Tag Archives: capital-gains
UK house prices up 10% in year to November 2014, ONS data shows
UK house prices increased by 10% in the year to November 2014, down from 10.4% in the previous month, the latest data from the Office of National Statistics shows. House price annual inflation was 10.4% in England, 3.1% in Wales, 4.4% in Scotland and 11.7% in Northern Ireland, the data also shows. Overall house prices continue to increase strongly across the majority of the UK, with prices in London again showing the highest growth. Indeed, house price increases in England were driven by an annual increase in London of 15.3% and to a lesser extent increases in the East at 11.9% and the South East at 10.8%. Excluding London and the South East, UK house prices increased by 7.1% in the 12 months to November 2014. On a seasonally adjusted basis, average house prices increased by 0.2% between October and November 2014. The index also reveals that in November 2014, prices paid by first time buyers were 11% higher on average than in November 2013. For owner occupiers (existing owners), prices increased by 9.5% for the same period. Peter Rollings, chief executive officer of Marsh & Parsons, said that with property price growth slowing it mustnot be forgotten that the market has seen a double-digit rise in home values over the past 12 months and this an impressive leap. 'After the exertions of the summer months, this is simply a period of natural re-calibration, restoring a more sustainable pace of price inflation. Growth is still ticking along in the right direction, with a steadier 0.2% climb in the month to November,' he explained. 'The first half of the year is typically the most energetic for the property market, and we’re already seeing reinvigorated demand in the new year, as more people turn their sights to getting their foot on the property ladder or moving home. Conditions are ripe for buying, with a rise in supply of property for sale, a relaxation in bank lending criteria and historically low mortgage rates ensuring less fraught competition for homes,' he added. Graham Davidson, managing director of Sequre Property Investment, said he was not surprised by the slowing rate of house prices over the course of November. ‘Whilst seasonality can account for some of this slight decline in growth, it was likely that prices in many places in the UK would have to start to slacken at some point. London and the South East in particular were bound to experience a slump, as the rate of increase simply could not continue,’ he pointed out. ‘As we are now less than six months away from a general election, there is some economic and political uncertainty within the UK which, coupled with the introduction of Capital Gains Tax for overseas buyers, may be putting off purchases by non-UK buyers and this in turn could have helped cool price rises,’ he explained. ‘The prospect of the Bank of England’s new powers announced in October to restrict… Continue reading
UK property prices up over 12% year on year, latest data shows
UK house prices increased by 12.1% in the year to September but there is considerable variation with London driving national prices up, the latest data shows. Overall, house price annual inflation was 12.5% in England, 5.8% in Wales, 7.6% in Scotland and 10.9% in Northern Ireland, according to the figures from the Office of National Statistics. Annual house price increases in England were driven by an annual increase in London of 18.8% and to a lesser extent increases in the East at 13.4% and the South East at 11.6%. Excluding London and the South East, UK house prices increased by 9.1% in the 12 months to September 2014. The data also shows that on a seasonally adjusted basis, average house prices increased by 0.5% between August and September 2014. In September 2014, prices paid by first time buyers were 13.3% higher on average than in September 2013. For existing owners, prices increased by 11.5% for the same period. According to Peter Rollings, chief executive officer of Marsh & Parsons, the housing market recovery is still showing spritely movement, and good ground has been covered in property values compared to a year ago. ‘Values have retreated back from peak levels in the majority of regions across the country. London remains the spark plug injecting energy into the overall annual rise in UK house prices, and lively demand to live and work in the capital has always spurred growth on at a faster pace than in other regions,’ he said. ‘Following a slower than normal summer in London, an attractive combination of greater supply of property, excellent lending conditions and more realistic asking prices are attracting good amounts of potential buyers to the market,’ he added. David Newnes, director of Reeds Rains and Your Move estate agents, pointed out that recent hiccups in the market have not shaken the overall underlying stability. ‘Zooming in on the regional footprints unearths a more complex path of growth as the recovery continues to advance with a Southern leaning slant,’ he said. ‘If we omit London and the South East from our calculations, a milder annual change in property prices emerges. Yet at the very top end of the housing market in prime central areas of London, growth is subsiding,’ he added. He also pointed out that the firm’s research shows that October saw the highest level of house sales completed in a month since November 2007. ‘This increased level of house sale completions marks a considerable, though laborious, reflection of the increased buyer activity earlier in the year since the recession zapped the energy from the market. Not only this, but activity is starting to shift towards areas where the recovery still requires support and attention,’ he explained. The research also found that the biggest uplift in completions in the third quarter of 2014 compared to 2013 has been witnessed outside of London. Completed house sales in both the West Midlands and East Midlands have risen 22%, while in London house sale completions are up… Continue reading
Latest index data confirms slowdown in price growth and sales in UK market
House prices in the UK are slowing both on a monthly and a quarterly basis, confirming the general decline in value growth, according to the latest index from the Halifax. In the August to October 2014 period prices were 0.8% higher than in the previous three months and this is the slowest quarterly rise since December 2012 when house prices grew by 0.7%. The sharp fall in the quarterly rate from 2.7% in September is largely explained by the 4% monthly rise in prices between April and May dropping out of the three month on three month calculation, according to Martin Ellis, Halifax housing economist. Prices in the three months to October were 8.8% higher than in the same three months a year earlier and based on this measure, annual house price growth has been slowing since the middle of summer after reaching a peak of 10.2% in July. The index data also shows that house prices fell by 0.4% between September and October, the fifth monthly decline in the past year. Home sales are also falling. They contracted for the seventh month in succession, falling to 97,450 in September, the lowest level since October 2013 when they were 95,640. Sales in September were 11% below their recent in peak in February 2014 at 109,530 according to HMRC, seasonally adjusted figures. At the same time mortgage approvals at a 14 month low. The volume of mortgage approvals for house purchases, a leading indicator of completed house sales, fell for the third consecutive month in September, to 61,300. Approvals have now fallen by 20% from 76,500 in January 2014 according to Bank of England seasonally adjusted figures. There are signs of an improved balance between supply and demand. Market conditions, as measured by the ratio of house sales to the stock of unsold properties, reported by the Royal Institution of Chartered Surveyors’ (RICS) monthly survey, eased for the second consecutive month in September as a result of lower sales, according to the latest data. This suggests that a better balance between supply and demand may be emerging. Ellis pointed out that the economy is continuing to grow at a healthy pace and employment is still rising and these factors should support housing demand over the coming months. ‘However, while the chances of an imminent interest rate hike may have receded, a recent Halifax survey found that many borrowers are concerned about the impact a rise could have on their monthly mortgage repayments over the next 12 months. This concern is likely to curb buying intentions,’ he added. It feels like the market has had a small stutter, according to Jonathan Hudson, of London west end agent Hudson Property. ‘While buyers are getting used to the new MMR ruling on mortgage affordability and while some have their eye on the general election in May, I would say these figures represent the mood in the market,’ he said. ‘People are still buying, but only sellers with a reason for moving are accepting… Continue reading
