown at 13%
  • The north has seen a greater imbalance between demand and supply than London, with people more likely to move locally and some more able to afford to upsize

The full report can be read here.

Marc von Grundherr, Director of Benham and Reeves, comments: “A 0.8% rise in monthly price rises, whilst slower in pace than in recent months, is still almost 10% annually if such a trend were to continue. That’s colossal growth and even more so at the top end of the market where homes are seeing over 12% rises in value despite the fact they may soon miss out on the maximum stamp duty holiday saving of £15,000. This bodes well and may confound the doomsayers that have been forecasting a cliff edge come the end of June.”

Ged McPartlin, Managing Director of Ascend Properties, comments: “Despite some southern regions finally starting to stir, the North continues to lead much of the market where annual house price growth is concerned. It’s probably not accurate to say that cash-rich relocators from southern cities are driving this northern resurgence and this strong performance has been very much built on a foundation of localised demand, from buyers keen to take advantage of record-low interest rates while they can.”

James Forrester, Managing Director of Barrows and Forrester, comments: “Home sellers and their acting agents have never had it so good. Not only are transactions climbing along with house prices, but the speed at which properties are selling is extremely fast. Just 41 days to sell a home is close to an all-time best and means that at some extremes, listings have been selling before the ink is dry on the sales particulars.

“Certainly, in the West Midlands, we’re seeing contracts agreed within a week of listing and although it’s unclear as to how much longer the market can perform at this rate, there’s certainly no sign of it letting up anytime soon.”

Matthew Cooper, Founder & Managing Director of Yes Homebuyers, comments: “Property stock is evaporating at an alarming rate due to huge levels of buyer demand and this severe imbalance is causing an artificial property price boom. Great for sellers who can justify overpricing their home but not so great for the wider market that is already groaning under the pressure.”

Where to find London’s cheapest 2 bedroom rental properties

Published On: June 2, 2021 at 8:26 am

Author:

Categories: Lettings News,Tenant News

Tags: ,,,

New research reveals the cheapest and most expensive boroughs in London for renting a 2 bedroom property.

London estate agent Portico has found that rental rates have been dropping during the pandemic, with central London rents down by 13%.

Examining 26,417 rental properties in all 32 London boroughs currently available on Rightmove, it has identified the most affordable locations for tenants.

The research shows that the average rental price in the capital is currently £1,832 per month, while the average rental for a two-bedroom property in the capital is £1,800 per month.

The following table shows a ranking of all 32 London boroughs from cheapest to most expensive. The boroughs have been ranked by their average 2 bedroom rental prices.

London BoroughNumber of 2 bedroom propertiesAverage Rental Price 2 bed (pcm)
Bexley73£1,243
Sutton96£1,313
Croydon377£1,341
Hillingdon284£1,375
Barking and Dagenham123£1,377
Bromley175£1,400
Redbridge212£1,404
Harrow302£1,428
Waltham Forest193£1,458
Lewisham326£1,483
Enfield153£1,490
Kingston upon Thames167£1,551
Barnet385£1,575
Haringey346£1,602
Ealing355£1,642
Greenwich431£1,653
Brent377£1,667
Newham381£1,667
Hounslow364£1,689
Merton279£1,701
Lambeth382£1,885
Hackney366£1,912
Islington380£1,938
Richmond upon Thames378£1,949
Tower Hamlets382£1,975
Southwark427£2,051
Wandsworth454£2,121
Hammersmith and Fulham395£2,179
Camden368£2,257
Westminster351£2,921
Kensington and Chelsea412£3,100
City of London113£3,284

Robert Nichols, CEO of Portico estate agents, says, “As life begins to return to something a lot more like normal, tenants seem to be making their first post-pandemic moves. Renter registrations are already up a staggering 44% from this time last year. It seems only a matter of time before balance is restored in the market, which will undoubtedly represent some very welcome news for landlords throughout the capital.

“The current snapshot is likely to prove temporary. Along with being an excellent time to rent, it could also be a window of opportunity for first-time investors or those seeking to expand an existing property portfolio. While it’s evident the pandemic has distorted the market, it seems there are lingering effects. With recovery imminent, some of the boroughs that wouldn’t ordinarily offer such bargains may just be lagging behind unfolding events. For tenants and investors alike, that might represent a once in a lifetime chance.”

The full research from Portico can be read here: https://www.portico.com/blog/tenant-advice/the-cheapest-places-to-rent-in-london

New records for UK house prices continue in Rightmove’s latest House Price Index

The latest House Price Index from Rightmove reports Wales and the North of England have seen continued growth.

