Posts with tag: rising house prices

New House Price Record Set in Every Month This Year

Published On: October 8, 2015 at 12:04 pm


Categories: Property News

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New House Price Record Set in Every Month This Year

New House Price Record Set in Every Month This Year

The average house price in England and Wales has risen by 4.2% over the last year, reaching £284,742, according to the latest LSL Property Services House Price Index.

The data reveals that last month was the strongest September for house sales since 2007, fuelled by an increase in activity in the north and high annual price growth in the South East.

September’s 0.4% monthly price inflation on August also means that a new house price record has been set every month this year.

Director of e.surv chartered surveyors, Richard Sexton, reports: “The speed of house price growth across England and Wales may not be setting the world alight, but it’s certainly showing it has stamina – September marks the 42nd successive month of positive annual growth.

“Typical property prices are now £11,500 higher than a year ago and house price growth continues to outdo rises in wages and consumer prices.

“This growth is primarily being underpinned by sturdy demand and solid activity at the bottom of the property ladder.

“The most frequent paid property price across England and Wales is just £125,000, mirroring the level at which Stamp Duty becomes payable, and reflecting the impetus that has been injected in the first time buyer market recently.

“The shift in Stamp Duty bands continues to slow growth at the higher end of the market, and prices above £600,000 are largely stationary.”1 

The greatest annual price rise was experienced in the South East, with homes now costing 5.8% more than last year, at an average of £333,539.

Prices in Greater London increased by 3.9% over the year, and the East Midlands and South West also witnessed substantial yearly growth, of 4.8% and 4.5% respectively.

The lowest rises were experienced in the North of England at 1.8% and Wales at 1%.















Sales Drop by 13% in a Year, Reports Land Registry

Published On: September 29, 2015 at 12:56 pm


Categories: Landlord News

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The amount of homes sold in England and Wales has dropped by 13% over the last year, reports the Land Registry.

The Land Registry’s market trend data report, containing its latest figures, reveals that there were just 70,404 completed house sales in June, compared with 80,823 in June last year.

The data also shows that the average house price has risen annually to August, by 4.2%, making the average property price in England and Wales £184,682. Prices grew by 0.5% between July and August.

Sales Drop by 13% in a Year, Reports Land Registry

Sales Drop by 13% in a Year, Reports Land Registry

Group Managing Director for Mortgages at Aldermore Bank, Charles Haresnape, comments on the findings: “While the annual price increase of 4.2% in the average house price will bring positive news for homeowners, the 13% decrease in completed house sales in England and Wales compared to June 2014 is worrying news.

“The fall may in some part reflect the impact of tighter lending criteria, but price rises are likely to prove a constraint on the number of first time buyers.”1

The highest price rise over the past year was experienced in the East of England, with homes now costing an average of 8.4% more than they did in August 2014. London witnessed the greatest monthly growth, of 1.7%.

The highest annual price increase in the capital was seen in Newham, East London, at 15.5%.

Chairman of national agents Jackson-Stops & Staff, Nicholas Leeming, explains: “Buyers are seeking areas offering the best value and proximity to work, which reflects not only the performance in the East of England, where the Cambridge effect and regional investment are bearing fruit, but also in boroughs such as Newham and Barking and Dagenham.

“On the wider front, we are seeing a continuing trend of higher property values for reported sales, but of more concern is the reducing numbers of properties coming to the market.

“However, this supply constraint in the middle markets is not being matched in the higher value sector, where many properties are struggling to find buyers at their current guide prices, mainly because of the effect that the Stamp Duty increase last year has had.”1 

Property prices in the North West rose by the lowest amount, 0.2%, while the region also experienced the greatest monthly decline, of 1.4%.

Prices also dropped in Yorkshire and the Humber at 0.3% and the East Midlands at 0.2%.

The South East saw annual house price growth of 7.6% and London’s average price is now 6.6% higher than last year.

The data also reveals that semi-detached house prices increased more than any other property type. Annual growth of 4.7% for these properties compares to a 4.5% rise for detached homes.

The price of flats and maisonettes is now 4% higher than in August 2014 and terraced houses cost 3.7% more.

Chief Executive of housing charity Shelter, Campbell Robb, says continuing price growth is “pushing the dream of a stable home out of reach for millions”.

He continues: “Piecemeal Government schemes like Help to Buy or Starter Homes just aren’t helping the ordinary families who are completely priced out of a home of their own and left to face the huge costs and instability of private renting.

“The autumn spending review is the Government’s last chance to show they’re serious about giving millions of people a fair shot at a stable future by investing in the genuinely affordable homes they desperately need.”1



House Prices Up by 5.2% Annually

Published On: September 16, 2015 at 9:57 am


Categories: Finance News

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The Office for National Statistics (ONS) has released its latest house price figures, showing a monthly increase of 1.8% in July.

