Posts with tag: sales

Buy-to-let mortgages defy July slump

Published On: August 22, 2017 at 11:51 am

Tags: Buy-to-Let,mortgage,mortgage sales,sales

The most recent analysis conducted by Equifax Touchstone has revealed that UK mortgage dales fell by £1.8bn in July- a fall of 10.8% on the previous month.

More positively, buy-to-let figures were more resistant to the general decline, falling by only 0.2% (£3.9m) to £2.6bn. Residential sales fell by 12.8% (£1.8bn) to £12.2bn. Overall, mortgage sales for July totalled £14.8bn, up by 10.8% year-on-year.

Falls

All regions of the UK suffered a significant fall in sales during the month. Scotland saw the largest falls of 19.8%, followed by Northern Ireland (-18.5%) and the South East (-15.4%).

Buy-to-let mortgages defy July slump

John Driscoll, Director at Equifax Touchstone, noted: ‘These figures show how volatile the mortgage market can be. Sales have tumbled in July, with every region suffering substantial declines as buyers are put off by continuing political and economic uncertainty, coupled with the worrying gap between inflation and wage growth. These circumstances may be further compounded by the potential for an interest rate hike as early as September, driven by continued pressure on the pound.’

‘On a more optimistic note, mortgage sales are up over 10% year-on-year and a dip in sales for July is not uncommon; however, as the summer period comes to a close, the long-term outlook for the market still remains very unclear.’[1]

[1] http://www.propertyreporter.co.uk/finance/buy-to-let-sales-defy-july-mortgage-slump.html

London market is proving to be ‘strange’

Published On: July 27, 2017 at 11:49 am

Author: Em Morley

Categories: Property News

Tags: London,prime property market,sales,Stamp Duty

London is undoubtedly a buyer’s market at present, with those looking to purchase prime property in the capital becoming more pragmatic.

Vendors therefore are being more realistic about property prices or being more prepared to negotiate, in order to achieve a sale.

Withdrawals

However, while some sellers now understand the need to factor in stamp duty and economic uncertainty into their expectations, this is not the case for all. Indeed, some vendors would rather withdraw their property from the market, if they feel they are unlikely to hit their bottom-line price.

Some 58% worth of properties withdrawn from the market in central London so far in 2017 were withdrawn as opposed to being sold, according to data from LonRes. This is not only restricting supply from prospective purchasers, but also much needed stock for estate agents.

Marcus Dixon, Head of Research at LonRes, observed: ‘This gives you an idea of just how sluggish the market is. There are large numbers of people in properties they would really rather sell.’[1]

London market is proving to be ‘strange’

The level of withdrawals is an, ‘important barometer of the market,’ Dixon want on to note. He also observed that a lack of forced sellers have not been coupled with a decline in the economy, unlike during the economic crash.

Concluding, Mr Dixon said: ‘The housing market has slowed considerably but not a huge amount of people are losing their jobs or finding themselves unable to pay their mortgages.’

‘It creates a strange market in which lots of people are staying in properties that aren’t very suitable for them anymore.’[1]

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2017/7/london-is-a-strange-market-filled-with-people-living-in-unsuitable-properties

Sales up but prices down, according to Rightmove

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

Author: Em Morley

Categories: Property News

Tags: agents,landlords,property,property prices,sales

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

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

Investors remain active ahead of festive period

Published On: December 20, 2016 at 3:40 pm

Author: Em Morley

Categories: Landlord News

Tags: auction,investment,investors,sales,UK housing market

It is currently a time of cooling off for the UK housing market as Christmas approaches. However, there are still some signs that investors are remaining highly active.

A clear sign of this was the outcome of Cheffins’ auction in Cambridge last week, where £1.65m worth of sales was achieved across 13 lots. This represented a sales rate of 77%.

Activity

Ian Kitson, associate at Cheffins, said: ‘December sales often feature slightly smaller catalogues than the rest of the year, but there was good interest in a range of the lots throughout the marketing period, suggesting that buyers remain motivated regardless of the looming festive period.’[1]

‘We saw a good turnout on the day and achieved strong prices across the board. The sale of 77% appears strong compared to some of the results being reported nationally and we can attribute this to the quality of lots on offer, as well as the popularity of our region,’ he continued.[1]

Investors remain active ahead of festive period

Renovation

It appears that investment properties offering good opportunities of redevelopment attracted the most interest, with bidding and results well over guide prices across multiple lots.

The lot fetching the highest value offer on the day was a development site of 0.2 acres in Westfield Road, near Cambridge. This site had planning permission for the demolition of an existing bungalow, with the creation of two detached houses. This lot eventually sold for £419,000.

Mr Kitson also noted: ‘Renovation projects and investment opportunities were definitely the most sought-after lots of the day at this month’s auction. Previously the mainstay of property developers, we are actually seeing a shift in the types of person who look to purchase renovation projects, with a larger number of owner-occupiers entering the bidding.’[1]

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2016/12/investors-remain-motivated-regardless-of-the-looming-festive-period