The highlights of the index include:

  • New records continue to be set as the average price of property coming to market this month jumps by 1.8% (+£5,767), to a third of a million pounds (£333,564)
  • Average London house prices are 2.9 times higher than prices in the northern areas of Great Britain, and although still large this is the smallest ratio recorded by Rightmove since 2013
  • While London prices have stood still (+0.2%) since the first lockdown, areas further north have seen double-digit increases, due to the shortfall in supply that suits people’s changed needs and lives
  • Wales leads the way at +13.0%, followed by North West (+11.1%), and Yorkshire & the Humber (+10.5%)
  • The north sees greater imbalance between demand and supply than London, with people more likely to move locally and some more able to afford to upsize

James Forrester, Managing Director of Barrows and Forrester, comments: “Asking prices continue to climb at an alarming rate and this upward pressure is being driven by a number of factors. 

“Buyer demand remains extremely high and an appetite for larger homes is driving market activity. However, a lack of suitable stock to satisfy this demand is causing many to dig deep in order to offer above the odds and secure their desired purchase. 

“At the same time, savvy sellers are realising that buyers are not only entering the market with a budget boosted by the stamp duty holiday, but they’re doing so amidst an air of panic with the deadline fast approaching. Therefore, many are pricing far higher than the market value of their home to take advantage of this desperation. While they will inevitably reduce this expectation during the offers stage, this additional wiggle room still enables them to secure a higher price than they may have otherwise.”

Matthew Cooper, Founder & Managing Director of Yes Homebuyers, comments: “It’s clear that sellers are attempting to cash in on the stamp duty holiday themselves by reaching new highs where unrealistic asking price expectations are concerned. In doing so they’re also crushing the hopes and dreams of many would-be first-time buyers who will now find themselves well and truly priced out of the market.

“It certainly doesn’t help when this hysteria is being driven by the likes of Rightmove, who continue to pull ‘record’ market statistics out of their hat on a monthly basis, much like a cheap magician at a children’s party. 

“Those hard-pressed to reach the first rung of the housing ladder may well have the last laugh though, as an already weary market continues to overheat. When the end of the stamp duty holiday does come and causes buyer demand to evaporate, we’re likely to see property values fall at pace.”

Marc von Grundherr, Director of Benham and Reeves, comments: “With the London property market moving at a steadier pace than the rest of the UK, we’re simply not seeing a spike in asking prices driven by home seller greed. Instead, the market is moving at a far more sustainable pace and while activity is starting to build, transactions are being agreed in a more sensible manner. 

“With the cost of buying at its highest in the capital, those that are transacting are in a strong financial position and so they simply aren’t as motivated by the incentive of the stamp duty holiday. While it’s certainly a nice cherry on top, it isn’t going to make or break their aspirations of homeownership and this more natural return to form will ensure a greater degree of long-term market health.”

Ged McPartlin, Managing Director of Ascend Properties, comments: “The Northern Powerhouse continues to drive overall market performance with the North West and Yorkshire, in particular, steaming ahead with some of the highest increases in property values. 

“The property market balance has well and truly tipped in favour of the North in recent months, driven by the fact that northern regions continue to offer a far more affordable foot on the ladder for homebuyers. 

“While the difference in property prices remains vast when compared to the likes of London, the north-south divide is certainly closing in terms of overall market pedigree.”

Read Rightmove’s full report here: https://www.rightmove.co.uk/press-centre/house-price-index/may-2021/

Industry predictions for the UK property market

Published On: July 13, 2020 at 8:07 am

Author:

Categories: Property News

Tags: ,,,,,

This following is a guest piece provided by SevenCaptial.

Although COVID-19 has been affecting the property market for the majority of 2020, we’re still in the early stages of understanding the long-term impact it will have on the global and UK economies.

Following a pause in transactional volume, there has been a surge in listings and enquiries in the sales market over the past month, after record lows in March, April and May.

Despite the lack of data from actual transactions, SevenCapital has gathered insights, forecasts, and opinions from across the industry on what the outlook of the UK property market may be for the rest of 2020 and beyond.

Included in the UK property market update is collated research from market leaders including Savills, Knight Frank, Rightmove, Zoopla, and JLL.

Industry Predictions for the UK Property Market
Industry Predictions for the UK Property Market

Rightmove – Market update

According to a recent release from Rightmove, the average asking price of property coming to market in England is up by an average of 1.9%. 

Over 175,000 missing sellers that couldn’t come to market from 24th March to 12th May have now sprang into action, with a record number of homeowners asking for valuations and daily new listings now up on last year.