In the year to July, prices rose by 5.2%, down from growth of 5.7% in the year to June.

Around the UK, prices increased by 5.6% yearly in England, by 0.3% in Wales and by 7.4% in Northern Ireland.

House Prices Up by 5.2% Annually

House Prices Up by 5.2% Annually

However, prices dropped by 1.3% annually in Scotland.

Prices in London rose by 5.5% in the year to July, up from 5.3% in the year to June, but down on the national average.

Excluding London and the South East, prices grew by 4.4%.

The ONS reports that the increases in England were fuelled by an annual rise in the East, of 8.3% and in the South East, of 6.7%.

In the capital, the average house price was £525,000 in July, contrasting to the average price in the North East of £156,000.

The average mix-adjusted house price in England was £295,000, £173,000 in Wales, £154,000 in Northern Ireland and £196,000 in Scotland.

The average UK mix-adjusted price excluding London and the South East was £215,000.

Chief Executive of housing charity Shelter, Campbell Robb, states: “Not addressing our dramatic shortage of homes is pushing house prices higher and higher, and a stable home further out of reach for millions of young people and families. Instead, they’re trapped in expensive and insecure private renting, or stuck in childhood bedrooms.

“Current Government schemes, like Help to Buy or Starter Homes, don’t help the ordinary families on average wages who are struggling to keep up with sky-high housing costs.

“The autumn spending review is the Government’s last chance to show they’re serious about turning around the housing crisis, by investing in the genuinely affordable homes we desperately need.”1

However, the ONS data, taken from mortgage figures, continues to differ from Land Registry statistics, which put the average house price at £183,861 – more than £100,000 less than the ONS mix-adjusted average.

The ONS says that the difference is due to Land Registry using a repeat sales methodology and including cash sales.

A spokesperson claims that the ONS and Land Registry are working together to develop a joint house price index that will replace the current two in mid-2016.






Surprise Rise in House Prices, Says Halifax

Published On: September 10, 2015 at 1:34 pm


Categories: Finance News

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House prices rose by 2.7% in August, the highest monthly increase since May 2014, according to the Halifax.

This surprise growth contributed to a 3% rise over three months and annual house price inflation of 9%. Halifax also reports that the average property price is now £204,674.

Housing Economist at the Halifax, Martin Ellis, says: “The shortage of second-hand properties for sale on the market is resulting in upward pressure on house prices.

Surprise Rise in House Prices, Says Halifax

Surprise Rise in House Prices, Says Halifax

“At the same time, economic recovery, real earnings growth and very low mortgage rates are supporting housing demand.”1

The data for August has surprised some analysts, causing the second group of leading economists in a week to change their house price predictions for 2015 onwards.

Chief Economist at IHS Global Insight, Howard Archer, called Halifax’s August figure a “real eye opener”, especially when compared to Nationwide’s statistics, which recently indicated that house prices increased by a smaller 0.3% in August.

Contrasting to the Halifax, Nationwide’s data indicates that the annual rate of house price growth was the weakest for two years in August.

IHS Global Insight has now revised its forecast on house price growth for 2015, raising it from 6% to 7%.

Archer explains: “Latest data and survey evidence largely indicate that housing market activity is on the up, and we suspect it will be supported over the coming months by largely helpful fundamentals, notably including stronger earnings growth, high employment, elevated consumer confidence and still very low mortgage interest rates.”1

The Royal Institution of Chartered Surveyors (RICS) also revealed that it has changed its UK house prices prediction, expecting prices at the end of the year to be 6% higher than at the start. Entering 2015, RICS forecast a 3% increase.

Chief Economist at RICS, Simon Rubinsohn, says: “House price inflation has now quickened in each of the last seven months following a sustained period of easing towards the latter half of 2014.

“And there is good reason for this trend to be sustained into 2016.”1


Gap Between House Prices and Wages Widens

Published On: September 3, 2015 at 4:42 pm


Categories: Finance News

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The gap between house prices and wages has widened so much in the last 20 years that even in the most affordable parts of England and Wales, buyers must spend six times their income on purchasing a home, according to new analysis.

The situation is most serious in London, where the median house is now 12 times the median income in the capital.

The Guardian has analysed 19m home sales over 20 years from Land Registry and HM Revenue & Customs (HMRC) data. The research shows that in every region of England and Wales, there have been sharp rises in property prices in proportion to wages, causing concerns that millions of aspiring buyers will be priced out of the market.