Unique price analysis of new sales agreed indicates upwards price pressure, with buyers agreeing to pay 97.7% of the asking price on average, an improvement from 96.6% for sales completed in February this year.

Rightmove originally forecasted a 2% rise in the price of UK property coming to market in 2020. This update from Rightmove shows positive signs but we can assume they are now more modest about price growth for the remainder of 2020.

Savills 

Long-term, Savills remains more optimistic, with a continued expectation of price growth over the next five years. Furthermore, large parts of the prime market looked good value in the run-up to the current crisis which should underpin those sectors. However, the pace of recovery will depend upon the state of the wider economy.

Interest rates are now expected to be lower for longer. Savills original 2020 forecast of 15% UK house price growth over 5 years included an assumption that the Bank Base Rate (BBR) would rise to 2.0% by the end of that period. Oxford Economics’ current forecast is for it to be 1.0% under both baseline and downside scenarios.

Savills expects a small drop but as the economy opens, we should see a recovery. Low bank base rates and mortgage lending confidence should see the UK market remain relatively stable and will boost a quicker recovery. Mortgage lenders are in a much better state than compared to the last financial crash which means they are more likely to lend as the market unlocks. The time of this recovery will also depend upon wider economic recovery, but government schemes such as furloughing staff have relieved pressure on property prices.

JLL

JLL expects real estate activity to be slow for the short term with investor sentiment dampened.

While many investors have paused new acquisitions, select well-funded institutions and high-net-worth investors with longer-term investment horizons will be among the first movers. JLL also states reduced international student intakes pose a risk to student housing.

The COVID-19 pandemic will undoubtedly change the way we live and work for the foreseeable future, and new trends will emerge that will become part of our ‘new normal’.

Although investment into real estate has fluctuated over the years through various downturns, the overall trend has been for higher allocations to real estate, and JLL sees no reason for this trend to reverse. Real estate continues to offer good risk-adjusted returns that are less correlated to other asset classes. This is where the advantage of real estate and a diverse portfolio is emphasized, remaining stable when the equity and commodities markets are seeing increased volatility.

Over the long term, JLL still believes real estate remains an attractive asset class.

Knight Frank – Market update

Knight Frank expects a drop in property prices in the short term with a bounce back of 5% in 2021. 

Knight Frank reduced their forecast to 728,000 sales for this year, a decline of 38% on 2019 levels. Their previous forecast, which was published at the beginning of April, pointed to a 3% fall in UK house prices.

A 20% drop in prime London prices since 2014 would shield this market from further falls.

Knight Frank commented: “Residential will remain a stable asset and may actually become more desirable when compared to commercial, due to changes in way of life and working environments.”

Knight Frank further commented: “If we add into the mix the fact that we have low new-build rates coming through in 2020, low inventory and low-interest rates, it becomes less likely we will see significant further falls from here.”

Zoopla – Market update

Zoopla’s Cities Index in April was conservative due to market activity, but they expect a slow rate of growth to become more marked over the summer. Demand for homes in England rose by 88% after the housing market reopened in England.

House prices will not change significantly in the next two months as most sales agreed before the start of the coronavirus pandemic will continue.

In the long term, house prices will be largely influenced by unemployment rates.

In a recent survey by Zoopla, around 60% of would-be movers across England say they plan to go ahead with their property plans, although 40% have put their plans on hold because of COVID-19 and the uncertain outlook.

The number of property sales agreed is also steadily rising since the market reopened. But it will take some time for these numbers to rise significantly.

Zoopla also forecasts a post-COVID-19 bounce and expects a clearer picture to emerge when more sales are completed.

Andy Foote director at leading UK property developer SevenCapital commented: “These are unprecedented times. However, property is again proving its stability and strength as an investment vehicle. What is important now more than ever for investors continuing with their investment strategy is remembering the core principles of property investment which are buying in the right location, working with trusted developers and investment partners with a strong track record and buying with a long-term mindset.

“Property, particularly now, should be considered a long-term investment and then no matter at which point of the property cycle you buy, providing you invest in a quality product in the right area with strong, sustainable tenant demand, your property should pay dividends over time.”

Bio

Andy Foote, SevenCapital Director. 

During the past 22 years, Andy has successfully built five businesses within the Motor Finance, Residential Property, Recruitment, and Charity Sectors. He currently sits on the boards of Seven Invest, The Brain Tumour Charity, Alexander Daniels, and University of Nottingham Impact Board. Along with his co-directors, Andy has built the distribution channel at SevenCapital which offers investors a unique 360-degree service, including sales, mortgages, furniture, property management, rental, and exit.