Ratio of house prices to incomes in 2012-13


Median income Median house price


London £24,600 £300,000 12.2
South East £23,100 £229,000 9.9
South West £20,300 £187,500 9.2
East of England £21,900 £192,995 8.8
West Midlands £19,900 £145,000 7.3
East Midlands £19,900 £137,748 6.9
Wales £19,400 £132,000 6.8
Yorkshire and the Humber £19,600 £130,000 6.6
North West £19,700 £130,000 6.6
North East £19,700 £120,000 6.1

A buyer earning the median salary for their region in 1995 would have spent between 3.2 and 4.4 times their earnings on a house, depending on where they lived. In 2012-13 – the latest year for which complete data is available – the median house price had increased to between 6.1 and 12.2 times median regional wages.

In 1995, the median salary in London was £19,000 and the median house price was £83,000, meaning that people spent 4.4 times their income on buying a home. However, by 2012-13, the median income had grown to £24,600 in the capital and the median house price had risen to £300,000, causing people to spend 12.2 times their wages on a property.

Even in more affordable regions, prices have grown substantially. In the most inexpensive region, the North East, the proportion of earnings spent on homes has almost doubled in 20 years, rising from 3.4 times the median income in 1995 to 6.1 times in 2012.

Gap Between House Prices and Wages Widens

Gap Between House Prices and Wages Widens

Residential Research Director at Hamptons International estate agent, Fionnuala Earley, says: “House prices have completely outstripped income growth.

“The biggest factor is that in the run-up to the crash, interest rates were low, so you could afford to service a bigger mortgage then. There was also low inflation on essentials like food, fuel, transport and utilities, so people had more money in their pockets and were able to gear up for bigger mortgages.”1 

The director of affordable housing campaign group PricedOut, Duncan Stott, says that the figures suggest the gap between the “housing haves and the housing have-nots” is getting even wider.

He explains: “It’s not just that every region has got more expensive, but how much more expensive some regions have got. When you look at places where housing prices are increasing, places like Cambridge, Reading, Bristol, Oxford… These are places where jobs are being created but they’re completely unaffordable, so there’s a huge mismatch between the labour market and the housing market.”

Behind London, the most expensive regions for homes are the South East and South West, where properties cost 9.9 and 9.2 times the median salaries of those regions respectively.

After the south, the East of England follows with 8.8 times the median income, the West Midlands is next at 7.3 times, then the East Midlands at 6.9, Wales at 6.8 and Yorkshire and the Humber and the North West, both at 6.6 times median wages.

The most expensive postcode district to buy a home in 2014 was Mayfair, London. 26 properties were sold there last year, with a median price of £2.9m. The most expensive home sold in that area cost £18.4m and the cheapest was £155,100.

The 36 most expensive postcode districts in the country were in the capital, with Leatherhead in Surrey coming 37th. In Leatherhead, the median house price in 2014 was £775,000 and the most expensive property sold that year for £2.9m.

The cheapest postcode district was central Bradford in West Yorkshire, where there were 191 property sales in 2014. The median house price in BD1 was £40,000 and the cheapest sale was £29,000.

Behind Bradford, the most affordable districts were Ferndale in the Rhondda Valley, followed by Grimsby in Lincolnshire, New Tredegar in Caerphilly and Middlesbrough

The most expensive home sold to an individual in 2014 was in London and cost £50m, while the cheapest was £7,000 in the North East.

The gap between house prices and earnings has caused the Organisation for Economic Co-operation and Development (OECD) to put the UK in the category of countries “where houses appear overvalued but prices are rising.” 1

The OECD warns that economies in this category, including Canada, Australia and New Zealand, are prone to the risk of price corrections.

Stott cautions that increasing house prices mean more people will be permanent renters, which could have various effects on society.

He says: “It takes a toll on young people who can’t afford a house. A lot of us are going to be spending our lives renting and we need to be thinking about the implications for children growing up in private rentals and how on earth we pay the rent when we retire, which no one is talking about.

“It’s an unsustainable setup we’ve got, if we don’t deal with problems now – the lack of supply, lack of mortgage controls and lack of property tax reform – we’re going to sleepwalk into these problems.”1 


Average Estate Agent Fee is 1.3% for 15th Consecutive Month

Published On: July 20, 2015 at 11:14 am


Categories: Landlord News

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Average Estate Agent Fee is 1.3% for 15th Consecutive Month

Average Estate Agent Fee is 1.3% for 15th Consecutive Month

The UK’s largest conveyancing firm, Myhomemove, has revealed that the average estate agent fee in June was 1.3%, for the 15th consecutive month.

When the rate first dropped in April 2014, the average fee would have been £2,925.

Last month, this had increased by £83, due to rising house prices. As inflation is at 0%, this is a net gain.

June’s house price fall was unexpected and now the housing market is continuing its recovery with a 6.4% monthly increase, to £235,992.

From January to June this year, property prices have risen by 2.9% on average and annually by 5.5%.

These prices are based upon completed house prices, not asking prices.

The average fee does not include online and hybrid agent fees.

The average time to receive a mortgage offer has grown by another half day, to 49 days. This is around a week quicker than last year.